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Jairam Kelwade (a)     26 January 2018

Is property sale agreement on plain paper admissible incourt

Is the property sale agreement on plain paper admissible in court of law ?



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 11 Replies

Ms.Usha Kapoor (CEO)     27 January 2018

 
 
 
 
 
 
 

 

Are agreements made on normal papers (not stamp paper) valid? All the parties involved in the agreement have duly signed it. Can they be used as evidence or proof in a court house?
 
 
 
 
 
 
 
 
 
 
 
 
 
Agreements made on white paper are valid. In India even oral agreements are valid and enforceable, so an agreement made on white paper can surely be valid if it fulfills all other conditions under the law and as per the law.

However, if the agreement requires to be stamped and registered then it cannot be used as an evidence of proof before a Court of law. Under the Indian Stamp Act, 1899, Section 35 [1] specifically provides that a document which any person relies upon to be used as an evidence cannot do so if the same is not duly stamped and unregistered.

To make it enforceable and valid, you will be required to pay the deficit stamp duty alongwith penalty, if any, imposed by the collecting authority. The amount of penalty can be maximum upto 10 times of the deficit penalty amount. Imagine if the authorities pass orders stating that you have to pay an amount of Rs. 5 lacs as deficit stamp duty and impose penalty in addition upto 5 times the deficit amount which will come to Rs. 25 lacs and imagine the worse case where the penalty is 10 times.

Also it increases the litigation, delaying the process and adds up to your headache. So, to avoid any hassels you should make the agreement on a stamp paper and pay the required duty. And like a good citizen of the country abide by the law.

1 Like

N.K.Assumi (Advocate)     27 January 2018

I absolutely agree with Ms.Usha kapoor.

Kishor Mehta (CEO)     27 January 2018

All sales of immovable properties have to be necessarily stamped and registered to be admissible as evidence in a Court of Law.

TGK REDDI   27 January 2018

I too agree with Ms Usha Kapoor.

Advocate Bhartesh goyal (advocate)     27 January 2018

Sale agreement either it is written on plane paper or on stamp paper,it is compulsorily registerable and without it's duly stamped and registered,not admissible in evidence.

TGK REDDI   27 January 2018

Not agreed with Shri Bhartesh Goyal.

Advocate Bhartesh goyal (advocate)     27 January 2018

Mr.TGK REDDI,do you mean that sale agreement written on plane paper, is admissible in evidence,if so then let me explain.

Sri Vijayan.A (Legal Consultant)     27 January 2018

Agreements are not compulsorily registerable documents. They are dealt under S.18 of Registration Act.

In some states, some types of agreements are made as compulsorily registerable.

Stamp Act, S.35 provides the agreement made on plain paper as admissible, enforceable.

TGK REDDI   27 January 2018

Ms Usha Kapoor's reply ( third para ) above contains explanation.

Advocate Bhartesh goyal (advocate)     28 January 2018

Sale agreements are compulsorily registerable,go through the sec 17 & 49 of Registration Act.

Advocate Bhartesh goyal (advocate)     28 January 2018

Sale agreements are compulsorily registerable go through the sec 17 & 49 of Registration Act.

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