Exclusive HOLI Discounts!
Get Courses and Combos at Upto 50% OFF!
Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

aamod kumar (...)     20 April 2015

Legal value of agreement on non judicial stamp papers

Some of the plot owners of adjacent plots have entered into mutual agreement on non judicial stamp papers of Rs. 1000 for creating a 15 ft wide road to be used by all of them. The document is nowhere registered. One member who has signed the agreement now wants to revoke this agreement claiming misrepresentation/misstatement of fact/fraud.

(a) What will be the legal value of such unregistered agreement on non judicial stamp paper?

(b) Is this agreement binding on all parties signing on it, can the person claiming its revocation succeed?

(c) Do such agreements require compulsory registration?

(d) What is the evidentiary value of such agreement?



Learning

 3 Replies

Hardeep (Business)     21 April 2015

The agreement has evidentiary value and will be treated as such. Whether a party succeeds or not will depend upon what all evidences he brings to support his case. Maybe you also need to look into whether such roads are allowed in the plots per local land usage laws to begin with.

aamod kumar (...)     21 April 2015

Thanx Hardeep for the prompt reply, However can you clarify whether such agreement  without registration in a sub registrar office is binding on all parties as it seems to be an agreement of immovable property creating certain right to free  path for all signing members as well as third parties. What if one party after signing this, doesn't want to let off his certain part of plot for path? Further, why only 1000 rs stamp paper...can it be more or less?

Hardeep (Business)     22 April 2015

As already said, all agreements - even oral - have evidentiary value, depending upon how can they be substantiated / corroborated.

 

Re property yes indeed most agreements creating rights etc on it would need to be registered. That does not mean, however, that a prima facie case can not be built on an unregistered agreement. The Court , other evidences, lawyer skills etc will be the other factors . That is the fact of our legal system, else there will not be baseless cases clogging it up for decades.


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register