My query is that is it necessary by law to affix rubber stamp of the company while signing.?
If an authorised person is signing for a company/firm/proprietor, is it also necessary to affix the round rubber stamp thereat. Does a document in law become invalid if it does not bear the rubber stamp of the company. Is there any law to support this arguement?
What would be the case if the rubber stamp is being misused.
if the director/authorised person is signing any document then it is important to put their seal too as it confirms the desgination of the person who is signing the document.
if the person who signs the document falsely put the rubber stamp of Director/Authorised Person then the said person is guilty of fraud and cheating. thus, company and the other party both shall have the liberty to take legal action against the said person.
Affixing rubber stamp where it should not be affixed, and not affixing rubber stamp where it should be affixed - both are wrong/improper execution of documents. The executant should sign in the proper capacity, and so it is important that rubber stamp/common seal is affixed wherever required.
As to a wrongly executed document becoming invalid in the court of law, I cannot comment with confidence. I think it does not become legally invalid (only understamped and unstamped documents are liable to become invalid). But even if the documents do not become invalid, it surely attracts a lot of trouble for party(ies) whose interest is best served by proper execution.
Since the Company registered under companies act is a juristic person. It is a must to put companies seal on every document signed by the Directors . For that purpose a seal of embossing nature has to be made and specimen of it to be submitted to the registrar of companies.