TaxTMI 
TaxTMI 
2016 (1) TMI 1507
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.... revision petitioner, for the purpose of paying stamp duty penalty, was dismissed. 2. Learned counsel for the revision petitioner/D2 contended that the lower Court failed to see that the above said unregistered sale deed, dated 05.09.1994 was sought to be impounded for paying stamp duty and penalty and the lower Court simply decided the case with regard to the admissibility of the document. He further contended that the Court below dismissed the application for impounding the document on the ground that the document cannot be received in evidence even for collateral purpose, unless it is duly stamped or penalty is paid under Section 35 of the Indian Stamp Act. He further submitted that the Court below failed to notice that the applicatio....
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....that unstamped and unregistered sale deed could be permitted to be marked for collateral purpose. .... 24. A perusal of the document dated 31.3.1973 filed in the typed set of papers would make it very clear that it allotted properties and assets to J. Ramu Chettiar, Minor Vivekanandan and minor Krishnan. No where it discloses that there was a partition previously and the same was being by the Trial Court, it requires registration. This document being an unregistered one can be looked into for collateral purpose only. It is well settled that even an unregistered document is admissible in evidence for collateral purpose provided it is adequately stamped under the Stamp act. If the document is both unstamped and unregistered,....
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....e said issue, observed as follows in paragraph 5: "5. The main question as we have already noted is the question of continuous possession of the plaintiffs over the suit lands. The sale deed dated 9.5.1931 by Fakir Chand, father of the defendants in favour of Tola Singh, the predecessor interest of the plaintiff, is an admitted document in the sense its execution is not in dispute. The only defence set up against said document is that it is unstamped and unregistered and therefore it cannot convey title to the land in favour of the plaintiffs. Under the law a sale deed is required to be properly stamped and registered before it can convey title to the vendee. However, legal position is clear law that a document like the sale deed i....
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.... must mean, if the words are to be given their ordinary and plain meaning that it cannot be admitted under any circumstances in a civil suit. If the legislature in placing this provision of law on the statute book had intended to allow unstamped instruments to be admitted for collateral purposes, it would surely have said so. It did not say so, but on the other hand, it provided that a negotiable instrument which is insufficiently stamped at the time of execution cannot be properly stamped afterwards, even on payment of a penalty which is allowed in the case of other documents." A Division Bench of this Court in the ruling reported in AIR 1968 Madras 294 : 81 LW 2 (Yasodammal v. Janaki Ammal), held as under: "...But in the....
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....elf produced the document before Court along with the plaint, is it be taken that the appellant cannot object to for the admission of the document, so also to look into the contents of the document. It may be straight away said that the settled legal position is that if acting on the admission of execution, the document is admitted and looked into then it would amount to acting upon the unstamped document which will be violative of Section 35 of Indian Stamp Act. Reference can also be made to the following rulings:-- (i) 1954 MLJ 131 (Raghava Reddi v. Venkata Reddi) (ii) AIR 1955 SC 481 (Madho Das v. Mukand Ram) (iii) AIR 1919 Madras 833 : 1918 (8) LW 522 (Mallappa v. Naga) (iv) AIR 1946 PC 51 : 1946 (59)....
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....f the amount required to make up such duty, together with a penalty of five rupees, or, when ten times the amount of the proper duty or deficient portion thereof exceeds five rupees, of a sum equal to ten times such duty or portion...." "Section 17 of the Registration Act: Documents of which registration is compulsory: (1) The following documents shall be registered, if the property to which they relate is situate in a district in which, and if they have been executed on or after the date on which, Act No. XVI of 1864, or the Indian Registration Act, 1866 (20 of 1866) or the Indian Registration Act, 1871 (7 of 1871) or the Indian Registration Act, 1877 (3 of 1877) or this Act came or comes into force, namely: (a) ....