The document summarizes a court case regarding a petition filed challenging a lower court's rejection of an application to impound an agreement of sale document.
1. The petitioner had filed an application in a civil suit to impound the agreement of sale document, claiming it was insufficiently stamped. The lower court rejected this application.
2. The petitioner is now challenging the lower court's rejection in the high court. The high court must determine if the agreement of sale document was properly admitted as evidence in the lower court proceedings.
3. Key issues are whether the document could be admitted without proper endorsement and stamping, and whether its admission bars a later challenge of insufficient stamping under the Stamp Act. The
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Bombay High Court Writ Petition Judgment 2019
The document summarizes a court case regarding a petition filed challenging a lower court's rejection of an application to impound an agreement of sale document.
1. The petitioner had filed an application in a civil suit to impound the agreement of sale document, claiming it was insufficiently stamped. The lower court rejected this application.
2. The petitioner is now challenging the lower court's rejection in the high court. The high court must determine if the agreement of sale document was properly admitted as evidence in the lower court proceedings.
3. Key issues are whether the document could be admitted without proper endorsement and stamping, and whether its admission bars a later challenge of insufficient stamping under the Stamp Act. The
9. I have given due consideration to the submissions made on
behalf of the learned Counsel appearing for the parties. I have
perused the impugned order and the other material placed on
record. As I have noted herein above, it is not in dispute that the
document of agreement of sale dated 04.05.2009, was referred
to by PW-1 in her examination-in-chief and in examination-in-
chief itself the same has been exhibited and has been marked at
Exh.82. Further there appears no dispute that objection was not
raised by any of the defendants when the Trial Court exhibited
the aforesaid agreement and marked the same at Exh.82. It is
further not in dispute that in the cross-examination of PW-1 by
defendant Nos.2 and 3, they have also referred to the said
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document. Admittedly, PW-1 is yet to be cross-examined by
defendant No.4, who has filed concerned application at Exh.88
for impounding of the said document. In the application at
Exh.88 filed by the petitioner before the Trial Court, in the prayer
clause of the said application, an order is sought from the Trial
Court that the agreement of sale dated 04.05.2009, be
impounded in accordance with Sections 33 and 34 of the Stamp
Act. I deem it appropriate to reproduce herein below both the
aforesaid Sections, which read thus:-
“33. Examination and impounding of instruments
(1) [Subject to the provisions of section 32-A, every person]
having by law or consent of parties authority to receive evidence and every person in charge of a public office, except an officer of police [or any other officer, empowered by law to investigate offences under any law for the time being in force,] before whom any instrument chargeable, in his opinion, with duty, is produced or comes in the performance of his functions shall, if it appears to him that such instrument is not duly stamped, impound the same [irrespective whether the instrument is or is not valid in law.]
(2) For that purpose every such person shall examine every instrument so chargeable and so produced or coming before him in order to ascertain whether it is stamped with a stamp of the value and description required by the law for the time being in force in the State when such instrument was executed or first executed:
Provided that,-
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(a) nothing herein contained shall be deemed to require any
Magistrate or Judge of a Criminal Court to examine or impound, if he does not think fit so to do any instrument coming before him in the course of any proceeding other than a proceeding under [Chapter IX or Part D of Chapter X of the code of Criminal Procedure, 1973];
(b) in the case of a Judge of a High Court, the duty of
examining and impounding any instrument under this section may be delegated to such officer as the Court may appoint in this behalf.
(3) For the purpose of this section, in cases of doubt,-
(a) the State Government may determine what offices shall
be deemed to be public offices; and
(b) the state Government may determine who shall be
deemed to be persons in charge of public offices.
34. Instruments not duly stamped inadmissible in
evidence, etc.
No instrument chargeable with duty [****] shall be
admitted in evidence for any purpose by any person having by law or consent of parties authority to receive evidence, or shall be acted upon, registered or authenticated by any such person or by any public officer unless such instrument is duly stamped [ or if the instrument is written on sheet of paper with impressed stamp [such stamp paper is purchased in the name of one of the parties to the instrument]
Provided that,
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[(a) any such instrument shall, subject to all just exceptions,
be admitted in evidence on payment of, -
(i) the duty with which the same is chargeable, or in the case of an instrument insufficiently stamped, the amount required to make up such duty, and
(ii) a penalty at the rate of 2 per cent of the deficient portion
of the stamp duty for every month or part thereof, from the date of execution of such instrument:
Provided that, in no case, the amount of the penalty shall
exceed [ four times] the deficient portion of the stamp duty.]
(b) where a contract or agreement of any kind is effected by
correspondence consisting of two or more letters and any one of the letters bears the proper stamp; the contract or agreement shall be deemed to be duly stamped;
(c) nothing herein contained shall prevent the admission of
any instrument in evidence in any proceeding in a Criminal Court, other than a proceeding [under Chapter IX or Part D of Chapter X of the Code of Criminal Procedure 1973;]
(d) nothing herein contained shall prevent the admission of
any instrument in any Court when such instrument has been executed by or on behalf of the Government or where it bears the certificate of the Collector as provided by section 32 or any other provision of this Act;
[(e) nothing herein contained shall prevent the admission of
a copy of any instrument or of an oral admission of the contents of any instrument, if the stamp duty or a deficient portion of the stamp duty and penalty as specified in clause (a) is paid.]”
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10. As against the contentions raised by the petitioner,
respondent No.1 i.e. original plaintiff has referred to and relied
upon Sections 35 and 36 of the Act. Sections 35 and 36 read
thus:-
“35. Admission of instrument where not to be
questioned
Where an instrument has been admitted in evidence,
such admission shall not, except as provided in section 58, be called in question at any stage of the same suit or proceeding on the ground that the instrument has not been duly stamped.
36. Admission of improperly stamped instruments
The State Government may make rules providing that,
where an instrument bears a stamp of sufficient amount but of improper description, it may, on payment of the duty with which the same is chargeable, be certified to be duly stamped, and any instrument so certified shall then be deemed to have been duly stamped as from the date of its execution”
11. As has been argued on behalf of the petitioner, although
the alleged agreement of sale has been marked at Exh.82 by the
Trial Court, in absence of the compliance under Order XIII Rule 4
of the CPC, it cannot be said that the said document has been
admitted in the evidence. In order to buttress his contention, the
learned Counsel for the petitioner relied upon the Full Bench
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Judgment of this Court in the case of Mr.Hemendra Rasiklal Ghia
(supra) and the Judgment of learned Single Judge in the case of
Rekha (supra). The learned Counsel for the petitioner brought to
my notice that though the agreement of sale has been marked at
Exh.82 by the Court, it does not bear any endorsement as
envisaged under Order XIII Rule 4 of the CPC. Order XIII Rule 4
reads thus:-
“Order XIII Rule 4. Endorsements on documents
admitted in evidence. - (1) Subject to the provisions of the next following sub- rule, there shall be endorsed on every document which has been admitted in evidence in the suit the following particulars, namely:-
(a) the number and title of the suit,
(b) the name of the person producing the document, (c) the date on which it was produced, and (d) a statement of its having been so admitted;
and the endorsement shall be signed or initialled by the
Judge.
(2) Where a document so admitted is an entry in a book,
account or record, and a copy thereof has been substituted for the original under the next following rule, the particulars aforesaid shall be endorsed on the copy and the endorsement thereon shall be signed or initialled by the Judge.”
12. As has been observed by the learned Single Judge of this
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Court in the case of Rekha (supra), Order XIII Rule 4 mandates
that if the document has to be admitted in the evidence in the
Suit, requirements as are enlisted under Order XIII Rule 4 of the
CPC, are to be complied with. It was therefore the contention of
the learned Counsel appearing for the petitioner that for non-
compliance of order XIII Rule 4, the document at Exh.82 cannot
be said to have admitted in the evidence. It was therefore the
further contention of the learned Counsel that the issue raised
about insufficiency of the stamp and the further request made by
the petitioner for impounding the said document was liable to be
favourably considered by the Trial Court and the bar under
Sections 35 and 36 of the Stamp Act, would not operate in the
present case.
13. I am, however, not convinced with the submission so
made. There cannot be a dispute about the compliance of Order
XIII Rule 4 of the CPC as has been held by the learned Single
Judge of this Court in the case of Rekha (supra), however, the
facts involved in the case of Rekha (supra) are distinguishable
with the facts involved in the present case. In the case of Rekha
(supra), defendant No.1 therein had filed an application stating
that the plaintiff has executed 'Hakksod Affidavit' and had
relinquished her share in the ancestral property. In the said
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application itself it was prayed to impound the document and the
said application was pending for consideration. In the
meanwhile, the plaintiff led her evidence, the defendants also led
their evidence and DW-5 in his testimony before the Court
referred the 'Hakksod Patra' in his examination-in-chief and in the
said examination-in-chief referred it as Exh.80. The said
document was never exhibited by the Court prior to
examination-in-chief. The said examination-in-chief of DW-5 was
filed on affidavit and in the said affidavit he referred to the said
document as Exh.80. The said witness was also cross-examined.
The plaintiff, on the day DW-5 deposed before the Court, filed an
application for de-exhibiting the document. The Trial Court,
however, rejected the request and in such circumstances this
Court had held that an error was committed by the Trial Court by
rejecting the application and held that endorsement of the
exhibit on the document was not as per Rule 4 of Order XIII of the
CPC.
14. In the present matter, as has been observed by the Trial
Court, the plaintiff in her examination-in-chief referred to the
document of agreement of sale and then it was marked at
Exh.82. The Trial Court has further observed that at the relevant
time, no objection was raised by the defendants for exhibiting
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the said document. It is further observed by the Trial Court that
the plaintiff was thereafter, cross-examined by the learned
Counsel for defendant Nos.2 and 3 and the plaintiff was cross-
examined on the said document also. In the circumstances,
merely because there is some non-compliance as envisaged
under Order XIII Rule 4 of the CPC, it is difficult to accept the
contention of learned Counsel for the petitioner that the said
document of agreement of sale cannot be said to have admitted
in the evidence by the Trial Court. It has to be stated that
making an endorsement as envisaged under Order XIII Rule 4 is
in a way a ministerial act. It has to be further stated that
ordinarily such endorsements are made after the evidence of the
particular witness is concluded. Evidence of PW-1 is not yet
concluded. Defendant No.4 has yet to cross-examine the said
witness. As such, merely because no such endorsement is
appearing on the subject document, it cannot be held on the
said ground that the said document cannot be admitted in the
evidence.
15. Now, the question arises whether an objection can now be
raised about admissibility of the said document in the evidence
on the ground that the said instrument has not been duly
stamped. In fact, if the prayers in the application filed by the
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present petitioner at Exh.88 are perused, the only prayer made
by original defendant No.4 is that the said document of
agreement of sale dated 04.05.2009, be ordered to be
impounded. In the said application, it is no where prayed that
the said document be de-exhibited or that it should not be held
admissible in the evidence. It, however, appears that before the
Trial Court, the arguments were made on behalf of defendant
No.4 in that regard also and that appears to be the reason that
the Trial Court has recorded a finding that once the document
was exhibited, admissibility of the said document for insufficient
stamp was not liable to be questioned by defendant No.4 i.e.
present petitioner.
16. On perusal of the Judgments relied upon by learned
Counsel for respondent No.1, it is revealed that a consistent
view is taken by the Hon'ble Apex Court that once a document is
admitted, rightly or wrongly, in the evidence, it is not permissible
under Section 36 of the Stamp Act, at any subsequent stage of
the Suit or proceeding whether it is the Court of Appeal or
Revision or the Trial Court, to reject the said document and it has
to be acted upon as a document duly stamped, even though it
forms foundation of the Suit.
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17. There cannot be a dispute about the law laid down in the
aforesaid Judgments by the Hon'ble Apex Court. According to
me, the issue involved in the present matter is bit different. I
have reproduced herein above the prayers made in the
application Exh.88 filed by the present petitioner. I reiterate
that the request in the said application is that the agreement of
sale dated 04.05.2009, be ordered to be impounded in
accordance with Sections 33 and 34 of the Stamp Act. In view of
the fact that the aforesaid document was exhibited by the Trial
Court during the oral evidence of PW-1 and no objection was
raised by any of the defendants for exhibiting the said document,
on the contrary, the said document was referred by defendant
Nos.2 and 3 while cross-examining PW-1, the prayer made in the
application under Section 34 of the Stamp Act, was certainly not
liable to be considered by the Court in view the provisions under
Section 35 of the Stamp Act, and to that extent no fault can be
found with the order impugned in the present petition.
18. The question still remains why the Trial Court did not
accept the request of defendant No.4 for impounding of the said
document. As I noted herein above, it is not in dispute that the
document marked at Exh.82 is the document of agreement of
sale executed between the plaintiff and defendant Nos.1 to 6 in
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Special Suit No.167 of 2012. The alleged agreement is
admittedly on the Stamp Paper of Rs.100/-. As has been
admitted by PW-1 in her cross-examination, the plaintiff is in
possession of the suit property as a prospective purchaser. PW-1
in her cross-examination by the Advocate of defendant Nos.2 and
3 has deposed as under:-
“My possession over the suit property is continued in
other capacity and not as a tenant. I am in possession of the suit property as prospective purchaser. After agreement of year 2009 I am in possession of suit property as a prospective purchaser. There is agreement to show that I am in possession of the suit property as prospective purchaser. The said agreement is of dated 04.05.2009. On 04.05.2009 there was only agreement pertaining to suit property. On the basis of suit agreement dated 04.05.2009 I am in possession of the suit property.”
Considering the admissions as aforesaid, there appears
substance in the contentions raised on behalf of the petitioner
that the agreement of sale dated 04.05.2009, shall be deemed to
be 'Conveyance' under Article 25 of the Stamp Act, and the
stamp duty shall be leviable accordingly on the said document.
The Explanation to Article 25 reads thus:-
[Explanation I.]- For the purposes of this article, where in the
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case of agreement to sell an immovable property, the
possession of any immovable property is transferred [or agreed to be transferred] to the purchaser before the execution, or at the time of execution, or after the execution of, such agreement [***] then such agreement to sell shall be deemed to be a conveyance and stamp duty thereon shall be leviable accordingly.
19. In the aforesaid circumstances, it appears to me that
though the Trial Court was fully justified in rejecting the request
of the petitioner to the effect that the said document shall not be
held admissible in the evidence, there was no reason to reject
the another request made by the petitioner to impound the said
document.
20. Section 33 of the Stamp Act, provides for examining and
impounding of the instruments not duly stamped. I have already
reproduced aforesaid Section herein above. In the instant case,
there is no dispute that the Trial Court falls in the category of
person specified in Sub-section 1 of Section 33. It has by law
authorized to receive evidence, so the first condition of Section
33 is fulfilled. As the document in question was produced before
the Court by the plaintiff for being acted upon, the second
condition is also fulfilled. The document was sought to be
admitted in the evidence. The signatures of the respective
parties as well as the contents of the instrument were duly
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proved by PW-1.
21. In above circumstances, in my opinion, the Trial Court must
have accepted the request of the present petitioner i.e. original
defendant No.4 to the extent of impounding of the said
document. As I noted earlier, though the admissibility of the said
document in evidence cannot be questioned in view of the
provisions under Section 35 of the Stamp Act, the same would
not operate as a bar for impounding of the document in question.
22. In the case of Deepak Corporation Bombay Vs. Pushpa
Prahlad Nanderjog [1995 (1) Mh.L.J. 489] , the respondent
therein had filed a Suit against the petitioners therein for
permanent injunction restraining them from interfering with her
peaceful use and enjoyment of Suit premises and from taking
any steps to dispossess her therefrom except by due process of
law. The said Suit was settled between the parties and consent
terms were filed. By the said consent terms, the petitioners
(original defendants) agreed and undertook to offer to the
respondent (original plaintiff) a self contained Flat of 600 sq.ft. in
the new building to be constructed by the petitioners to the Suit
property at the rate of Rs.225/- per sq.ft. and to deliver
possession of the said Flat within two years from the date of
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commencement of the construction. The above Suit was
decreed by the Court on 20.12.1984 in accordance with said
consent terms. Thereafter, on 21.02.1989, the parties signed
fresh consent terms in modification and part adjustment of the
above decree. An application was filed on 21.02.1989 before the
Bombay City Civil Court under Order 21 Rule 2 of the Civil
Procedure Code for recording the fresh consent terms and
relieving the petitioners from the undertaking given by them to
the Court under Clause 5 of the original consent terms and the
decree passed in terms thereof. Fresh consent terms dated
21.02.1989 were tendered to the Court along with the above
application for the purpose of recording the part adjustment of
decree to the satisfaction of the plaintiff. The Court took
cognizance of the said document. The plaintiff as well as partner
of the defendants who had put their signatures on the said
document admitted their respective signatures and contents of
the document. However, before acting upon the said document,
the Court made a query to counsel for the petitioners (original
defendants) whether the document was sufficiently stamped and
whether it attracted the provisions of the Indian Registration Act.
Counsel for the petitioners instead of answering query, informed
the Court on 24.02.1989 that the petitioners wanted to withdraw
their application dated 22.02.1989 itself and do not wish to press
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for order thereon. On the above prayer, the Trial Court passed
the following order on 24.02.1989:-
“Advocate for the defendant states that he wants to
withdraw the application i.e. 22.2.1989 and therefore he
does not press for orders.
With the above, I am not passing any orders but it will be
considered whether it is necessary to impound the document
by sending it to the Collector of Stamps as the parties have
used it as evidence and tendered the consent terms as their
agreement before this Court. In this respect separate orders
will be passed. Mr.Rambhia wants to argue on this point.
Adjourned to 10.3.1989 for orders at 2:45 p.m. (Emphasis
supplied)”
23. The order so passed by the City Civil Court was challenged
before the High Court alleging the same to be illegal and without
jurisdiction. The High Court, however, upheld the order passed
by the City Civil Court by observing that:-
“that a duty has been cast on the authority or Court to
impound a document under section 33 if any such document which is inadequately stamped is produced before it to be acted upon and that duty does not come to an end on withdrawal of the document by the party liable to pay additional duty and penalty. The powers, duties and jurisdiction of the Court to pass orders on the application of the party for modification of the decree on the basis of such application and the document produced therewith and the powers, functions and jurisdiction of the Court under section 33 of the Stamp Act to impound the inadequately stamped
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document produced or coming before it are two distinct and
different powers and jurisdictions. For the purpose of modification of the decree the Court might become functus officio on withdrawal of the application but for the purpose of taking action under section 33, it cannot become functus officio. A reference to sections 35 and 58 of the Stamp Act shows that section 35 only gives finality to the decision in regard to the admissibility of the document in evidence. It does not operate as a bar to impounding of the same. Order impounding document confirmed.”
24. It appears to me that the same course was liable to be
adopted in the present matter also. It appears that the Trial
Court failed in appreciating and understanding the object of
Section 33 of the Stamp Act. The object of this Section is to
safeguard the revenue. As has been held by this Court in the
aforesaid Judgment, Section 35 of the Stamp Act only gives
finality to the decision in regard to the admissibility of the said
document in evidence, it however does not operate as a bar for
impounding of the said document. The Trial Court in the
impugned order has observed that filing of an application by the
present petitioner for impounding of document in question was
only with the intention to protract the trial. If that be so, the Trial
Court could have taken appropriate care in that regard also.
There was no impediment to forward the original document to
the Collector to impound the same by keeping on record the
attested or certified copy of the document in question. It need
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not be stated that the Trial Court may not be required to wait for
the decision of the Collector on the issue of impounding and can
very well proceed further with the trial of the Suit. Since the
agreement of sale dated 04.05.2009 has been admitted in the
evidence, it would not be open for the present petitioner to call
in question such admission at any stage of the Suit or proceeding
on the ground that it has not been duly stamped.
25. For the reasons stated above, the following order is
passed:-
ORDER
I) Writ Petition No.2810 of 2019, is allowed.
II) The order dated 24.01.2019, passed by the 8 th Joint