Legal Question in Banking Law in India
Stamp Duty and Registration
A lease agreement is stamped after the date of its execution and thereafter is registered. Will the document be considered as unstamped. Will it be proper to give loan to such lessor who has executed such lease deed.
4 Answers from Attorneys
Re: Stamp Duty and Registration
No the document cannot be considered as unstamped.
Re: Stamp Duty and Registration
Lease is valid and there is no illegality.Loan can be given on such lease agreement.
Re: Stamp Duty and Registration
In terms of Sec.17 of the Indian Stamp Act an instrument chargeable with stamp duty is to be stamped before or at the time of execution if it is executed in India. You have not said in which State, the document was executed. Some States have amended the above section permitting stamp duty to be paid later at the time of registration. Since you say that the document is registered, possibly in the State in which it is executed, the stamp duty is collected before registration though after the date of execution. If the lease deed is to be taken as security for the loan, We don't think there would be any legal problem merely on account of collection or payment of stamp duty after the date of execution but prior to registration.
Re: Stamp Duty and Registration
No it wont be considered as unstamped.
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