Legal Question in Real Estate Law in India

Stamping of documents

I entered into agreement on Rs.100 stamp paper with a person to purchase his property. This was to be follwed by a Sale Deed. When he tried to avoid the deal, i file suit for specific performance in the court. In the court, he has taken te defence that as per Indian Stamp Act, the document is liable to be stamped on the value of the consideration amount fixed under the agreement. The consoderation fixed is Rs.3.35 crore. That means, I have to affix stamps of about Rs.15 lakh (@ 5%). Not only this, he says that since the document is deficiently stamped, the only option left with the Court is to impound this document and send it to Collector of Stamps for proper stamping and penalty. The penalty can be upto 10 times. The defendant says that the Court can'nt look into this document unless it is stamped accordingly. Please help me how can I get out of this situation. This argument, as raised by defendant, would infact encurage dishonest sellers. Thanks.


Asked on 9/16/08, 2:34 am

2 Answers from Attorneys
Shrichand Nahar S.V.Nahar, Advocate

Re: Stamping of documents

The plea taken by defendants appears to be the law.

For exploring other possibilities, kindly consult your lawyer with all the details/documents.

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Answered on 9/16/08, 2:41 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: Stamping of documents

The suit for specific performance is maintainable on the basis of agreement which is not required to be registered.

The agreement is enforceable in law.

The stamp duty will be required to be fixed after your suit is decreed and the sale deed is to be executed in your favour.

You should pursue your suit properly. If you need any further help/guidance, you may send a copy of the pleadings for our perusal.

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Answered on 9/16/08, 9:58 am


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