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Neha Agarwal (student)     01 December 2011

Document to be enforceable or not

Please solve the query!!!!!!!!

 

Can an agreement made on plain paper be legally enforced.??? what is the section or case law for the same.

 

Neha



Learning

 8 Replies

Rajesh Hazra (Mediator and Legal Counsel )     01 December 2011

Go through the provisions of Contracts Act 1872. You will get the answer to your query. Specially go through the Section 73, 74, and 75 of the Contracts Act.

Regards
 

pervez (adviser)     01 December 2011

The answer to the question can be found by refering Indian Stamp Act ( as adopted by state)... An unstampd agreement can be enforced by paying 10 times penalty... Refer Sec. 35 of the Act

35.      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 :

          Provided that-

any such instrument not being an instrument chargeable [with a duty not exceeding ten naye paise] only or a bill of exchange or promissory note, [or acknowledgement or delivery order], shall, subject to all just exceptions, be admitted in evidence on payment of the duty with which the same is chargeable, or, in the case of an instrument insufficiently stamped, of 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;

Neha Agarwal (student)     01 December 2011

Thanks Sir,

That means the agreement on plain paper has violated the provisions of Indian Stamp Act But will Court entertain this document if any conflict arises between the parties.?? The document does not have any legal stamping but the signatures of both the parties only.

Sandeep Malkar (Business)     02 December 2011

is Non-Circumvention & Non-Discloser Agreement can be enforce in India. If Yes kindly specify pertaining Acts. Sandeep Malkar.

pervez (adviser)     02 December 2011

My answer to Neha-

The agreement is primary evidence and can be relied in court.. If other party objects because of non stamping, the provision, I quoted, can be referred..

As regards violation of Indian Stamp Act, certainly not.. there may be number of situations when an agreement can be executed without stamp papers.. It does not mean that it violated the provisions.. That is why this provisions is... 

DEFENSE ADVOCATE.-firmaction@g (POWER OF DEFENSE IS IMMENSE )     02 December 2011

The opposite party can ask for seizure of the unstamped agreement and be sent to collector for penalty.

pervez (adviser)     02 December 2011

The issue involved herein is enforceability of an unstamped agreement.... certainly penalty upto 10 times can be levied by the court,... still the unstamoped agreement is enforceable as to the contents of the documents...

I.S.Roy,Advocate (Advocate)     02 December 2011

Dear Sir,

      Any legal enforceable agreement is valid even on written or typed  and signed by both parties but only thing one much prepare to pay stamp duty penalty at the time of marking the document in the court . It is basic principal. If you want any detailed advice then contact me through e mail isroyjury@yahoo.co.in

 

with regards

I.S.Roy, Advocate


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