Applicability / Usage of non judicial Stamp Papaers
Navneet Bali
(Querist) 19 May 2009
This query is : Resolved
1-What are the advantages of executing agreements with domestic clients on non judicial stamp papers in India?
2-What is the legal stature/enforceability of the agreements entered with domestic clients on non judicial stamp papers in India?
3-Are agreements executed in India with domestic clients on plain papers equally valid?
Suhail suhail
(Expert) 19 May 2009
Agreement need to be drawn on Non-judicial papers and the terms and conditions must be expressly specified,and the agreement shall be signed by both parties in presence of at least two witnesses.It is better to get agreement Notariesd.However if the agreement is drawn on plain paper is also valid if the same is signed by the parties,however depends upon the nature of subject matter for which parties enter into agreement.However even if the communications i.e. the correspondences or e mails etc.if carry import of being made during the course of transaction of performance under agreed terms do constitute an agreement.However it is better to get the agreements executed in terms of Contract Act.
Hope the quiery is answered .
Y V Vishweshwar Rao
(Expert) 20 May 2009
I agree with the suggestion of Mr Bilal Austishi
1-Payment of Stamp duty on agreement is liablitiy of parties under stamp Act - if NJS properly paid - no impounding and peanlties at later stage , while considering the agreement by any Court or Authority
2-If the Agreement is not void agreement /not a prohibited agreement , it can be legally enforced
3- Subject to payment of the Proper Stamp Duty and penalties - the Agreement on plain paper can be enforced , if it is a legal & valid Agreement
J K Agrawal
(Expert) 20 May 2009
Dear Mr Autshi and mr Rao
Most respectfully I slightly (actually totally) differ both of you.
1 An agreement in writing is not necessary if not required specifically by law.
2 Theory of attestation by two witness is also strange. Attestion required under TP act or of Will or only when there is specific law in this regard.
3 Notarization is again a luxury if not required specifically by law. (Generally bill of Exchange only requires endorsement of presentation for payment from notary but notaries do all other work apart this one). The reason behind practice of attestation by notary is to extra evidence to prove the agreement in court.
3 if any agreement which is not required by law to be in writing compulsorily, if reduced in writing, it requires rupees 100/- stamp duty (or any other specified duty).
4 Non payment of stamp duty is offence punishable with penalty up to 10 times of evasion.
5 If any document not properly stamped, comes in the hands of any officer of government or produced before any Court, the officer or the Court first confiscate (impound) the document, will sent it to collector. The Collector will decide duty payable and decide penalty also. after payment of the both the document shall be acted upon by the officer or the Court.
