Mohammad Zabeeullah Khan 29 May 2016
SAINATH DEVALLA (LEGAL CONSULTANT) 30 May 2016
The unstamped agreement will not be admitted in evidence by a court of law, in a litigation, for enforcement of the primary rights and liabiliies arising out of the agreement. In case of dispute, if a litigation is to be commenced, then the holder of the agreement shall present it to the sub-registrar, pay the shortfall of stamp duty alongwith a penalty ten times of the shortfall, get the agreement endorsed to that effect and then use the document as a duly stamped one.
Nomally for 'lending' a promissory note is prepared which can be executed by signing across the revenue stamp of requisite value. But if the terms and conditions provide for deferment of the period of repayment, performance obligations, penalties etc., then an agreement is o be drawn on a duly stamped paper..