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Miharika (n/a)     15 February 2008

Confirmation of Gift - stamp paper?

Is it obligatory for Conf. of Gift to be made on stamp paper?  It is confirmation of Gifting of company shares and loan credit amounts [ 20 lacs].  Place: Mumbai

Which section of which act is relevant?

The reason I ask is because my opponent in a civil suit has produced a so called C o G allegedly made by my father [ dead], purportedly gifting his company shares and credit amount in a company to my opponent.  The document is on plain paper and not witnessed.  There is no written Gift Deed in existence, which is admitted by the opponent.

Appreciate your input and thanks in advance.



Learning

 3 Replies

Prakash Yedhula (Lawyer)     15 February 2008

The procedure to be followed for registration of shares gifted is same as the procedure for a normal transfer. Stamp duty is also applicable in case of gifted shares.

Miharika (n/a)     15 February 2008

Thanks sir, but you havent answered my main query - is it obligatory for Confirmation of Gift to be made on stamp paper? Will be obliged for an answer.

Hemant Agarwal (ha21@rediffmail.com Mumbai : 9820174108)     27 May 2008

The legal status of a Gift Deed is equivalent of a Contract and would be covered by the provisions of the Contract Act, as far as Plain paper and non-witness are concerned. In simple terms : Plain paper = Invalid document No Witness = Invalid document In Mumbai-Maharashtra, it is essential to register every deed (gift deed, sale deed, lease deed, ...) with the revenue registrar's office. In Mumbai-Maharashtra, it is essential to pay Stamp Duty to register every deed (gift deed, sale deed, lease deed, ...) under the Stamp duty Act. In other words : No Stamp-Duty = Invalid document No Registration fee = Invalid document There are multiple Acts and Sections that can be used to negativate the opponents contention and whereas I would say that the Civil court will not be able to take it on record, once you file your written objections as above. U can also take recourse under the HinduSuccessionAct, as a legal heir, stating first right, in the said property. U would have to have a one-to-one sitting with a seasoned lawyer to fix this simple problem. Keep Smiling ... Hemant Agarwal

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