Purchase Agreement using Special Power of Attorney

Its a landmark judgement.....

Ø     In a remarkable judgment (Thiruvengada Pillai Vs. Navaneethammal and Anr.), the Supreme Court held that the stamp papers, can be used even after a period of 6 months from the date of purchase etc.



Ø     The Indian Stamp Act, 1899 nowhere prescribes any expiry date for use of a stamp paper.

 

Ø     Section 54 merely provides that a person possessing a stamp paper for which he has no immediate use (which is not spoiled or rendered unfit or useless), can seek refund of the value thereof by surrendering such stamp paper to the Collector provided it was purchased within the period of six months next preceding the date on which it was so surrendered.

 

Ø      The stipulation of the period of six months prescribed in Section 54 is only for the purpose of seeking refund of the value of the unused stamp paper, and not for use of the stamp paper.

 

Ø     It does not require the person who has purchased a stamp paper, to use it within six months. Therefore, there is no impediment for a stamp paper purchased more than six months prior to the proposed date of execution, being used for a document.



Full text of the case attached, with relevant portions highlighted.