What is the consequence of Understamping of Loan Agreements

It follows no consequences.  It is not mandatory to properly stamp the loan agreement for movable properties.  The deficiency in stamps can be rectified by paying the deficit amount along with penalty.

1.what is the Penalty if so?

2.If the document is not at all stamped what will be the consequences ?

Pls let me know.

Amount of penalty differs from state to state.

If the document is not at all stamped, even then penalty can be levied later.

Dear S Karthik,

If in case the Loan Agreement is not stamped the deficiency of stamp can be cured subsequently as well. 

Best Regards

Daksh

inadequate stamp on any document looses its legal value and it become null and void not enforceable.

Mr.Arun Trivedi, can you please cite any judgment(s) for the benefit of all our LCI members ... that legally struck down an insufficiently stamped document ?

so many are there

Section 28(2) in The Co- Operative Societies Act, 1912 [ "Section 28" ] [ "Complete Act" ]

Section 80 in The Companies Act, 1956 [ "Complete Act" ]

Section 80C in The Income- Tax Act, 1995 [ "Complete Act" ]

Section 51 in The Land Acquisition Act, 1894 [ "Complete Act" ]

Article 269(1) in The Constitution Of India 1949 [ "Article 269" ] [ Constitution ]

Section 88(2) in The Income- Tax Act, 1995 [ "Section 88" ] [ "Complete Act" ]

L.H. Sugar Factory vs Moti on 24 March, 1941

Gorva Vibhag Co-Operative ... vs State Of Gujarat And Ors. on 5 May, 1992

Naveen Gun House And Ors. vs Union Of India (Uoi) And Ors. on 13 December, 2002

Subramaniam Chettiar vs Revenue Divisional Officer And ... on 8 March, 1956

Dear Aruntrivedi sir,

As per the infomation provided,

whether agreement entered by a customer & A financial institution (providing vechile loan) is stamped without Proper stamping is NULL & VOID ?

Under whose favoue will the judgement prevail ? pls clarify.

Warm regards

Can someone please tell me if a loan agreement , of a loan to be given between to related private companies based in AP and Maharashtra needs a stamp duty? If yes, then what will be the value of the stamp duty in such case. 

Hello sirs,

I have some doubts in stamping of agreement pl guide me.

1. Agreement signed on 01-04-2012 but stamping /stamp paper purchased on 10-04-2012? whether it is valid ? any risk in executing the same agreement in the furutre litigation?

2.stamping done on 01-04-2012 agreement signed on 10-04-2012?

A person who borrows loan by way of executing the above agreement whether any problem will arise?

pl advice me ...

kumar