Bombay High Court Allows Petition Against Impounding of Agreement for Sale in Specific Performance Suit — Document Already Admitted in Evidence Cannot Be Impounded Under Stamp Act. Section 35 of Bombay Stamp Act, 1958 Bars Impounding After Admission, Even if Agreement Contains Incorrect Possession Clause.

High Court: Bombay High Court Bench: GOA In Favour of Accused
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Case Note & Summary

The petitioner, Bhupendrabhai Rambhai Patel, filed a suit for specific performance of an agreement for sale dated 07.06.2002, along with a prayer for recovery of possession of the suit field. The agreement was exhibited as Exh. 51 on 06.04.2009. Subsequently, on 29.04.2009, respondent No. 2 filed an application under Sections 33 and 34 of the Bombay Stamp Act, 1958, seeking to impound the document on the ground that it was insufficiently stamped. The trial court allowed the application and passed an order impounding the document. The petitioner challenged this order by way of a writ petition. The petitioner argued that the document had already been admitted in evidence, and therefore, under Section 35 of the Bombay Stamp Act, 1958, it could not be impounded. The petitioner also contended that the parties were ad idem that possession of the suit property was with respondent No. 1, and the stipulation in the agreement regarding delivery of possession was factually incorrect. The respondents opposed the petition, but the court found that the document was exhibited and admitted in evidence before the application for impounding was made. The court held that once a document is admitted in evidence, Section 35 of the Bombay Stamp Act, 1958 prohibits any further action for impounding. The court set aside the trial court's order impounding the document and directed the trial court to proceed with the suit in accordance with law.

Headnote

A) Stamp Act - Impounding of Document - Section 35 of Bombay Stamp Act, 1958 - Once a document is admitted in evidence, it cannot be impounded - The trial court erred in passing an order impounding the agreement for sale (Exh. 51) after it was exhibited on 06.04.2009, as Section 35 of the Bombay Stamp Act, 1958 bars such action - Held that the order impounding the document is without jurisdiction (Paras 2-4).

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Issue of Consideration

Whether a document which has been exhibited and admitted in evidence can later be impounded under Sections 33 and 34 of the Bombay Stamp Act, 1958

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Final Decision

The High Court allowed the writ petition, set aside the trial court's order impounding the document (Exh. 51), and directed the trial court to proceed with the suit in accordance with law.

Law Points

  • Section 35 of Bombay Stamp Act
  • 1958 prohibits impounding of document once admitted in evidence
  • Section 33 and 34 of Bombay Stamp Act
  • 1958 apply only before admission
  • admission of document in evidence is final for stamp purposes
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Case Details

2010 LawText (BOM) (07) 143

Writ Petition No. 3703 of 2009

2010-07-14

B.P. Dharmadhikari, J.

Shri A.K. De for petitioner, Shri S.S. Alaspurkar for respondent No.1, Shri P.S. Patil for respondent No.2

Bhupendrabhai Rambhai Patel

Sau. Lilabai Mahadeorao Labde and Baban Rangraoji Khandar

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Nature of Litigation

Writ petition challenging order impounding an agreement for sale in a suit for specific performance

Remedy Sought

Petitioner sought setting aside of trial court's order impounding the agreement for sale (Exh. 51)

Filing Reason

Trial court passed order impounding the agreement for sale after it was exhibited, allegedly in violation of Section 35 of Bombay Stamp Act, 1958

Previous Decisions

Trial court allowed application of respondent No. 2 under Sections 33 and 34 of Bombay Stamp Act, 1958 and impounded the document

Issues

Whether a document admitted in evidence can be impounded under Sections 33 and 34 of the Bombay Stamp Act, 1958 Whether Section 35 of the Bombay Stamp Act, 1958 bars impounding after admission

Submissions/Arguments

Petitioner argued that document was exhibited on 06.04.2009 and admitted in evidence, so under Section 35 of Stamp Act, it cannot be impounded Petitioner contended that parties were ad idem about possession being with defendant No.1, so stipulation in agreement was factually incorrect Respondent No. 2 sought impounding on ground of insufficient stamp duty

Ratio Decidendi

Once a document is admitted in evidence, Section 35 of the Bombay Stamp Act, 1958 prohibits any further action for impounding the document, and the trial court cannot pass an order impounding it under Sections 33 and 34 of the Act.

Judgment Excerpts

In view of the provisions of Section 35 of The Bombay Stamp Act, 1958, as the document was exhibited and admitted in evidence, later on an order impounding it could not have been passed. The document was exhibited on 06.04.2009 and on 29.04.2009, defendant No. 2 filed application under Sections 33 and 34 of the Stamp Act and sought an order impounding that document dated 07.06.2002.

Procedural History

Petitioner filed suit for specific performance based on agreement dated 07.06.2002. Agreement exhibited as Exh. 51 on 06.04.2009. On 29.04.2009, respondent No. 2 filed application under Sections 33 and 34 of Bombay Stamp Act, 1958 to impound the document. Trial court allowed application and impounded document. Petitioner filed writ petition challenging that order.

Acts & Sections

  • Bombay Stamp Act, 1958: Sections 33, 34, 35
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