High Court of Karnataka Quashes Trial Court Order Marking Unstamped Document in Evidence in Civil Suit — Document Insufficiently Stamped Cannot Be Admitted Under Section 35 of Karnataka Stamp Act, 1957. The court held that a document which is insufficiently stamped cannot be admitted in evidence for any purpose, and the trial court's order marking such document is liable to be quashed under Article 227 of the Constitution of India.

High Court: Karnataka High Court Bench: BENGALURU In Favour of Accused
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Case Note & Summary

The petitioner, Sri M. Surendra Rao, filed a writ petition under Article 227 of the Constitution of India challenging the orders dated 04-11-2016 and 15-11-2016 passed by the Principal Senior Civil Judge and CJM, Mangalore, in O.S.No.411/2015. The petitioner was the plaintiff in the suit, and the respondents were the defendants. During the trial, the first defendant (respondent No.1) marked a document as Ex.D-3 (Annexure F) in his evidence. The petitioner objected to the marking of the document on the ground that it was insufficiently stamped. The trial court overruled the objection and allowed the document to be marked. The petitioner then filed the present writ petition seeking to quash the orders. The High Court examined the provisions of the Karnataka Stamp Act, 1957, particularly Sections 35 and 36. Section 35 prohibits the admission of any instrument chargeable with duty unless it is duly stamped. Section 36 provides that once a document is admitted in evidence, such admission cannot be questioned except as provided by the Act. However, the court held that the bar under Section 35 is absolute and cannot be circumvented by marking a document subject to objection. The court noted that the document Ex.D-3 was insufficiently stamped and therefore could not be admitted in evidence for any purpose. The trial court's orders were quashed, and the matter was remanded for fresh consideration. The court also clarified that the petitioner's objection to the admissibility of the document could be raised at any stage, and the trial court should have considered the same before marking the document.

Headnote

A) Civil Procedure - Evidence - Admissibility of Documents - Section 35 of Karnataka Stamp Act, 1957 - The court held that a document which is insufficiently stamped cannot be admitted in evidence for any purpose, including collateral purposes, as per Section 35 of the Karnataka Stamp Act, 1957. The trial court erred in marking Ex.D-3 which was insufficiently stamped, and the order was quashed. (Paras 5-10)

B) Civil Procedure - Evidence - Objection to Admissibility - Section 36 of Karnataka Stamp Act, 1957 - The court held that an objection to the admissibility of a document on the ground of insufficient stamp duty can be raised at any stage, even after the document has been marked subject to objection. The trial court's discretion under Section 36 is not absolute and cannot override the bar under Section 35. (Paras 7-9)

C) Constitutional Law - Writ Jurisdiction - Article 227 of Constitution of India - The court exercised its supervisory jurisdiction under Article 227 to quash the trial court's orders dated 04-11-2016 and 15-11-2016, as the trial court had acted in excess of its jurisdiction by admitting an insufficiently stamped document. (Paras 11-12)

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Issue of Consideration

Whether a document which is insufficiently stamped can be admitted in evidence and marked as an exhibit in a civil suit, and whether the trial court's order marking such document is liable to be quashed under Article 227 of the Constitution of India.

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Final Decision

The writ petition is allowed. The impugned orders dated 04-11-2016 and 15-11-2016 passed by the Principal Senior Civil Judge and CJM, Mangalore, in O.S.No.411/2015 are quashed. The matter is remanded to the trial court for fresh consideration in accordance with law.

Law Points

  • Document insufficiently stamped cannot be admitted in evidence
  • Objection to admissibility can be raised at any stage
  • Section 35 of Karnataka Stamp Act
  • 1957 bars admission of unstamped/insufficiently stamped instruments
  • Trial court's discretion under Section 36 of Karnataka Stamp Act
  • 1957 is limited once document is marked subject to objection
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Case Details

2022 LawText (KAR) (03) 8

Writ Petition No.4290 of 2017 (GM-CPC)

2022-03-30

Dr. Justice H.B. Prabhakara Sastry

Sri. Ajay Prabhu for Sri B.S. Sachin (Petitioner), Sri. Pundikai Ishwara Bhat for R-1 & R-2, Sri. Shahbaaz Hussain for R-5, R-3 & R-4 served

Sri M. Surendra Rao

Sri M. Raveendra Rao, Smt. Sarojini Rai @ Rao, Smt. Vidya Nayak, Smt. Veena Nayak, M/s. Mukka Sea Food Industries Pvt. Ltd.

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Nature of Litigation

Writ petition under Article 227 of the Constitution of India challenging orders of the trial court in a civil suit regarding marking of an insufficiently stamped document in evidence.

Remedy Sought

Petitioner sought a writ of certiorari to quash the orders dated 04-11-2016 and 15-11-2016 passed by the Principal Senior Civil Judge and CJM, Mangalore, in O.S.No.411/2015.

Filing Reason

The trial court allowed marking of a document (Ex.D-3) which was insufficiently stamped, overruling the petitioner's objection.

Previous Decisions

The trial court passed orders on 04-11-2016 and 15-11-2016 allowing the marking of Ex.D-3.

Issues

Whether a document which is insufficiently stamped can be admitted in evidence in a civil suit? Whether the trial court's order marking such document is liable to be quashed under Article 227 of the Constitution of India?

Submissions/Arguments

Petitioner argued that the document Ex.D-3 was insufficiently stamped and therefore could not be admitted in evidence under Section 35 of the Karnataka Stamp Act, 1957. Respondents argued that the document was already marked subject to objection and the trial court had discretion under Section 36 of the Act.

Ratio Decidendi

A document which is insufficiently stamped cannot be admitted in evidence for any purpose, including collateral purposes, as per Section 35 of the Karnataka Stamp Act, 1957. The trial court's discretion under Section 36 of the Act does not override the absolute bar under Section 35. An objection to admissibility on the ground of insufficient stamp duty can be raised at any stage.

Judgment Excerpts

In a suit filed by the present petitioner as a plaintiff in O.S.No.411/2015, ... the defendant No.1 ... got marked a document as Ex.D-3. The present petitioner ... objected to the marking of the document on the ground that it was insufficiently stamped. Section 35 of the Karnataka Stamp Act, 1957 prohibits the admission of any instrument chargeable with duty unless it is duly stamped. The bar under Section 35 is absolute and cannot be circumvented by marking a document subject to objection.

Procedural History

The petitioner filed O.S.No.411/2015 before the II Additional Senior Civil Judge, Mangaluru. During trial, defendant No.1 marked Ex.D-3. Petitioner objected. Trial court overruled objection on 04-11-2016 and 15-11-2016. Petitioner filed this writ petition under Article 227 of the Constitution of India on 30-03-2022.

Acts & Sections

  • Karnataka Stamp Act, 1957: 35, 36
  • Constitution of India: 227
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