Karnataka High Court Allows Unregistered Partition Deed for Collateral Purpose in Partition Suit — Document Admissible Despite Non-Registration and Insufficient Stamp Duty. The court held that an unregistered partition deed can be admitted for collateral purpose of proving fact of partition, subject to payment of stamp duty and penalty under Section 35 of Karnataka Stamp Act, 1957.

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

The case arises from a suit for partition filed by the plaintiff, Smt. Annemma, against her brothers (the defendants) in O.S.No.4/2009 before the Civil Judge (Sr.Dn.) at Devanahalli. The plaintiff claimed a 1/4th share in the joint family properties, asserting that the parties constituted an undivided Hindu Joint Family. The defendants contested the suit, denying the plaint allegations except the relationship. They specifically claimed that a partition had already taken place among the family members, evidenced by an unregistered Panchayath partition deed dated 05.10.2008. During trial, the defendants sought to mark this document as an exhibit. The trial court, by order dated 28.11.2014 in Misc.No.21/2014, held that the document was inadmissible in evidence for want of stamp duty and for non-registration. Aggrieved, the defendants filed writ petitions under Articles 226 and 227 of the Constitution of India challenging that order. The High Court examined the legal position regarding admissibility of unregistered and insufficiently stamped documents. It noted that under Section 49 of the Registration Act, 1908, an unregistered document affecting immovable property is not admissible as evidence of any transaction affecting such property, but the proviso allows it to be received as evidence of a contract in a suit for specific performance or as evidence of any collateral transaction not required to be effected by registered instrument. The court held that the partition deed could be used for the collateral purpose of proving the fact of partition and division of status, as opposed to creating or extinguishing rights in immovable property. Regarding the stamp duty issue, the court observed that under Section 35 of the Karnataka Stamp Act, 1957, an instrument not duly stamped is inadmissible, but the court can impound the document and collect the deficit stamp duty and penalty before admitting it. The High Court therefore set aside the trial court's order and directed that the document be impounded, the deficit stamp duty and penalty be collected, and thereafter the document be marked as an exhibit for the collateral purpose of proving the fact of partition. The writ petitions were allowed accordingly.

Headnote

A) Civil Procedure - Admissibility of Documents - Unregistered Partition Deed - An unregistered partition deed, though insufficiently stamped, is admissible in evidence for a collateral purpose, such as proving the fact of partition or possession, but not for proving title or creating rights in immovable property - The court held that the document can be marked as an exhibit for collateral purpose, subject to payment of stamp duty and penalty as per Section 35 of the Karnataka Stamp Act, 1957 (Paras 4-10).

B) Evidence Act - Collateral Purpose - Section 49 of Registration Act, 1908 - Proviso to Section 49 allows an unregistered document affecting immovable property to be received as evidence of a contract in a suit for specific performance or as evidence of any collateral transaction not required to be effected by registered instrument - The court held that the partition deed could be used to show the fact of partition and division of status, which is a collateral purpose (Paras 5-8).

C) Stamp Act - Insufficiently Stamped Document - Section 35 of Karnataka Stamp Act, 1957 - An instrument not duly stamped is inadmissible in evidence for any purpose, but the court can impound the document and collect stamp duty and penalty before admitting it - The court directed the trial court to impound the document and collect deficit stamp duty and penalty before marking it as an exhibit (Paras 9-10).

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Issue of Consideration

Whether an unregistered and insufficiently stamped Panchayath partition deed is admissible in evidence for a collateral purpose in a suit for partition?

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Final Decision

Writ petitions allowed. The impugned order dated 28.11.2014 passed by the Senior Civil Judge at Devanahalli in Misc.No.21/2014 is set aside. The trial court is directed to impound the document, collect the deficit stamp duty and penalty as per Section 35 of the Karnataka Stamp Act, 1957, and thereafter mark the document as an exhibit for the collateral purpose of proving the fact of partition.

Law Points

  • Unregistered partition deed
  • insufficiently stamped document
  • admissibility for collateral purpose
  • Section 35 of Karnataka Stamp Act
  • 1957
  • Section 49 of Registration Act
  • 1908
  • proviso to Section 49
  • Order 13 Rule 1 CPC
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Case Details

2015 LawText (KAR) (04) 117

Writ Petition Nos.353-355/2015 (GM-CPC)

2015-04-22

N. Kumar

Sri S.Siddappa (for petitioners), Sri V.Sudhakar (for respondent)

Venkataswamy, Muniraju, Krishnappa

Smt. Annemma

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Nature of Litigation

Civil writ petitions challenging trial court order rejecting admissibility of unregistered partition deed in a partition suit.

Remedy Sought

Quashing of trial court order dated 28.11.2014 and permission to mark the unregistered Panchayath partition deed as exhibit.

Filing Reason

Trial court held the document inadmissible for want of stamp duty and non-registration.

Previous Decisions

Trial court in Misc.No.21/2014 held the document inadmissible.

Issues

Whether an unregistered and insufficiently stamped partition deed is admissible in evidence for a collateral purpose in a suit for partition? Whether the trial court erred in rejecting the document outright without considering the proviso to Section 49 of the Registration Act, 1908 and the option to impound under Section 35 of the Karnataka Stamp Act, 1957?

Submissions/Arguments

Petitioners (defendants) argued that the document is admissible for collateral purpose of proving fact of partition and possession, and the court can impound and collect stamp duty. Respondent (plaintiff) argued that the document is inadmissible for want of registration and insufficient stamp duty.

Ratio Decidendi

An unregistered partition deed, though insufficiently stamped, is admissible in evidence for a collateral purpose, such as proving the fact of partition or division of status, but not for creating or extinguishing rights in immovable property. The court must first impound the document and collect the deficit stamp duty and penalty before admitting it.

Judgment Excerpts

The defendants have preferred these writ petitions challenging the order passed by the Trial Court regarding the admissibility of unregistered Panchayath partition deed dated 05.10.2008. It was held that the said document is inadmissible in evidence for want of stamp duty and for non-registration. The document can be used for a collateral purpose, namely, to prove the fact of partition and division of status. The court can impound the document and collect the deficit stamp duty and penalty before admitting it.

Procedural History

The plaintiff filed O.S.No.4/2009 for partition before the Civil Judge (Sr.Dn.) at Devanahalli. The defendants filed written statement and sought to mark an unregistered Panchayath partition deed dated 05.10.2008. The trial court in Misc.No.21/2014 held the document inadmissible. The defendants filed writ petitions under Articles 226 and 227 of the Constitution of India challenging that order. The High Court allowed the writ petitions on 22.04.2015.

Acts & Sections

  • Karnataka Stamp Act, 1957: Section 35
  • Registration Act, 1908: Section 49
  • Constitution of India: Articles 226, 227
  • Code of Civil Procedure, 1908 (CPC): Order 13 Rule 1
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