A receipt evidencing payment of balance sale consideration under an agreement of sale-cum-GPA, accompanied by delivery of possession, amounts to a “conveyance” within the meaning of Article 47-A of Schedule 1-A of the Indian Stamp Act, 1899. If such document is insufficiently stamped, it is inadmissible in evidence. Applications to reopen trial and mark such document at the stage of arguments are liable to be dismissed.

advocatemmmohan

Indian Stamp Act, 1899 – Article 47-A, Schedule 1-A – Agreement of sale accompanied by delivery of possession – Deemed conveyance – Stamp duty payable as on sale – Paras 8–9

Evidence – Insufficiently stamped document – Inadmissible in evidence – Trial Court justified in refusing to receive document – Para 9–10

Civil Procedure Code – Reopening of evidence – Recall of witness – Filed at fag end of trial – Where document itself inadmissible, reopening impermissible – Para 5–6

Article 227 Constitution – Supervisory jurisdiction – No interference where trial Court correctly applied statutory bar – Para 10

Relied on: Omprakash v. Laxminarayan

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FACTUAL BACKGROUND

• Suit O.S. No.262 of 2012 filed for declaration of title and eviction.

• Petitioners (Defendants 2 & 4) claimed ownership through registered sale deed from GPA holder.

• Trial concluded; suit posted for arguments.

• Defendants filed:

  • Petition to reopen trial,

  • Petition to receive certified copy of receipt dated 09.02.2008,

  • Petition to recall D.W.1 for marking document.

• Trial Court dismissed all applications.

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DEFENDANTS’ CASE

• Receipt dated 09.02.2008 proves payment of balance sale consideration.

• Also evidences delivery of possession to GPA holder.

• Sought to mark receipt as crucial document.

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PLAINTIFF’S OBJECTION

• Receipt evidences delivery of possession.

• Falls under Article 47-A of Schedule 1-A, Indian Stamp Act.

• Must be treated as conveyance.

• Insufficiently stamped → inadmissible.

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ANALYSIS

I. Nature of the Document

Court examined contents of receipt (Para 8):

• Not merely acknowledgment of payment.

• Explicitly records delivery of possession.

Hence, it operates as a conveyance in substance.

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II. Statutory Position

Under Article 47-A, Schedule 1-A, Indian Stamp Act, 1899:

• Agreement of sale coupled with possession = deemed sale.

• Full stamp duty payable on entire consideration.

If insufficiently stamped → cannot be admitted in evidence.

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III. Supreme Court Authority

In Omprakash v. Laxminarayan:

• Agreement accompanied by receipt and delivery of possession amounts to conveyance.

• Chargeable with stamp duty as sale.

High Court followed this binding precedent.

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IV. Reopening of Trial

Since:

• Document inadmissible in law,

• Stamp deficiency not cured,

Reopening of evidence or recalling D.W.1 would serve no legal purpose.

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RATIO DECIDENDI

A document evidencing payment of consideration and delivery of possession under an agreement of sale is chargeable as a conveyance under Article 47-A of Schedule 1-A of the Indian Stamp Act, 1899. If such document is insufficiently stamped, it is inadmissible in evidence. Consequently, applications to reopen trial or recall witnesses to mark such document are liable to be rejected.