If we go against sections of the Indian contract act, none of the sections provide that a contract must be executed on a stamp paper. Therefore, no agreement on stamp paper is required. Clearly, these lawsuits are increasing and delaying in litigation and additional business costs, so it is always advisable to enter into agreements on stamp paper by paying the necessary obligation. In addition, agreements are the heart and soul of a company, they must be enforceable documents. The applicability of these documents is subject to the satisfaction of the provisions of the Indian Stamp Act,1899, read by the Registration Act, 1908. As a result, they should be duly stamped because they are, in the eyes of the law, a valid document. In this case, the Supreme Court considered an appeal of a decision of the Bombay High Court, which allowed the applicant to appoint an arbitrator in accordance with Section 11, even though the sub-contract agreement between the applicant and the respondent containing the compromise clause was not stamped. Therefore, if a stamp is not damaged, returned or if the buyer has no hasty use, the buyer is allowed to refund it to the collector within 6 months and to demand a refund of the amount paid for the stamps with a deduction of 10 Paisa per rupee (the amount may vary from state to state). There are certain agreements that should be mentioned under the Indian Stamp Act, which should be made on stamp paper, but which should not be forcibly registered, such as.B. , While referring to an agreement or contract, it is important to comply with the provisions of the Indian Contract Act of 1872 (“the law”) when they enter into an electronic contract by e-mail or any other Internet media.
In accordance with Sections 2 and 3 to 10 Indian Contract Act, an agreement may be oral or written. There is no need for a written contract. There are no restrictions or conditions imposed by the Indian Contracts Act for the performance of a stamp paper agreement. As lawyers, we are often asked whether agreements that are not made on stamp paper are invalid and unenforceable. The answer is a simple “NO.” Agreements can be made either on a stamp paper or in a non-buffer document. While agreement has been reached on a document without stamps, certain legal aspects must be respected. This article establishes the validity of unstamped agreements and delves into the legal and technical consequences of unmarked agreements. I bought stamp paper in October 2018 for holidays and a licensing agreement for Rs.100/- which is not in use. Nevertheless, I can basically use it for court proceedings or courtwork.
In other words, if a person wants to sue another party, then he has to pay a tax to govern for the same thing, that “tax” is collected by govt on those stamps. Stamp papers are classified in court stamp papers and non-judicial stamp papers. “Validity” word speaks of the fact of legal force, or anything that is legally permissible. Therefore, if we think about the validity of the stamp papers, it reflects the expiry date of those documents. So let`s take a deep look at this issue using this article. You can use it to execute a new agreement or some other purpose for what you bought.