1. 'A' was an owner of a piece of Land. He died leaving behind his sons 'X' & 'Y', each having 50% right title, interest and share in the said land. 2. X sold entire property to 'B'. 3. 'Y' sold his 50% share to 'C' through Power of Attorney (POA). 4. B intends to develop entire land by ignoring 50% share of 'C' therein. 5. Therefore, 'C' files a suit for partition & injunction in Civil Court. 6. While hearing of interim injunction application, it is revealed that Non-judicial stamp paper used for executing the POA by 'Y' on the basis of which the 50% share of 'Y' was sold to 'C' is FAKE / BOGUS. 7. Neither Y nor C were aware that such non-judicial stamp paper is fake and the POA was executed under bonafide belief that the same is genuine. 8. Executants of power of attorney & sale deed in favour of C is admitted by Y. Also, Y admits that he has sold 50% share in said land to C and has received entire consideration from 'C'. 9. Now, when a non-judicial stamp paper purchased & used under bonafide belief that it is genuine; when such stamp paper is found to be Fake; - whether it will invalidate the entire transaction. Also, after the stamp paper was found to be fake, stamp duty is paid afresh on the power of attorney. 10. We need a citation to the effect that if stamp paper which is purchased & used under bonafide that the same is genuine is later found to be fake/bogus; in such a case the transaction / document under such bogus stamp would not be invalid per-se subject to payment of stamp duty afresh especially when the parties to such document admit the execution thereof.
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A bonafide purchaser is protected as long as he has bought it from a legal vendor and gone through the prescribed process. The deal is not invalid, but the purchaser will have to pay the stamp duty again at the registration office
2) could not find any citation
Thank you for answering my d question. I am aware of the position of law. But I would have to produce some supporting material before the Court Thx Adv. Patkar
unable to find any supporting judgment
People who used fake stamp papers of the kind produced and sold by forgers in Maharashtra, Karnataka and some other states for registration of property or in other legal documents need not worry about the legality of their deals.
But they will be liable to pay the relevant stamp duty all over again, this time to the treasury.
The deeds registered on the basis of the fake stamp papers will still be valid, but such documents are liable to be impounded, if detected.
citation: (SC)
Thiruvengada Vs. Navneeethammal writ petition (Civil) 290 of 2001 date of judgment 19.02.2008
I am aware of the position of law.
But I would have to produce some supporting material before the Court
An Important Case Sc Citation On Validity Of Judicial Stamp Paper ha been mentioned in my previous post, you may locate it.
AN IMPORTANT CASE SC CITATION ON VALIDITY OF JUDICIAL STAMP PAPER
THIRUVENGADA V NAVNEETHMAL
Writ Petition (civil) 290 of 2001
PETITIONER:
Thiruvengada Pillai
RESPONDENT:
Navaneethammal & Anr.
DATE OF JUDGMENT: 19/02/2008
BENCH:
R. V. Raveendran & P.Sathasivam
JUDGMENT:
J U D G M E N T
R. V. RAVEENDRAN, J.
This appeal by special leave is by the plaintiff in a suit for specific
performance - OS No.290/1980 on the file of District Munsiff, Tindivanam.