An Unstamped Instrument Is Not Admissible In Evidence Even For Collateral Purpose

·         [Yellapu Uma Maheswari vs. Buddha Jagadheeswararao] (SC, 08.10.2015) Civil Appeal No. 8441 of 2015

The consequential connected question that arose was as to whether these documents could be used for any collateral purpose. It was observed that the whole process of partition contemplates three phases i.e. severancy of status, division of joint property by metes and bounds and nature of possession of various shares. In a suit for partition, an unregistered document can be relied upon for collateral purpose i.e. severancy of title, nature of possession of various shares but not for the primary purpose i.e. division of joint properties by metes and bounds. An unstamped instrument is not admissible in evidence even for collateral purpose, until the same is impounded.

Accordingly it was held that the parties in the instant matter if wants to mark the documents in question for collateral purpose, the same would have to be impounded and requisite stamp duties would have to be paid.

·         the Hon'ble Apex Court in Avinash Kumar in Chauhan v. Vijay Krishna Mishra ((2009) 2 SCC 532)  what the Court held was that if stamp duty is not paid as per Section 35 of the Act, then it would not be looked into for any purpose, even for a collateral purpose. If stamp duty is paid then it can be looked into for a collateral purpose.

·         In Bonder Singh & Others v. Nihal Singh & Others (2004-1-L.W. 706) and in K.B. Saha & Sons Pvt. Ltd. v. Development Consultant Ltd. ((2009) 2 MLJ 526 (SC) ) the very same position of law has been stated. In these cases, the Court also explained what is meant by collateral purpose.

        29. 'Collateral' is not a magical word. It is for a limited purpose even an unregistered document which is required to be registered, which is not registered can be looked into. Under an unregistered document any right, title, interest, terms and conditions cannot be enforced. But under such a document, the manner of possession, the character of possession can be looked  into. Further, from the date of the unregistered document a person in possession may be in hostile possession to the land owner, then it can be looked into to consider the nature of possession of such a person (animus possessendi).