SK LAW ASSOCIATES
NON JUDICIAL/ JUDICIAL STAMP PAPERS
In any society, relationships are built on commercial and non-commercial agreements. Parties agree to a negotiated and typically binding arrangement of things between them, as to the course of action which will flow from each other. These arrangements can be of and be for a variety of reasons, and it is important that the arrangement should not be done away with, where its value fades prematurely.
Bindingness and Legal Sanction are essential for any arrangement to survive in a democratic state and for this purpose, the arrangements within an agreement between the parties are written/typed on a piece of paper bearing a certain value in the eyes of law expressly sanctioned by the state for the purpose.
The Indian Stamp Act defines stamp as ―stamp means any mark, seal or endorsement by any agency or person duly authorized by the State Government, and includes an adhesive, which serves the purposes of duty that is chargeable under this Act.14 different varieties of stamp papers are available in 10 denominations.
There are majorly two kinds of stamp paper
Judicial that is used for legal and court work;
Non-judicial that is used for registration of various documents, insurance policies, etc.
Judicial Stamp Papers:
In matters between parties, which concern court proceedings, the parties have to file various affidavits and petitions; the courts levy duty on these filings for the purpose of meeting expenses incurred in the functioning of the court.
Judicial Stamp Papers are Stamped Papers and duty payable is to the courts for the purpose of payment of court fee and other matters expressly judicial matters.
The court fee for different types of suits is different, section 7 of the Court Fee Act, 1870 provides for computation of fees in different matters.
For money.-(i) in suits for money (including suits for damages or compensation, or arrears of maintenance, or annuities, or of other sums payable periodically) – according to the amount claimed;
For maintenance and other formalities-(ii) In suits for maintenance or other sums that is payable periodically-according to the value of the subject matter of the suit, where such value shall be estimated to be about ten times the amount claimed to be payable for the next one year;
For any other moveable property that has a market value.-(iii) In suits for moveable property other than money, where the subject matter has a market value-according to such value at the date of presenting the plaint;
(iv)In suits –
For moveable property that essentially has no market-value.-(a) for moveable property where the subject-matter does not have market-value, as, for example, in the case of documents relating to title,
For enforcement of the right to share in a joint family-(b) to enforce the right to legal share in any property on the ground that it is joint family property, for instance in the case of Hindu Undivided Families,
where declaratory decree and consequential relief is prayed –(c) to obtain a declaratory decree or order, where consequential relief is prayed from the court,
For an injunction-(d) to obtain an injunction (be it temporary),
For easements-(e) for a right to some benefit that arises out of the land,
For accounts.-(f) for accounts according to the amount at which the relief sought is valued in the plaint or memorandum of appeal
Thus arrangements and fillings, which concern the administration of justice, are carried out on Judicial Stamp Papers, and duty in the form of court fees is applicable to them. A judge will never use a non-judicial Stamped paper for the administration of justice such as writing down orders and judgments and will not accept petitions filled on such papers.
Non Judicial Stamp Papers:
Non-Judicial Stamp Papers are used in matters which concern transactional arrangements between parties that are not judicial in nature, such as an agreement to sell, affidavits, lease agreement, amendment in the article of association, etc.
For every type of transaction, a certain amount of stamp duty is fixed by the state. Different states levy different stamp duties for different transactions. Thus; Government sets the Stamp Duty for each article and collects the revenue from the stamp duty.
For Example Stamp Duty for
It is Rs 50/- for Affidavits
Rupees 100 for General Power of Attorney
5% of amount secured, min 200 for Indemnity Bond/ Guarantee Bond
02% of market value for lease deed below 1 year
DRAFTING OF DOCUMENTS
We also provides the service of the drafting of any legal document such as :
Drafting of any agreement/Contract or its Registration.
Drafting of Partnership deed.
Drafting of will and/or its Registration.
Drafting of complaints.
Drafting of compromise deed.
Drafting of suit/plaint.
Drafting of Rent deed and its registration.
Drafting of Leese deed and its registration.
Drafting related to special or General power of attorney.
Legal notice meaning
A legal notice is a formal written communication between the parties. Through a legal notice, the sender notifies the recipient about his intention of undertaking legal proceedings against the latter. A legal notice also helps in making the receiving party aware of the grievances of the sender.
It works as a last warning to the receiver to fulfil a certain condition if he does not want a court battle.
It is used in a wide variety of situations:
In Consumer Forums: In case, a faulty product or service is provided to a person he or she can send a legal notice to the concerned person and ask him to rectify the deficiencies.
Disputes related to property such as partition, eviction or issues relating to possession of the property.
Loan Defaulters: Under the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (SARFAESI Act), the debt recovery proceedings begin by sending a legal notice to the defaulters.
Cases under the Negotiable Instruments Act: In case of dishonour of cheque, the aggrieved can send a legal notice for recovery of payment.
Money Recovery Cases: The first step in money recovery cases is sending a legal notice to the concerned person.
Employee and Employer/Company: If the employer in any way deprives the employees of their salary, then the employee can send a legal notice to the employer.
It is a tool to save time and cost of litigation as it opens the door for the parties to settle the matter through negotiation, mediation or arbitration.
What is an affidavit?
From family law and bankruptcy matters to civil and criminal cases, affidavits are common legal documents used in a variety of court proceedings. And when used, it’s just like taking an oath in court. Let’s dive into what an affidavit is, its purposes, and examples of instances when you might use one.
An affidavit is a sworn statement put in writing. When you use an affidavit, you’re claiming that the information within the document is true and correct to the best of your knowledge.
Like taking an oath in court, an affidavit is only valid when you make it voluntarily and without any coercion. There is no age limit for creating and using affidavits, but you must be of sound mind and understand what you’re signing.
If you knowingly sign an affidavit that contains false information you could risk losing your case, as well as face a potential charge of perjury.
What’s the purpose of an affidavit?
When you use an affidavit, you’re essentially writing a statement of facts to present to the court. For example, you may use an affidavit to notify a spouse about a change in financial circumstances after dissolution proceedings. Or, you may use one to verify residency, claim assets or property, or replace your original marriage certificate if you’ve lost it.
Once you have everything prepared and you’re ready to sign the documents, you must do it in front of witnesses while also having it notarized at the same time. In most states, banks will notarize affidavits for you and provide witnesses, but you can also use your own notary and witnesses.
An agreement (Section 2(e))
An Agreement is a promise between two entities creating mutual obligations by law. Section 2(e) of the Indian Contract Act, 1872 defines an agreement as ‘Every promise and every set of promises, forming the consideration for each other, is an agreement’.
To form an agreement, the following ingredients are required:
Parties: There need to be two or more parties to form an agreement.
Offer/ Proposal: When a person signifies to another his willingness of doing or omitting to do something with a view to obtain other’s assent. [Section 2(a)]
Acceptance: When the person to whom the proposal is made signifies his assent for the same thing in the same sense as proposed by the offeror. [Section 2(b)]
Promise: When a proposal is accepted, it becomes a promise. [Section 2(b)]
Consideration: It is the price for the promise. It is the return one gets for his act or omission. [Section 2(d)]
An agreement is, therefore, a promise or set of promises forming consideration for all the parties. [Section 2(e)]
Agreement = Promise or set of promises (offer + acceptance) + Consideration (for all the parties)
The agreement should not expressly be declared to be void
There are certain kinds of contracts which are expressly declared by The Indian Contract Act, 1872 to be null and void. The following are some of the agreements which are not enforceable in the eyes of law:
Agreements without consideration except it is written and registered or is a promise to compensate for something done or is a promise to pay a debt barred by limitation law.
Agreements in restraint of marriage
Agreements in restraint of trade
Agreements in restraint of legal proceedings
Agreements void for uncertainty
Agreements by way of wager
Agreements contingent on an impossible event
Agreements to do impossible act
Those agreements are void which are based on any of the subjects mentioned above. There is no liability for not enforcing the contract and thus, the conditions of the contract are not binding upon any of the parties.
For example, if Devdas asks Paro not to get married for her entire life then he will give her a new dress and shoes in return; it cannot be considered as a valid contract because the agreement is made in restraint of marriage.
Similarly, if the agreement is made to not to work for the entire life in exchange for a new flat, it will not be considered as a valid contract as it is in restraint of trade.
Also, if a father enters into an agreement with his son that the father will get him a new bicycle if the son scores 105% in his board exams. It will be considered a void agreement because it is an agreement to do an impossible act.
The above-mentioned conditions are required to be fulfilled in order to make an agreement legally enforceable. The agreement becomes void if any of the mentioned conditions are left unfulfilled except in the case of free consent where the agreement becomes voidable instead of void and giving the party, whose consent was not free at the time of entering into the contract, the discretion to continue the contract or not.
A Sale Deed precisely defines the priorities of both the parties thereby minimising the uncertainty and providing legal protection.
What is a Sale Deed?
A sale deed is a legal document that showcases the transfer of title, rights, and ownership of a property from a seller to a buyer.
It is the most important document that legally reports the proof for the buyer and seller. It is an essential document for both the buyer or the transferee and the seller or the transferor. The purchase or sale of the property is not legally complete until a sale deed is signed between the buyer and the seller. Normally, a sale deed is signed only after both the parties are satisfied and comply with the terms and conditions.
Advantages of a Sale Deed
Protects Parties :- The deed protect the rights of both the buyer and the seller. A specific, well-drafted deed will avoid ambiguity and minimise legal risks.
Defines The Area :- For the buyer, a key advantage is having on paper a well-defined description of the property that is being purchased, including the square footage and the location.
There are few additional benefits of a sale deed which is as follows:
As a sale deed concludes the sale into a legal document, it is enforceable by the law.
A sale deed reduces troubles as all money due can be specified in the document. This makes the process of sale more stable and comfortable.
Additionally, it assures that your property is not taken for granted given the existence of a registered and stamped legal document.
What is the Format of Sale Deed Form
In general, a sale deed should include the below-mentioned details-
Descriptions of the parties involved- the full name, complete address, contact details, age & occupation for each of the buyers and sellers.
Description of the property being transferred- id number, correct address, dimensions of the property, construction details of the building, if there is any.
Indemnity & encumbrance clause- This includes a declaration from the seller that the property being transferred is free from every encumbrance, litigation, and charge. Also, the seller indemnifies the buyer from any pending charges in this regard.
The seller should settle a pending loan taken with the concerned property as a mortgage, before proceeding with the sale. The buyer has every right to examine the related documents before registration.
The sale consideration- It’s the price at which the transfer deal is closed. This section should also mention the advance amount paid if there is any. The parties should explicitly agree on the dates of payment, the mode of payment, etc. The price and the details of the transactions made should be mentioned in both figures and numbers. The sale deed should also mention the receipts of the sale transaction.
Delivery & possession of the property- the deed should specifically mention the date of handover to and possession by the buyer.
What is the process for getting a sale deed?
The lawyers should be in contact to understand the requirement in detail.
The basic information would be required from your end to start the process.
Once all the information is provided and the payment is received, the lawyers will start working on your document.
Additionally, you will get the first draft of your legal document within a few working days.
You can evaluate the document and in case of any modifications, you can intimate for the corrections.
Requirements of a Sale Deed
The sale deed must specify the name and address of the buyers and the sellers.
There must be a complete address of the property and a description of the property should be mentioned.
The sale price consideration accepted between the buyer and the seller must be specified in the sale deed. That is, the amount which the buyer has to pay on the execution of sale deed must be mentioned in the sale deed.
Additionally, if the advance amount is paid already, it must be mentioned in the sale deed.
The mode of payment must be mentioned.
The sale deed must stipulate the time when the title of the property will get transferred to the buyer. All the documents that are related to the property must also be handed over to the buyer.
Ensure that the title of the property is available from any deviation.
A sale deed is not legally binding unless it is enrolled in the sub-registrar office. Both the buyer and the seller including the witness must be there at the registrar office on the date for the enrollment of the deed.
The stamp duty and registration charges have to be paid for making the registration done.
Registration of an original sale deed
Both the seller and the purchaser have to keep all the important documents in the sub-registrar office to confirm the sale deed and close the deal. The registration of a sale deed includes:
The value of the property has to be determined based on the circle rate in that region.
The circle rates of the area and the actual price paid for the property are related. While assessing the stamp duty the higher of the two values, the circle rate and the actual price paid have to be taken into consideration.
Additionally, a non-judicial stamp paper of the value so calculated has to be purchased consequently.
Consequently, the deed has to be provided and typed in stamp papers.
The final step needed in making the sale deed registered is to compare the sub-registrar office to get the sale deed registered. The parties must be followed by two witnesses.
What is the cancellation of a sale deed?
The cancellation of a deed can be done bilaterally by the seller and the purchaser if there is an agreement to this effect. The cancellation process is done only if one party demands for cancellation and the other refuses to accept it.
We provide property investment advice to clients after careful analysis of market conditions and trends. We identify the most feasible, cost-effective approach to help our clients achieve their objectives.