Maharashtra Stamps Act, 1958
(This is for 2 marks)
1. Explain Chargeability of an instrument? (When does it starts)
Answer - Under the Maharashtra Stamp Act, 1958, an instrument becomes
chargeable to stamp duty at the time of its execution (signing) as per Section
3. If executed outside Maharashtra, stamp duty becomes payable when the
instrument is first brought into the state. As per Section 17, the instrument
must be stamped before or at the time of execution, failing which it may be
inadmissible in legal proceedings.
2. Explain Marketable security
Answer – It is mentioned under Maharashtra Stamps Act, 1958 under section
2(o), it means a security of such description as to be capable of being sold in
any stock market in India
3. What do you mean by "Duly stamped"
Answer - It is mentioned under Maharashtra Stamps Act, 1958 under section
2(h), “Duly stamped” as applied to an instrument means that the instrument
bears an adhesive or impressed stamp of not less than the proper amount
and that such stamp has been affixed or used in accordance with the law for
the time being in force in the state
4. What is scope and object of Maharashtra Stamp Act, 1958
Answer - The Maharashtra Stamp Act, 1958 aims to regulate the levy and
collection of stamp duty on instruments executed in Maharashtra to ensure
proper revenue generation for the state. Its scope covers all chargeable
instruments, including agreements, conveyances, and deeds, ensuring their
legal validity by requiring proper stamping. The Act also provides penalties for
non-compliance and governs the adjudication and refund of stamp duty.
5. What is Floor Space Index as per Maharashtra Regional Town
planning Act, 1966
Answer - The Floor Space Index (FSI), is the ratio of the total built-up area of
a building to the total plot area on which it is constructed. As per the MRTP
Act, 1966, the permissible FSI is regulated by Development Control
Regulations (DCR) to ensure planned urban development. Different areas may
have different FSI limits based on zoning, infrastructure capacity, and
planning policies.
6. Explain Unauthorised Development as per Maharashtra Regional
Town Planning Act, 1966
Answer - Unauthorised Development refers to any construction or land use
change carried out without required permissions from the planning authority
under the MRTP Act, 1966. This includes building without approval,
exceeding permissible FSI, or violating zoning regulations. Such developments
can be subject to penalties, demolition, or regularization under special
government schemes.
(Long Answers 6 mrks)
1. Explain the procedure of adjudication of stamp duty of an
instrument u/s 31 of Maharashtra Stamps Act, 1958
Answer - Adjudication of stamp duty refers to the process of determining the
correct amount of duty payable on an instrument. Section 31 of the Maharashtra
Stamp Act, 1958, provides the procedure for adjudication as follows:
Application for Adjudication
Any person can apply to the Collector of Stamps for adjudication before
executing the instrument. The application must be made with a true copy or
draft of the instrument and the prescribed fee.
Examination by Collector
The Collector examines the nature, purpose, and value of the transaction. If
necessary, supporting documents (such as agreements, valuations, or market
value reports) may be required.
Determination of Stamp Duty
Based on the examination, the Collector determines the applicable stamp
duty. The decision is binding, and the applicant must pay the assessed duty.
Once duty is adjudicated, the instrument must be stamped accordingly before
execution. If the duty is underpaid, penalties may apply.
No Appeal Against Adjudication
The adjudication under Section 31 is advisory and does not grant any
exemption from duty. If the applicant disagrees, they must challenge it
through legal means or higher authorities. This procedure ensures proper
stamp duty payment, preventing disputes and penalties later.
2. What is Impounding of an instrument who are entitled to impound
the instrument
Answer - Impounding refers to the process of detaining an instrument that is not
duly stamped as required under the Maharashtra Stamp Act, 1958. As per Section
33, if an instrument presented before a public officer, court, or authority is
unstamped or insufficiently stamped, it must be impounded and sent to the Collector
for proper stamping.
The following authorities are entitled to impound an instrument:
1. Public Officers – Any officer performing official duties who comes across
an unstamped document can impound it.
2. Judicial Officers – Courts have the power to impound documents
produced as evidence if they are not properly stamped.
3. Collectors – The Collector of Stamps has the authority to impound and
determine the required stamp duty along with any penalties.
Once impounded, the instrument can be validated upon payment of the
deficient stamp duty and penalty as prescribed under Section 34. However, if
it is not rectified, the instrument may be rendered inadmissible as evidence
in legal proceedings.
3. Explain admissibility of instruments which are not duly stamped
Answer - An instrument chargeable to stamp duty is admissible in evidence if
such an instrument is duly stamped and in case of stamp paper with an impressed
stamp if such a stamp paper has been purchased in the name of one of the party
to the instrument. If the family arrangement is reduced to writing and it purports
to create declare assign limit or extinguish any write title or interest in any
immovable property it must be properly stamped and duly registered under the
registration Act, if it is properly stamped but not registered it can be looked into
for collateral purposes.
In the case of “Balkrishnan v. Chandrashekharan” the court stated that if it is
neither stamped nor registered it cannot be looked into for any purpose
whatsoever.
1) If an instrument is not duly stamped still it becomes admissible in evidence.
On payment of the stamp duty or deficient portion of the stamp duty or penalty
at the rate of 2% but in no case, penalty will not exceed the deficient portion
of the stamp duty.
2) If a contract is contained in 2 or more letters and one of the letters is properly
stamped the contract is deemed to be duly stamped.
3) An unstamped or insufficiently stamped instrument can be admitted in
evidence in a criminal court in any proceeding other than certain specified
proceedings under the Civil Procedure Code under Chapter IX & X of the said
code.
4) An unstamped or insufficiently stamped instrument can be admitted in any
court If such an instrument has been duly executed by or on behalf of the
government and bears certificate from the collector under the provisions of the
Act.
5) A copy of an instrument or an oral admission of an instrument can be admitted
in the evidence if the stamp duty or deficient portion of stamp duty along with
penalty has been paid.
6) Once an instrument is admitted in evidence such admission cannot be
questioned at any stage of suit or proceeding on the ground of that the
instrument has not been duly stamped.
7) The state govt is empowered to make rules to provide that if an instrument
bears a stamp of sufficient amount but the stamps are not of the proper
description such an instrument can be certified to be duly stamped on the
payment of the chargeable stamp duty.
Thus, even if a document is not duly stamped this does not invalidate the
document the defect can be cured by payment of the deficient amount of stamp
duty along with the penalty as stated above. However, it is only the original
document that can be validated and when the original is lost and a copy is
produced, such a copy cannot be validated.
