Supreme Court Upholds Trial Court's Authority to Revisit Admission of Insufficiently Stamped Documents:

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Supreme Court Upholds Trial Court's Authority to Revisit Admission of Insufficiently Stamped Documents

Summary:

On July 9, 2024, the Supreme Court of India delivered a significant judgment in Civil Appeal No. 1188/2015, G.M. Shahul Hameed v. Jayanthi R. Hegde, addressing the pivotal question of whether a court can recall the admission of a document in evidence if it was insufficiently stamped, despite being marked as an exhibit without any objection. This case clarifies the interplay between the court's inherent powers and the statutory provisions governing the admissibility of documents.

Background: The case originated from a dispute involving two conflicting sale deeds concerning a piece of property. The respondent, Jayanthi R. Hegde, presented a General Power of Attorney (GPA) in court, which was admitted into evidence without objection from the appellant, G.M. Shahul Hameed. However, it was later contended that the GPA was insufficiently stamped, and the appellant sought to have the document impounded and re-examined under the Karnataka Stamp Act, 1957.

Key Issues:

  1. Revisiting Admitted Evidence: The primary issue was whether a court could revisit the admission of a document already marked as an exhibit if it was found to be insufficiently stamped. The trial court allowed this, directing the respondent to pay the deficit stamp duty and penalty. However, the High Court of Karnataka set aside this order, leading to the appeal before the Supreme Court.

  2. Inherent Powers of the Court: The Supreme Court had to determine whether the trial court acted within its inherent powers under Section 151 of the Code of Civil Procedure (CPC) when it reconsidered the admission of the insufficiently stamped GPA.

Supreme Court's Decision: The Supreme Court upheld the trial court's decision, emphasizing that the trial court retains the authority to revisit the admission of a document if it was admitted without the proper application of judicial mind, particularly concerning the sufficiency of stamp duty. The Court held that the mere marking of a document as an exhibit does not conclude its admissibility if the statutory requirements have not been met.

The Court clarified that while Section 35 of the Karnataka Stamp Act generally prevents questioning the admissibility of an instrument after it has been admitted, this applies only when there has been a judicial determination on the issue of stamping. In the absence of such determination, the court's inherent powers can be invoked to correct the oversight.

Implications: This judgment reinforces the responsibility of courts to ensure that documents admitted into evidence comply with statutory requirements, particularly regarding stamp duty. It also affirms the court's duty to prevent any circumvention of legal obligations, ensuring the integrity of judicial processes.




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