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IS DOCUMENT STAMPED WITH MAHARASHTRA STAMP SIGNED AND NOTARIZED OUTSIDE STATE VALID?

July 31, 2019

This question was put up by a Co-operative Society, who objected to accept a document signed outside state on Maharashtra Stamp paper. Than our office researched the law and came across a Judgment of Division Bench of Bombay High Court. It was filed in the year 1988. Matter went  up to Supreme court, it was remanded back to Bombay High Court for hearing and final disposal. Let us see what happened in the said matter. Recently a group of matters came up for final disposal before division bench of Bombay High Court namely Indian Hume Pipe Company Limited and Others Versus State of Maharashtra and Others  In Writ Petition No.2519/1988, a declaration is sought that the provisions of sections 3, 7 and 19 of the said Act to the extent to which the same seek to levy stamp duty on the copies of the instruments executed outside the State of Maharashtra are null and void. It is stated in the said petition that a Debenture Trust Deed dated 6th April 1987 (for short “the deed”) was executed by the first petitioner company in the State of Gujarat. The first petitioner and the State Bank of India are the parties to the said deed. The State Bank of India is a trustee. A mortgage of the immovable properties of the first petitioner company was made under the deed with a view to secure the issue and allotment of the debentures of the first petitioner. As a substantial part of the mortgaged property was situated in the State of Gujarat, the deed was executed in the State of Gujarat and was stamped as per the law prevailing in the State of Gujarat the Bombay Stamp Act, 1958 as applicable to the State of Gujarat). As the registered office of the first petitioner company is situated in Mumbai, the charge of mortgage was required to be registered with the Registrar of Companies in Mumbai pursuant to the provisions of the Companies Act, 1956 (for short “Companies Act”). In response to the query made by the second respondent­ the Superintendent of Stamps, the petitioners contended that the said original deed is not received in the State of Maharashtra. In Writ Petition No.2488/1988, a similar deed was executed by the first petitioner­ company in the State of Gujarat. Stamp duty was paid and it was registered in the State of Gujarat. A copy of the said deed was filed with the Registrar of Companies in Mumbai for registering the charge as the registered office of the first petitioner is in the State of Maharashtra. A demand for the difference in the stamp duty payable in the State of Maharashtra and the stamp duty paid in the State of Gujarat was made by the second respondent. That is how this writ petition is filed challenging the demand. Even in this petition, there is a challenge to the constitutional validity of the relevant provisions of the said Act in so far as they permit levy and recovery of stamp duty in respect of copies of instruments. In Writ Petition No.2534/1988, a similar deed was executed and registered […]

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