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Document Presented For Registration Can’t Be Impounded By Registering Authority For Being Insufficiently Stamped

In Dr. Abdul Rasheed v. State of Kerala, a company executed a settlement deed in favour of three children of its managing director. The Sub-Registrar impounded them since the instruments were insufficiently stamped. The District Registrar and Land Revenue Commissioner affirmed this order impounding the deeds. A single bench of the high court, before which the petitioner challenged these orders, refused to interfere.

The Division Bench of the Kerala High Court rejecting the decision on the Registration authority decided that while the registration authorities have impounded the document under Section 33 of the Indian Stamp Act, Section 34 more specifically explains what to do with documents presented before authorities and it is rule of law in case of conflict the specific law would prevail over the general law. If we hold that any document presented for registration cannot be taken back, and if the transaction cannot be resiled from, it destroys a person’s contractual freedom, and his decisional independence. A person can opt out of a transaction any time before the transaction is completed and his act becomes irrevocable—that is he acted on it for his benefit.

Article referred: http://www.livelaw.in/document-presented-for-registration-cant-be-impounded-by-registering-authority-for-being-insufficiently-stamped-kerala-hc/

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