Seemingly there is a divergence in opinion, but we do not see any conflict in the two decisions. In both the decisions, this Court unequivocally found that if an instrument is not duly stamped, it is inadmissible Under Section 34 and if it is brought before any person or authority empowered to receive evidence, then, it shall be impounded. It was also recognized that on such impounding; for expedition of the suit, the party who produces the document can seek for determination of the insufficient duty by the court itself in which circumstance, the instrument can be taken in evidence on payment of the deficit duty as also ten times the deficit duty determined as penalty. There is no discretion insofar as the quantum of penalty is concerned when the instrument is sought to be admitted in evidence before court without transmitting it to the District Commissioner. However, if the deficit and the penalty at ten times is paid, after admission in evidence, a copy of the instrument has to be transmitted to the Deputy Commissioner Under Section 37(1). The Deputy Commissioner on receipt of a copy of the instrument Under Section 37(1) has the discretion to refund any portion of the penalty in excess of five rupees Under Section 38. {Para 15}
IN THE SUPREME COURT OF INDIA
Civil Appeal No. 3476 of 2026
Decided On: 23.03.2026
Krishnavathi Sharma Vs. Bhagwandas Sharma and Ors.
Hon'ble Judges/Coram:
P.V. Sanjay Kumar and K. Vinod Chandran, JJ.
Citation: MANU/SC/0514/2026
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