Allied acts.bose

Allied Acts
Shankar Bose, IIT
MSTU, Puri

Transfer of Property Act
1882

Transfer of Property Act 1882
Sec.3 Definitions
 Instrument means a non-testamentary instrument.
 Actionable claim means a claim to any debt not
being a debt secured by mortgage of immovable
property or by hypothecation or pledge of movable
property, which the Civil Courts recognize as affording
grounds for relief.


Sec. 14 Rule against perpetuity.

No transfer of property can operate to create an
interest which is to take effect after the life time
or one or more persons living at the date of such
transfer and the minority, of some persons who
shall be in existence at the expiration or that
period and to whom if he attains full age, the
interest created is to belong.


Sec. 19 Vested interest.

Where on a transfer of property, an interest therein
is created in favour or a person without specifying
the time when it is to take effect or in terms of
specifying that it is to take effect forthwith or on
the happening of an event, such interest is called
vested interest. A vested interest is not defeated
by the death of the transferee before he obtains
possession.


Sec. 21 Contingent interest.-
Where, on a transfer of property, an interest is
created in favour of a person to take effect only
on the happening / non happening of a specified
uncertain event, such person thereby acquires a
contingent interest in the property. Such interest
becomes vested interest in the former case on the
happening and in the later case when the
happening of the event becomes impossible.


Sec. 100 Charge.
Where any immovable property of one person by
act of parties or operation of law, is made security
for payment of money to another and the
transaction does not amount to mortgage, the
latter person is said to have a charge on the
property.


Sec. 118 Exchange.
When two persons mutually transfer ownership of
two things and both things not being money, the
transfer is called exchange. Reciprocal giving and
receiving one in consideration of another which is
offered in exchange of another.


Sec. 122 Gift.
Gift is the transfer of certain existing movable or
immovable property made voluntarily, without
consideration by one person called donor, to
another called donee,and accepted by the donee.
Sec. 128 Universal donee.
Where a gift consists of owner’s whole property,
the donee is personally liable for the debts and
liabilities of the donor at the time of the gift to the
extent of the property comprised therein.


Sec. 54. Sale is a transfer of ownership in
exchange for a price paid or promised or part paid
or part promised.

A contract for the sale of immovable property is a
contract that a sale of immovable property shall
take place on terms settled between the parties.
However a contact for sale does not create any
interest of charge on such property.


Sec. 55. In the absence of a contract to the
contrary the buyer and seller of immovable
property respectively have the rights and
liabilities as following :
Liabilities of the Seller
(a) The seller is bound to disclose to the buyer any
material defect in the property or in the seller’s
title which the seller is but the buyer is not aware.


(b) to produce to the buyer on his request for
examination the documents of title of the seller.
(c) To answer to the best of his information all
relevant questions put to him by the buyer in
respect of the property.
(d) On payment of the amount of price to
execute a proper conveyance of the property.


(e) The seller should protect the property and the
documents of title between the contract of sale
and delivery of the property to give the
possession of the property to the buyer.

(f) To pay all public charges and rent accrued due
interest payment on all encumbrances on such
property till the date of sale.


Liabilities of the buyer.
(a) The buyer is bound to disclose to the seller
any fact known to him but not to the seller, which
may increase the value of the property.

(b) to pay the purchase money to the seller.


Rights of the seller.
(a) The seller is entitled to the rents and profits of
the property till the ownership passes to the
buyer.

(b) If the property passes on part payment the
seller is entitled to receive the balance amount
u/s Sec.53A.


Rights of the buyer.
(a) the buyer is entitled to the rent and profits in
respects of the property after it is came to his
possession.

(b) the buyer is entitled to a charge on the
property against the purchase money paid.


Sec. 53A. Where in case of a transfer of any
immovable property the transferee has, in part
performance of the contract, taken possession of
the property or part thereof, then even if the
conveyance has not been registered or the
transfer has not been completed, the transferor
shall be debarred from enforcing against the
transferee, claiming any right in the property of
which the transferee has taken possession.


Sec. 58(a) Mortgage is transfer of interest in
specific immovable property for the purpose of
securing the payment of money advanced or to be
advanced, by way of loan, an existing or future
debt or the performance of an engagement which
may give rise to pecuniary liability.


• The transferor is called the mortgagor.

• The transferee – mortgagee.

• The principal money along with interest of which
payment is secured is called mortgage money.

• The deed by which transfer is effected is called
mortgage deed.


Sec. 58(b) Types if mortgage.
Simple mortgage is effected without delivering the
possession of the mortgaged property to the
mortgagee, and the mortgagor binds himself
personally to pay the mortgage money along with
interest and also agrees that in the event of
failure to pay, the mortgagee shall have the right
to cause the mortgaged property sold and apply
the proceeds towards payment of the mortgage
money. This is called simple mortgagee.


Sec.58(c) Mortgage by Conditional Sale: - In such
case the mortgagor sells the property with the
condition that if he pays the mortgage money
within the stipulated period the sale would
become void and the mortgagee will re-transfer
the property to the mortgagor.
Alternatively in case of default by the mortgagor,
the sale will become absolute.


Sec.58(d).Usufructuary Mortgage.
: -Where the mortgagor delivers possession of the
property to the mortgagee and authorizes him to
retain the possession of such property and to
receive the rents and interests and to appropriate
the same towards partly payment of interest or
mortgage money such transaction is called
usufructuary mortgage.
•


Sec.58(e).English Mortgage.
Where the mortgagor binds himself to repay the
mortgage money on a certain date and transfers
the mortgaged property to the mortgagee,
subject to condition that the mortgagee will
retransfer the property to the mortgagor on
payment of the mortgage money such transaction
is called English Mortgage.


Sec.58(f). Mortgage by deposit of title
deed.
Where the mortgagor delivers the documents of
his title to an immovable property to the
mortgagee with intention to create a security
thereon, such transaction is called mortgage by
depositing title deed. This is also called equitable
mortgage. This applicable in Metros and such
other towns as the State Govts. may notify.


Sec. 58(g). Anomalous mortgage.
A mortgage which cannot be termed as any
of the five mortgages is called Anomalous
mortgage.


Sec.105. Lease
A lease or immovable property is transfer or right
to enjoy such property made for a certain period
or in perpetuity in consideration of a price period
or promised, or of money or of crops or any other
thing of value to be rendered periodically or on
specified occasions to the transferor by the
transferee.


The transferor is called lessor.
Transferee – Lessee.
The price – premium.
Money, share, etc. called rent.
Sec.108.Rights and liabilities of
lessor and lessee.
(a) Lessor is bound to disclose to the lessee any
material defect in the property which is lessor is
aware of but the lessee is not.


(b)The lessor is bound to give possession or the
property to the lessee.
(c)The lessor is bound to allow the lessee to
hold the property during the lease period
provided the lessee pays rent and performs
according to the contract of the Lease.


(d) If the property is damaged considerably
by natural calamities etc. beyond anybody’s
control then lease shall be void at the options
of the lessee.
(e) If the lessor does not make any repair to
the property which he is bound to do, the lessee
if he desires can make such repair and deduct the
expenses of such repair from lease rent.


(f) If lessee makes any payment of lessor’s
liability, he may adjust such payment from the
lease rent payable.
(g) The lessee if attaches certain things to the
lease property during period he may remove it
within that period.
(h) In the event of termination of lease, except
for the fault of the lessee, the lessee is entitled
to all crops .


(i) The lessee is bound to pay at the proper
time and place the premium or rent to the lessor.
(j) The lessee is bound to keep and restore the
property in good condition excepting normal
depreciation.
(k) The lessee is bound to inform the lessor about
any proceedings against the property taken by
Any outside agency.


(l) The lessee must not without lessor’s consent
erect on the property any permanent structure,
except for agricultural purpose.
(m) On termination of lease the lessee must
transfer back the property to the lessee.

Indian Registration Act,
1908

Indian Registration Act, 1908
Sec. 17(1). Documents of which registration is
compulsory.
(a) Instrument of gift of immovable property.
(b) Other non-testamentary Instrument which,
transfers, whether in present or in future, any
right, title or interest whether vested or
contingent of the value of one hundred rupees or
more in respect of immovable property.

1908

(c)Non-testamentary instrument which acknowledges
the receipt or payment of any consideration on
account of transfer of any such right tile or interest.

(d) leases of immovable property from year to year or
any term exceeding one year or reserving a
yearlyrent.

1908

(e) Non-testamentary instrument transferring any
decree or order of a court granting, whether in
present in future any right, title or interest whether
vested or contingent of the value of one hundred
rupees or more in respect of immovable property.

Sec.17.Proviso: State Govt. may exempt any lease
executed in any district for a term not exceeding 5
years and annual rent not exceeding Rs.50/-.

•

1908

Sec. 18. Documents of which registration is
optional
(a) Instruments (other than that of gift or will)
transferring whether in present or in future any
right, title or interest whether contingent or vested
of a value less than one hundred rupees in respect
of any immovable property.
(b) Instruments acknowledging receipt of payment
of any consideration on account of transfer of any
such right title or interest.

1908

(c) Lease of immovable property for any term not
exceeding one year or leases exempted u/s.17.

(d) Instruments transferring any decree or order
of a court granting, whether in present or in
future any right title or interest whether
contingent or vested of a value less than one
hundred rupees in respect of an immovable
property.

1908

Sec 42. Of the deposit of wills.
Any testator may either personally or through A.R.
deposit with any Registrar his will in a sealed cover
superscribed with testator’s name.
Sec.43. Procedure on deposit of wills.
The Registrar, if satisfied that it is properly presented,
shall transcribe the superscription in Register Book
No.5. He shall note on the book and on the cover, the
time and date of such presentation and also names of
persons who may testify the testator.

1908

Sec-44.Withdrawal of Sealed Cover.
The testator may apply to the Registrar for
withdrawal of the same and the Registrar, if
satisfied that the applicant is the testator himself,
shall deliver the cover accordingly.
Sec-45. Procedure on depositor’s death.
After the death of testator, on an application
made in this behalf, if the Registrar is satisfied
that the testator is dead he shall open the cover
in the presence of the applicants and cause the
contents thereof copied on Register Book No.-3
and re-deposit the will.

1908

Sec 47. Date from which the registered
document operates.
A registered document shall operate from the
date from which it would have commenced to
operate, if no registration was required and not
from the date of registration.
Sec.49 . Non-registration of a document which
requires compulsory registration u/s.17 renders it
invalid and inadmissible as evidence.

1908

Sec.23. Every documents shall be presented for
registration within four months of its execution.
Sec. 24. Documents signed by several persons at
different times may be presented for registration
within four months of each execution.

1908

Sec. 25. In case any document is not presented for
registration within four months due to unavoidable
reasons, the Registrar may condone the delay and
allow registration within another four months on
payment of a fine not exceeding ten times of the
proper registration fee.

1908

Sec. 26. Documents executed by all the parties
outside India, may be accepted by the registering
authority if he is satisfied that it has been
executed outside India but has been presented
within four months of its arrival in India.

Sec. 28 Place for registration. Every document
relating to immovable property must be
registered
with the jurisdictional Sub-Register or Registrar.

Indian Trust Act, 1882

INDIAN TRUST ACT 1982
Sec. 3. TRUST is an obligation annexed to the
ownership of property, arising out of confidence
reposed in and accepted by the owner or
declared and accepted by him for the benefit of
another or another and the owner.


• (i) The person who reposes or declares the
confidence is called the Author of the Trust or
settler.
• (ii) The person who accepts the confidence is called
the Trustee.
• (iii) The person for whose benefit the confidence is
accepted is called beneficiary.
• (iv) The subject matter of the trust is called the
Trust Property or Trust money.


Sec 4. Lawful purpose
A trust may be created for lawful purpose. The
purpose of a trust is unlawful in the following cases:
(i) If it is forbidden by law.
(ii) If the trust is fraudulent.
(iii) If the trust involves injury to the person or
property of another.
(iv) The court regards it as immoral or opposed
to public utility.


A trust with unlawful purpose is always void.
However when a trust is having both lawful and
unlawful purposes and two purposes cannot be
separated the whole trust is void.


Sec.5. To create a valid trust of immovable
property it must be declared by will of the author
or by non-testamentary instrument in writing
signed by the author or trustee and registered.
However in respect of movable property, the
trust must be declared by a non-testamentary
instrument and the ownership of the property is
transferred to the trustee.


Sec 6 Creation of trust :
A trust is created when the author indicates with
reasonable certainly by any words or acts.
(i) An intention to create a trust.
(ii) The purpose of the trust.
(iii) Who are the beneficiaries.
(iv) Identify the trust property and
(v) Transfers the trust property to the trustee.


Sec.19. Trustee is bound to keep clear and accurate accounts of the trust property and furnish
full and accurate information as to the amount and state of trust property to the beneficiary.
Sec .23.Liability or breach of trust.
If the trustee commits breach of trust he is liable to make good the loss sustained by the trust
property or beneficiary along with interest.


Trustee will be liable in the following cases:
• (i) Where he has actually received interest.
• (ii) Where there is unreasonable delay in paying
trust money to the beneficiary.
• (iii) Where the trustee ought to have received
interest by has not done so.


This will not apply if,
• (i) The beneficiary has by fraud induced the
trustee to commit such breach
• (ii) Beneficiary, being competent to contract, has
himself concurred in the breach.


Sec 68 Revocation of trust
A trust created by will may be revoked at the
pleasure of the testator.
A trust created otherwise may be revoked in
the following cases:
 Where all the beneficiaries are competent to
contract , by their consent.


Sec 68 Revocation of trust
 Where a trust has been declared by a non-
testamentary instrument–in exercise of power of
revocation expressly reserved to the author.
 Where a trust is created for the payment of debts
of the author and has not been communicated to
the creditors – at the pleasure of the author.


Sec. 77. Trust how extinguished

• (i)When its purpose is completely fulfilled, or
• (ii)When its purpose become unlawful, or
• (iii)When fulfilment of its purpose become
impossible by destruction of the Trust property, or
• (iv)When trust being revocable, expressly revoked.

Hindu Succession Act 1956

Section 2 : Application
This Act applies to the Hindus, Virashiba,
Lingayat, Brahmo, Arya Samaj, Buddhist,
Jain, Sikh or any one not being a Muslim
Christian, Jew Parsi or S.T.


Sec. 3. Definitions.
(a)Agnate: Two persons are agnates if they are
related by blood or adoption through males.
(c) Cognate : Two persons are cognates if they
are related by blood or adoption not wholly
through males.
(d) Full blood: Two persons are said to be
related by full blood if they are descendants
from a common ancestor by same wife.


(e) Half blood: if they are descendants from same
ancestor by different wives.
(f) Two persons are said to be related to each other
by uterine blood if they are descendants from
same ancestress by different husbands.
(g) Intestate: A person may be said to have died
intestate in respect of property of which he or
she has not made any testamentary disposition
capable of taking effect.


Sec.8. General Rules of Succession in case of
males. The property of a male Hindu dying
intestate will devolve as following:
(a)Firstly upon, the heirs, being the relatives
Specified in Class I of the Schedule.


(b) If there is no heir in Class I, upon the heirs, being
relatives specified in Class II of the schedule.
(c) If there is no heirs of the two classes, on the
Agnates of the deceased.
(d) If there is no agnate, then on the cognates.


Schedule- Class-I
Son, daughter, widow, mother, son of a
predeceased son, daughter of a predeceased son,
son of a predeceased daughter, daughter of a
predeceased daughter, widow of a predeceased
son, son of a predeceased son of a predeceased
son, daughter of a predeceased son of a
predeceased son, widow of a predeceased son of a
predeceased son.


Class-II
1. Father
2. Son’s daughter’s son, son’s daughter’s daughter,
brother, sister.
3. Daughter’s son’s son, daughter son’s daughter,
daughter’s daughter’s son.
4. Brother’s son, sister’s son, brother’s daughter,
sister’s daughter.
5. Father’s father, father’s mother.
6. Father’s widow, brother’s widow.
7. Father’s brother, father’s sister.
8. Mother’s father, mother’s mother.
9. Mother’s brothers, mother’s sister.


Sec.15(1). In case of Female Hindu dying
intestate, property will devolve as
following :
(a)Firstly upon the sons & daughters including
children of any predeceased son, and the husband.
(b)Secondly upon the heirs of the husband.
(c)Thirdly upon the mother & father.
(d)Fourthly upon the heirs of the father.
(e) Lastly upon the heirs of the mother.


2(a) Properly inherited from parents shall first
devolve on (1)(a) and then on heirs of father.
(b) Property inherited from husband or father in
law will first devolve as (1)(a) and then heirs of
husband.
Sec.20 Child at womb at the time of intestate’s death
will have the same right as if born before the death
of the intestate.
Sec. 30 But testamentary succession will be as per
Indian Succession Act.

Indian Succession Act 1925

The Indian Succession Act 1925.
Sec. 4 Applicable to all Indians except Hindu,
Muslim, Buddhist, Sikh or Jaina.

Sec. 2 (a) Administrator means a person
appointed by competent authority to administer
the estate of a deceased person when there is no
executor.


(b) ‘Codicil’ means an instrument made in relation
to will and explaining, altering or adding to its
dispositions and shall be deemed to form part
of the will.

(c) “Executor” means a person to whom the
execution of the last will of a deceased is, by the
testator’s appointment confided.


(d)Minor means any person subject to the Indian
Majority Act, 1875, who has not attained his
majority within the meaning of that Act, and any
other person who has not completed the age of
eighteen years.
‘Minority’ means the status of such person.


(e) “Probate” means the copy of a will certified
under the seal of a court of competent jurisdiction
with a grant of administration to the estate of the
testator.

(f) “Will” means legal declaration of the intention
of a testator with respect to his property which he
desires to be carried into effect after his death.


Sec.-59 Person capable of making wills:
Every person of sound mind not being a minor, may
dispose of his property by will.
Explanation 1.- A married woman may dispose by
will of any property which she is capable of alienating
during her life.
Explanation 2. Persons who are deaf, dumb or blind
but not incapacitated for making a will, if they know
what they do by it.


Explanation 3. – A person who is ordinarily
insane may make a will during an interval in
which he is of sound mind.

Explanation 4.- No person can make a will while
he is in such a state of mind, whether arising
from intoxication or from illness or from any
other cause, that he does not know what he is
doing.


Sec. 62. A will may be revoked or altered by its
maker at any time when he is competent to dispose
of his property by will.
Sec. 63 Execution of unprivileged wills:
Every testator, not being a soldier or an airman or a
mariner at sea, shall execute his will according to
he following rules :-(a) The testator shall sign the
will, or it shall be signed by some other person in his
presence by his direction.


(b) The signature of the testator, or the person
signing for him, shall be so placed that it shall
appear that it was intended thereby to give
effect to the writing as a will.
(c) The will shall be attested by two or more
witnesses, each of whom has seen the testator or
the authorised person signing the will, in the
presence and by the direction of the testator,
and each of the witnesses shall sign the will in
the presence of the testator.


Sec. 65.Privileged wills :
Any soldier being employed in an expedition or
engaged in actual warfare, or an airman or any
mariner being at sea, so employed or engaged
may, if he has completed the age of eighteen
years, dispose of his property by a will made in
the manner provided in section 66. Such wills
are called privileged wills.


Sec. 66 Mode of making, and rules for
executing, privileged wills:
(1) Privileged wills may be in writing, or may be
made by word of mouth.
(2) The execution of privileged wills shall be
governed by the following rules :-
(a) The will may be written wholly by the testator,
with his own hand. In such case it need not be
signed or attested.


(b) It may be written wholly or in part by another
person and signed by the testator. In such case it
need not be attested.
(c) If the instrument purporting to be a will is
written wholly or in part by another person and is
not signed by the testator, it shall be deemed to be
his will; if it is shown that it was written at the
testator’s directions or he recognizes it as his will.


(d) If it appears on the face of the instrument that
the execution of it in the manner intended by the
testator was not completed, the instrument shall
not, by that reason, be invalid, provided that his
non-execution of it can be reasonably ascribed to
some cause other than the abandonment of the
testamentary intensions expressed in the will.


(e) If the soldier, airman or mariner has written
instructions for the preparation of his will, but has
died before it could be prepared and executed, such
instructions shall be considered to constitute his will.
(f) If he has, in the presence of two witnesses, given
verbal instructions for the preparation of his will, and
they have been reduced into writing in his lifetime,
but he has died before the instrument could be
prepared and executed, such instructions shall be
considered to constitute his will.


(g) The soldier, airman or mariner may make a
will be word of mouth by declaring his intentions
before two witnesses present at the same time.
(h) A will made by word of mouth shall be null at
the expiration of one month after the testator,
being still alive, has ceased to be entitled to make
a privileged will.(Retirement or otherwise)


Sec-70.Revocation of unprivileged will or
codicil.
No unprivileged will or codicil, nor any part thereof
shall be revoked otherwise than by marriage, or by
another will or codicil, or by writing declaring an
intention to revoke the same or by burning, tearing or
destroying the same by the testator with the intention
of revoking the same.

General Clauses Act 1897

Definitions.
Sec.3(1): Abet, with its grammatical variation and
cognate expressions, shall have the same
meaning as in the Indian Penal Code.
Sec.3(3):Affidavit shall include affirmation and
declaration in the case of persons by law
allowed to affirm or declare instead of
swearing.
Sec.3(14).Commissioner means the chief officer-in-
charge of the revenue administration of a
division.
Sec.3(21).Financial year means the year commencing
on 1st. day of April.


Sec.3(35). Month means a month as per British
calendar.
Sec.3(37) .Oath shall include affirmation and
declaration of persons by law allowed to
affirm or declare instead of swearing.
Sec.3(38): Offence shall mean any act or omission made
punishable by any law for the time being in
force.
Sec.3(66). Year shall mean a year as per British calendar.


Sec. 5: Coming into operation of enactments :

Where any Central Act is not expressed to come into
operation on particular day, then it shall come into
operation on the day on which it receives the assent
of the President. Unless contrary is expressed, a
Central Act or Regulation will come into operation on
expiration of the day preceding its commencement.


Sec.9-Commencement and termination of
time.

In any central act it shall be sufficient, for the purpose
of excluding the first in a series of days to use the
Word “from” and for the purpose of including the last
in a series of days to use the word “to”.


Sec.10-Computation of time.

Where by any Central Act, any act or proceeding is
directed or allowed to be done or taken in any court
or office on a certain day or within a prescribed
period, then, if the court or the office is closed on that
day or the last day of the prescribed day, the act or
the proceeding shall be considered as done or taken in
due time if it is done or taken on the next day, on
which the court or office is open.


Sec.11: Measurement of distances:

In the measurement of any distance, for the
purpose of any Central Act or Regulation, made
after commencement of this Act, that distance
shall, unless a different intention appears, be
measured in a straight line or on a horizontal
place.


Sec.13- Gender and number.

In all Central Acts , unless there is anything repugnant
in the subject or context,
1. Words importing the masculine gender will include
females, and
2. Words in the singular shall include the plural and
vice versa.


Sec.20 : Construction of notifications, etc.
issued under enactments :

Where by any Central Act or Regulation a power
to issue notification, order, scheme, rule, form or
bye-law is conferred, then expressions used in
the said notifications, orders, etc., if it is made
after commencement of this Act, shall unless
there is anything repugnant to the subject or
context, have the same respective meanings as in
the Act or Regulation conferring the power.


Sec.26- Offences punishable under two or
more acts.

Where an act or omission constitutes an offence
under two or more enactments, then the offender
shall be liable to be prosecuted and punished under
either or any of those enactments, but shall not be
liable to be punished twice for the same offence.


Section 27 Meaning of Service by Post.

Where any Central Act or Regulation authorises
or requires any document to be served by post,
then the service will be deemed to be effected, by
properly addressing, pre-paying and posting by
registered post, a letter containing the document
and unless contrary is proved, to have been
effected at the time at which the letter would be
delivered in the ordinary course of post.

Stamp Act 1899

Stamp Act 1899
Proper stamp duty payable on different
instruments and agreements are laid down in
the schedule-I to the Indian Stamp Act, 1899.
The schedule also lays down the instruments
which are exempted from stamp duty. As
many as 65 items of instruments are covered
in the schedule along with exemption.

Stamp Act 1899

Sec2(14) Instrument includes every
document by which any right or liability is
transferred.

Sec 2(15) Instrument of partition means any
instrument by which co-owners of any
property divide or agree to divide such
property and also includes an order by
revenue authority or court or arbitrator
effecting partition.

Stamp Act 1899

Sec 2(24) Settlement means any non-
testamentary instrument of movable or
immovable property made in writing in
consideration of marriage or for distributing
property of the settler among his family
members or other desired persons or for any
religious or charitable purposes.

Stamp Act 1899

Sec-10- Except otherwise provided in this Act,
all duties with which any instruments are
chargeable, shall be paid by means of stamps.
Certain instruments are to be stamped with
adhesive stamps (Sec – 11) and those
adhesive stamps used, shall be cancelled so
that they can not be used again ( Sec -12 ).

Stamp Act 1899

Sec. 29 : Duties by whom payable.
In absence of any contrary agreement stamp
duty will be payable by the following persons :-
(i)Administration Bond, Agreement relating to
deposit of title deeds, Security Bond, Bill Deed,
Settlement, Transfer of shares – by persons
drawing such instrument.

Stamp Act 1899

(ii) Insurance policies other than fire insurance
–by the person effecting the policy.
(iii) In case of fire insurance policy – by the
person issuing the policy.
(iv) In case of conveyance by the grantee.

Stamp Act 1899

(v) In case of a lease by the lessee.
(vi) In case of exchange by the parties in
equal shares.
(vii) In case of Certificate of sale – by the
purchaser.
(viii) In case of partition – by the parties
proportionate to their share.

Stamp Act 1899

Sec-35 Instruments not duly stamped not
admissible in evidence.
No instruments chargeable with duty shall be
admitted in evidence for any purpose by any
person having , by law or consent of parties,
authority to receive evidence, or shall be acted
upon, registered or authenticated by any such
person or by any public officer unless such
instrument is duty stamped.

Court Fee Act, 1870

The Court Fee Act 1870.
This Act lays down court fees payable in
different courts and public offices on
different documents filed. Court fees
payable has been given in Schedule I, II & III.

Court Fee Act, 1870

Sec – 6 Fees on document filed in Mofussil Courts
and Public offices.
No documents of any of the kinds specified as
chargeable in Schedule I & II to this Act shall be
filed, exhibited or recorded in any Court of Justice
or shall be received or furnished by any public
officer, unless in respect of such documents there
be paid a fee of an amount not less than that
indicated by either of the said Schedules as
proper fee for such document.

Court Fee Act, 1870

Sec-7 Lays down the mode of computation of
fees payable in certain suits.

Sec-19-Exempts as many as 34 documents
from payment of court fee.

LIMITATION ACT, 1963

Ajit Kumar Khan
Dy Director (Trg)

Sec. 2(j) Period of limitation means the period
of limitation prescribed for any suit, appeal or
application by the schedule to the Act and
prescribed period means the period of
limitation computed according to this act.
Sec.3(1) Bar of limitation – Subject to the
provisions of sections 4 to 24 of this Act, every
suit instituted, appeal preferred and
application made after the prescribed period
shall be dismissed.

Period prescribed in Schedule to the Act.
(a) Three years for a suit relating to accounts,
contracts, decrees, movable property,
recovery under a contract etc.
(b) Twelve years for suits relating to
possession of immovable property and thirty
years for mortgaged property.
(c) Three years for compensation in some
cases.
(d) 30 to 90 days in case of appeals under Civil
Procedure Code and Criminal Procedure Code.

Sec. 4: If court is closed on last day of
limitation then suit, appeal or application
can be filed on next day when Court reopens.
(Section-10 of the General Clauses
Act,1897)

Sec. 9: If a person , entitled to file a suit or
make application, was disabled (minor or
insane), the period of limitation will start
after the disability is removed.

For filing appeals against any judgment, if
limitation is provided in any statute, that will
prevail.

Computation of period of limitation.
(a) First day or day of judgment is to be
excluded. Sec. 12(1).
(b) Time for getting copy of judgment or decree
or order or award (against which appeal has
to be filed is to be excluded. Sec. 12(3).

Computation of period of limitation
(c) Period of stay or injunction will be excluded.
Sec. 15(1).
(d) If consent or sanction of Government is
required for filing suit or application or
notice is to be given to Government , the
period spent in obtaining the consent or
sanction or time in giving notice is excluded.
Sec. 15(2).

Sec. 18: Effect of acknowledgment in writing
If an acknowledgment of liability in respect
of any property or right is obtained in writing
duly signed by the party against whom such
property or right is claimed, before the
expiration of period of limitation, a fresh
period of limitation shall be computed from
date of acknowledgment. That is why Banks
and Financial Institutions obtain
confirmation of balance every year.

Sec. 3 : Power to administer oaths:
(1) The following Courts and persons shall
have power to administer oaths and
affirmations by themselves or subject to the
provisions of Sec.6(2), by an officer
empowered by them in this behalf.

(a) all courts and persons having by law
authority to receive evidence.
(b) the Commanding officer of any Military,
Naval or Air force station, provided that the
oath or affirmation is administered within
the limits of the station.

(2) Any court, judge, Magistrate or person
may administer oaths and affirmation for the
purpose of affidavit, if empowered,
(a) by the High Court, in respect of affidavit
for the purpose of judicial proceedings,
(b) by the State Govt. in respect of other
affidavits.

Sec.4 : Oaths or affirmation shall be made by
witnesses, interpreters and jurors.
• All witnesses who may lawfully be examined
or be required to give evidence before any
court or person having by law or consent of
parties authority to examine such persons or
to receive evidence.
• Interpreter of questions put to and evidence
and the Jurors.

These provisions will not apply to a witness
being a child below the age of 12, if the Court
is of the opinion that though the witness may
understand the duty of speaking truth, he
may not understand the nature of an oath or
affirmation. In such cases absence of oath or
affirmation shall not render the evidence
given by such witness inadmissible.

Sec.6 Forms of oaths and affirmation:
(1) All oaths and affirmation shall be
administered as per forms given in the schedule
as may be appropriate to the circumstances of
the case.

(2) All such oaths and affirmation shall in the
case of all courts other than Supreme Court and
High Courts be administered by the Presiding
Officer of the Court himself or in the case of a
Bench of judges or Magistrates, by one of the
judges or Magistrates.

Sec.8: Persons giving evidence bound to
state the truth:
Every person giving evidence on any subject
before any Court or any person authorized to
administer oaths and affirmation shall be
bound to state the truth on the subject.

Sec.3 Interpretation clause.
• Court includes all Judges and Magistrates and all
other persons except arbitrators, legally
authorized to take evidence.
• Fact means and includes-
(a) anything, state of things, or relation of
things, capable of being perceived by senses,
(b) any mental condition of which any person is
conscious,

• Facts in issue means and includes any fact
from which either by itself or in connection
with other facts, the existence or non
existence, nature or extent of any right,
liability or disability, asserted or denied in
any suit or proceeding necessarily follows.

• Document means any matter expressed or
described upon any substance by means of
letter, figures, or marks or by more than one
of those means, used or intended to be used
for recording that matter.

• Evidence means and includes : -
(1) all statements which the court permits or
requires to be made by witnesses before it in
relation to matters of fact under enquiry.
Such statements are called oral evidence.
(2) all documents produced for inspection of
the court are called documentary evidence.

• Proved: A fact is said to be proved when
after considering the matters before it, the
court either believes it to exist, or considers
its existence so probable that a prudent man
ought to act upon the supposition that it
exists.

• Disproved: The court believes that it does not
exist.
• Not proved: Neither proved nor disproved.

• May presume: If it is provided that the court
may presume a fact then the court may
either regard such act as proved unless and
until it is disproved or the court may call for
proof of it.
• Shall presume: Here the court shall presume
a fact as proved unless and until it is
disproved.

• Conclusive proof: When one fact is declared
by this Act to be conclusive proof of another,
the court shall on proof of one fact regard
the other as proved and shall not allow
evidence to be given for disproving it.

• Rules of proof in civil cases: A mere
preponderance of probability, due regard
had to the burden of proof, is a sufficient
basis of decision.

• Rules of proof in criminal cases:
Onus of proving everything essential to the
establishment of the charge against the
accused lies on the prosecutor. Evidence must
be such as to exclude to a moral certainty
every reasonable doubt of the guilt of the
accused. In matters of doubt it is safer to
acquit than to condemn.

Sec.60: Oral evidence must be direct.
Oral evidence in all cases must be direct. if it
refers to a fact which could be seen, it must
be the evidence of a witness who has seen it,
if it refers to a fact which could be heard, the
witness must have heard it, if it refers to an
opinion or to the grounds on which the
opinion is held, it must be evidence of a
person who holds opinion on those grounds.

Sec.61: Proof of contents of documents.
Contents of documents may be proved either
by primary or by secondary evidence.

Sec.62: Primary evidence
Primary evidence means the document itself
produced for inspection of the court.

Sec.63: Secondary evidence means and includes :
• Certified copies
• Copies made from the original by mechanical
process, which ensures accuracy of the copy.
• Copies made from and compared with original.
• Oral accounts of the contents of a document
given by some person who has seen it.

Sec.64: Proof of documents by primary evidence:
Documents, barring some exceptions, must be
proved by primary evidence.
Sec.101: Burden of Proof : Whoever desires any
court to give judgment as to any legal right or
liability dependant on the existence of facts which
He asserts , must prove that those facts exist.
When a person is bound to prove the existence of
a fact, the burden of proof lies on that person.

Sec.102: On whom burden of proof lies:
The burden of proof in a suit or proceeding
lies on that person who would fail if no
evidence at all were given on either side.

Sec.103: Burden of Proof as to particular fact:
Burden of proof of any particular fact lies on
that person who wishes the court to believe
in its existence, unless the law provides that
proof of the fact shall be on the other
person.

Sec.114: Court may presume existence of
certain facts:
The court may presume the existence of any
fact which it thinks likely to have happened,
regard being had to the common course of
natural events, human conduct and public
and private business in their relation to the
facts of a particular case.

Sec.115: Estoppel:
When one person has, by his declaration, act
or omission, intentionally caused or
permitted another person to believe a thing
to be true and to act upon such belief,
neither he nor his representative shall be
allowed, in any suit or proceeding between
himself and such other person, to deny the
truth of that thing.

• Sec.137 Examination-in-chief :
The examination of witness by the party who
calls it shall be called his examination in chief.
• Cross examination:
The examination of the witness by the adverse
party shall be called his cross examination.
• Re-examination:
The examination of a witness by the party who
called him subsequent to the cross-examination
shall be called his re-examination.

Sec.141: Leading questions
Any question suggesting the answer which the
person putting it wishes or expects to receive
is called a leading question.
Sec.142: When they must not be asked.
Leading questions must not be asked in an
examination-in-chief, if objected by the other
party, or in a re-examination, except with the
permission of the court. However, they may
be asked which are introductory, undisputed
or sufficiently proved.

Sec.143: Leading questions may be asked in
cross examination.
Sec.146: Questions lawful in cross-
examination: When a witness is cross
examined, he may be asked any question
which tend
- to test his veracity,
- to discover identity and his position in life.

THE LIMITED LIABILITY
PARTNERSHIP ACT, 2008

Ajit Kumar Khan
Dy. Director (Trg)

Sec. 3A. LLP is a body corporate formed and
incorporate under this act and is a separate
legal entity separate from its partners. It will
have perpetual succession. Any change in the
partners shall not effect the existence, rights
or liabilities of the LLP.

Sec. 4 The Indian Partnership Act-1932 shall
not apply to LLP.

Sec. 6 Every LLP shall have at least two
partners.

Sec.7 Every LLP shall have at least two
designated partners, being individuals and at
least one of them is resident in India. The
selection and tenure of designated partner
will be according to the incorporation
document and with his consent. Every
designated partner shall obtain a DPIN from
Central Govt. as per Companies Act 1956.

Sec.8 A designated partner shall be
responsible for the doing of all acts, matters
and things including filing of any document,
return, statement and also be liable to all
penalties imposed on LLP for any
Contravention of the provisions. Such
contraventions are punishable with fines.

Sec. 11 The incorporation document shall be
in prescribed from stating forth such
particulars as may be prescribed. The LLP
must be registered.

Sec. 23 The mutual rights and liabilities of
the partners will be governed by the LLP
agreement.

Sec. 26 Every partner is agent of the LLP itself
and not agent of other partners.

Sec. 27 An obligation of the LLP, whether
arising out of contract or otherwise shall
solely be the obligation of LLP and shall be
met by the LLP.

Sec. 34 The LLP shall maintain such books of
accounts and other records as may be
prescribed and file annual return to the
Register within 6 months from the closure of
its financial year.

Sec. 42 The rights of a partner to share the
profit or losses are transferable either wholly
or in part.

Sec. 35 A firm may convert into LLP as per the
2nd Schedule.

Sec. 56 A private company may also convert
into LLP as per 3rd Schedule.

Sec. 57 An unlisted public Company may also
convert into LLP as per the 4th Schedule.

Sec. 63 LLP may be wound up voluntarily or
by Tribunal.

Taxation of LLP, w.e.f. 01.04.2010

Sec.2(23) -Firm shall include LLP and partner
shall include partner of LLP.
Sec. 140 - Return to be signed by a
designated partner and in his
absence by any partner.

Sec. 167C - If tax due from any LLP in liquidation
can not be recovered , then the partners of such
LLP will be severally and jointly liable for payment
of such tax, unless he proves that non- recovery can
not be attributed to any gross neglect or breach of
duty on his part in relation to the affairs of the LLP.

FEMA,1999 & HAWALA.

Ajit Kumar Khan
Dy. Director (Trg.)

FEMA 1999

Sec.2(c).Authorized person means
an authorized dealer, money changer
or any person authorized u/s.10(1) to
deal in foreign exchange or securities.

AD-I, Banks ,all activities.
AD-II, Only buy and sell F.E.
AD-III, Hotels of repute.

FEMA 1999

Sec.2(e) Capital account transaction
is a transaction that alters the assets
or liabilities outside India of a resident
Indian or assets and liabilities in India
of a non-resident Indian.

FEMA 1999

Sec.6 Capital account transaction.
Any person may sell or draw foreign
exchange to or from any authorized
person for a capital account transaction.
It is transfer of capital against long term
payment for assets and liabilities. RBI
may specify the permissible capital
account transactions with limits.

FEMA 1999

Sec.2(J).Current account transaction is one
that is not a capital account transaction.
These are short term payment against
goods and services.
• Payments against foreign trade,
• Remittances for expenses of family
members residing abroad,
• Expenses in connection with foreign travel,
education and medical care of spouse,
parents and children.

FEMA 1999

Sec 5: Current account transactions
Any person can sell or draw foreign
exchange to or from any authorised person
if such transaction is current account
transaction, with restrictions.

FEMA 1999

Sec.2(n).Foreign exchange means foreign
currency and includes:
 Depo
sits,
credi
ts,
bala
nces
paya
ble in
forei
gn
curre

FEMA 1999

Sec-3.Dealing in Foreign Exchange.
Save as otherwise provided in the Act or
without permission of RBI, no person shall-

(a) deal in or transfer any foreign exchange
to any person not being an authorised
person.
(b) make any payment to or for the credit
of any person resident outside India.

FEMA 1999

(c)receive, otherwise through any
authorised person, any payment from any
person resident outside India.

(d) enter into any financial transaction in
India as consideration for a right to acquire
any asset outside India.

FEMA 1999

Sec.10 Authorized person.
The R.B.I. may, on an application made
In this behalf, authorize any person to be
known as authorized person to deal in
foreign exchange or in foreign securities
as an authorized dealer or money changer
or any other manner as it deems fit.

FEMA 1999

AD-I, Banks. they are authorised to do

FEMA 1999

Sec-13 Penalties
If any person contravenes any provision
of this act, he shall be liable to penalty
upto thrice the sum involved, where such
contravention is quantifiable or upto Rs.
2 lakhs where such contravention is not
quantifiable. Continuing contravention
will attract a further penalty of Rs.5000/
per day.

FEMA 1999

 Section-36:
Directorate of Enforcement

 Section-37:
Power of Search and Seizure

 Section-38:
Empowering other Officers.

Hawala Transactions

Hawala transactions not defined in FEMA.
It is unauthorised transfer of fund from
India to a foreign country or vice-versa

Hawala Transactions

Why Hawala ?
• Evading direct taxes - IT, WT.
• Evading indirect taxes - Customs duty,
Central Excise duty.
• Converting black money into white.
• Keeping money in foreign country for use
there.
• Narco-terrorism, Gold smuggling etc.

Hawala Transactions

Evolution
 Nationalizations of banks made people afraid
of keeping black money in banks, as it may
be easily detected.
 FERA/FEMA came into operation.
 People found the way of transferring fund
through unauthorized channels.
 Gradually Hawala evolved.

Hawala Transactions

Modus operandi.
Remittance.
• Over invoicing import bills
• Under invoicing export bills.
• Excess fund kept in overseas account.
Bringing back
• Under invoicing import bills, brought through goods.
Balance payment from overseas a/c.
• Over invoicing export bills, sale proceeds brought
back, Deduction under I.T. Act.

Hawala Transactions

An Indian wants to remit money to a
foreign country, a foreigner also wants
to remit money to India, both illegally.
This can be done by mutual adjustments
through Hawala operators.

Hawala Transactions

Hawala through border States (Bangladesh)

 Carriers carry money to border districts.
 Agents purchase goods in India and enters
Bangladesh.
 Sell goods in Bangladesh, collects BD Taka.
 Exchange BD Taka with Dollars with persons
residing abroad, sending money to their family at
Bangladesh.

Hawala Transactions

Jain Hawala
Some beneficiaries in India got money in
foreign currency, in foreign country, for
some help extended. Money was brought
to India through Jain Brothers and other
Hawala operators.

Hawala Transactions

Remedy
• ED must keep vigil on such operations.
• Customs/Central Excise be vigilant on illegal
imports/exports.
• IT Deptt. to verify false claim of foreign
exchange deductions.
• Govt. to legislate rigorous punishment for
offenders.
• RBI to play vital role, introduce checks.
• Co-ordination between these Deptts.

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