Documentation Laws
Common questions on ‘Documentation Laws’
- What is documentation law?
- What is the documentation process?
- What are the documents used in logistics?
- What is the main purpose of documentation?
Document is a deed, writing, inscription that furnishes evidence. As per Section 3 of the Indian Evidence Act 1872, 'a document shall include any matter written, expressed or described upon any substance by means of letters, figures or marks or by more than one of those means, which is intended to be used, or which may be used for the purpose of recording the same'. Indian Penal Code provides for the same definition.
Documents are the establishment whereupon the superstructure of a legal/contractual relationship is assembled. Documents are of extraordinary significance as they assume the character of essential evidence in deciding the rights and obligations of the respective parties in the everyday lead of the record as well as when dispute arises between them.
The terms and conditions of loans/advances, securities charged and reimbursement are diminished in composing which thus helps to maintain a strategic distance from and resolve the ambiguities assuming any. Redress and legitimately executed substantial documentation ensures safety of the creditor's advances. It also helps in upholding the security having a place with the borrowers when a suit is instituted in a court of law on default of the borrower
Stamp Duty and Registration requirements create a statutory obligation for correct forms of documentation.
Some features of the Stamp Duty:
- It is governed by the Indian Stamp Act 1899.
- An instrument ought to be properly stamped i.e. it should bear a cement or inspired stamp of at the very least the appropriate sum
- If there should arise an occurrence of sale, mortgage or settlement when a few instruments are utilized for finishing the transaction just the principal instrument is chargeable to stamp duty and alternate documents are at risk to duty according to the separate state stamp law
- An instrument containing or identifying with a few particular issues should be accused of the total measure of the obligations with which isolate instruments each involving or identifying with one of such issues would be charged under the Act (Section 5)
Some features of Registration policies in India:
- It is governed by The Registration Act 1908.
- The reason for the Registration Act, in addition to other things, is to give a strategy for public registration of documents in order to offer data to individuals with respect to lawful rights and commitments emerging or influencing a specific property, and to sustain documents which may a while later be of legitimate significance, and furthermore to counteract extortion. Registration loans sacredness and significance to specific classes of documents.
- As per the Act, registration of immovable property is mandatory however, Section 17(2) of the Act speaks of some documents which despite being related to immovable property do not necessarily have to be registered.
- Section 18 of the Act talks about the documents whose registration is optional. The registration of Wills is optional. Leases of immovable property for a term not exceeding a year is optional.
- In case a representative is presenting a document for registration, he/she must possess a Special Power of Attorney to do so, a General Power of Attorney would not suffice.
- The Registrar does have the power to refuse registration on certain grounds, some of them are; the presentation of a document by a minor, document being presented after the limitation period of 4 months, concerned property being outside his jurisdiction, etc. However, undervaluation of stamp duty is not a ground for the Registrar to refuse registration.
