Validity of Stamp Paper

Have you seen those A4 sized documents with green or pink currency like prints on top? We do need those papers and in general are aware that those are documents holding some legal validity. They are known as stamp papers and hold a certain value. But what is the purpose of those papers, and more importantly, what is the validity of stamp paper in India? We will find out more through stamp paper validity Supreme Court judgment in the blog below.   

What are Stamp Papers?

It may be understood as an official piece of paper bearing a pre-printed revenue stamp similar to currency notes or postal stamps. It should be noted that the stamp papers also have a certain value. It may be Rs 10, 20, 50, etc. The main purpose of stamp papers is usually revenue generation for the state through legal documentation. Since stamp papers are issued by the government, the hard copy can be obtained from post offices, stamp vendors, etc. It can be obtained online in the form of e-stamp paper as well. 

Kinds of Stamp Papers

There are two kinds of stamp papers in India: judicial and non-judicial stamp papers. While judicial stamp papers are used for payment of court fees, basically for financial transactions in the courts. For outside court legal transactions, non-judicial stamp papers are used. The examples  of non-judicial stamp papers include those used for a sale deed, affidavits, wills, etc. 

Validity of Stamp Paper

While issuing the stamp papers, the authorities note the concerned person’s details, mainly the name and date of issuance. For the purpose of refund against unused stamp papers in India, it is allowed within 6 months of issuance. However, a minimal 10% fee is deducted if stamp papers are returned without any damage. Regarding the validity of stamp papers in India, there is no specific provision under the Indian Stamp Act, 1872. However, validity of stamp paper in Maharashtra and a few states have been mentioned which needs to be followed diligently. The e-stamp paper validity period also follows the rule applicable on the original hard copy. 

Stamp Paper Validity: Supreme Court Judgment

Thiruvengadam Pillai v. Navaneethammal (2008)

The validity of a non-judicial stamp paper is not barred by time limitation as per the apex court in relation to its use. The apex court clearly stated that NOWHERE in the Indian Stamp Act it is mentioned about the validity of the stamp papers. The section 54 of the Indian Stamp Act, 1872 clearly mentions that if any person possesses a stamp paper of which he has no immediate use can return the stamp paper to the collector (provided that it is not spoiled, rendered unfit or useless) for seeking refund of the value of the stamp paper. It should have been purchased within the period of 6 months to the date of surrender. The stamp paper does not have any EXPIRY period. The stipulation period of 6 months is only for seeking refund of the value of the Stamp paper and NOT of its use. There is no IMPEDIMENT FOR A STAMP PAPER PURCHASED MORE THAN 6 MONTHS PRIOR TO THE DATE OF EXECUTION TO BE USED FOR DOCUMENTATION.  

In this case, the validity of a legal document was in question, whereby the stamp papers used were back-dated. One of them seemed to be issued in 1973, while the other one was issued in 1978. The lower courts did deem the document invalid on the sole fact that the stamp papers were of different dates. However, the hon’ble Supreme Court through this 2008 judgment made it clear that the different dates per se did not make the legal document invalid. It may be regarded as lack of compliance with the due process, but not directly an illegality with the document. 

FAQs on Validity of Stamp Paper

Q- What is the validity of the stamp paper?

A- As a general rule, there is no validity period for stamp papers in India. Once issued, it may be returned and refunded with a 10% deduction in cost. However, there is a validity of stamp paper in Maharashtra and some other states. 

Q- Can a document be stamped after execution?

A- As per rule, a legal document is said to be valid if it is executed on a stamp paper, or stamped before or during execution. A legal document stamped after execution itself raises questions on the validity of such a document. 

Q- How long is a stamp paper valid in Maharashtra?

A- The validity of stamp paper in Maharashtra is 6 months as per the State rules. The central Indian Stamp Act, 1872 is silent on the question of stamp paper validity.