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Showing contexts for: collateral transaction in Il And Fs Financial Services Ltd vs Skil Infrastructure Ltd And 7 Ors on 18 February, 2020Matching Fragments
73. While answering question (ii), the Supreme Court in the context of the provisions contained in Section 35 of the Indian Stamp Act expounded the legal position in paragraphs 19 and 20, which read as under:
"19. Having regard to Section 35 of the Stamp Act, unless the stamp duty and penalty due in respect of the instrument is paid, the court cannot act upon the instrument, which means that it cannot act upon the arbitration agreement also which is part of the instrument. Section 35 of the Stamp Act is distinct and different from Section 49 of the Registration Act in regard to an unregistered document. Section 35 of the Stamp Act, does not contain a proviso like Section 49 of the registration Act enabling the instrument to be used to establish a collateral transaction.