When the document is not stamped, can I revoke the agreement?
Well, this is quite a scenario we have discussed before under tenancy agreement not been stamped – see* Lost your tenancy agreement? There is penalty for late stamping, however. The agreement can be stamped at a later date and be accepted as legal evidence in Court of Law.
The question of law lies with the good contract is free consent. S.13 of Contracts Act, 1950 spells out “Consent”.
S.13 Two or more persons are said to consent when they agree upon the same thing in the same sense.
And S.14 “Free consent” says:
S.14 Consent is said to be free when it is not caused by –
Coercion, (b) undue influence, (c) fraud, (d) misrepresentation and (e) mistake
S.15 – S.24 are important sections to a good contract. So, despite it NOT being stamped, it is still a binding contract and is fit in law as long as it is “free consent”. Using the excuse of not being stamped is not valid reason. You just pay the penalty for late stamping, and the contract can be brought to Court and be presented as evidence of the conditions stipulated in the contract. The Court will interpret the contract and give a fair judgment.
Hence, a Sale and Purchase Agreement which has not been stamped does NOT make it invalid or voidable. It is just procedural to get it adjudicated for evidence to be admitted to Court of Law. The contract stands as a fit contract as it is free consent.