Response

Firstly in this case the 100 Indian non judicial means the Rs 100 stamp paper are used in matters which concern transactional arrangements between parties that are not judicial in nature, such as an agreement to sell, affidavits, lease agreement, amendment in the article of association, etc.

Agreements made on white paper are valid. so an agreement made on 100 rupees stamp paper can surely be valid if it fulfills all other conditions under the law and as per the law. But, if the agreement requires to be stamped and registered then it cannot be used as an evidence of proof before a Court of law.

So if the first cheque has bounced and the person gives another cheque alongwith 100 non judicial stamp paper then that person is liable to pay that amount via cheque because now the cheque holds legal validity. The person can now go to the court and file a case against that person based on the stamp paper if the cheque bounces again.

So stampsÕ are nothing more than the duties levied by the Government for instruments (statutorily enforceable documents) prepared or issued by various persons or bodies. So in this case also the cheque now becomes a legally binding document enforced by the government and now it will amount to criminal breach of trust.

Reference: Section 138 of Negotiable Instruments Act 1881
Case ref.
1.Sita Ram Singhania vs State Of Gujarat on 13 July, 2004
2.Dayawati vs Yogesh Kumar Gosain on 17 October, 2017
3.Rajender Singh vs . Kamal Gera on 14 March, 2018

202100348-20210024-5080

LAWAYZ-2023-335