HINDUSTAN STEEL LTD. vs M/S. DALIP CONSTRUCTION COMPANY

The Supreme Court held that under Sections 35 and 36 of the Indian Stamp Act, an unstamped document can be impounded but may be acted upon after payment of duty and penalty. The Court clarified that Section 36 allows an unstamped instrument to be admitted in evidence once it has been duly stamped, and Section 42(2) further confirms that such an instrument may be acted upon as if it had been duly stamped. The Court disapproved the earlier observations in Mst. Bittan Bibi v. Kantu Lal, emphasizing that the Stamp Act is intended to secure revenue, not to serve as a technical barrier against litigants.