Posts Tagged ‘advocate’

SPEED POST/REGISTERED POST WITH A/D.

                                                                                                              Dated:

 

To                                                                        

__________

__________

 

Dear Sir(s),

 

Re:    Notice under section 434 (a) of the Companies Act, 1956 for winding up of the addressee Company due to outstanding debt amount of Rs. ______________/- (Rupees ____________________ only) along with interest @ 18% per annum pending payment.

Our Client:            _____________________________________________________

—————————————————————————————————————————-

 

We write under instructions of our abovementioned Client and state as under:

 

  1. That sometime _________________________ you approached the principal officers of our client with a request to avail loan amount of Rs. __________________/- ( Rupees ______________ only) ) (hereinafter referred to as “said loan”) inter alia, on condition that the said loan shall be for a tenure of ___________ days and the said loan amount shall bear interest @ _____ % per annum.
  2. That in view of the aforesaid, on _______________ our client remitted to you a sum of Rs. ___________________/- through its ___________ Bank Account No. ____________________ vide RTGS UTR No. ____________________ to your Bank Account No.______________ held with ________________________. The said loan was granted to you for the agreed period of __________ days only, having the maturity date as _______________.
  3. That on or about _________________ you have refunded a sum of Rs. ______________/- on account of the loan amount which matured on ______________, thereby reducing the balance principal dues against the loan amount to Rs. ___________/- ( Rupees ______________ only).
  4. That in view of the aforesaid, the loan amount stood reduced to Rs. ___________________/- and in partial discharge of your existing legal liability and/or debts arising out of the reduced loan amount, you issued and forwarded to our client a cheque bearing ____________ dated ___________ for payment of outstanding principal dues of Rs. ________________/- drawn on _____________.
  5. That our client presented the said abovementioned cheque No. ___________ for encashment within its validity period with its banker, viz., _____________________.  However, to our client’s utter surprise the said cheque was returned unpaid and dishonoured vide dishonor return memo dated ________________ with the endorsement “Not arranged for/Funds Insufficient”, information whereof was received by our client on ________________. Further, under the cover of an undertaking letter dated ______________ you had assured our client that the aforesaid cheque shall be encashed upon presentation and will not be stopped under any circumstances, nor the Bank account closed and neither will you change the authorized signatories of the Bank.
  6. That pertinent to the aforementioned facts, our client constantly pressed for the payment of the outstanding dues against for a total amount of Rs. _______________/- (Rupees ___________ only) along with interest @ 18% per annum accruing and rising every day thereby from you and the same is still pending payment.
  7. That thereafter, since you have failed to pay heed to our client’s constant requests, our client was pained to issue and send legal notice to you dated __________ through their advocates demanding payment of the outstanding dues and interests accruing thereon upto the date of re-payment of your loan obligations.
  8. That vide your letter dated ____________ sent to the advocates of our client as reply letters to the aforementioned legal notices, you have intentionally, deliberately, mischievously and with malafide intention alleged that you are not liable to pay to our client the outstanding dues of Rs. _____________/- (Rupees __________ only) along with interest @ 18% per annum accruing and rising every day.
  9. That in view of the above, it is highly irrational and unethical on your part to have enjoyed the total amount of Rs. ____________/- (Rupees ____________ only) by taking undue and unfair advantage of our client gave you the loan amount for your benefit in your time of crisis under the impression that the entire loan amount along with interest accrued thereon will be returned by you within the agreed time.
  10. That you have grossly attempted to enrich yourself in an illegal manner and you have acted against the interest of morality in attempting to usurp the hard-earned money of our client by retaining the total amount Rs. ____________/- (Rupees ____________ only) along with interest @ 18% per annum accruing and rising every day and failing to return the same within the agreed time.
  11. In view of abovementioned facts and circumstances, our client being a creditor of your Company and you being indebted to our client for a sum of total amount of Rs. ____________/- (Rupees ____________ only) along with interest @ 18% per annum accruing and rising every day  thereupon as on date and we, on behalf of our client, hereby call upon you and make demand for payment of the entire outstanding dues of the Rs. ____________/- (Rupees ____________ only) along with interest @ 18% per annum accruing and rising every day  from the due date/maturity date of the outstanding dues against the loan amount, till the date of payment, by Pay Order drawn in favour of our client within a period of 21 days from the date of receipt of this notice, failing which, our client shall be constrained to initiate appropriate proceedings under sections 433, 434 and 439 of the Companies Act, 1956, at your peril, costs and consequences thereof, which please note. Needless to mention, our client shall further resolve to other legal remedies criminal and civil, available under the law.

 

Please treat this Notice as a statutory notice under section 434 (a) of the Companies Act, 1956 and also as a notice under the Interest Act, 1978.

 

This notice is without prejudice to our client’s rights in any other proceedings which have already been initiated/filed and/or may be initiated/filed before any Court of Law with regard to the aforementioned dues.

 

Please acknowledge receipt of this letter.

 

Thanking you.

 

 

Advocate

 

 

Copy to:           Client

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Tax Clarifications For Your Multiple House Property Investments

Coal Controller’s Organisation is a subordinate office under the administrative control of Department of Coal, Ministry of Coal, having its headquarters at Kolkata and five field offices located at Dhanbad, Ranchi, Bilaspur, Nagpur and Kothagudem with their jurisdiction as follows:

 

 

Field Offices

Jurisdiction

Dhanbad

Collieries under BCCL, TISCO (Jharia), IISCO, BECML, ICML, CML & PSEB

Ranchi

Colieries under CCL, NCL, TISCO (W. Bokaro), JSMDCL & DVC

Bilaspur

Collieries under SECL, MCL, HIL, JSPL, JPL, Prakash Industries & Jayswal NEcco (Usha Project)

Nagpur

Collieries under WCL, BLA and lignite mines in Gujrat & Rajasthan

Kothagudem

Collieries under SCCL, lignite mines in Tamil Nadu

 

The Coal Controller has certain statutory functions to perform:

(i)                 Checking of quality of coal including settlement of complaints vis -a-vis grading and quality of coal despatches, adjudicating claims on grade;

(ii)               Regulatory authority to grant permission for opening and reopening of seams and mines;

(iii)             Distribution of coking as well as non-coking coal;

(iv)             Disposal of objections received under the Coal Bearing Areas (Acquisition & Development) Act, 1957; and

(v)               Collection and publication of statistical information on coal and lignite in pursuance to Statistics Act, 1955.

 

Apart from the above statutory functions, Coal Controller also discharges the following responsibilities:

a)      To look after the residual work of erstwhile Coal Board.

b)      To look after the residual work of World Bank loan relating to pre-nationalisation period.

 

 

The Coal Controller also advises and assists the Department in the implementation of the Coal Mines (Conservation and Development) Act, 1974 and the rules made thereunder viz. the Coal Mines (Conservation and Development) Rules, 1975. Coal Controller is entrusted with the job of collecting excise duty levied under this Act. He is Member-Secretary of and also provides secretarial assistance to Coal Conservation and Development

Office of Coal Controller (earlier Coal Commissioner), established in 1916, is one of the oldest office in Indian Coal sector. Main aim behind setting up this office was to have Government control to adequately meet the coal requirement during First World War. Acute scarcity of coal necessitated promulgation of Colliery Control Order, 1944 for effective control on production, distribution and pricing of coal. Subsequently, it was revised by a more comprehensive order in 1945. Later in 1996, distribution and pricing of coal was deregulated. Therefore, Colliery Control Order, 2000 superseded the previous order. As a result, functions of Coal Controller’s Office remained more or less same except for the work of distribution and allotment of coal.

The Coal Controller is an officer of the Government of India and appointed under the provisions of the Coal Controllers’ Organization (Group-A Post) Recruitment Rules, 1986 and is vested with powers of the mining and gradation of coal in India, amongst others, by and under the provisions of the Colliery Control Rules, 2004.

History of Coal Industry in India

 

In the year 1945, in exercise of powers under sub-rule 2 of rule 81 of the Defence of India Rules, the respondent central government framed the Colliery Control Order, 1945. Under the said Order, the production, distribution, sale, dispatch and price of coal became controlled by the respondent central government. After promulgation of the Essential Commodities Act, 1955 by the Central Government upon amending Entry 33 of the concurrent list of the Schedule VII of the Constitution of India by 3rd Constitutional Amendment, coal was specified as essential commodity and was continued to be regulated under the Colliery Control Order, 1945 and amendments thereto.

In the year 2000, in exercise of powers conferred under section 3 read with section 5 of the Essential Commodities At, 1955, the Central government enacted the Colliery Control Order 2000 by virtue of which price and distribution of all grades of coal was allegedly deregulated.

During the subsistence of the Colliery Control Order, 2000, powers were vested upon the Central Government to prescribe the classes, grade and sizes into which coal may be categorized whereas, the Coal Controller was entrusted with the power to lay down procedure and method of sampling and analysis of coal for the purpose of declaration and maintenance of the grades of coal mined in a colliery on the basis of such categorization. Further, the owner, agent or manager of a colliery was entrusted with the power to declare the classes, grades or sizes of the coal of any seam or section of a seam in a colliery.

During the subsistence of the Colliery Control Order, 2000, the Central Government purportedly, in exercise of power conferred by sub-sections (1) and (2) of Section 18 of the Mines and Minerals (Development & Regulation) Act, 1957, promulgated Colliery Control Rules, 2004, which was published in the Official Gazette on 25th August, 2004. The provisions of the said Colliery Control Rules, 2004 are virtually parameteria with the provisions of the Colliery Control Order, 2000. Upon amendment of the Essential Commodities Act, 1955 by the Essential Commodities (Amendment) Act, 2006 as had come into effect on 12th February, 2007, coal including coke and other derivatives were de-specified as an essential commodity and therefore, completely brought outside of the coverage of the Essential Commodities Act, 1955 and automatically outside the scope of entry 33 of the concurrent list by virtue of the provisions of newly inserted Section 2A of the Essential Commodities Act, 1955. After the said amendment of 2006 in the Essential Commodities Act, the Colliery Control Order 2000 became virtually become non-operative, inapplicable and void.

After the said amendment, coal including coke and other derivatives became non-essential commodities. However, today, there are several coke derivatives manufacturers who are caught in the red tape and policy decisions of various governments and they are yet to receive their share of coal as yet. Under the New Coal Distribution Policy, collieries ought to enter into Fuel-Supply Agreements (FSA) with the monopolistic government agencies, but there are a lot of procedural glitches that requires immediate judicial intervention for fair dispensation of justice.

Functions of Coal Controller’s Organisation are listed as below-

Under Colliery Control Order, 2000 (Now Colliery Control Rule, 2004)–

  • To lay down procedure and standard for sampling of coal
  • Inspection of collieries so as to ensure the correctness of the class, grade or size of coal.
  • To issue directives for the purpose of declaration and maintenance of grades of a seam mined in a colliery.
  • To act as the appellate authority in case of dispute between consumers and owner arising out of declaration of grade and size of coal.
  • To regulate disposal of stock of coal or the expected output of coal in the colliery.
  • Quality surveillance with respect to loading of coal in wagons/ trucks according to laid down procedures regarding grades and sizes.
  • To grant opening /reopening permission of coal mine, seam or a section of seam or to subdivide a mine.

Under Coal Mines (Conservation & Development) Act, 1974 and Coal Mines (Conservation and Development) Rules, 1975, the Coal Controller has the following functions and duties:-

  • Assessment and collection of excise duty levied on all raw coal raised and dispatched.
  • Providing financial support to the coal operators for-
    1. Ensuring the conservation of coal resources.
    2. Undertaking the development of coal mines in a scientific manner.
    3. Undertaking research in relation to conservation of coal, development of coal mines and utilization of coal.
    4. Protective works including blanketing, filling up of subsided areas, construction of dams, cutting of trenches, artificial barriers etc.
    5. infrastructure development in coalfields.

Under Collection of Statistics Act, 1953-

  • Coal Controller has been made the statistical authority with respect to coal and lignite statistics. Entrusted the responsibility of carrying out Annual Coal & Lignite survey.
  • Submission of monthly coal data to different ministries of central and state Govt., national and international organization.
  • Collection of Statistics relating to coal washeries.

Under Coal Bearing Area (Acquisition and Development Act, 1957-

Coal Controller is the competent authority under this act to hear any objection to the Central Government’s Notification relating to acquisition of coal bearing land and to furnish his reports to Central Govt. 

Under the Coking Coal Mines (Nationalisation) Act, 1972 and the Non-coking Coal Mines (Nationalisation) Act, 1973, the Coal Controller also functions as the Commissioner of Payment to settle the claim cases of colliery owners of pre-nationalisation period under the above acts.

 

 

 

Certain Landmark Notifications

 

Ministry of Coal, G.S.R. 816(E): In exercise of powers conferred by clause (a) of sub-section (1) of Section 26 of the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957) read with rule 15 of the Colliery Control Rules, 2004, the Central Government hereby specifies that the powers of the Central Government under rules 9 and 11 of the said Rules shall also be exercised by the Coal Controller in the Government of India.

 

Note: The Colliery Control Rules, 2004 were published in the Gazette of India vide G.S.R.No.540 (E) in Part-II, Section 3, Sub-section (i) dated 25th August, 2004 which have not been amended so far.

Source: The Gazette of India, Extraordinary, Part II-Sec.3(i), dated 17.11.2011.

 

Ministry of Coal, G.S.R. 817(E): In exercise of powers conferred by sub-section (1) and (2) of

Section 18 of the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957) the

Central Government hereby makes the following amendments to the Colliery Control Rules, 2004, namely:

(1) These rules may be called the Colliery Control (Amendment) Rules, 2011.

(2) They shall be deemed to have come into force on 25th August, 2004.

(3) In the Colliery Control Rules, 2004, in rule 15, for the words and figures “rules 6, 7 and 11”, the words and figures “rules 6, 9 and 11”, shall be substituted.

Source: The Gazette of India, Extraordinary, Part II-Sec.3(i), dated 15.11.2011.

 

Ministry of Coal, G.S.R. 818(E): In exercise of powers conferred by Section 3 read with Section 5 of the Essential Commodities Act, 1955 (10 of 1955) read with Section 21 of the General Clauses Act, 1897 (10 of 1897), the Central Government hereby rescinds the Colliery Control order, 2000, published in the Gazette of India, Part-II, Section 3, Sub-section(ii) dated 1.1.2000, with immediate effect; such rescission shall not affect anything done or omitted to be done under the said Order before this Notification.

 

Note:- The Colliery Control Rules, 2004 were published in the Gazette of India vide G.S.R.540(E) in Part-II, Section 3, Sub-section (i) dated 25th August, 2004 which have not been amended so far.

Source: The Gazette of India, Extraordinary, Part II-Sec.3(i), dated 15.11.2011

 

Ministry of Coal, G.S.R. 902(E): The following draft of certain rules further to amend the Coal

Mines (Conservation and Development) Rules, 1975 which the Central Government proposes to make in exercise of the powers conferred by Section 18 of the Coal Mines (Conservation and

Development) Act, 1974 (28 of 1974), were published as required by sub-section (1) of Section 18 of the said Act in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (i) dated the 27th September, 2011 under the notification of the Government of India in the Ministry of Coal vide number G.S.R. 722(E) dated the 27th September, 2011 inviting objections and suggestions from all persons likely to be affected thereby on or before the expiry of a period of forty-five days from the date of publication of the said notification in the Official Gazette;

 

And whereas the said Gazette was made available to the public on the 27th September, 2011;

And whereas no objections and suggestions have been received on the said draft within the stipulated period of forty-five days.

Now, therefore, in exercise of the powers conferred by Section 18 of the Coal Mines

(Conservation and Development) Act, the Central Government hereby makes the following rules, namely:

 

RULES

  1. (i) These rules may be called the Coal Mines (Conservation and Development) Second Amendment Rules, 2011.

(ii)               They shall come info force on the date of their publication in the Official Gazette.

    1. In the Coal Mines (Conservation and Development) Rules, 1975, in sub-rule (2) of rule 7, for the words “The Coal Controller shall furnish”, the words “Every owner, agent or manager shall furnish”, shall be substituted.

 

Footnote: The principal rules were notified vide number G.S.R. 184(E), dated the 1st April, 1975 and subsequently amended vide numbers:

(1) G.S.R.801, dated the 2nd August, 1980,

(2) G.S.R.65, dated the 17th January, 1981,

(3) G.S.R.101, dated the 14th February, 1987,

(4) G.S.R.199(E), dated the 23rd April, 1998, and

(5) G.S.R.291(E), dated the 31st March, 2011.

Source: The Gazette of India, Extraordinary, Part II-Sec.3-Sub-section(i), dated 27.12.2011.

 

Ministry of Coal, S.O. 2920(E): In exercise of the powers conferred by sub-sections (1) and (2) of section 18 of the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957) read with rule 3 of the Colliery Control Rules, 2004 and in supersession of the of the notification of the Government of India, in the Ministry of Coal number S.O.453(E) dated the 16th June, 1994, except in respect of things done or omitted to be done before such supersession, the Central Government on and from 01st January, 2012 hereby prescribes:

  1. switch over from existing Useful Heat Value (UHV) based system of grading and pricing of non-coking coals produced in the country to fully variable Gross Calorific Value (GCV) based system.

ii. the classes into which Coal and Coke shall be categorised as prescribed in the Table as followed :

 

TABLE

     Sl.No.          Classes                       Specification

1. Coking Coal Steel Grade Ash content not exceeding 15 per cent.

2. Steel Grade II Ash content exceeding 15 per cent but not exceeding 18 per cent.

    1. Washery Grade I Ash content exceeding 18 per cent but not exceeding 21 per cent.
    2. Washery Grade II Ash content exceeding 21 per cent but not exceeding 24 per cent.
    3. Washery Grade III Ash content exceeding 24 per cent but not exceeding 28 per cent.
    4. Washery Grade IV Ash content exceeding 28 per cent but not exceeding 35 per cent.
    5. Semi Coking Coals I Ash plus moisture content not exceeding 19 per cent.
    6. Semi Coking Coals II Ash plus moisture content exceeding 19 per cent but not exceeding 24 per cents.

 

Notes:

1. Coking Coals are such coals as have been classified coking coals by such coals as have been declared as coking coal by the Central Government under the Colliery Control Order,

1945 or the Coal Mines (Conservation and Development) Act, 1974 (28 of 1974) and the rules made under the said Act.

 

2. ‘Semi-coking Coals’ and ‘Weakly Coking Coals’ are such coals as were classified as ‘Blended coals’ as may be declared as ‘semi-coking’ or ‘weakly coking’ coals by the Central

Government under the Colliery Control Order, 1945 or the Coal Mines (Conservation and

Development) Act, 1974 (28 of 1974) and the rules made under the said Act.

 

3. Coals other than coking or semi-coking or weakly coking coals are non-coking coals.

 

4. Ash percentage of coking coals and hard coke shall be determined after air-drying as per IS:

1350-1959. If the moisture so determined is more than 2 per cent, the determination shall be after equilibrating at 60 per cent relative humidity at 40oc temperature as per IS: 1350-1959.

 

5. Determination of gross calorific value shall be carried out in accordance with procedure laid down in IS: 1350 (Part II) 1970 dated April 1971 or any subsequent revision thereof.

 

6. The above classification shall not apply to coals other than Bituminous or Sub-bituminous coals as specified under Indian Standard Specification No.IS:770-1964.

______________________________________________________________________________

Source: The Gazette of India, Extraordinary, Part II-Sec.3-Sub-section(ii), dated 30.12.2011.

 

Ministry of Coal, S.O. 207(E): In exercise of the powers conferred by clause (d) of sub-section (2) of Section 13 of the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957), the Central Government hereby makes the following Rules, namely:

 

1. Short title and commencement.-(1) These rules may be called the Auction by Competitive Bidding of Coal Mines Rules, 2012.

(2) These rules shall come into force on the date of their publication in the Official Gazette.

 

2. Definition: (1) In these rules, unless the context otherwise requires,

(a) “Act” means the Mines and Minerals (Development and Regulation) Act, 1957 (No. 67 of

1957);

(b) “Coal” includes anthracite, bituminous, lignite, peat and any other form of carbonaceous matter sold or marketed as coal and also coke;

(c) “floor price” means the minimum price fixed by the Central Government for an area containing coal offered for auction by competitive bidding;

(d) “reserve price” means the price fixed by the Central Government for an area containing coal which is to be allotted otherwise than through auction by competitive bidding.

(2) Words and expression used herein but not defined and defined, in the Act shall have the meanings respectively assigned to them in the Act.

 

3. Procedure for allocation of area containing coal through auction by competitive bidding: (1)

The Central Government shall,

(a) identify area containing coal for allocation through auction by competitive bidding;

(b) earmark areas containing coal for each specified end use separately for the purpose of auction;

(c) invite offers through auction from the companies engaged in the business of specified end uses as mentioned in Section 11A of the Act for the allocation of Coal or lignite blocks in the areas identified under clause (a);

(d) notify a floor price for each area, identified under clause (a).

(2) The companies as mentioned in clause (c) of sub-rule (1) shall be required to submit

their offer to the invitation in two parts, namely:

(i) technical bid; and

(ii) commercial bid.

(3) The successful bidder shall be allocated the area containing coal identified under clause (a) of sub-rule (1).

 

4. Procedure for allocation of area containing coal to Government companies: (1) The Central Government shall,

(a) identify area containing coal for allocation to the Government company or corporation as mentioned in the clause (a) of proviso to section 11A of the Act;

(b) earmark area containing coal for mining or other specified end use, separately for the purpose of allocation;

(c) fix a reserve price for each of the areas specified in clause (a).

(2) The Central Government shall circulate to the State Government and concerned Ministries of the Central Government list of the areas containing coal identified inviting applications from the Government companies or corporations for allocation.

(3) The applications received shall be considered in consultation with concerned State Governments and the Ministries of the Central Government.

(4) The company or corporation for allocation of area containing coal shall be selected from amongst the eligible applicants.

(5) The area containing coal shall be allocated to the selected Government company or corporation.

 

5. Procedure for allocation of area containing coal to a company or corporation awarded a power project on the basis of competitive bids for tariff:(1) The Central Government shall,

(a) identify area containing coal for allocation to a company or corporation awarded a power project on the basis of competitive bids for tariff as mentioned in the clause (b) of proviso to section 11A of the Act for the purpose of obtaining reconnaissance permit, prospecting licence or mining lease from the State Government;

(b) fix a reserve price for each area specified in clause (a);

(c) Circulate to the State Governments and the Ministry of Power of the Central Government a list of the areas in clause (a) for inviting applications from eligible Government companies and corporations for allocation.

(2) The applications received shall be considered in consultation with the concerned State Governments and the Ministry of Power of the Central Government.

(3) The Central Government thereafter shall earmark the area containing coal to the selected State Governments for allocation to the company or corporation awarded a power project on the basis of competitive bids for tariff.

(4) The State Governments shall select a company or corporation on the basis of competitive bids for tariff and recommend for allocation of area containing coal to such company or corporation.

(5) The area containing coal shall be allocated to the selected company or corporation.

 

6. Proceeds of auction: The proceeds of the auction under clause (c) of sub-rule (1) of rule 3 and reserve price shall be transferred to the concerned State Government where the area is located.

 

7. Agreement with allocate company: The Company – Government shall enter into an agreement with the allocate company.

 

8. Action for contravention or non-fulfillment of obligations etc: In case of contravention or nonfulfillment of the obligations under the agreement or the terms and conditions of allocation, the Government reserves the right to take appropriate action including the right to de-allocate the area containing coal after giving reasonable opportunity of being heard.

Source: The Gazette of India, Extraordinary, Part II-Sec.3-Sub-section(ii), dated 2.2.2012.

Today, with thriving population in India, there are millions of children living on the streets, unattended, uncared for and with practically no future at all. Under prevailing political, social and economic situation in India, there’s little doubt that the percentage of children living on the streets and working as bonded labourers would manifold increase with time. The reason for pessimism is not statistics but the overwhelming truth that half of India’s children are illiterate and do not have access to basic primary education and despite policies promoting education, the benefits do not actually reach the deprived.

To counter such pessimism and alter the future of India’s children, the government of India introduced the Right of Children to Free and Compulsory Education Act, 2009, popularly known as the Right to Education (RTE) Act, from April 1, 2010 and took a grand step towards empowering all children of the age of six to fourteen years by providing them free and compulsory education. Although the intent has been correct, the legislation itself has left gaping questions for the judiciary to be answered while interpreting the different provisions of the RTE Act.

The road to RTE Act started sometime around 1913, during the British regime wherein the Government of India Act, 1935, specifically included provision that “education should be made free and compulsory for both boys and girls.”

In W.P. (C) No. 8533 of 2010 [Social Jurist, A Civil Rights Group vs. Govt. Of NCT of Delhi & Anr.] & W.P.(C) NO. 263 of 2011 [Delhi Commission for Protection of Child Rights vs. Union of India and Ors.] the Hon’ble Delhi High Court lucidly enumerated the importance of the RTE Act and held that “At the time our Constitution was framed, the following un- amended Article 45 provided as follows:

Article 45: Provision for Free and Compulsory Education for Children – The State shall endeavour to provide, within a period of ten years from the commencement of this constitution, for free and compulsory education for all children until they complete the age of 14 years.

The said Article was repealed and substituted by the Constitution (Eighty Sixth Amendment) Act, 2002 to provide the following: 

Article 45: Provision for early Childhood Care and Education to Children below the age of six years. – The State shall endeavour to provide early childhood care and education for all children until they complete the age of six years.

Though the un-amended Article 45 enumerated the policy for the States to endeavour to provide free and compulsory education to all children until they complete the age of fourteen years in a period of 10 years from the commencement of the Constitution, by the amended Article 45, the States are directed to endeavour to provide early childhood care and education to all children until they complete the age of six years. Amended Article takes care only of early childhood care and education of children upto six years.

It has been now well settled that Right to Education of every children is a human right with immense power to transform the elementary education for children as the most important component of basic education. Considering such importance of elementary education and having noticed that access to education is necessary for enjoyment of other fundamental rights contained in Article 19, Article 21A was added to the Constitution by making free and compulsory education a fundamental right of children having age of six to fourteen years. Eighty Sixth amendment and the said Article reads as under:

Article 21A. Right to Education – The State shall provide free and compulsory education to all children to the age of six to fourteen years in such manner as the State may, by law, determine.

By the above Article, free and compulsory education is made a fundamental right, as against a directive under directive principle of State policy in Article 45 to provide early childhood care and education to all children till they complete the age of six years. The basic principle on which education policy in India should be formulated is to be found in Part IV contained in the Directive Principles of State Policy, Part III of fundamental rights and Part IV-A containing fundamental duties. In Article 39F, the States are directed that their policy should be towards acquiring opportunities and facilities to children to develop in a healthy manner and in conditions of freedom and dignity and that childhood and youth are protected against exploitation and against moral and material abandonment. In Article 41, it is directed that the State shall within its economic capacity and development make effective provision for securing right, among others, to education. In Article 39F and Article 41, it is directed as follows:

Article 39(f): That children are given opportunities and facilities to develop in a healthy manner and in conditions of freedom and dignity and that childhood and youth are protected against exploitation and against moral and material abandonment.

Article 41: Right to work, to education and to public assistance in certain cases. – The State shall, within the limits of its economic capacity and development, make effective provision for securing the right to work, to education and to public assistance in cases of unemployment, old age, sickness and disablement, and in other cases of undeserved want.

Though the above Directive Principles cannot be strictly enforced as in the case of fundamental rights, nevertheless these directive principles obligated the States to enact law to achieve the above directives. The Constitution in Article 51A(k) casts a duty on every parent or guardian to provide opportunities for education to his child or, as the case may be, ward between the age of six and fourteen years. While Article 21A in effect relates to the right of a children between the age of six and fourteen years to have free and compulsory education, Article 45 relates to the objective of the State to endeavour to provide early childhood care and education for all children below the age of six years. In order to achieve the object for which Article 21A was added to the Constitution, The Right of Children to Free and Compulsory Education Act, 2009 was enacted.

The RTE Act seeks to provide the following:

(a) that every child has a right to be provided full time elementary education of satisfactory and equitable quality in a formal school which satisfies certain essential norms and standards;

(b) “compulsory education” casts an obligation on the appropriate Government to provide and ensure admission, attendance and completion of elementary education;

(c) “free education” means that no child, other than a child who has been admitted by his or her parents to a school which is not supported by the appropriate Government, shall be liable to pay any kind of fee or charges or expenses which may prevent him or her from pursuing and completing elementary education;

(d) the duties and responsibilities of the appropriate Governments, local authorities, parents, schools and teachers in providing free and compulsory education; and

(e) a system for protection of the right of children and a decentralized grievance Redressal mechanism.”

 

Section 2(f) of the RTE Act defines “elementary education” as to mean the education from the first to the eighth standards.

Section 2(n) of the RTE Act defines the expression “school” as any recognised school imparting elementary education and includes-

(i)          a school established, owned or controlled by the appropriate Government or a local authority;

(ii)        an aided school receiving aid or grants to meet whole or part of its expenses from the appropriate Government or the local authority;

(iii)     a school belonging to specified category; and

(iv)     an unaided school not receiving any kind of aid or grants to meet its expenses from the appropriate Government or the local authority.”

Chapter II of the RTE Act provides in Section 3 for the right of every child of the age of six to fourteen years to have free and compulsory education in a neighbourhood school till completion of elementary education. The system then provides for special attention (through Section 4 of the Act) for such a child in the higher class to make up the deficiency in skills and ability.

Chapter III of the RTE Act provides for duties of the appropriate government, local authority and parents while Chapter IV defines responsibilities of schools and teachers.

Section 16 of the RTE Act, provides that No child admitted in a school shall be held back in any class or expelled from school till the completion of elementary education.

Section 17(1) of the RTE Act prohibits physical punishment or mental harassment of students. While a ban on physical punishment is laudable, the one on mental harassment is incompletely defined.

Section 18 of the RTE Act stipulates that every school, other than one established, owned and controlled by the appropriate Government or the local authority, shall, after the commencement of the Act, obtain recognition from such authority and after making an application in such form and manner, as may be prescribed. If such a school is already functioning, the Act prescribes that it be shut down within 3 years if it fails to meet norms.

In W.P. (C) No. 8533 of 2010 [Social Jurist, A Civil Rights Group vs. Govt. Of NCT of Delhi & Anr.] & W.P.(C) NO. 263 of 2011 [Delhi Commission for Protection of Child Rights vs. Union of India and Ors.] the Hon’ble Delhi High Court held that:

“A reading of the above provisions show that while a duty is cast upon the appropriate Government and local authority to establish schools within such area or limits of its neighbourhood irrespective of being pre- schools or elementary schools, a further duty is cast upon the appropriate Government to provide free and compulsory education to every child of the age of six to fourteen years only. In stricto sensu, the Act is applicable only to elementary education from Class I to VIII to the children of the age of six years to fourteen years.”

“as far as the private unaided schools referred in Section 2(n)(iv) of the said Act are concerned, the provisions of the Act, except the admission to the extent of 25% of the strength of the class, to the children belonging to the weaker sections and disadvantaged group, do not apply to the admissions made to the pre-elementary (pre- school and pre-primary) classes of such schools. Consequently, Section 13 of the Act which prohibits collection of capitation fee and adoption of any screening procedure also does not apply to the admissions made to the remaining 75% of the pre-elementary classes of unaided private schools.”

Further, the Hon’ble Delhi High Court went on to hold that:

“Unlike other fundamental rights, the Right to Education places a burden not only on the State but also on the parent or guardian of every child and on the child itself. Education occupies an important and sacred place in our constitution and culture. It is a tool for betterment of our civil institution, protection of our civil liberties and path to an informed and questioning citizenry. The Supreme Court in Mohini Jain Vs. State of Karnataka (1992) 3 SCC 666 has held that though the Right to Education is not explicitly inserted in Part-III of the Constitution as a fundamental right but Article 21 read with Article 39, 41 and 45 make it clear that the Constitution of India made it obligatory for the policy makers to provide education to its citizens. It has been observed as follows:- “The objectives flowing from the preamble cannot be achieved and shall remain on paper unless the people in this country are educated. The three pronged justice promised by the preamble is only an illusion to the teaming-million who are illiterate. It is only is the education which equips a citizen to participate in achieving the objectives enshrined in the preamble.(Per Kuldip Singh J)”

“Though we have held that Right to Education Act is not applicable to nursery schools, in our opinion there cannot be any difference yardstick to be adopted for education to children up to the age of 14 years irrespective of the fact that it applies to only elementary education. It is the right time for the Government to consider the applicability of Right to Education Act to the nursery classes as well, as in many of the States admissions are made right from the nursery classes and the children so admitted are automatically allowed to continue from Class-I. In that sense, the provisions of Section 13 would be rendered meaningless insofar as it prohibits screening procedure at the time of selection. Importance of education is per se applicable to every child right from admission to nursery classes till it completes the eighth standard. It is common knowledge that though the there is obligation on the State to provide free and compulsory education to children and the corresponding responsibility of the institution to afford the same, educational institution cannot be allowed to run as “Teaching Shops” as the same would be detrimental to equal opportunity to children. This reality must not be ignored by the State while considering the observations made in this judgment. Hence, we only observe that to avail the benefit of the Right to Education Act to a child seeking for nursery school as well, necessary amendment should be considered by the State. We hope and trust that the Government may take the above observation in the right spirit and act accordingly….”

In spite of such insightful judgments, children in India are still forced to hard-labour and they are also forced to work by their own parents. Children who are employed as child-labours cannot get education due to lack of enforcement agencies who can put the perpetrators behind the bars and help such children to get education at any decent school in their neighbourhood.

Further, under the Juvenile Justice Act of 2000, a person up to the age of 18 years is treated as ‘child’. However when it comes to prohibition of Child Labour Act of 1986, the definition of child means a person who has not completed his fourteenth year of age. Thus, virtually there is no prohibition of child labour in case of children who are more than 14 years but less than 18 years of age. Furthermore, the Child Labour Act 1986 focuses on the prohibition of employment of children in certain specified work places, which are harmful for the children, and there is no absolute prohibition.

 

Recently, the Punjab-Haryana High Court held in W.P. No. 9968 of 2009 [Court on its own Motion vs.  State of Punjab] that:

 

“RTE Act creates an obligation on the part of State to provide free and compulsory education to all children aged between 6 to 14 years. This is now the constitutional obligation as well. As right to education is made fundamental, it would, therefore, follow that as far as children up to the age of 14 years are concerned, since they are to be provided free education, there would be absolute ban/bar and prohibition from child labour. Thus, we are of the opinion that provisions contained in Section 3 of the Child Labour (Prohibition and Regulation) Act, 1986 authorising the use of child labour in so called non-hazardous industries would offend the aforesaid constitutional mandate and would no longer be good law after the passing of RTE Act and the amendment in the Constitution by inserting Article 21A.”

The Punjab-Haryana High Court went on to hold that “there shall be total ban on the employment of children up to the age of 14 years, be it hazardous or non-hazardous industries. This would, however, be subject to the exception that child should only be allowed to work with the family in only those trades/occupations notified by the Child Labour Technical Advisory Committee as constituted under Section 5 of the Child Labour (Prohibition and Regulation) Act, 1986 and for the sole purpose of learning a new trade/craftsmanship or vocation. This exemption too can only be permitted if the same is not in violation of Article 21-A and provisions of Article 51A (k) of the Constitution of India, i.e., where the child is attending regular school to get education. In case the child is not studying in a school, this exemption cannot be claimed even by the family as it affects rights of the child as protected by the Constitution of India especially those under Article 21 of the Constitution.

 

However, in case of children who are above 14 years of age and below eighteen years of age, even though there is no legal labour restriction, but there is provision under Section 374 of the Indian Penal Code, 1860 that employment of any person under 18 years of age is prohibited and forced labour, as by that time such a person has not attained majority and is incapable of giving any consent. Further, the Punjab-Haryana High Court held that whenever a child above the age of 14 years is forced to work, it has to be treated as an offence under Section 374 IPC and it is to be dealt with sternly. The problem, however, may arise when a child between 14-18 years of age is committed to labour by the parents willingly and with their consent. It may be difficult to prohibit the same. Having regard to the age of the child fixed under the Child Labour Abolition Act, we are of the opinion that in such circumstances, the case can still be brought before the State Commission formed under the CPCR Act, 2005 which has the jurisdiction to look into the matters of violation of child rights and deal with the same and pass necessary directions.

Thus, it can be seen that clearly the conundrum remains regarding the age of children and the kind of benefits that accrues upon them under the various prevalent Acts in India. The legislature must clearly decide upon enumerating strict guidelines to decide upon the age of children universally under the various laws and strictly enforce the same so that children in India do not end up spending the rest of their lives on the streets of India.

The question of whether or not an Agreement is a Side Letter and whether such agreement meets the requirement of a valid, binding and enforceable contract or not, must be analyzed on facts from case to case and that the same must comply with the provisions of the Indian Contract Act 1872. The following broad conditions must be satisfied:

a. That there is a clear intention to create legal relations.
b. That it is not an agreement to agree into an agreement.
c. That the terms are clear and unambiguous.
d. That the subject matter is certain.
e. That there must be flow of consideration.

A Side Letter is a document that is ancillary to a contract, which may either clarify or supplement or vary the contract. A Side Letter much like a MoU or any other agreement, is capable of being treated as a contract by itself, which is capable of giving rise to rights and liabilities qua the parties to such Side Letter, which are binding and enforceable. The Side Letter and the Agreement must be read together for complete and proper construction of the contractual relationship between the parties to the contract in respect of their specific agreement.

Any First Party may enter into the Agreement with the Other Party and thereafter issue the Side Letter upon Other Party for setting up, running and operating specific items permissible in law. Both the Agreement and the Side Letter will give rise to legally enforceable rights and obligations.
That it is irrelevant, as to whether or not, the Agreement or the Side Letter are registered. As long as possession is not parted with there is no requirement for registration. Hence the enforceability of the Agreement and the Side Letter is not subject to registration under the Registration Act, 1908 nor are the provisions of Transfer of Property Act, 1882 attracted. No further document needs to be executed and/or registered between the parties as long as a simple license is granted without any transfer of ownership or absolute possession.
Both the Agreement and the Side Letter will be admissible as valid evidence before Court of Law.
The Agreement and the Side Letter can be specifically enforced under the Specific Relief Act, 1963.

However, the parties must make sure:

a. That terms and conditions are clear, unambiguous and certain.
b. That the First Party has exclusive possession, control and access of the contractual space.
c. That First Party is not creating any interest in the Contractual Space in favor of the Other Party.
d. That the Agreement and the Side Letter are legally binding and enforceable.
e. That the First Party is merely granting permission to Other Party to enter into the Contractual Space and run the same without creating any ownership rights.
f. That valid consideration forms the basis of the Agreement between the two parties.
g. That the validity of Agreement and the Side Letter are dependent upon each other. All the terms contained in the Agreement forms part and parcel of the Side Letter and vice-versa.
h. That the Agreement will survive the Side Letter because under the Agreement many Side Letters may be issued. However, when the Agreement is terminated then all Side Letters issued thereunder will automatically terminate.
i. That the Side Letter must be specific.

If such conditions are met then the Side Letter stands validated.

Further, although the usual intention is that side letters will give rise to legally enforceable rights and obligations, this is by no means guaranteed and, in some cases, they have nothing more than moral effect.

Patricia Wade and Sarah Stafford, Ashurst LLP

A side letter is a document that is ancillary to another contract: either clarifying, supplementing or varying the original contract. The key question wherever the content or effect of a side letter is disputed is whether or not the side letter is binding, as illustrated by the recent case of Barbudev v Eurocom Cable Management Bulgaria EOOD and others ([2011] EWHC 1560).

Important Judgments:

Kollipara Sriramulu (dead) by L.R. v T. Aswatha Narayana (dead) by L.R., AIR 1968 SC 1028

Currimbhoy and Company Limited v. L.A. Creet and Ors, AIR 1933 PC 29

Subimalchandra Chatterji v. Radhanath Ray, AIR 1934 Cal. 235

Millenia Realtors Private Limited v. SJR Infrastructure (Private) Limited, 2005 (6) KarLJ 36

Rickmers Verwaltung Gimb H. v. Indian Oil Corporation Ltd., (1999)1 SCC 1

Intelligence Decision System (India) Pvt. Ltd. V. Chief Election Commissioner, AIR 2006 Ker 229

P. Panneerselvan v. A. Baylis (Deceased through legal representatives) and Others (2006 AIR (Mad) 242

M/S. Nanak Builders and Investors Pvt. Ltd. v Vinod Kumar Alag (1991 AIR (Del) 315, 1991 RLR 87, 1991 ILR (Del) 303

Chairman cum Managing Director, Tamil Nadu Tea Plantation Corporation Ltd. v. Srinivasa Timbers, AIR 1999 Mad 111

Dhulipudi Namayya v. Union of India, AIR 1958 AP 533.

Mukherjee & Co. v. Chhaya Banarjee, AIR 1998 Cal 252

Prakash Chandra v. Angadlal, AIR 1979 SC 1241, (1979) 4 SCC 393

HIH Casualty & General Insurance Limited –Vs- New Hampshire Insurance Company & Independent Insurance Company Limited, [2001] EWCA Civ 735

Esso Petroleum Limited –Vs- Commissioners of Custom & Excise.

British Nuclear Group Sellafield Limited & Kernkraftwerk Brokdorf GMBH & Co OHG –Vs- Gemeinschaftskernkraftwerk Grohnde GMBH & Co OHG –Vs- E.ON Kernkraft GMBH, [2007] EWHC 2245 (Ch)

Georgi Velichkov Barbudev –Vs- Eurocom Cable Management Bulgaria Eood & Ors, [2012] EWCA Civ 548

Georgi Velichkov Barbudev –Vs- Eurocom Cable Management Bulgaria Eood & Ors, [2011] EWHC 1560 (Comm)

 RTS Flexible Systems Ltd –Vs- Molkerei Alois Müller GmbH & Co KG, [2009] EWCA Civ 26

Criminal Complaint after 5 years has lapsed and whether the bar under Section 468 of Cr. P C, 1973 will be applicable in initiating criminal action in the above mentioned case.

Limitation prescribed under Section 468 of Cr.P.C. applies to only non-serious cases where the imprisonment term does not exceed three years. The section 468 of Cr.P.C, 1973 reads as:

“Bar to taking cognizance after lapse of the period of limitation. 

(1) Except as otherwise provided elsewhere in this Code, no Court, shall take cognizance of an offence of the category specified in sub-section (2), after the expiry of the period of limitation. 

(2) The period of limitation shall be— 

(a) six months, if the offence is punishable with fine only; 

(b) one year, if the offence is punishable with imprisonment for a term not exceeding one year; 

(c) three years, if the offence is punishable with imprisonment for a term exceeding one year but not exceeding three years. 

(3) For the purposes of this section, the period of limitation, in relation to offences which may be tried together, shall be determined with reference to the offence which is punishable with the more severe punishment or, as the case may be, the most severe punishment”. 

 

A chart showing the period of limitation applicable under section 468 of Cr.P.C. in respect of the provisions under which a criminal complaint may be filed against the accused is produced below:

 

IPC Charging Section

Punishment under IPC

Bar of Limitation under Cr.P.C. Section 468

Cheating: Section 415 IPC

Punishment under Section 417: punished with imprisonment of either description for a term which may extend to one year, or with fine, or with both.

under Section 468 (2) (b) – one year

Cheating: Section 415 IPC

Punishment under Section 420:

punished  with imprisonment  of either description

for a term which may extend to seven years, and shall also be liable to fine.

Bar of limitation under Section 468 Cr.P.C. not applicable as maximum punishment exceeds three years

Forgery: Section 463, 464 IPC

Punishment under Section 465 IPC: Whoever commits forgery shall be punished with imprisonment of either description for a term which may extend to two years, or with fine, or with both.

Bar of limitation under Section 468 (2) (c) – three years

Forgery for purpose of cheating

Punishment under Section 468 IPC: Whoever commits forgery, intending that  the document  forged shall  be used for the purpose of cheating, shall  be punished  with imprisonment  of either description for a  term which  may extend to seven years, and shall also be liable to fine.

Bar of limitation under Section 468 Cr.P.C. not applicable as maximum punishment exceeds three years

Criminal Conspiracy, Section 120 A IPC

Punishment under Section 120B IPC: the punishment of such a conspiracy be punished in the same manner as if he had abetted such offence.

Section 120: the offence be committed, be punished with imprisonment of the description provided for the offence, for a term which may extend to one-fourth of the longest term for such imprisonment.

 

Bar of limitation under Section 468 (2) applies -three years

 

However, it must be noted that Section 473 Cr.P.C., inter alia, provides

“Extension of period of limitation barred under Section 468 Cr.P.C in certain cases – Notwithstanding anything contained in the foregoing provisions of this Chapter, any Court may make cognizance of an offence after the expiry of the period of limitations, if it is satisfied on the facts and in the circumstances of the case that the delay has been properly explained or that it is necessary so to do in the interests of justice”.

Thus, if, cogent reasons are given for delay in filing complaint against the accused under sections 415, 463, 464 and 120A IPC, then a criminal complaint may be filed against the accused, subject to the Court being satisfied and condoning the delay. If the complainant had the knowledge of the accused’s criminal acts since more than 5 years and thereafter there have been several reminders, however, no actions were taken against the accused till date. Therefore, depending on the merits of the case in getting the delay of more than 6 years condoned under section 473 Cr.P.C. for complaints filed under sections 415, 463, 464 and 120A IPC are very low and such exercise will be fruitless.

However, it is evident from above, if, the complaint is filed under Section 420 IPC and/or Section 468 IPC then the bar of limitation under Section 468 Cr.P.C would not apply.

The basic purpose of Indian Stamp Act, 1899 is to raise revenue to Government. However, over a period of time, the stamped document has obtained so much value that a ‘stamped document’ is considered much more authentic and reliable than an un-stamped document.

Power of Parliament in respect of stamp duty –

Parliament can make law in respect of Stamp Duty. It can prescribe rates of stamp duty. The stamp duty rates prescribed by Parliament in respect of bill of exchange, cheques, transfer of shares etc. will prevail all over India. However, other stamp duty rates prescribed by Parliament in Indian Stamp Act, 1899 (e.g. stamp duty on agreements, affidavit, articles of association of a company, partnership deed, lease deed, mortgage, power of attorney, security bond etc.) are valid only for Union territories. In case of States, the rates prescribed by individual States will prevail in those States.

 

Powers of State Government of Stamp Duty – State Government has powers to fix stamp duties on all documents except bill of exchange, cheques etc. Rates prescribed by State Government will prevail in that State. State Government can make law for other aspects of stamp duty also (i.e. matters other than quantum of duty). However, if there is conflict between State law and Union law, the Union law prevails [Article 254 of Constitution].

The Indian Stamp Act, 1839 is a Central legislation and deals with all aspects of stamps and stamp duties. It applies to whole of India except the State of Jammu & Kashmir. The Act through Schedule-1 lays down the rate of stamp duty payable on different instruments.

The instruments given in the Schedule-1 can be classified into two categories. First category of instruments consisting of bills of exchange, promissory notes, stamp duty for transfer of shares, debentures, bills of lading, proxies, letters of credit and receipts.

Second category of instruments consist of instruments such as agreements, affidavits, articles of association of a company, partnership deed, lease deed, mortgage, power of attorney, security bond etc..

Vide entry 91 of List 1 central government is empowered to levy stamp duty in respect of first category of instruments and rates prescribed by Central Government will prevail over the rates prescribed by the state Government

Vide Entry 44 of List III and Entry 63 of List II, the State Governments have power to enact and levy stamp duty and prescribe the rates for all other instruments not referred above.

In the case of Second category of instruments, the rates prescribed by individual States will prevail in those States. However for these instruments, the rates prescribed in Scheudle-1 of the Indian Stamp Act, 1839 will be applicable only for union territories. If there is any conflict between State law and Union law, the Union law prevails as per Article 254 of Constitution.

It is clear from the scheme of legislation that fields for levy of stamp duty are central and state are demarcated so as to ensure that revenues collected through stamp duty are shared as per provisions of the Act.

Only under Sec, 52 B (a) of  The Bombay Stamp Act 1958, period of six months is mentioned from the date of purchase or delivery after which the stamps become invalid.

This time period of six months is also quantified under the The Bombay Stamp (Gujarat Amendment Act) 2004 under Section 52C which is applicable in Gujarat.

None of the other State Stamp Acts has such provision to limit the validity of stamps.

Recently, in Thiruvengada Pillai vs Navaneethammal & Anr  passed on 19 February, 2008 by  the bench  Bench: R V Raveendran, P.Sathasivam (2008 (4) SCC 530. )

The Hon’ble Supreme Court said that ,  “The Indian Stamp Act, 1899 nowhere prescribes any expiry date for use of a stamp paper. Section 54 merely provides that a person possessing a stamp paper for which he has no immediate use (which is not spoiled or rendered unfit or useless), can seek refund of the value thereof by surrendering such stamp paper to the Collector provided it was purchased within the period of six months next preceding the date on which it was so surrendered. The stipulation of the period of six months prescribed in section 54 is only for the purpose of seeking refund of the value of the unused stamp paper, and not for use of the stamp paper. Section 54 does not require the person who has purchased a stamp paper, to use it within six months. Therefore, there is no impediment for a stamp paper purchased more than six months prior to the proposed date of execution, being used for a document.”

The stipulation of the period of six months prescribed in section 54 of The Indian Stamp Act, 1899, for the purpose of seeking refund of the value of the unused stamp paper is also contained in most State Stamp Acts under Chapter V – Allowances for Stamps in Certain Cases. However, there is no time period limiting the validity of Stamps to six months except under the Bombay Stamp Act, 1958.

Further, under The Indian Registration Act, 1908:

All documents except Wills have to be registered within four months from the date of execution (signature). If a document is executed out of India, the period of four months will be counted from the date of its receipt in India. (Section 23)

In the event of a delay, the Act provides that the document may be presented within another four months with a penalty of maximum of ten times the registration fees, if the District Registrar grants permission. It prescribes four months time to the executant for appearing before the registering officer to admit execution thereof. (Section 34)

I think this is the main reason why people state that stamps are valid for only six months.

The judgment passed by the Supreme Court has now set the point clear. However, in Bombay and Gujarat, since there is conflict between Central Act and State Act, then vide Article 254 I believe Central Act will prevail.