Section 4 of the Information Technology Act, 2000 gives legal recognition to electronic records which provides as under:

“Where any law provides that information or any other matter shall be in writing or in the typewritten or printed form, then, notwithstanding anything contained in such law, such requirement shall be deemed to have been satisfied if such information or matter is–

(a) rendered or made available in an electronic form; and

(b) accessible so as to be usable for a subsequent reference.”

Indian Evidence Act, 1876 and India Penal Code 1860 were also amended to bring the ‘electronic record’ within the ambit of the term ‘document’

Section 10A of the Information Technology Act, 2000 provides for validity of contracts formed through electronic means. This Section reads as under:

“Where in a contract formation, the communication of proposals, the acceptance of proposals, the revocation of proposals and acceptances, as the case may be, are expressed in electronic form or by means of an electronic record, such contract shall not be deemed to be unenforceable solely on the ground that such electronic form or means was used for that purpose.’

In the light of the above, digital documents and contract entered into through electronic form are legally admissible in terms of the Information Technology Act, 2000 and Rules framed thereunder.

E STAMPING IN THE STATE OF RAJASTAHN IS ALLOWED

The Rajasthan Stamp Act 1998 was amended vide Rajasthan Finance Act 2013 (w.e.f. 10.04.2013) so as to include in the definition of impressed stamp, impression or print on a paper by electronic method or any other method. The amended Section 2 (xvi) the Rajasthan Stamp Act is as under:

“impressed stamp” includes, – (a) lables affixed and impressed by the proper officer; (b) stamps embossed or engraved on stamped paper; (c) impression by franking machine; (d) impression or print on a paper by any other method including electronic method; and (e) such other impressions as the State Government may by notification in the Official Gazette, specify

The terms “Stamp” and “duly stamped” in the Rajasthan tamp Act of 1998 have been defined as follow:

Section 2 (xxxvi) “Stamp” means any mark, seal, certificate or endorsement by any agency or person duly authorised by the State Government, and includes an adhesive or impressed stamp, for the purposes of duty chargeable under this Act.

Section 2 (xii) “duly stamped” as applied to an instrument, means that the instrument bears an adhesive or impressed stamp of not less than the proper amount and that such stamp has been affixed or used in accordance with law for the time being in force in the State;

In views of the above definition an instrument shall be treated as duly stamped if it bears the adhesive or ‘impressed stamp’ and as the impressed stamp includes the impression by electronic method [Section 2 (xvi)], therefore, if an instrument bears the impression by electronic method, shall be treated as duly stamped.

In this connection, we also refer Rules 3 and 3A of the Rajasthan Stamp Rules, 2004 which deal with the mode of payment of Stamp Duty. These provisions read as under:

“3. Mode of payment of duty. — Except as otherwise provided by the Act, or by these rules—
(i) all duties with which any instrument is chargeable shall be paid, and such payment shall be indicated on such instrument, by means of stamps issued by the Government for the purposes of the Act and these Rules; and

(ii) a stamp which by any word or words on the face of it is appropriated to any particular kind of instrument shall not be used for an instrument of any other kind.

Explanation– For the purposes of clause (i), a stamp of the Central Government or of the Government of any covenanting State shall be deemed to have been superimposed with the word “Rajasthan” or with the letters “RAJ”.

3-A. Other methods of payment of stamp duty. —

(1) Notwithstanding anything contained in rule 3, stamp duty or deficient stamp duty payable on any instrument may also be paid by demand draft or pay order drawn on a branch of any scheduled bank or through stamp issued by electronic method by any person, agency or company authorized by Inspector General of Stamps or deposited into Government Account head 0030 through E-GRAS challan in any bank authorized by the State Government.

(2) In case where circumstances warrant, Inspector General of Stamps may allow payment of deficient duty in cash.”

Thus, the Stamp duty can be paid through e-Stamping as provided in the Rule 3A of the Rajasthan Stamp Rules, 2004.

In view of the foregoing provisions of law, in the State of Rajasthan, if digitally executed document/instrument, is stamped through the electronic method, that document/instrument will be admitted in evidence as per Section 39 of the Rajasthan Stamp Act 1998.