Define 'Endorsements' and Distinguish between Endorsement in a Deed and Supplemental Deed. Also examine whether such instruments are liable to stamp duty, giving reasons.

Endorsement means to write on the back or on the face of a document wherein it is necessary in relation to the contents of that document or instrument. The term "endorsement" may be used with reference to negotiable documents like cheques, bill of exchange etc and also in other situations such as endorsement in a deed. Endorsement in a deed helps in putting new facts in words on such document with a view to inscribe with a title or memorandum or to make offer to another by inscribing one's name on the document or to acknowledge receipt of any sum specified by one's signatures on the document or to express definite approval to a particular document. Supplemental deed is a document which is entered into between the parties on the same subject on which there is a prior document existing and operative for adding new facts to the document on which the parties to the document have agreed which otherwise cannot be done by way of endorsement. Thus, supplemental deed is executed to give effect to the new facts in the deed. As regards stamp duty, such instruments generally attract stamp duty if they create, modify, or extinguish rights or liabilities. The applicability depends on the nature and substance of the transaction under the relevant Stamp Law. An endorsement, being an instrument that alters or confirms rights, is similarly treated as a chargeable instrument under the Indian Stamp Act, 1899, and attracts stamp duty based on its nature and the relevant state schedule. Legal consensus indicates that if a supplementary deed is executed as a registered deed, stamp duty and registration charges must be paid again, though unregistered supplementary attachments may not require additional duty. Purely explanatory endorsements without legal effect may not attract duty.