Legistify's Contract Management Tool supports electronic signing and digital stamping of contracts. This article explains the legal standing of each signing method and stamping mechanism available on the platform, based on the Information Technology Act, 2000 (IT Act), the Indian Stamp Act, 1899, and the Bharatiya Sakshya Adhiniyam, 2023 (BSA).

Legistify supports three modes of electronic execution:

Aadhaar eSign and DSC-based signatures qualify as Electronic Signatures under Section 3A of the IT Act. They carry full statutory recognition and are treated on par with handwritten signatures for the purposes of document execution. Where any law requires a document to bear a handwritten signature, these two methods satisfy that requirement.

Virtual Sign does not qualify as an Electronic Signature under the IT Act, as it is neither Aadhaar-based nor backed by an ESC. However, contracts executed through Virtual Sign are still legally enforceable under Section 10A of the IT Act, provided the contract satisfies the basic requirements of a valid contract under the Indian Contract Act, 1872 — a valid offer and acceptance, lawful consideration, lawful object, competent parties, and free consent.

Regardless of the signing method used, the following categories of documents cannot be executed electronically and require physical, wet-ink signatures:

Legistify supports two stamping mechanisms:

E-stamp certificates are generated and stored electronically by SHCIL. They qualify as electronic records under the IT Act and constitute original electronic records for the purposes of the BSA. When produced in evidence, they do not require fulfilment of the Section 63(2) Admissibility Conditions or a Section 63(4) certificate, as they are originals rather than copies.

An e-stamp certificate also constitutes proof of payment of stamp duty. It contains the transaction details, stamp duty amount, Unique Identification Number (UIN), and QR code. For a contract to be regarded as duly stamped, the e-stamp certificate must be affixed to the instrument.

Scanned copies of physical stamp papers qualify as electronic records under the IT Act and as documentary evidence under the BSA. For a scanned copy to be admissible as evidence in legal proceedings, it must satisfy the Admissibility Conditions under Section 63(2) of the BSA and be accompanied by a certificate under Section 63(4) of the BSA.

A scanned copy does not, by itself, constitute proof of payment of stamp duty under the Stamp Act. Proof of stamp duty payment requires production of either the original physical stamp paper or a duly certified copy that confirms on its face that the original was stamped.

The stamp duty payment receipt generated by the platform is an electronic record and qualifies as documentary evidence under the BSA. It serves as proof that stamp duty was paid. However, it does not establish that a contract is duly stamped. The e-stamp certificate must be affixed to the instrument for the contract to be regarded as duly stamped.

Note: Stamp duty law varies by state, and cross-state movement of stamp paper has additional legal implications not covered in this article. Please consult your legal team for state-specific guidance.

Legistify's signing and stamping mechanisms are legally recognised under Indian law, with the scope of recognition varying by method. Aadhaar eSign and DSC carry the highest legal standing for execution, while Virtual Sign remains enforceable for standard contracts. For stamping, e-stamp certificates provide the strongest legal footing, while scanned copies of physical stamp papers carry evidentiary value subject to BSA conditions but do not independently prove stamp duty payment.

The full legal memoranda prepared by CMS Induslaw are attached below for reference.