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the documents of which registration is necessary under theTransfer of Property Actbut not under theRegistration Actfall within the scope ofsection 49of the Registration Act and if not registered are not admissible as evidence of any transaction affecting any immovable property comprised therein, and do not affect any such immovable property. specifically provides that an unregistered document affecting the immovable property and required by the Registration Act to be registered may be received as evidence of a . Observing that since the Khararunama by itself, does not affect immovable property, being a record of the alleged past transaction, though relating to immovable property, the Top Court said that there would be no breach of Section 49(1)(c), as it was not being used as evidence of a transaction effecting such property. Section 123 of the same Act makes it mandatory that the transfer of property through gift deed be through a registered instrument signed by or on behalf of the donor and signed by two independent witnesses. Advocate Amaresh Singh is a practicing lawyer at Supreme Court of India, Delhi High Court, National Company Law Tribunal (NCLT), National Consumer Forum, Custom Excise Goods and Service Tax Appellate Tribunal and District Courts of Delhi including Saket Court, Tis Hazari Court, Patiala House Court, Karkardooma Court, Dwarka Court in the field of Cheque Bounce, Corporate Law, Insolvency and Bankruptcy Cases, Commercial Disputes, Recovery of Dues, Debt Recovery Cases, Arbitration Matters, Cases Related to Tender, Cases Related to Import & Export, Cases Related to Trademark Copyright and Patent, Cases Related to FERA and Foreign Exchange Managment Act (FEMA), Cases Related to Prevention of Money Laundering Act, Service Employment & Labour Law. 65. However, no corresponding change was made to the proviso to Section 49 of the Registration Act which allows unregistered documents affecting immovable property (otherwise required to be registered under the Registration Act or Transfer of Property Act, 1882) to be received as evidence in a suit for specific performance. Is inadmissible in evidence C. Both (A) and (B) D. Either (A) or (B) Answer: Option C A gifts a house property to his sister B, in 1986, through an unregistered but properly stamped Gift deed, with a stipulation that neither he nor his descendants would have any right title and interest over the property. In P.M. Anand Babu And Ors. Although Sections 17(1)(f) and 17(1)(g) have been inserted by State (Kerala) Act 31 of 2013 (w.e.f. Justice A.S. Supehia and Justice M.R. In Rana Vidya Bhushan Singh vs. Ratiram[6] it was held that "A document. any right, title or interest in immoveableproperty of the value of one hundred rupees and upwards. Under section 50 of the Registration Act, (a) a registered document relating to a property stands on the same footing as an unregistered document relating to the same property, (b) a registered document relating to a property takes precedence over the unregistered document relating to the same property, (c) an unregistered document relating to a property taken precedence over the registered document over the same property, 63. The Court dismissed the second appeal confirming the first appellate courts judgment and decree. The Respondent/original Plaintiff inter alia submitted that the proviso to Section 49 of the Registration Act stipulated that an unregistered document affecting the immovable property may. Introspection INSUFFICIENTLY STAMPED DOCUMENTS Instruments not duly stamped, inadmissible Sec. Section 40 of the Registration Act refers to, (a) documents which are irrevocable and have the binding effect, (b) documents which can be revoked at any moment and have no binding effect even after the death of the executant, (c) documents which can be revoked at any moment and have no binding effect till the death of the executant, 54. Saha and Sons Pvt. vs. Kedar Nath[5] it was held that has made it clear that the documents in the supplemental list i.e. The same position of law was reiterated in DadiReddi Sivanarayana Reddi v. Kasi Reddy Chinnamma[9]. The amended provision came into force with effect from 24.09.2001. Since these legal propositions are dependent on the facts in each case, I do not wish to comment on the observations in the judgment regarding the denial of the plaintiffs claim for injunction. Since the document does not purport to by itself create, declare, assign, extinguish or limit right in properties, thus, the Khararunama may not attract Section 49(1)(a) of the Registration Act, added the Court. An unregistered document can be admitted in evidence as regards an existence of contract in a (a) suit for possession (b) suit for injunction Which of the following is an immovable property, 9. In other words, if the Donee or her legal heirs are in possession of the property, in a suit for eviction by the Donor or his legal heirs, the unregistered Gift deed can be used as evidence to prove as to how the legal heirs of B were in the possession of the property. Copyright 2023. Such unregistered document can however be used as an evidence of collateral purpose as provided in the Proviso toSection 49of the Registration Act. The Respondent i.e., the original Plaintiff instituted a suit in the trial court seeking specific performance of the Agreement against the Appellant i.e., the original Defendant. E-46, Sector -72 , Phase -8 , Industrial Area , Which of the following is not a collateral purpose, 68. Which of the following is an immovable property within the meaning of section 2(6) of the Indian Registration Act, 1908, as benefit arising out of land, (a) a transfer of future rents in respect of land, (b) a transfer of rents which have already accrued, 87. 49. 30. In T.S. Registration Act, 1908 - GST Guntur The matter was taken in first appeal by the plaintiff/ respondent. A document required to be registered is not admissible into evidence under Section 49 of the Registration Act. Thereafter the sale deed in favour of Z executed on 10-1-2002 was registered on 20-1-2002. Effect of non-registration of documents required to be registered. Kaladevi vs. V.R. Due to the elders intervention, the respondents & the appellants settled that the respondent would give his portion to the second appellant and his one-third portion in Nadava Margam to the appellants and in consideration, the first appellant (Korukonda Chalapathi Rao) and second appellant had to give Rs.25000 and Rs.75000 to the respondent. No document required by section 17 or by any provision of the Transfer of Property Act, 1882 (4 of 1882), to be registered shall unless it has been registered: While this judgment was delivered in the context of a state amendment which required an agreement for sale of property to be registered, the Supreme Court has clarified the broader proposition that an unregistered agreement for sale of property may be admitted in evidence. JSA Prism | Real Estate | April 2023 - JSA The rule of precedence amongst the various registered documents relating to the same property is contained in, 56. A document, registration of which has been refused by the Sub-registrar of a sub-district, (a) can be received & registered by a sub- registrar of another sub-district within the same district, (b) can be received & registered by a sub- registrar of another sub-district in another district, (c) can be received & registered by the registrar of the district of whose sub-. In the Registration Act immovable property has been defined, 2. Right of taking or running water from a river, under the Indian Registration Act, 1908 is, 86. An unregistered document affecting immovable property (a) shall not affect any immovable property comprised therein (b) is inadmissible in evidence (c) both (a) & (b) (d) either (a) or (b). A deed of adoption despite the fact that as consequences of adoption, the adopted son may become entitled to immovable property under Hindu law, B. Registration Act | Unregistered Agreement To Sell Is - LiveLaw Effect of An Unregistered Document or Agreement to Sell It was alleged by the respondent that while he was in hospital for treatment of his liver ailment, the appellants allegedly obtained his signatures on papers and made up the Khararunama. Whether registration of family settlement not "affecting" immovable Unstamped & Unregistered Documents and Collateral Purpose Which of the following is compulsorily registrable, (a) which is intended to take effect or be operative immediately on its execution, 15. In Proviso to section 49 of Registration Act 1908, by the Act 48 of 2001, significantly the words or as evidence of part performance of a contract for the purposes of Section 53A of the Transfer of Property Act, 1882 have been omitted, obviously to synchronize it with Section 17(1-A). It has been held by the Apex Court that even a trespasser, who is in settled possession, can maintain an injunction suit against the true owner of the property. In Balram Singh, a contention was raised on the side of the defendant/ appellant that the agreement to assign immovable property, involved in the case, was an unregistered document and therefore such an agreement was inadmissible in evidence and, further, the plaintiff/ respondent was not entitled to get a decree for specific performance based on an unregistered agreement for sale. Under the Registration Act, a registered document operates, (c) from the date as given for the operation of the document, in the document, (a) to decide which of the two or more registered instruments in respect of the same property is to have effect, (b) to decide which of the two-a registered document and dual agreement, in respect of the same property is to have effect, (c) to decide which of the two a registered instrument and an. A thorough reading of both Exhibits B-21 and B-22 makes it very clear that there is relinquishment of right in respect of immovable property through a document which is compulsorily registerable document and if the same is not registered, becomes an inadmissible document as envisaged under Section 49 of the Registration Act. A document in writing agreeing to separate a coparcenary property but without effecting any division as such, (a) is required to be compulsorily registrable, (b) is not required to be compulsorily registrable, 70. A collateral transaction must be independent of, or divisible from, the transaction to effect which the law required registration. Disclaimer 8. Copyright 2006 - 2023 Law Business Research. [Para 8 of the Judgement], It is well settled that the nomenclature given to the document is not decisive factor but the nature and substance of the transaction has to be determined with reference to the terms of the documents and that the admissibility of a document is entirely dependent upon the recitals contained in that document but not on the basis of the pleadings set up by the party who seeks to introduce the document in question. 65. From the facts briefly narrated in the judgment, it can be seen that the plaintiff/ respondent filed a suit for permanent prohibitory injunction before the Trial Court against the defendant/appellant in the year 1997. (d) the sale deeds in favour of Y & Z shall remain valid to the extent of 50% of the property. Such documents shall be brought for registration within the office of a Sub-Registrar in whose sub-district the whole or some of the relevant property . The Registration and Other Related Laws (Amendment) Act, 2001 (Central Act 48 of 2001), which amended the Registration Act, 1908, Transfer of Property Act, 1882 and Indian Stamp Act, 1899, has altered the text of Sections 17 and 49 of the Registration Act to a certain extent. (c) be received as evidence of any transaction affecting such property or conferring such power, unless it has been registered: provided that an unregistered document affecting immovable property and required by this Act or the Transfer of Property Act, 1882 (4 of 1882), to be registered may be received as evidence of a contract in a suit for district, the Sub-registrar has refused registration (d) can be received & registered by the registrar of another district. Proviso to Section 49 of the Act of 1908 provides that an unregistered document affecting immovable property and required by this Act (Registration Act) or the Transfer of Property Act, 1882 (4 of 1882), to be registered, may be received as evidence of a contract in a suit for specific performance under Chapter II of the Specific Relief Act, 187. document. Facts briefly narrated in Balram Singh do not reveal that the plaintiff claimed possession of the property in any manner otherwise than on the unregistered agreement. XVI of 1864, or the Indian Registration Act, 1866, or the Indian Registration Act, 1871, or the Indian Registration Act, 1877, or this Act came or comes into force, namely: - . The suit was on the basis of an unregistered agreement dated 23.03.1996 to sell immovable property. Act 57 of 1976 which came into force from 1.1.1977. A 2 (two) judge bench of the Supreme Court of India (Supreme Court) has in R. Hemalatha v. Kashthuriheld that an agreement to sell property which is not registered under the provisions of the Registration Act, 1908 (Registration Act) can be admitted as evidence in a suit seeking specific performance of such agreement. 6AIR 1981 AP 175 [Para 17 of the Judgement], Click Here To View Full Text Of Judgement, Tags: Registration ActSection 17Section 49Supreme Court of IndiaUnregistered Documents. The lease covered under Section 17(l)(d) is, (b) registration of such a lease is optional, 22. as it is a document affecting immovable property. 81. A profits a prendre an incorporeal right, a right to take something of another persons land is, 6. Registrar can accept the documents for registration at the residence of the person, 48. In the suit, the defendant/ appellant raised a counter-claim seeking a decree for possession of the property, virtually indicating that the plaintiff/ respondent was keeping possession of the property pursuant to the unregistered agreement. 13.09.2013) no change has been made in Section 49. As mentioned above, the effect of non-registration of documents required to be registered is that such documents shall not create/transfer title or interest in immovable property. Below you will find a basic outline that may help you understand whether you have experienced . The expression collateral transaction has been interpreted as any transaction other than the substantive transaction intended by the document. Which is not an immovable property under the Registration Act (a) hereditary allowances (b) lights (c) fisheries (d) none of the above. Provided that an unregistered document affecting immovable property and required by this Act or the Transfer of Property Act, 1882 (4 of 1882), to be registered may be received as evidence of a contract in a suit for specific performance under Chapter II of the Specific Relief Act, 1877 (1 of 1877), [***] or as evidence of any collateral transaction not required to be effected by registered instrument. 5[1969 (1) UJ 86 (SC)] The time for presentation of document for registration has been provided in, 29. InSMS Tea Estates Pvt. For example, in Kerala there is no State Amendment to Proviso to Section 49 and it is in tune with the provisions in the Central Act. Whole lot of confusions arose on account of the reason that the decision did not reveal fully the peculiar legal position prevalent in the State of Uttar Pradesh. 1. We believe in leading the change. In Sailesh Chandra vs. Bireshwar Chatterjee[1], "An agreement if unregistered will not be admissible as a lease although a statement in it may be admitted as an admission. 27. InRatan Lal and Ors. High Court has held that the collateral purpose is to say for any purpose other than that of creating, declaring, assigning limit, or extinguishing a right to immovable property. 32. required by law to be registered, if unregistered, is inadmissible as evidence of a transaction affecting immovable property, but it may be admitted as evidence of collateral facts, or for any collateral purpose, that is for any purpose other than that of creating, declaring, assigning, limiting or extinguishing a right to immovable property. tenant has not illegally entered into possession but has legally entered into possession. PDF Reportable in The Supreme Court of India Civil Appellate Jurisdiction Registration of a document presented after the expiry of total period prescribed in Part- IV of the Act is, 34. (d) six months from the date of execution. 49. 90. Unregistered agreement to sell property is admissible in Registration of Documents Under the Registration Act, 1908 Section 21 of the Registration Act applies to, (a) non-testamentary documents relating to immovable property, (b) non-testamentary documents relating to movable property, (c) testamentary documents relating to movable property. Now the next aspect that needs to be taken into account is whether the done was in possession of the property after the execution of the gift deed. Issue The statement is? 64. Effect of non-registration of documents required to be registered Since it was an appeal from the High Court of Judicature at Allahabad, one can legitimately assume that the subject matter of the dispute is situate within the State of Uttar Pradesh. Therefore, a suit filed in a court of law within the State of Uttar Pradesh in the year 1997 on the basis of an unregistered agreement can only be decided with reference to the provisions impacted by the State Amendments to the Registration Act. All other terms and conditions between the landlord and tenant as stated in the registered lease deed whether it be for the period of lease, or the rate of rent or area of tenancy or other terms and conditions, the same cannot be looked into in view of the specific bar of Section 49 of the Registration Act.. The words purport or operate in section 17(l)(b), refers to, (a) the ultimate consequences of the instrument, (b) immediate intention of the instrument, 16. Therefore, the Agreement dated 04/06/1975 and Memorandum dated 05/06/1975 have to be construed as relinquishment deeds. Exceptions under section 17(2) of the Registration Act relate to, 24. (a) a registrar only can receive a document at the residence of a person desiring to present the document for registration, (b) a Sub-registrar only of the concerned sub-district can receive the document at the residence, 47. evidence+of+a+contract | Indian Case Law | Law | CaseMine Aggrieved by the order of the trial court, the Respondent/original Plaintiff filed a revision petition before the High Court of Madras (Madras HC). if details not recieved, By Loging in you agree to Terms of Services and Privacy Policy. If not, what is the remedy available to the legal heirs of B and what is the value of the unregistered Gift Deed in the eyes of law. Correctness of the judgment of the High Court was challenged before the Apex Court. Whether the legal proposition laid down by the Supreme Court in Balram Singh vs. Kelo Devi[2022 LiveLaw (SC) 800] prescribing a blanket bar in passing a decree for specific performance of a contract based on an unregistered document/ agreement to sell immovable property is a dictum applicable pan India? Somasundaram and Ors[11],the Honble Supreme Court of India has held that in addition to the principles laid down in K.B.Shahs case mentioned above one more principle may be added, namely, that a document required to be registered, if unregistered, can be admitted in evidence as evidence of a contract in a suit for specific performance. Whether the court can use an unregistered lease deed for collateral It is submitted that now after the 2012 amendment, an Agreement to Sell for Rs.100/ or upwards is to be compulsorily . Non-compliance of the provisions of Section 19 of Registration Act is, (a) an error of jurisdiction not curable under section 87, (b) a defect of procedure & is curable under section 87, (c) an error in exercise of jurisdiction curable under section 87, 41. WRONGFUL TERMINATION - The Public Policy Exception Understand your clients strategies and the most pressing issues they are facing. Registration of a document, presented by a person who is not a proper person within the meaning of Section 32 is, 50. 84. Uploader Agreement. Which of the following documents has the effect of a definite change of legal relation to a property, (a) a document executed by the parties within an hour of the alleged completed oral partition which starts with the recitals of details in the past tense but concludes in the present tense and describes itself as a partition deed, (b) A document as a result of which immovable property standing in the names of the parties in certain shares, is to stand in their names but in different shares, (c) A document recitals of which declare the existence of a given state of affairs, 17. This website uses cookies and third party services. 4AIR 1969 SC 1316 Section 17(2) of the Registration Act carves out an exception to, 23. Such unregistered document can however be used as an evidence of collateral purpose as provided in the proviso to Section 49 of the Registration Act. Before uploading and sharing your knowledge on this site, please read the following pages: 1. The legal heirs of B with an intention to perfect their title call upon the legal heirs of A to register the property to their name. Considering this position, the trial court inter alia held that the unregistered Agreement was not admissible in evidence. A relinquishment deed which is compulsorily registerable document under Sec 17 (b) of the Registration Act, 1908 and hence, the unregistered document is not admissible in evidence. The question is whether a provision for arbitration in such an unregistered document is a collateral transaction, in respect of which such unregistered document can be received as evidence under the proviso to Section 49 of the Act. The gift deeds in favour of Y & Z were registered on 30-1-2002 & 20-1-2002 respectively. However, trend of the judicial decisions or trend of judicial opinion is to the effect that The transaction as recorded could be a particular or specific transaction, but it would be possible to read in that transaction what may be called the purpose of transaction and what may be called a collateral purpose, the fulfillment of that collateral purpose would bring into existence a collateral transaction, a transaction which may be said to be a part and parcel of a transaction but nonetheless a transaction which runs together with or on parallel lines with the same. InM/s Jiwan Industries (P) Ltd. v. Smt. After the payment was done, a Kharurunama dated April 15, 1986, was executed. Author is a Former Judge of High Court of Kerala and a Senior Advocate Practicing at the Supreme Court. Section 17(1)(g) is about the registration of power of attorney dealing with rights of management, administration, development, transfer etc. The Trial Court dismissed the suit and decreed the counter-claim. [Provided that an unregistered document affecting immovable property and required by this act or the transfer . It was further contended that in light of the deletion of the explanation to Section 17(2) of the Registration Act by the State Amendment, which provided for exemption of certain documents from registration, the unregistered Agreement cannot be admitted as evidence. 5. Copyright 10. The words received as evidence has a special significance, because it is different from received in evidence. Logo and all other graphical works belong to Advocates Club. An unregistered document affecting immovable property Home / Law / Registration Act / Question Examveda An unregistered document affecting immovable property A. Shall not affect any immovable property comprised therein B. The two documents relate to; one being an unregistered sale deed of immovable property worth more than Rs. Accordingly, Korukonda Annapurna Sampath Kumar (respondent) and his wife raised a dispute before elders that the portion given to them wasnt sufficient. By the very nature of the State Amendment, a peculiar situation has been created in the State of Uttar Pradesh precluding a person from claiming the relief of specific performance in respect of an unregistered agreement to sell the property. Accordingly, the Madras HC set aside the order of the trial court and directed that the unregistered Agreement be received in evidence in the suit filed for specific performance. Later, in December 1993, the respondent and his wife informed the appellants that they would vacate the portion in the second appellants house and leave the same but demanded additional money. Plagiarism Prevention 5. Since the property in question is located in the State of Uttar Pradesh, we shall consider the State Amendments to Sections 17 and 49 in the Registration Act which was effected prior to Central Act 48 of 2001. An unregistered document can be admitted in evidence as regards an existence of contract in a (a) suit for possession (b) suit for injunction (c .