an unregistered document affecting immovable property

Discussion on the relevant provisions of law: Provisions relevant in this context are sections 17 and 49 of the Registration Act. iasstudygroup@gmail.com,mirzasaddam844@gmail.com. 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: - . Effect of Non Registration and Registration of Documents under Indian The expression "collateral transaction" in the proviso toSection 49of Registration Act is not to be used in the sense of an ancillary or a subsidiary transaction to a main or principal transaction. It reads-. Chandwani [13.07.2023], In WP (C) No. vs. Harisankar and Ors[2]. 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. Opposing the same, the counsel for the respondents urged that the family settlement required registration u/s 17(1)(b) of the Registration Act, 1908. When such a statement is admitted as an admission, it is only a piece of evidence and it is open to the party who has made the admission to show that it was made in circumstances which did not make the admission binding on him or on her as the case may be. 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. Waziri, J. Legal Effect of An Unregistered Document Affecting Land However, the appointed arbitrator must bear in mind that he or she can rely on the unregistered instrument for only two purposes: as evidence of a contract in a claim for specific performance; and. 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.. (a) purporting to creation, assignment, declaration, extinguishing of any interest in any immovable property worth Rs. 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. The Madras HC referred to the proviso to Section 49 of the Registration Act and held that an unregistered agreement was admissible as evidence in a suit for specific performance. LAND LAW GOVERNORS CONSENT: Effect of failure to obtain the consent of Governor before alienation of land and who has the duty to obtain the Governors consentEVIDENCE ADMISSIBILITY OF UNREGISTERED REGISTRABLE INSTRUMENT: The legal effect with regard to an unregistered document affecting land. [1]AIR 1930 Cal 559 1864 (XVI of 1864), or the Indian Registration Act, 1866 (20 of 1866), or the Indian Registration Act, 1871 (8 of 1871), or the Indian Registration Act, 1877 (3 of 1877), or this Act came or comes into force, namely:--, (a) instruments of gift of immovable property. 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. The factual scenario of this case was such that the respondent-original plaintiff instituted a civil suit for specific performance of the Agreement to Sell. Dilawar Singh vs Amandeep Singh on 18 February, 2016 - Indian Kanoon 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. 5[1969 (1) UJ 86 (SC)] No. Unregistered agreement to sell property is admissible in - Lexology 9 (2008) 8 SCC 564 The unregistered Gift deed serves the limited purpose of being of evidentiary value or for collateral purpose but cant be used to prove the contents/validity of the transaction or to vest any right title and interest in an immovable property, which can be vested only through a properly stamped registered deed. The time limit for presenting documents for registration is set out in Section 23 of the Act. However, in Raghunath and Ors. Shah and Justice Krishna Murari clarified, On and after the Tamil Nadu Amendment Act, 2012, as per Section 17(1) (g), instrument of agreement relating to sale of immovable property of the value of Rs.100/- and upwards is required to be registered compulsorily. Supreme Court Judgement In Balram Singh vs. Kelo Devi - A Critique Further, it was also found that the plaintiff was not put in possession of the property pursuant to the agreement. Thereafter, the Appellant took possession of the land, employed a security guard, CW1, to watch over it, commenced development on a portion while farming on another portion. BOHC/MG/CV/10/2019, delivered on January 13, 2020, by B.A. any part of the instrument as evidence. In K.B. That becomes significant when we deal with the State Amendments to the relevant sections in the Registration Act. An unregistered deed doesnt pass the title to the Donee or his/her legal heirs. conditions of the instrument is unacceptable for the main purpose. In this context, it is pertinent to mention that certain State Amendments have modified the above provisions before and after the Central Act 48 of 2001. 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. An unregistered document affecting immovable property and required by Section 17 of the Registration Act or the Transfer of Property Act to be registered, may be received as evidence of a contract in a suit for specific performance under the Specific Relief Act or as evidence of any collateral transaction not required to be effected by a registered instrument. 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. As pointed out earlier, the situation in the State of Kerala remains different even after the amendment. Thus, it prevents an unregistered document being used as evidence of the transaction, which affects immovable property. 2. Click on the Advanced button 7. Kaladevi vs. V.R. Unchallengeable is the proposition that in a suit for permanent prohibitory injunction against forceful dispossession, the plaintiff need only to prove that he/she is in possession of the property on the date of institution of the suit. We believe in leading the change. In my view, Section 17(1)(f) will only serve two purposes, viz., (i) to scrutinize and curb clandestine real estate dealings and (ii) to collect revenue from such agreements for sale of property by way of stamp duty and registration fees. In effect, it eliminated arbitration proceedings relating to disputes arising from a non-registered lease deed. Hardeman County Savings Bank v. Otherwise, the proviso to Section 49 with respect to the documents other than referred to in Section 17(1A) shall be applicable, the Top Court held. On the other hand, the appellants filed an evidence affidavit and sought to mark the Kharurnama and receipt of additional payments made to the respondent. In the wake of the provisions of law and the decisions of the Supreme Court and various High Courts as mentioned above, the deed mentioned in the illustrative case is a Gift deed, which is compulsorily registrable. BO/5203. A collateral transaction must be a transaction not itself required to be effected by a registered document, that is, a transaction creating, etc. The next generation search tool for finding the right lawyer for you. So, the exception to the proviso to Section 49 is provided under Section 17(1A) of the Registration Act. 100, through an unregistered sale deed, it is not mandatory that the delivery of possession be co-existent with the execution of the sale deed. It is imperative to delve deep into the meaning of the term collateral purpose, lest it should be misinterpreted to mean and create effects, which are possible only by means of a duly registered document. She contends that she has paid ground rent on the land in the name of Mohammed D. Nangare and a receipt in that regard has been issued to her. Registration is the process through which all papers, together with other relevant information, are. Understand your clients strategies and the most pressing issues they are facing. 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. In this article we are going to analyse the importance of documents which are In an apparent attempt to protect her ownership rights over the land, she laid a complaint to the Police who investigated the matter. The proviso to the said rule says that an unregistered document affecting immovable property and required by this Act or the Transfer of Property Act, 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 or as evidence of any collateral transaction n. Let us grow stronger by mutual exchange of knowledge. The Trial Court dismissed the suit and decreed the counter-claim. Authorizing Such Property: There is no total bar to accept if the unregistered document is properly Chandwani [13.07.2023], In WP (C) No. . 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. Sign up for our weekly newsletter to stay up to date on our product, events featured blog, special offer and all of the exciting things that take place here at Legitquest. Referring to section 49, the Bench said, "Thus, as per proviso to Section 49, an unregistered document affecting the immovable property and required by Registration Act 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, or as evidence of any . The same position of law was reiterated in DadiReddi Sivanarayana Reddi v. Kasi Reddy Chinnamma[9]. In Bhaskar Rao vs. T. Gabriel and Ors[7], it was held thatit is now well settled that there is no prohibition underSection 49of the Registration Act, to receive an unregistered document in evidence for collateral purpose. CONVEYANCY LAW POWER OF ATTORNEY: Principles of law with respect to the status of a power of attorney and what it entails, LAND LAW DOCUMENT OF TITLE: Principles governing proof of title to land by the production of title documents. "2[ Leases how made.- A lease of immovable property from year to year, or for any term exceeding one year, or reserving a yearly rent, can be made only by a registered instrument.3[ All other leases of immovable property may be made either by a registered instrument or by oral agreement accompanied by delivery of possession. If Not Registered, Accept As Evidence Of Any Transaction Affecting Or About the identity of the parties to that transfer, C. About the title of the party seeking transfer of that property, Which of the following documents do not cause any change in the legal relationship to the property, A. It specifies which documents are required to be registered. Stay updated with the latest Current affairs and other important updates regarding video Lectures, Test Schedules, live sessions etc.. An unregistered document affecting immovable property, Shall not affect any immovable property comprised therein. In Omprakash v. Laxminarayan, (2014) 1 SCC 618, the Apex Court observed as under: "From a plain reading of the aforesaid provision ( S. 35 of the Stamp Act ), it is evident that an authority to receive evidence shall not admit any instrument unless it is duly stamped . If you would like to learn how Lexology can drive your content marketing strategy forward, please email [emailprotected]. New Delhi, October 4, 2021:The Supreme Court has observed that when there has been a partition, then, there may be no scope for invoking the concept of antecedent right as such, which is inapposite after a disruption in the joint family status and what is more an outright partition by metes and bounds. After the payment was done, a Kharurunama dated April 15, 1986, was executed. 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. Section 17(1)(f) stipulates that instruments purporting or operating to effect a contract for the sale of immovable property of the value of one hundred rupees and upwards to be registered. Legal Service India.com is Copyrighted under the Registrar of Copyright Act (Govt of India) 2000-2023. The words received as evidence has a special significance, because it is different from received in evidence. LEAD JUDGMENT: JUMMAI HANNATU SANKEY, J.C.A. It will also not be received as evidence of any transaction affecting such property, except for two limited purposes. Sub-section (1A) has been introduced to Section 17 of the Registration Act through Act 48 of 2001. Ltd. vs. Development Consultant Ltd[10], it was held by the Honble Supreme Court that from the principles laid down in the various decisions of this Court and the High Courts, as referred to hereinabove, it is evident that: -. The Guwahati High Court dismissed the application filed by the appellant under Section 11 of the Arbitration Act, holding that since the lease deed was required to be registered under Section 17 of the Registration Act and Section 106 of the Transfer of Property Act, and had not been registered, none of its term could be relied on for any purpose. The appellant filed an appeal with the Supreme Court. 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 be received as evidence of a contract in a suit for specific performance under the Specific Relief Act, 1877. The following documents shall be registered, if the property in which Can Unregistered Document Admissible In Evidence? - Legal Service India If . After due examination of the relevant legal provisions, the Supreme Court opined as follows: The court went on to lay down guidelines for how a court should deal with an arbitration agreement contained in an unregistered (but compulsorily registrable) instrument which is not duly stamped as follows: Having laid down these guidelines, the Supreme Court remitted the matter to the Guwahati High Court. Ltd. vs. Chandmari Tea Company Pvt. Section 49 Registration act | Effect of non-registration of documents To view all formatting for this article (eg, tables, footnotes), please access the original, Venue cannot be treated as the Seat if there exists a significant contrary indicia in the contract, Delhi High Court holds that an arbitration clause in a contract perishes upon the novation of the contract, In a NutshellCryptoassets as Property: Exploring the Legal Landscape, Amnesty scheme for settlement of arrears of tax, interest, penalty, or late fee prior to implementation of GST, Bombay High Court holds that mere pendency of a Section 7 application under IBC does not bar appointment of an arbitrator under Section 11 of the Arbitration Act, How-to guide: How to understand and implement the G in environmental, social and governance (ESG), How-to guide: How to draft and negotiate limitation of liability clauses (USA), How-to guide: How to assess competition law risks in an agency agreement (EU). they are located is located, on or after the date of their execution namely: Affect Any Immovable Property Thereof, Or'. Chhotey Lal', AIR 1939 Pat 218, it was held that the sale of an immovable property whose value is below Rs. ", "Effect of non-registration of documents required to be registered.- No document required by section 17 1 [or by any provisions of the Transfer of Property Act, 1882 (4 of 1882)]. Other Articles by - Effect of non-registration of documents required to be registered. In the Print pop-up window, select Adobe PDF from the Printer drop- down menu 4. Prashanti, You can also submit your article by sending to email. Since an unstamped document (even for collateral purposes) is not if the document is found to be duly stamped or if the deficit stamp duty and penalties are paid before either the court or the collector (as contemplated in Sections 35 or 40 of the Stamp Act), and the defect is thus rectified, the court may treat the document as duly stamped. Justices M.R. Justice C.S. (c) be received as evidence of any transaction affecting such property or conferring such power, unless it has been registered: 1[Provided that an unregistered document affecting immovable . acceptable, if it is not properly stamped, there is a total bar to accept It goes without saying that as per the provisions of the Registration Act, as it originally stood, an unregistered agreement could have been put forward for claiming a decree for specific performance and also any relief based on the claim of part performance. InRatan Lal and Ors. This resulted in the Appellant filing an action against Ibrahim Yau Gareka before the High Court of Justice, Borno State. Thus, the use of an unregistered document as evidence of a transaction affecting immovable property is prohibited. tenant has not illegally entered into possession but has legally entered into possession. Justice Rajiv Shakdher & Justice Girish Kathpalia [04-07-2023], IN WP 7778 OF 2022 - BOM HC- Welfare, beneficent or social justice oriented legislation must be construed liberally and not in narrow or pedantic manner; can be invoked only if two interpretations are reasonably permissible and the interpretation which furthers the beneficial object should be preferred: Bombay High Court Some advantages of having a registered title are . Section 49(1)(c) in effect, reinforces and safeguards against the dilution of the mandate of Section 49(1)(a). Validity of arbitration agreement in unregistered instrument - Lexology 4AIR 1969 SC 1316 *[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 (3 of 1877) **, *** or as evidence of any collateral . The appellant, M/s SMS Tea Estates Pvt Ltd, had filed an application under Section 11 of the Arbitration and Conciliation Act 1996 in regard to a clause in a 30-year lease deed dated December 21 2006 executed between the appellant and the respondent. 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. 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? This judgment passed by the High Court directing to receive the unregistered Agreement to Sell in evidence in a suit for specific performance was challenged before the Apex Court by the original defendant. Copyright 2006 - 2023 Law Business Research. Author is a Former Judge of High Court of Kerala and a Senior Advocate Practicing at the Supreme Court. Analyzing the doctrine of judicial independence in India, Emergency Laws: History, Effect, International Comparison & Important Precedents, The role of indian judiciary in upholding constitutional values, An Article On World Intellectual Property Organization (wipo), The Dynamics of Finance between the Centre and the State, The Doctrine of Pith and Substance in Constitutional Law, Finding the Best Free VPNs for Everyday Use, Karnataka HC Dismisses Twitter's Plea Against Centre's Account Blocking Orders With Rs 50 Lakh Cost, Important Qualities You Must Have to Be a Successful Personal Injury Lawyer, Navigating NITI Aayog: Unraveling India's Policy Planning and Development Institution. 7AIR 2004 AP 243 A document required to be registered is not admissible into evidence underSection 49of the Registration Act. Sometime after that, some two persons, namely: Alhaji Maina Ramdan and Nasiru Surundi, appeared on the land claiming that the same vendor, Ibrahim Yau Gareka, had sold the same plot of land to them. The Trial Court held the preliminary issue in favour of the defendant and against the plaintiff by observing that the unregistered Agreement shall not be admissible in evidence. Korukonda Chalapathi Rao & Anr vs. Korukonda Annapurna Sampath Kumar. An unregistered document affecting immovable property Shall not affect any immovable property comprised therein Is inadmissible in evidence Both (a) and (b) Neither (a) nor (b) Explanation: 49. FACTS. Section 17(1)(b) directly applies to the issue. 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. 8 2001 (1) ALD 349 if the document is not registered but is compulsorily registrable, the court can detach the arbitration agreement from the main document and examine the validity of the arbitration agreement according to Section 19 of the Contract Act. The lease deed in question was unregistered and unstamped. Accordingly, Korukonda Annapurna Sampath Kumar (respondent) and his wife raised a dispute before elders that the portion given to them wasnt sufficient. The cardinal principle would be whether by allowing the case of the party to consider an unregistered document it would result in the breach of the mandate of Section 49 of the Registration Act, added the Court. 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. b) That act of the 1st 2nd & 3rd defendants amounted to as trespassed (sic). Unregistered agreement to sell - Evidence as proof of the - LinkedIn In the same case a mention was made of Section 17(1) of the Registration Act that any document by whatever name called not creating, declaring, assigning, limiting or extinguishing any right, title or interest, but merely creating right to obtain another document does not require registration underSection 17(1)of the Registration Act. of the Transfer of Property Act read with Sections 17. n arbitration agreement does not require registration under the Registration Act and, even if it is found in one of the clauses in a contract or a instrument, it is independent of the main contract or instrument. Does an unregistered gift deed confer any title on the Donee B and her legal heirs? Act) defines the term Gift and lists out the ingredients of a valid gift. It reads thus: 17. collateral transaction not required to be effected by registered instrument.
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