However, despite the fact that the explanation to sub-section (2) of Section 17 has been omitted, there is no corresponding amendment made to Section 49 of the Registration Act, the Bench added. Keep a step ahead of your key competitors and benchmark against them. and order this defect to be rectified under Section 35 and 38 of the Stamp Act; or. 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. Opinion and Analysis 6AIR 1981 AP 175 In an apparent attempt to protect her ownership rights over the land, she laid a complaint to the Police who investigated the matter. But by the simple devise of calling it a "collateral purpose", a party cannot use the unregistered document in any legal proceedings to bring about indirectly the effect of which it would have had if reregistered. A document required to be registered is not admissible into evidence underSection 49of the Registration Act. 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. With such observations, the Bench dismissed the appeal. mandatory) affecting any rights to the immovable property and the terms and As the Proviso to section 49 remains in the State of Kerala the same as the Central Act, parties are permitted to rely on unregistered agreements for sale in a suit for specific performance or for proving collateral transactions in any other suit. (c) be received as evidence of any transaction affecting such property or conferring such power, unless it has been . 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. 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. Since an unstamped document (even for collateral purposes) is not b) That act of the 1st 2nd & 3rd defendants amounted to as trespassed (sic). (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 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 . 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. After pleadings were duly exchanged, the hearing commenced with the Appellant, as claimant, adducing evidence through four witnesses and two exhibits. 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. A document stating that the house, which is the absolute property of 'A' shall be enjoyed by 'A' with powers of gift & sale, C. Award on mortgage declaring amount due and stating that on default property might be sold, More Related Questions on Registration Act. Thus, it prevents an unregistered document being used as evidence of the transaction, which affects 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. Become your target audiences go-to resource for todays hottest topics. The lease deed in question was unregistered and unstamped. Once the document is found to be duly stamped, the court shall proceed to consider whether the document is compulsorily registrable: if the document is found to be registered, the court can act on the arbitration agreement without impediment; or. The deed also states that whenever demanded by B or her descendants A or his legal heirs would make good her title.B accepts the gift. It is, therefore, clear that an unregistered document which satisfies the requirements ofSection 35of the Stamp Act, can be tendered in evidence for a collateral purpose, namely, for proving possession. Correctness of the judgment of the High Court was challenged before the Apex Court. Therefore, any failure by the parties to comply with the requirement to register the instrument would render the arbitration clause contained therein of little or no value, even if it were held to be enforceable. The Division Bench of Justice M.R. By a specially endorsed Writ of Summons, the Appellant claimed as follows against the Respondents . Under the circumstances, as per proviso to Section 49 of the Registration Act, an unregistered document affecting immovable property and required by 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 Chapter-II of the Specific Relief Act, 1877, or . If a document is inadmissible in evidence for want of registration, none of its terms can be admitted in evidence and that to use a document for the purpose of proving an important clause would not be using it as a collateral purpose. 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 After the chief-examination of the plaintiff, on the application filed by the appellant original defendant, a preliminary issue was framed by the Trial Court on the admissibility of the Agreement in evidence. 11 (2011) 14 SCC 66, Category 7AIR 2004 AP 243 Amendment. Effect of non-registration of documents required to be registered No document required by Section 17 or by any provisions of the Transfer of Property Act, 1882 (4 of 1882), to be registered shall , 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 transaction not required to be effected by registered instrument.. The Trial Court dismissed the suit and decreed the counter-claim. 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. 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. In proof of this sale/purchase, Exhibit RO1, a sale agreement, was tendered in evidence as a receipt of purchase. The Court has treated the procedure for registration of an unregistered document . Understand your clients strategies and the most pressing issues they are facing. About the identity of the property under transfer, B. InRatan Lal and Ors. In order to comment on the correctness of the above legal proposition, it will be apposite to understand the facts in the above case tersely mentioned in the decision. "The proviso makes it perfectly clear that an unregistered document affecting immovable property may be put in evidence in a suit for specific performance." xx xx xx xx "In such a suit, the production of the document and its proof will be sufficient to support the plaintiffs case if it embodies the whole agreement between the parties and . BO/5203 in the name of Mohammed D. Nangare. Further, by virtue of the proviso to Section 49 of the Registration Act read with Section 16(1)(a) of the Arbitration and Conciliation Act 1996, an arbitration agreement in an unregistered (but compulsorily registrable) document can be acted on and enforced for the purpose of dispute resolution by arbitration. The section, after undergoing changes pursuant to Act 48 of 2001, reads thus: 49. The plaintiff preferred the Revision Application before the High Court against this Order and by the impugned judgment, the High Court allowed the petition and directed that the agreement in question be received in evidence considering the fact that the suit in question is a suit for specific performance, which falls within the first exception carved out in the proviso to Section 49. The High Court tried the matter and found in favour of the Appellant and against Ibrahim Yau Gareka. However, later, the respondent instituted a suit seeking declaration of title over the plaint schedule properties listed in the partition deed and sought for eviction of Korukonda Chalapathi Rao. However, in Raghunath and Ors. 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. Become your target audiences go-to resource for todays hottest topics. 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. Section 49 of the Registration Act stipulates the effect of non-registration of documents required to be registered. 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. The Transfer of Property Act, 1882 - AdvocateKhoj b. 49. In K.B. - (1) The following documents shall be registered, if the property to which they relate is situate in a district in which, and if they have been executed on or after the date on which, Act No. This resulted in the Appellant filing an action against Ibrahim Yau Gareka before the High Court of Justice, Borno State. Registration Act Landmark Judgments - Law Insider India That is, under Section 49 (1) (a), an unregistered, compulsorily registered document shall have no effect on the rights to immovable property by creation, declaration, assignment, restriction or termination. Whether an unregistered agreement for sale of immovable property could be received in evidence in a suit filed for specific performance in view of the State Amendment effected by the state of Tamil Nadu. Mohali, SAS Nagar Punjab, 160055 an unregistered document, affecting immoveable property and required to be compulsorily registered either under the Registration Act or under the Transfer of Property Act, may be received as evidence of contract in a suit for specific performance. tenant has not illegally entered into possession but has legally entered into possession. Understand your clients strategies and the most pressing issues they are facing. In T.S. vs. Kedar Nath[5] it was held that has made it clear that the documents in the supplemental list i.e. Whether registration of family settlement not "affecting" immovable But the document so tendered should be duly stamped or should comply with the requirements ofSection 35of the Stamp Act, if not stamped, as a document cannot be received in evidence even for collateral purpose unless it is duly stamped or duty and penalty are paid underSection 35of the Stamp Act. 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. Is inadmissible in evidence C. Both (A) and (B) D. Either (A) or (B) Answer: Option C A lease of immoveable property is a transfer of a right to enjoy such property, made for a certain time, express or implied, or in perpetuity, in consideration of a price paid or promised, or of money, a share of crops, service or any other thing of value, to be rendered periodically or on specified occasions to the transferor by the transferee,. 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. Against the first appellate judgment and decree, a second appeal was preferred before the High Court. In other words, if there is no State Amendment modifying the above Proviso, by applying the provisions in the Central Act, even now, an unregistered agreement may be received as evidence of a contract in a suit for specific performance. 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. Thus, an unregistered document is admissible in evidence only for that collateral. Prashanti, You can also submit your article by sending to email. The words received as evidence has a special significance, because it is different from received in evidence. affect any immovable property comprised therein, or. Whether the Appellant has proved her case with cogent and credible evidence to be entitled to the reliefs sought in her claim? The next generation search tool for finding the right lawyer for you. Correspondingly section 53A of the Transfer of Property Act was also amended by omitting the words, the contract, though required to be registered has not been registered, or,. Further, it was also found that the plaintiff was not put in possession of the property pursuant to the agreement. Some advantages of having a registered title are . Other Articles by - Unregistered Document- Value thereof - Lawyersclubindia Joseph and Justice S.Ravindra Bhat observed that u/s 49(1)(a) of the Registration Act, a compulsorily registrable document, which is not registered, cannot produce any effect on the rights in immovable property by way of creation, declaration, assignment, limiting or extinguishment. 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. 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. a) A declaration that the claimant is the lawful and legal owner of Plot No:56 covered by a right of occupancy No. When a contract contains an arbitration agreement it is a collateral term unrelated to the performance of the contract. 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. Binding nature of the decision depends on the nature and extent of the above provisions applicable to the facts in each case. 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. This Appeal is against the Judgment of the High Court of Justice, Borno State in. No document required by section 17 or by any provision of the Transfer of Property Act, 1882 (4 of 1882), to be registered shall. 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. 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 . 49. I tried to file a PDF document and received a message that states 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 specific performance under Chapter II of the Specific Relief Act, 1877 (1 of 1877), [***] or as evidence of any collateral transaction not required . admissible as evidence in court. The proviso makes it explicit that an unregistered document affecting immovable property, though required to be registered under any law, may be received as evidence of a contract in a suit for specific performance, if the area where the property is situate is governed by the provisions in the Central Act. The Appellant/original Defendant challenged the order of the Madras HC before the Supreme Court inter alia on the ground that the unregistered Agreement could not be admitted in evidence given the insertion of sub-section (g) to Section 17(1) of the Registration Act by the State Amendment. The declaration of law in Quinn vs. Leathem (1901) A.C. 495, propounded in the previous century, that every judgment must be read as applicable to the particular facts proved or assumed to be proved, since the generality of the expressions which may be found there are not intended to be expositions of the whole law but govern and are qualified by the particular facts of the case in such expressions are to be found, has been religiously followed by the Constitutional Courts in this country. 2. 100 and above; (b) which acknowledge receipt or payment of any. We have eminent jurist Mr. Ram Jethmalani as our patron, In ITA 303 /2023 -DEL HC- Delhi High Court affirms Subsidy received by Nestle India as Capital Receipt for establishing industrial unit in backward area 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. Registration is the process through which all papers, together with other relevant information, are. Although u / s.49, an unregistered document (when registration is Dissatisfied, the Appellant filed an Appeal in the Court of Appeal. If . 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. Thus, the sale would be valid even if delivery of possession of the property is in pursuance . Unregistered agreement to sell - Evidence as proof of the - LinkedIn . Copyright 2006 - 2023 Law Business Research. it was observed that collateral purpose has a limited scope and meaning and it cannot be used for the purpose of saying that the deed created or declared or assigned or limited or extinguish the right to immovable property[3]. InM/s Jiwan Industries (P) Ltd. v. Smt. Effect of non-registration of documents required to be registered. While dismissing the appeal, the Supreme Court inter alia observed - The Tamil Nadu Amendment Act, 2012 amended Section 17 of the Registration Act to require registration of instruments relating to the sale of immovable property. Before considering any application arising from such an arbitration clause, the court must examine whether the instrument containing the clause is duly stamped: if the instrument is found to be unstamped, the court should impound the instrument. The legal heirs of A deny the transaction between A and B. The expression collateral transaction has been interpreted as any transaction other than the substantive transaction intended by the document. Legitquest is a Legal-Tech venture run by a versatile team of tech-savvy attorneys, engineers and designers who aim to make the practice of law simpler for its end users. Analysis and findings While dismissing the appeal, the Supreme Court inter alia observed - The Tamil Nadu Amendment Act, 2012 amended Section 17 of the Registration Act to require registration of. Effect of non-registration of documents required to be registered. Accordingly, Korukonda Annapurna Sampath Kumar (respondent) and his wife raised a dispute before elders that the portion given to them wasnt sufficient. In C.A. No. 2535/2023-SC- Unregistered document affecting immovable Click on Properties button next to the Printer drop-down menu 5. The 2nd Respondent counter-claimed from the Appellant as follows: a. to be registered mandatorily especially lease documents and about the effect of Section 49 of the Registration Act is relevant because it speaks about the effect of non- registration of documents required to be registered under Section 17 of the Act. This question has been raised by many in the legal fraternity. In C.A. On 14-02-2008, Tara Devi -the defendant no. 1 executed an by 10 - JSTOR Kamlesh Rani Budhirajait was held thatan unregistered lease deed can be looked into only for collateral purpose and collateral purpose cannot be interpreted to include therein the terms and conditions by which parties are related to each other as landlord and tenant. 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. If that be so, the unregistered agreement could not have been relied on as evidence of a contract in a suit for specific performance by virtue of the Proviso to Section 49 of the Registration Act. Only through a properly stamped and registered deed executed by the legal heirs of A can the house property be validly transferred to the legal heirs of B. 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. The Division Bench further observed that merely admitting the Khararunama containing the record of the alleged past transaction, is not to be, however, understood as meaning that if those past transactions require registration, then, the mere admission, in evidence of the Khararunama and the receipt would produce any legal effect on the immovable properties in question. E-46, Sector -72 , Phase -8 , Industrial Area , Thus, the use of an unregistered document as evidence of a transaction affecting immovable property is prohibited. It will also not be received as evidence of any transaction affecting such property, except for two limited purposes. 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.
Do Taxis In Tahiti Take Credit Cards,
Apartments Smyrna Tn Old Nashville Highway,
Articles A