Contents  hide 

1.1 Shrutika Deshpande

1.2 Legal Framework on Compulsory Registration of Property

1.3.1 According to Part III and Section 17 of the Registration Act;states that documents which registration is compulsory

1.3.2 Documents which Registration is Optional

1.4.1 the Apex Court laid down the following principles:

1.5 Benefits of Registering Documents

1.6.1 Related

Introduction

In India Registration of Property is done under Registration Act, 1908. Registering your property plays an important role it provides safety and security transaction relating to property. It means Registration of any type of property is important as the person who have title of property and gets registered with the authority concerned is a lawful owner of the property. By registering a property the person get alawful title over the property.  Acc. To section 17 of the Registration Act 1908, registration of a document is compulsory in various cases right title or interest over the property are not legal because of unregistered documents. Anunregistered right title or interest of the property does not get recognized by the law. The law bars unregistered right title or interest holder to create or declare any kind of right over the property not allow or give them in any right over the Property.

According to Part III and Section 17 of the Registration Act;states that documents which registration is compulsory

(a) instruments of gift of immovable property;

(b) other non-testamentary instruments which purport or operate to create, declare, assign, limit or extinguish, whether in present or in future, any right, title or interest, whether vested or contingent, of the worth1 hundred rupees and upwards, to or in immovable property;[1]

(c) non-testamentary instruments which acknowledge the receipt or payment of any consideration on account of the creation, declaration, assignment, limitation or extinction of any such right, title or interest; and[2]

(d) leases of immovable property from year to year, or for any term exceeding one year, or reserving a yearly rent;}[3]

Documents which Registration is Optional

Section 18 states that not all documents to be registered. It provides for optional registration of some document

1. Adoption Deed

2. Instrument relating to Share in Joint Stock Company

3. Debenture issued by Joint Stock Company

4. Will & Lease of Immovable Property not exceeding one year

5. Document of Past Transaction

6. Decree / order of court comprising an immovable property valued below Rupees Hundred.

7. Sale Granted Certificate

8. Mortgage Agreement

9. Promissory Note

10. Immovable Property granted by govt

Section 23 – Time for presenting documents.Subject to the provisions contained in sections 24, 25 and 26, no document aside from a will shall be accepted for registration unless presented for that purpose to the proper officer within four months from the date of its execution:[4]

The Mohammedan law of preemption is stated in Mulla’s Principles of Mohammedan law in these terms: “The right of preemption arises only out.

Case Laws

In case of Prem Narain vs Mahabir Jain 2018Supreme Court held that, [5]

 It is not in dispute that the registration under the Registration Act is not complete till the document to be registered has been, copied out in the records of the Registration Office as provided in Section  61 of that Act.

Section 61 – Endorsements and certificate to be copied and document returned.—(1) The endorsements and certificate stated to &mentioned in sections 59 and 60 shall thereupon be copied into the margin of the Register-book, and the copy of the map or plan (if any) mentioned in section 21 shall be filed in Book No. 1.

According In the case of R.Suresh Babu vs G.Rajalingamand 2 Others on 30 November  court held that, “A document require to be register, if unregister is not admissible into evidence under Section 49 of the Registration[6]

Section 49– Effect of non-registration of documents require to be register.—No document required by section 17 1[or by any provision of the Transfer of Property Act, 1882 (4 of 1882)], to be registered shall—

(a) affect any immovable property comprised therein, or

(b) confer any power to adopt, or

(c) be received as evidence of any transaction affecting such property or conferring such power, unless it has been registered:,

The suit was filed for definite performance of agreement of sale under the provisions of Specific Relief Act to compel the petitioner/defendant No.1 to perform his obligation under unregister agreement of sale. The main contention of the petitioner is that the unregistered agreement of sale is invalid document, which might not affect the immovable property & that apart as per A.P. amendment to Registration Act, the agreement is to compulsorily registerable document under Clause (g) of Section 17 (1) of Registration Act

In K.B.Saha and Sons Pvt. Ltd. v. Development Consultant Ltd.

the Apex Court laid down the following principles:

1. A document require to be register, if unregister is not admissible into evidence under Section 49 of the Registration Act.

2. Such unregister document can however be use as an evidence of collateral purpose as provided in the Proviso to Section 49 of the Registration Act.

3. A collateral transaction must be independent of, or divisible from, the transaction to effect which the law required registration[7]

4. A collateral transaction must be a transaction not itself require to be effected by a register document, that is, a transaction creating, etc. any right, title or interest in Immovable property of the value of 1 hundred rupees and upwards.[8]

5. If a document is inadmissible in evidence for want of registration, none of its terms are may be admit in evidence & that to use a document for the need of proving insignificant clause would not be using it as a collateral purpose.

Benefits of Registering Documents

1. The deal becomes more transparent after a registration of a document.

2. The Registration records prove the authenticity of the document even though if it is damage or lost.

3. A document stating that a Power of Attorney has been revoke should also be register so that there will be no misuse after registration.

4. Easy access also helps in finding the owner who has the right & title of the property & whether there is an existing liability or any case against him before someone decides to buy it.

5. Fraud or Forgeries in transactions can also be prevent by registration specifically in tax, stamp duty, etc.

6. Even though some documents are register on an optional basis, it is still advise to register them as this will prove the authenticity of the document and set aside any doubts arising because of it.

Conclusion

In this article, we discuss whether it is compulsory to register all documents through the relevant provisions of the Registration Act, 1908. Also, we discussed some case laws related to this. There are two categories: On one hand, comes compulsory registration and on the other Optional Registration. But it is suggest that any document will serve its purpose if it is register as its validity and authenticity cannot be question at a later point in time.

[1]https://indiankanoon.org/doc/58546763/

[2]https://www.advocatekhoj.com/library/bareacts/registration/17.php?Title=Registration%20Act,%201908

[3]https://www.advocatekhoj.com/library/bareacts/registration/17.php?Title=Registration%20Act,%201908

[4]https://www.advocatekhoj.com/library/bareacts/registration/23.php?Title=Registration%20Act,%201908

[5]https://indiankanoon.org/doc/79945213/

[6]https://indiankanoon.org/docfragment/133044387/?formInput=unregistered%20agreement%20to%20sale

[7]https://www.lawyersupdate.co.in/supreme­court­guidelines/admissibility­of­an­un­registered­document­in­ evidence/

[8]https://freelegalconsultancy.blogspot.com/2012/06/unregistered­sale­deed­collateral.html