Effect of Non Registration of a Document

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Effect of Non Registration of a Document

Introduction          

49 provides that no document required to be registered under this Act or under any earlier law providing for or relating to registration of documents shall-

  1. Operate to create, declare, assign, limit or extinguish, whether in present or in future, any right, title or interest, whether vested or contingent, to or in immovable property, or
  2. Confer any power to adopt, unless it has been registered.

Scope:

Unregistered documents which require compulsory registration under S.17, cannot create any title. Therefore, no one can claim any legal title as owner of land on the basis of unregistered documents. If a document which required compulsory registration, was not registered it would not effect transfer of rights under it. Suit based on such unregistered deed was barred by law and plaint merited outright rejection. Agreement pertaining to immovable property of value of more than Rs.100 requires compulsory registration. Where agreement was an unregistered documents, it did not create any title. A sale-deed of immovable property of the value of more than Rs.99 required compulsory registration. Such deed in absence of registration, could neither extinguish the title of executant nor confer title on vendee. Vendee could not derive any benefit from production of such document in support of his claim of ownership on basis of title. Arbitration award, even if not registered, is receivable in evidence but by itself it will no operate to create, declare, assign, limit or extinguish, whether in present or in further, any right, title or interest, whether vested or contingent to or in the immovable property.

Gift deed, non-registration of—Effect—

Where donee claims transfer of immovable property by way of gift through an instrument purporting to transfer rights in praesenti, the instrument was compulsorily registrable under S.17, of the Registration Act, 1908; failing registration, the provisions of S.49 of Registration Act, 1908 would come into play and as a consequence, the document would not operate to create any right, title or interest, whether vested or contingent in the property.

Use document for collateral purpose:

Documents though unregistered could be used in evidence for collateral purposes. A document which is inadmissible under section 49, as not being registered is admissible for consideration for collateral purpose, as for example, to show possession of properties by some persons who claim possession thereto and the nature of such possession. Thus it could become instrumental in making possession of party as adverse to the other party after execution of such a document.

Curable defect in registration.

Registration which is not in strict according with some of the provisions of the Act, the defect being, merely one of procedure curable under S.87 is a registration “in accordance with the provision of this Act” and is a valid registration for the purposes of this section. Therefore, the mere fact that the registering officer after registering the documents makes a remark that he is not satisfied as to the heir-ship of a party to the document does not affect the validity of the registration.

Time of registration:

It is enough if the deed is registered at the time when it is sought to be proved. Where sale-deed is registered at the time when it is sought to be proved or given effect to, S.49 of the Registration Act and Art. 102 of Qanun-e-Shahadat will not stand in the way of proof of the document or giving effect to the sale.

Time from which document operates:

Effect of S. 47 conjectively read with S. 49 of the Registration Act, 1908 means that a document which is compulsorily registerable, does not affect any if immovable property comprised therein till it has been registered; it takes effect not from the date of registration but retrospectively from the date of execution.

49 Registration Act r/w. S. 53-A TPA:

First proviso to S. 50 of the Registration Act, 1908 clearly provided that a person who was in possession of the property under an unregistered document prior to date, would be entitled to claim rights under S. 53-A of the Transfer of Property Act, 1882 provided that he fulfilled all the conditions laid down in the said section. Provisions contained in S.49 of the Registration Act, 1908 were general in character and had excluded all kinds of unregistered documents from consideration, so far the title or interest in any immovable property was concerned, but the proviso annexed to S. 50 of the said Act, had made an exception and had saved such unregistered sale-deed in pursuance of which, as part performance of contract, the possession of the property or part thereof was delivered.

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