INDEX

Sr.No. Topic Page

No.
1. Documents of which registration is compulsory.
Introduction 3
Compulsory registration of documents 4,5

2. Documents of which registration is optional 6

3. Effects of non-registration of documents 7,8

4. Case laws 10 to
12

5. Conclusion XIII

6 Bibliography 14
 Documents of which Registration is Compulsory.

Introduction
Registration is the process of recording a document with a recognized officer
and to safeguard its original copies. Any document whether binding or non-
binding shall be registered in a required manner. Registration of every
document is not necessary but doing so affirms the authenticity and helps in
avoiding legal process. Many people are not familiar with the concept of
registration and hence, do not understand its importance in eyes of law. It is
crucial to be familiarized with registration and what it includes to avoid
disputes. There are two kinds of registration according to The Registration Act,
1908 namely “Mandatory Registration” and “Optional Registration”.
The compulsory registration strikes only at instruments and not transaction.
However, the registration act, 1908 enacts that where a document is employed
to effectuate any of the transactions specifies in section 17(1) of the ACT, such
document must be registered.
Black’s law dictionary defines: Registration is a system by which owner of real
property may petition in court for certificate of such title as being the owner
whose name appear on certificate.

Compulsory Registration of Document

If registration of documents is not made, the process of verification and
certification of title becomes difficult. Registration of documents reduces
disputes and litigations to a large extent. Section 17 of the Registration Act,
1908 which makes a deed of conveyance compulsorily registrable.
Section 17(1) of the act provides a list of seven documents of which registration
is compulsory. If such a document is not registered, it cannot affect any
immovable property to which it relates nor can it be received as evidence of any
transaction affecting such a property.
Following documents must be registered:
1) Gift of immovable property u/s 17(1)(a):
By virtue of section 17(1)(a) the instrument of gift of immovable property
is a compulsory registerable instrument, whatever be the value of such
property it must be writing and not oral. Such deed having not been
registered, cannot legally convey right, title or interest in or to immovable
property. Hence as the term ‘gift’ is not defined in this act, it is defined
under section 122 of Transfer Of property Act 1882.

2) Instrument’s u/s 17(1)(b):

Other non-Testamentary instruments which purport or operate to create
declare assign, limit, or extinguish weather in present or in future any
right, title or interest weather vested or contingent of the value of 100
rupees or upwards to or in immovable property shall be registered.
i. Mortgage deed: A mortgage deed is registered able under this
clause. The section 58 of Transfer of property act 1882 provides
that where the amt secured is Rs 100 or above, a mortgage (other
than mortgage of tittle deed) can be affected only by a registered
instrument.
ii. Transfer of Redemption: Redemption deed for transferring back
land valuing more than Rs 100 or above require registration if it
was a registered mortgage.
iii. Instrument of partition of immovable property of the value of Rs
100 or above is compulsory registerable under this clause.
iv. A floating charge create a contingent right and a document creating
such charge is registerable under section 17(a)(b)
v. N agreement by which a mortgagor agrees to pay interest at a rate
highest than fixed by the mortgage deed, requires registration.

3) Receipt of Consideration u/s 17(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 shall be
registered.
i. A sale deed requires registration under this clause, whereby not
only the immovable property is conveyed but price thereof is also
acknowledged.
 ii. A receipt acknowledging receipt of consideration of over Rs 100
for surrendering certain lands is compulsory registerable.
iii. A receipt which purports to be for Nazrana paid for a lease requires
registration, but not if the sum is less than Rs 100.

4) Lease u/s 17(1)(d):

Lease of immovable property from year to year, or for any term
exceeding one year, or reserving a yearly rent, is compulsory registerable.
Duration of lease is sole determinant of its registration. As far as
registration is compulsory a lease must be.
 Year to year or
 For a term exceeding one year or
 Reserving yearly rent.
When no term of lease is specially fixed and is for an indefinite period it
does not require registration.
Exceptional case: The provincial government, according to the provision
of sec18(1), may exempt any lease the terms granted by which do not
exceeds five years and the annuals rents reserved by which do not exceed
Rs 50.
5) Transfer by decree, order, or award u/s 17(1)(c):
Non-testamentary instruments transferring or assigning any decree or
order of a court or any award when such decree or order or award
purports or operates to create, declare, assign, limit, or extinguish,
whether in present or future, any right, title, or interest whether vested or
contingent to the value of Rs 100 or upwards, to or in immovable
property shall be registered.
6) An authority has been conferred on a widow by her late husband to adopt
a son and such authority has not been conferred by a will hence such
authorization has been executed on or after 1st January 1872.
7) The registration of document referred to in clause(g) is for the purpose of
section 53-A of the Transfer of Property Act which deals with doctrine of
part performance. If such a document is not registered it will not have
effect in sec 53-A.
 List of instruments that do not require registration under section
17(1) by virtue of sec 17(2) of the Act.
i. A composition deed ii. Shares in a joint stock company
ii. Debentures issued by a joint stock company.
 iii. An endorsement upon or transfer of a debenture issued by a
joint stock company.
iv. A document that merely creates a right to obtain another
document.
v. A decree or order of a court.
vi. A government grant.
vii. An instrument of partition made by a revenue officer.
viii. An order granting a loan or instrument of collateral security
under land improvement acts.
ix. An order granting loan under certain other statues.
x. An order under charitable endowments act
xi. An endorsement on a mortgage deed
xii. A receipt for payment of a mortgage debt
xiii. A certificate of sale pursuant to a public auction
xiv. A document containing a recital of payment of earnest money
or purchase money.

Documents of Which Registration is Optional-

Section 18 of the Registration Act provides as follows. Any of the following
documents may be registered under this Act namely:
(a) instruments (other than instruments of gift and wills) 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 a value less
than one hundred rupees to or in immovable property.
(b) instruments acknowledging the receipt or payment of any consideration on
account of the creation, declaration, assignment, limitation, or extinction, of any
such right, title or interest.
(c) leases of immovable property for any terms not exceeding one year, and
leases exempted under Section 17.
(d) instruments transferring or assigning any decree or order of a court or any
award when such decree or order or award purports to or operates to create,
declare, assign, limit, extinguish, whether in present or in future, any right, title,
or interest whether vested or contingent, of a value less than one hundred
rupees, to or in immovable property.
(e) instruments (other than wills) which purport or operate to create, declare,
assign, limit or extinguish any right, title, or interest to or in moveable property.
(f) wills, and all other documents not required by Section 17 to be registered
(Section 18).

TIME LIMIT FOR PRESENTATION FOR REGISTRATION

 A document other than a will must be presented within four months of its
execution. These limits are mandatory. If the delay is due to act of the
Court, it must be disregarded.
 Section 23A deals with re-registration of certain documents. The section
is mainly intended to deal with situation where the original presentation
was by a person not duly authorized.
 Under Section 24 a document executed by several persons at different
times may be presented for registration and re- registration within four
months from the date of each execution.
 As per Section 26 where the registering officer is satisfied that the
document was executed outside India it has been presented for
registration within four months of its arrival in India, he may accept such
document for registration on payment of proper registration fee.

Effects of Non-Registration of Documents

Introduction
Effects of non-registration of a document is enacted under section 49 of the
registration act 1908 which contemplates that no document required to be
registered under section 17 of this act shall be operative for the creation, etc. of
any right, title, or interest, in or immovable property, unless it is registered
within a prescribed duration. Thus, such an instrument is inadmissible as
evidence.
Registered Documents have its benefits and unregistered documents have their
disadvantages when compulsory registration is required. The effect of the
registration according to Sections 47, 48, 49 and 50 of the Registration
Act,1908 is as follows:
Section 47: Time at which registered document is operating.
A registered document shall be in effect from the time it would have started to
function, if it had not been necessary or made to register, and not from the time
it was registered.

Section 48: Licensed records relating to property when oral agreements take
place.
All non-testamentary records duly recorded in compliance with this Act and
relating to any property, whether movable or immovable, shall take effect
against any oral agreement or declaration relating to that property, unless the
agreement or declaration precedes or follows the delivery of the property and
the same constitutes, for the time being, a lawful transfer under any law.
Section 49: Effect of non-registration of necessary documents
No document needed to be registered under section 17 or any clause of the
Transfer of Property Act, 1882-
(A) impact any immovable assets found therein, or
(B) grant some authority to adopt, or
(C) be obtained as proof of any transaction affecting or conferring any power in
respect of such land, unless registered:
Conditions for Applicability of section 49 of The Registration Act 1908
i) There must be a document.
ii) The document must be compulsory registerable: Section 49 of
Registration act 1908 applies only to document which registration is
compulsory under section 17 of that act or under any provision of the
Transfer of property act. It does not forbid the admissibility in
evidence of documents of which registration is optional under section
18 Registration act and a will is such a document.
iii) The documents must not have been registered.
If the above condition is fulfilled, then the following consequences
will follow:
a) That document cannot affect any immovable property comprised therein.
b) That document cannot confer any power to adopt.
c) That document cannot be received as evidence of any transaction
affecting such property or conferring such power.
Effects of non-registration of a compulsorily registrable instruction may be
discussed in the following head.
 1. Inoperativeness of a document
That no document is necessary to be registered under this Act or under any
earlier law providing for or relating to the registration of documents shall be
used to establish, grant, allocate, restrict, or extinguish any right, title or interest.
Whether vested or contingent, in or in respect of the immovable property.
2. No Conferment of power to Adopt.
Under the section, an adoption deed not duly registered, as required by section
17 of the Registration Act, shall not grant any power of adoption.
3. Inadmissibility as evidence
A document required to be registered and which is not registered cannot be
taken as evidence of the creation of any right, title or interest in or on certain
immovable property. Consequently, non-registration destroys the evidential
value of an instrument, but it can be used as evidence of certain collateral
transactions.
4. Admissibility for collateral Transactions
Where a document required by law to be registered is not registered then it
cannot affect any immovable property contained therein nor can it be received
as evidence of any transaction affecting such property pursuant to section 49 of
the Registration Act. However, such a document may be admitted proving a
party’s admission in respect of the property ‘s character, i.e., whether it is joint
or otherwise.
WHAT ARE THE CASES IN WHICH A COMPULSORILY REGISTRABLE
DOCUMENT CAN BE USED IN EVIDENCE, EVEN IF IT HAS NOT BEEN
REGISTERED?
A compulsory registrable document can be used in evidence, even if it
has not been registered in the following cases:
 When a part of the compromise related to the property which was
beyond the subject matter of the suit, had been incorporated in the
compromise decree and not being a part of the operative portion thereof
did not require registration.
 The combined effect of section 53A of the transfer of property act is that
an incomplete been of transfer, though not registered or even attested, is
regard, as a contract in writing if signed by the transferor or his agent.
 An unregistered document affecting immoveable property, required to be
registered, may be received in evidence of a contact in the suit for the
specific performance or as evidence of part – performance of a contract.
 Case laws
Before: - Navin Sinha and B.R. Gavai, JJ.

Civil Appeal Nos. 6772 of 2019 (@SLP(C) 34778 of 2016). D/d. 2.9.2019.

Prakash Sahu - Appellants

Versus

Saulal & Ors. - Respondents

For the Appellants: - Akshat Shrivastava, Ms. Pooja Shrivastava, Advocates.

For the Respondents: - Akshay Girish Ringe, Ms. Megha Mukherjee, Siddharth
Joshi, Advocates.

ORDER
1. Leave granted.
2. We have heard learned counsel for the parties.
3. The short question in the present appeal is whether an unregistered
agreement of sale can be seen for collateral purposes under the proviso to
section 49 of the Registration Act, 1908.
4. The Trial Court based its reasoning on a decision of this Court in S.
Kaladevi v. V.R. Somasundaram & Ors. (2010) 5 SCC 401 elucidating as
follows: -
i) In that situation it is essential for the registration of the document,
if, unregistered is not admissible in evidence under section 49 of
the Registration Act.
 ii) Yet, such unregistered document can be used by way of collateral
evidence provided in the proviso to the section 49 of the
Registration Act.
iii) For effecting with the collateral transaction, whose registration is
required by law should be free from the transaction or be divisible
from that.
iv) Collateral transaction should be such a transaction which may not
be automatically expected of effecting by the registered document,
i.e. Rupees One Hundred or any transaction or instrument or right
or interest in any immovable property of the value of more than
Rupees One Hundred.
v) If the document is inadmissible in evidence in the absence of
registration then any of its estopple cannot be admitted in evidence
and for use of the document for purposes of proving important part,
it would not be utilized by way of collateral purpose."

5. High Court failed to consider the aforesaid while holding that the
unregistered document could not be taken into consideration for collateral
purposes.

6. We consider the same as sufficient reason to set aside the order of the
High Court and restore the order of the Trial Court dated 18th March
2016.

7. The appeal is accordingly, allowed.

8. Pending application(s), if any, shall stand disposed of.

 Case law
Satya Pal Anand
v.
State of M.P. & Ors.
(Civil Appeal No. 6673 of 2014),
JUDGMENT
the Supreme Court held that once a document is registered then authority is not
open to cancel its registration.
For this case, an application was moved by a man before the Sub-Registrar
(Registration) to cancel the registration of extinguishment deed executed by the
Society cancelling an allocation of the plot. Persecuted by the rejection of his
application, on the ground that Sub Registrar has no domain to cancel the
enrollment of a registered document being referred to, he moved toward
Inspector General (Registration) which was in vain.
The High Court, on its writ petition, held that, since the Registering Officer
selected the deed acquainted with him for registration, his ability is exhausted,
and he would then advance towards becoming functus officio (an officer or
agency whose mandate has expired either because of the arrival of an expiry
date or because an agency has accomplished the purpose for which it was
created. When used in relation to a court, it may also mean whose duty or
authority has come to an end) and no vitality to appropriate the report under
Section 33 of the Act. This decision by the High Court was condemned in the
Supreme Court.
The appeal in Part XII especially under Section 72 limits just to the refusal of
Registering Officer to register a document. It was similarly held that power
given to Registrar under Section 68 can’t be used to cross out registration of a
registered document.
Moreover, the court observed that there is no express course of action in the
Registration Act or Rules bound by the State of Madhya Pradesh, nor any
circular issued by the competent authority of the State of Madhya Pradesh with
the goal that the extinguishment deed should bear the characteristics of both the
vendor and the buyer and both must be accessible before the Registering Officer
when the document is presented for registration.

CONCLUSION
The Registration Act, 1908, was enacted with the intention of providing
orderliness, discipline, and public notice regarding transactions relating to
immovable property and protection from fraud and forgery of documents of
transfer. This is achieved by requiring compulsory registration of certain types
of documents and providing for consequences of non-registration. Section 17 of
the Registration Act clearly provides that any document (other than
testamentary instruments) which purports or operates to create, declare, assign,
limit or extinguish whether in present or in future “any right, title or interest”
whether vested or contingent of the value of Rs. 100 and upwards to or in
immovable property.
Section 49 of the said Act provides that no document required by Section 17 to
be registered shall, affect any immovable property comprised therein or
received as evidence of any transaction affected such property, unless it has
been registered. Registration of a document gives notice to the world that such a
document has been executed. Hence it enables people to find out whether any
particular property with which they are concerned, has been subjected to any
legal obligation or liability and who is the person presently having right, title,
and interest in the property. It gives solemnity of form and perpetuate
documents which are of legal importance or relevance by recording them, where
people may see the record and enquire and ascertain what the particulars are and
as far as land is concerned what obligations exist regarding them. It ensures that
every person dealing with immovable property can rely with confidence upon
the statements contained in the registers (maintained under the said Act) as a
full and complete account of all transactions by which the title to the property
may be affected and secure extracts/copies duly certified.
 Bibliography

Legalserviceindia.com
Blog.ipleaders.in
Aequitasjuris.com
Lawfinderlive.com
Bnwjournal.com
Articlesonlaw.wordpress.com
Slideshare.net
Thelawstudy.blogspot.com
Bcasonline.org
Latestlaw.org