SUPREME COURT OF INDIA
ASHOK BHUSHAN, M.R. SHAH, JJ.
MOHAMMADE YUSUF & ORS. – APPELLANT(S)
VERSUS
RAJKUMAR & ORS. – RESPONDENT(S)
CIVIL APPEAL NO.800 OF 2020 (arising out of SLP (C) No. 32799 of 2018)
Decided On : 05-02-2020
Registration Act, 1908 - Section 17(1)(b) and (c) and 17(2)(vi) - A compromise decree of a court does not require registration - Except when it comprises immovable property other than which is the subject matter of the suit or proceeding - Instantly the compromise decree sight to be produced as evidence concerned the subject matter of the present suit - Therefore exclusionary clause in Section 17(2)(vi) is not applicable - the compromise decree was not required to be registered. (Para 6, 14)
Facts of the case:
In a suit when an earlier compromise decree was sought to be introduced as evidence, the trial court refused to accept it on the ground that it was not admissible being unregistered. Writ petition thereagainst was dismissed affirming the views of the trial court.
Finding of the Court:
The compromise decree was not required to be registered.
Result: Appeal allowed.
Key Points: - A compromise decree comprising immovable property other than that which is the subject-matter of the suit or proceeding requires registration, whereas any other decree or order of a court is exempted from registration by virtue of Section 17(2)(vi). (!) (!) - The exclusionary clause in Section 17(2)(vi) is not applicable if the compromise decree concerns property that is the subject matter of the suit or proceeding. (!) (!) - In the present case, the compromise decree dated 04.10.1985 was not required to be registered because it related to the property which was the subject matter of the original suit. (!) (!) - The High Court's view that the decree required registration because the plaintiff had no pre-existing title was based on the overruled judgment of Gurdwara Sahib and is no longer valid. (!) (!) - The Supreme Court held that the compromise decree did not create a new right, title, or interest in immovable property for the first time but declared pre-existing rights, thus falling under the general exemption for court decrees. (!) (!) - The appeal was allowed, and the order of the Civil Judge refusing to accept the unregistered compromise decree as evidence was set aside. (!)
JUDGMENT
ASHOK BHUSHAN, J.
This appeal has been filed against the judgment of High Court of Madhya Pradesh at Indore Bench dated 13.02.2017 dismissing the writ petition of the appellant challenging the order of the trial court dated 07.01.2015 whereby the trial court has held that the compromise decree sought to be filed by the appellant is not admissible in evidence for want of registration.
2. The brief facts of the case are: -
2.1 A Suit No. 250-A of 1984 was filed by one Habib Kha, the father of the appellant for declaration and injunction. The Suit was filed for 7 biswa area of survey No.203 situated at Village Kitvani, Kasba Mandsaur, which was attached in east with the land of plaintiff being survey No.223. The plaintiff was in possession of suit land, which was recorded in the names of defendant. A compromise decree was passed in the suit dated 04.10.1985 declaring the right of plaintiff on 7 biswa area and it was declared that remaining land belong to defendant.
2.2 The appellants, who were son of Habib Kha claimed to be in possession, continued to be in possession of the aforesaid area. A Suit No.90-A of 2006 was filed on 16.09.1998 by respondent Nos. 1 and 2 against the appellants for perpetual injunction in respect of two areas admeasuring 825 sq. ft. and 1650 sq. ft. bearing survey No.203. The respondent Nos. 1 and 2 sold the above said two areas to respondent Nos. 4 to 7 and they were impleaded as plaintiffs in the above said suit. A written statement was filed by the appellants in Civil Suit No. 260A of 1998 pleading that respondents have forcefully took the possession of area admeasuring 1650 sq. ft. being the part of survey No.203, which was in actual, peaceful and uninterrupted possession of the appellant and their ancestral since 1951. Along with the written statement, a counter claim was filed by the appellant for recovery of possession of the area.
2.3 During evidence of Mohammade Hafiz, one of the appellants, he tried to exhibit the decree dated 04.10.1985 passed in Civil Suit No.250A of 1984, which was objected by the plaintiff. Plaintiff’s objection to the admissibility of the decree was that decree being not registered cannot be accepted in evidence. Learned Civil Judge heard the parties and passed order dated 07.01.2015 on issue regarding admissibility of the above document. Civil Judge took the view that decree dated 04.10.1985 is required to be registered as per provision of Section 17(1)(e) of the Registration Act, hence it is not admissible in evidence. A Writ Petition No.2170 of 2015 was filed by the appellant challenging the order dated 07.01.2015. The High Court by the impugned judgment has dismissed the writ petition taking the view that decree was required to be registered. The High Court held that the very fact that the suit was based on the plea of adverse possession reflects that plaintiff of Suit No.250-A of 1994 had no pre-existing title in the suit property. Relying on the judgment of this Court in Gurdwara Sahib Vs. Gram Panchayat Village Sirthala and Another, (2014) 1 SCC 669, High Court held that it is settled that declaratory decree based on plea of adverse possession cannot be claimed and adverse possession can only be used as a shield by the defendant. Aggrieved with the judgment of High Court, this appeal has been filed.
3. The only question to be considered in this appeal is as to whether the above noted compromise decree dated 04.10.1985 was required to be registered under Section 17 of the Registration Act, 1908 or not?
4. Part III of the Registration Act contains a heading “of Registrable Documents” in which Section 17 finds place, which contains a heading “Documents of which registration is compulsory”. Section 17(1) deals with documents of which registration is compulsory. Section 17(2) provides that nothing in clauses (b) and (c) of sub-Section (1) applies to various documents as enumerated therein. Sections 17(1) and 17(2)(vi), which are relevant for the present case are as fo
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