Andhra Pradesh High Court
Judges : G.YETHIRAJULU
Jawadi Koteswara Rao - Appellant
Versus
Sonti Sambasiva - Respondent
Decided On : 11-24-03
Registration Act, 1908 – Section 17 and 49 – Indian registration Act, 1877 – Indian Registration Act, 1871 – Indian Registration Act, 1866 – Act No XVI of 1864 – Transfer of Property Act, 1882 – Specific relief Act, 1877 – Validity and Legality – Admissibility of Agreement – Contended on behalf of revision petitioner that an unregistered agreement of sale can be marked only for collateral purpose and it cannot be marked in a suit for specific performance – Learned Counsel for respondent-plaintiff submitted that the agreement of sale is not effecting transfer of property plaintiff and it is only a contract under which plaintiff is laying a claim that defendant is liable to execute a sale deed, therefore, the said document can be marked in a suit for specific performance of the agreement of sale – Learned Counsel for revision petitioner relied on a judgment of this Court reported in E. Lakshmisaraswathi v. State Bank of India, 1984 (2) An. WR 149, wherein a learned Single Judge of this court while considering scope of proviso to Section 49 of Act considered position on the basis of an unregistered lease deed and held that if value of the consideration covered by the lease is exceeding it is not admissible in evidence and is admissible in evidence only in collateral purpose learned Single judge of this Court while considering scope of Sections 17 and 49 of Act categorically laid down that when there is a description in an agreement of sale that vendor shall execute another document at office of Sub-Registrar as and when required it is an indication that document by itself did not conclusively extinguish rights in vendor by virtue of proviso to Section 49 said document does not require registration – Petition is dismissed.
( 1 ) THIS revision petition arises from an order passed by the Junior Civil judge, Kaikalur dated 25-2-2003 in O. S. No. 16 of 2000, which reads as follows: heard. Objections regarding the admissibility of agreement of sale. As this being a suit for specific performance, Section 49 of registration Act expressly exempted this class of cases. I hold that the suit document namely this agreement of sale dated 18-8-1999 is admissible in evidence.
( 2 ) THE Lower Court while recording the evidence of P. W. 1 gave a ruling to an objection raised by the defendant that an unregistered agreement of sale cannot be marked as it is a compulsorily registrable document under Section 17 of the registration Act, 1908 (for short the Act ). The Lower Court overruled the said objection and passed the impugned order admitting the document. Being aggrieved by the said order, the defendant preferred this revision petition questioning its validity and legality.
( 3 ) IT is contended on behalf of the revision petitioner that an unregistered agreement of sale can be marked only for collateral purpose and it cannot be marked in a suit for specific performance. The learned Counsel for the respondent-plaintiff submitted that the agreement of sale is not effecting the transfer of property in favour of the plaintiff and it is only a contract under which the plaintiff is laying a claim that the defendant is liable to execute a sale deed, therefore, the said document can be marked in a suit for specific performance of the agreement of sale.
( 4 ) THE only point for consideration is whether the unregistered agreement of sale can be received and marked in a suit for specific performance of the agreement of sale? point:
( 5 ) SECTION 17 of the Registration act, 1908 reads as follows: 17. Documents of which registration is compulsory : (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. XVI of 1864, or the Indian Registration Act, 1866, or the indian Registration Act, 1871, or the Indian registration Act, 1877, or this Act came or comes into force, namely: (2) Nothing in clauses (b) and (c) of sub- section (1) applies to, (v) any document other than the documents specified in sub-section (1-A) except an agreement of sale as mentioned in clause (g) of sub-section (1) not in itself creating, declaring, assigning, limiting or extinguishing any right, title or interest of the value of one hundred rupees and upwards to or in immovable property, but merely creating a right to obtain another document which will, when executed, create, declare, assign, limit or extinguish any such right, title or interest; or
( 6 ) THIS is a general provision making the agreements of sales compulsorily registrable, but certain exceptions have been provided under the Act itself. Clause (2) of section 17 indicates the nature of documents that are exempted from registration. Section 17 (2) (v) makes the position clear that any document other than the documents specified in sub-section 1a except an agreement of sale as mentioned in clause (g) of sub- section (1) not in itself creating, declaring, assigning, limiting or extinguishing any right, title or interest of value of Rs. 100. 00 and upwards to or in immovable property, but merely creating a right to obtain another document which will, when executed, create, declare, assign, limit or extinguish any such right, title or interest. The learned Counsel for the respondent submits that the document by itself did not create any right of title over the property covered by the agreement of sale, therefore, it comes under the exception provided under sub-clause (v) and also under the proviso to Section 49 of the Act.
( 7 ) SECTION 49 of the Act reads as follows: 49. Effect of non-registration of documents required to be registered : No document required by Section 17 or by any provision of t
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