IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
KIRANMAYEE MANDAVA, J.
Uppari Venkatararnudu and Others – Petitioners
Versus
Uppari Narayana and Others – Respondents
Civil Revision Petition No. 1147 of 2021
Decided On : 26-04-2024
Stamp Duty - Gift Deed - Registration Act, 1908, Section 17, 49 - The court discussed the implications of unregistered gift deeds under the Registration Act, emphasizing that while such documents are inadmissible for creating property rights, they may be admissible for collateral purposes if stamp duty and penalties are paid.
Fact of the Case:
The plaintiffs filed a suit for partition, claiming joint ownership of land after the death of their ancestor. The defendants sought to introduce an unregistered gift deed to prove possession, leading to a dispute over its admissibility due to lack of registration and stamp duty.
Finding of the Court:
The court found that the trial judge correctly directed the payment of stamp duty and penalty but failed to properly assess the admissibility of the unregistered gift deed for collateral purposes, as required by precedent.
Issues: Whether an unregistered gift deed can be admitted as evidence for collateral purposes after payment of stamp duty and penalty.
Ratio Decidendi: The court reiterated that unregistered documents are inadmissible for property rights but may be admitted for collateral purposes, contingent upon proper judicial consideration of what constitutes a collateral purpose.
Result: The Civil Revision Petition is allowed, and the trial court must reconsider the admissibility of the gift deed for collateral purposes after payment of the required stamp duty and penalty.
ORDER :
1. This Civil Revision Petition challenges the docket order dated 13-09-2023 in O.S. No. 311 of 2014 on the file of Additional Senior Civil Judge, Kurnool, under which the unregistered gift deed was sent for impounding to collect stamp duty and penalty. The said order directed defendant No. 2 (DW-1) to pay the deficit stamp duty and a penalty of Rs.1,100/- for receiving the same in evidence for collateral purposes.
2. For the sake of convenience, the petitioners and respondents hereinafter, are referred to as plaintiffs and defendants, as arrayed before the Court below.
3. The plaintiffs and the defendants constitute one family. Defendant No. 1 is the father of the plaintiffs and defendants No. 2 & 3. The plaintiffs filed suit for partition. The plaintiffs contend that the defendant No. 1 was the only son of one Sri. Uppari Anjaneya @ Moogenna. Sri Uppari Anjaneya @ Moogenna, plaintiffs and the defendants constitute one family and father of defendant No. 1 had possessed house properties and agricultural lands. And that he also owned Ac. 12.00 of land in Sy. No. 60/1 of Baswapuram Village (plaint schedule land). From the total area of Ac. 12.00, the defendant inherited Ac. 6-00 from his ancestors. He then purchased the remaining Ac. 6.00 in the name of his son (D-1) on [27.03.1997], using joint family funds. The plaintiffs contend that in pursuance of an oral partition that was agreed on 08.05.2003, Sri. Uppari Anjaneya @ Moogenna, partitioned all his properties situated in Ulchala Village, among his son (D-1) and grandchildren (plaintiffs and D Nos. 2 & 3) and the same was reduced into writing and he kept the Ac. 12-00 of land in Sy. No. 60/1 of Baswapuram village, for himself (plaint schedule land).it is contended that in the said partition, plaintiff Nos. 1 & 2, respectively, got the properties as shown in the C & D schedule of the partition deed. Similarly, it is stated that defendant Nos. 1, 2 & 3 got the A, B & E schedule properties respectively towards their share. Ever since the partition, all of the coparceners are stated to have been in possession and enjoyment of their respective shares whereas Sri. Uppari Anjaneya @ Moogenna was in possession and enjoyment of the plaint schedule land till his intestate death. The further contention of the plaintiffs is that after the death of Sri. Uppari Anjaneya @ Moogenna, the plaint schedule land has been in joint possession and enjoyment of plaintiffs and the defendants, who got 1/5th joint share each and on coming to know that defendant No. 2 had been pressurizing defendant No. 1 to immediately transfer the plaint schedule land in his name, it is stated that the 1st plaintiff got issued a legal notice dated 15.05.2014, to defendant Nos. 1 & 2, to refrain from doing so and to immediately partition the land among all the coparceners. It is stated that the plaintiff, apprehending that defendant No. 1 may at any time transfer the entire plaint schedule land in the name of defendant No. 2, though he has no right or title to do so, filed the subject suit.
4. The defendant No. 1 filed his written statement and counter claim contending that Sri. Uppari Anjaneya @ Moogenna, had transferred Ac. 6-00 cents of land to his only son i.e., defendant No. 1 by way of unregistered gift deed in the year 1985 and from the date of execution of the said gift deed, Uppari Narayana, i.e. the defendant no. 1, became absolute owner, and was in peaceful possession and enjoyment of plaint schedule property. In support his contention, has filed the unregistered gift deed. He further contended that the document was filed only for collateral purpose in order to prove the possession of defendant No. 1 and sought to receive the said unregistered gift document.
5. During the suit proceedings, the defendant No. 1 died. The 2nd defendant filed his affidavit-in-chief to examine himself as DW-1 and the unregistered gift deed dated 25-06-1983 was sought to be marked by defendant No. 2. The plaintiffs objected to
Parchuri Sireesha and Another vs. Challpalli Jalaja
Ranga Reddy vs. Sandhu Padamma and Others
Unregistered gift deeds are inadmissible for property rights but may be admissible for collateral purposes if stamp duty and penalties are paid, subject to judicial discretion.
Unregistered documents cannot be used to prove title or rights to property but may be admissible for collateral purposes if necessary conditions, including stamp duty, are met.
Unregistered documents are inadmissible as evidence unless related to a specified collateral transaction not requiring registration.
An unregistered deed of partition excluding necessary parties cannot be admitted in evidence, even if stamp duties are paid, as it contradicts statutory requirements and coparcenership rights.
Unregistered documents, mandatorily registrable, cannot be admitted in evidence, even for collateral purposes, if they affect rights in immovable property, reinforcing the necessity of adherence to r....
An unregistered Sale deed may be admissible for collateral purposes if proper procedures, including stamp duty payment, are followed, according to Section 49 of the Indian Registration Act.
Documents evidencing past family arrangements need not be stamped or registered, while their classification impacts admissibility based on the nature of rights created.
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