IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
R. Raghunandan Rao, J.
Vanka Kodanda Rami Reddy - Petitioner
Versus
Byreddi Sreenivasulu and Ors. – Respondents
Civil Revision Petition No. 2460/2023
Decided On : 20-03-2024
(A) Registration Act, 1908 - Section 17 - Indian Stamp Act, 1899 - Nature of documents - The court examined whether unregistered agreements executed for better description of property require registration and stamp duty. It was held that such agreements do not create additional rights and thus do not necessitate registration. (Paras 9-14)
(B) Admissibility of documents - The court ruled that documents executed to clarify dimensions of property sold under registered deeds do not alter the rights conveyed and can be marked for collateral purposes. (Paras 14-15)
Facts of the case:
The 1st respondent filed for declaration of title over property purchased under registered deeds, claiming additional rights through unregistered agreements.
Findings of Court:
The agreements do not create new rights and thus do not require registration or stamp duty.
Issues: The main issue was whether the unregistered agreements necessitated registration under Section 17 of the Registration Act.
Ratio Decidendi: The court found that the agreements were merely clarificatory and did not create any new rights, thus not requiring registration.
Result: Civil revision petition dismissed.
ORDER :
R. Raghunandan Rao, J.
1. The 1st respondent herein filed O.S. No. 310 of 2008 before the Court of Learned Additional Senior Civil Judge, Madanapalle for declaration of his right and title over the suit schedule property which consisted of two parts, delineated as "ABHFG" and "HFEC" to the plaint sketch, and for a consequential permanent injunction restraining the defendants, including the petitioner herein, from interfering with the possession and enjoyment of the property by the first respondent.
2. The 1st respondent is said to have based his case on the ground that the 1st respondent had purchased these properties from the defendants in the suit which includes the petitioner herein. It is the case of the 1st respondent that he had purchased one property under a registered deed of sale dated 23.06.2001 and a second property under a registered deed of sale dated 18.08.2004. The 1st respondent also claimed that for the purpose of better description of the property, an agreement was executed by the petitioner herein in favour of the 1st respondent on 23.06.2001 in relation to the property sold under the registered deed of sale dated 23.06 2001. Similarly, an agreement was also said to have been executed on 18.08.2004 in relation to the registered deed of sale dated 18.08.2004. It may also be mentioned that these two agreements are unregistered and are nominally stamped.
3. The petitioner herein denied execution of these two unregistered nominally stamped agreements and objected to the marking of these two documents, in the course of trial, when the first respondent sought to mark these two documents as Exhibits A2 and A4. The Trial Judge had overruled the objections raised by the petitioner and permitted the said documents to be marked.
4. Aggrieved by the said rejection of objections filed by him, the petitioner has moved this Court by way of the present Civil Revision Petition.
5. Sri N. Pramod, learned counsel appearing for the petitioner would submit that both Exhibits A2 and A4 are instruments which have the effect of creating rights over the immovable property and as such require registration under Section 17 of the Registration Act and would also attract the stamp duty payable on a conveyance.
6. Sri S.S. Bhatt, learned counsel appearing for the 1st respondent would contend that the documents in question are not conveyances and are only agreements which have been executed for the purposes of better description of the property which has already been conveyed to the 1st respondent. He would submit that the actual transfer of the land was done under the registered deeds of sale and the subsequent agreements were only for the purpose of better description of the property and there has been no additional right or title created in favour of the 1st respondent by virtue of the execution of the said agreements which have now been marked as Exhibits A2 to and A4. He would also contend that these are documents which are only being used for collateral purpose of demonstrating the dimensions of the property which have been purchased by the 1st respondent and as such Section 17 of the Registration Act, even if the documents are to be considered as conveyances, would not be applicable. He relies upon the Judgments of M/s. Paul Rubber Industries Private Limited vs. Amit Chand Mitra & anr., 2023 AIR (SC) 4658 and J. Thirukumaran vs. District collector, Kancheepuram District LAWS (MAD)-2011-6-160 of a learned Single Judge of the Hon'ble High Court of Madras.
7. Sri N. Promod, learned counsel for the petitioner relying upon a judgment of the Hon'ble Supreme Court in Sunil Kumar Roy vs. Bhowra Kankanee Collieries Ltd., and Ors., 1970 INSC 251 : (1970) 3 SCC 565 (para-3) would contend that any rectification of a registered document can be done only by way of a separate registered document. The observations of the Hon'ble Supreme Court in this regard are as follows:
3. Mr B. Sen for the appellant sought to raise the question about the admiss
M/s. Paul Rubber Industries Private Limited vs. Amit Chand Mitra & anr.
Sunil Kumar Roy vs. Bhowra Kankanee Collieries Ltd., and Ors.
Unregistered agreements executed for property description do not create additional rights and do not require registration under the Registration Act.
An unregistered sale deed cannot be admitted as evidence for ownership in a declaration suit, violating statutory provisions of the Registration Act and Transfer of Property Act.
The main legal point established in the judgment is the interpretation of the nature of the document, the requirement for registration and stamp duty, and the duty of the Court to ensure compliance w....
The court ruled that an un-stamped and un-registered lease agreement, marked as evidence without timely objection, is inadmissible, underscoring the necessity for compliance with registration require....
Unregistered agreements may be admissible in specific performance suits, and the absence of possession transfer does not bar such documentation under the Registration Act.
The central legal point established in the judgment is the requirement to consider the provisions of the Indian Stamp Act, 1899 and the Registration Act, 1908 in determining the admissibility of agre....
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