2014 Supreme(Kar) 299
High Court of Karnataka (Circuit Bench At Gulbarga)
H.G. RAMESH, J.
Abdul Rasheed
Versus
Srinivas
Writ Petition No. 202769 of 2014 (GM-CPC)
Decided on: 16-04-2014
For the Petitioner:Hema L. Kulkarni, Laxmikanth. K, Gururaj Rao Kakkeri, Advocates.
For the Respondent:B.D. Hangarki, Advocate.
Headnote:INDIAN REGISTRATION ACT, 1908 - Sections 17(l)(d), 49 Proviso: [H.G. Ramesh, J] Unregistered lease deed - All leases not covered by first para of Section 107 of the T.P. Act may be made either by a oral agreement accompanied by delivery of possession, or by a registered instrument. A lease, the registration whereof is not compulsory under Section 17 (1)(d) of the Registration Act, becomes compulsorily registrable, if reduced into writing in view of second para of Section 107 of the T.P. Act read with Para 2 of Section 4 thereof. A written unregistered lease of immovable property, even though the term of lease stated therein does not exceed one year, is inadmissible in evidence in view of Section 49 of the Registration Act, 1908 read with second para of Section 107 of the T.P. Act, 1882 and second para of Section 4 thereof. A lease for a period of one year falls within the expression ’All other leases’ stated in para 2 of Section 107 of the T.P. Act and may be made by an oral agreement accompanied by delivery of possession. Proviso to Section 49 of the Registration Act permits the party to produce the lease deeds as evidence of any collateral transaction not required to be effected by a registered instrument. The party will be at liberty to apply to the trial court by specifically stating the collateral purpose for which he wants to produce the lease deeds and if such an application is made, the trial court shall consider the same in accordance with law.
TRANSFER OF PROPERTY ACT, 1882 - Section 107: [H.G. Ramesh, J] Unregistered lease deed - All leases not covered by first para of Section 107 of the T.P. Act may be made either by a oral agreement accompanied by delivery of possession, or by a registered instrument. A lease, the registration whereof is not compulsory under Section 17 (1)(d) of the Registration Act, becomes compulsorily registrable, if reduced into writing in view of second para of Section 107 of the T.P. Act read with Para 2 of Section 4 thereof. A written unregistered lease of immovable property, even though the term of lease stated therein does not exceed one year, is inadmissible in evidence in view of Section 49 of the Registration Act, 1908 read with second para of Section 107 of the T.P. Act, 1882 and second para of Section 4 thereof. A lease for a period of one year falls within the expression ’All other leases’ stated in para 2 of Section 107 of the T.P. Act and may be made by an oral agreement accompanied by delivery of possession. Proviso to Section 49 of the Registration Act permits the party to produce the lease deeds as evidence of any collateral transaction not required to be effected by a registered instrument. The party will be at liberty to apply to the trial court by specifically stating the collateral purpose for which he wants to produce the lease deeds and if such an application is made, the trial court shall consider the same in accordance with law.
H.G. Ramesh, J.
1. Whether a lease deed, where the term of lease stated therein does not exceed one year, requires to be registered under the provisions of the Registration Act, 1908 is the question that needs an answer in this writ petition.
The question is answered in the affirmative. In law, the lease deeds of the aforesaid kind also require to be registered and therefore, such unregistered lease deeds cannot be received as evidence of any transaction affecting the property.
2. This writ petition by the defendant is directed against an interlocutory order dated 26.03.2014 passed by the trial Court in the suit in O.S.No. 10/2009 wherein the trial Court has held that the four unregistered lease deeds produced by the petitioner are inadmissible .in evidence.
3. The contention urged in support of the writ petition is that, in three of the aforesaid four lease deeds, the term of lease does not exceed on e year and therefore their registration is not compulsory in view of S.17(l)(d) of the Registration Act, 1908 and hence, refusal of the trial Court to receive them in evidence is erroneous in law. To examine the contention urged, it is necessary to refer to the following provisions of the Transfer of Property Act, 1882 and the Registration Act, 1908.
3.1 Sections 4 & 107 of the Transfer of Property Act, 1882 read as follows:
S.4. Enactments relating to contracts to be taken as part of Contract Act and supplemental to the Registration Act.— The Chapters and sections of this Act which relate to contracts shall be taken as part of the Indian Contract Act, 1872 (9 of 1872)
And section 54, paragraphs 2 and 3, and sections 59, 107 and 123 shall be read as supplemental to the Indian Registration Act, 1908 (16 of 1908).
S.107. Leases how made.—-A lease of immovable property from year to year, or for any term exceeding one year or reserving a yearly rent, can be made only by a registered instrument.
All other leases of immovable property may be made either by a registered instrument or by oral agreement accompanied by delivery of possession.
Where a lease of immovable property is made by a registered instrument, such instrument or, where there are more instruments than one each such instrument shall be executed by both the lessor and the lessee:
Provided that the State Government may from time to time, by notification in the Official Gazette, direct that leases of immovable property, other than leases from year to year, or for any term exceeding one year, or reserving a yearly rent, or any class of such leases, may be made by unregistered instrument or by oral agreement without delivery of possession.
(underlining supplied)
3.2 Sections 17(1) 8& 49 of the Registration Act, 1908 read as follows:
S.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:-
(a) instruments of gift of immovable property;
(b) other non-testamentary instruments 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 the value of one hundred rupees and upwards, to or in immovable property;
(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; and
(d) leases of immovable property from year to near, or for anu term exceeding one near, or reserving a nearly rent;
(e) 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,