IN THE HIGH COURT OF KARNATAKA
B.M. Shyam Prasad, J.
M. Shivappa and Others – Appellants
Versus
Smt. Varadamma and Other – Respondents
Writ Petition No. 18686 of 2021 (Gm-CPC)
Decided On : 18-10-2021
Unregistered Sale Deed - Specific Performance - The court invalidated the rejection of the petitioners' request to mark an unregistered sale deed dated 18.01.1974 for collateral purposes in a suit for specific performance, emphasizing the provisions of Section 49 of the Indian Registration Act, 1908 and the decision in S. Kaladevi Vs. V.R. Somasundaram (2010) 5 SCC 401.
Fact of the Case:
The petitioners filed a suit for specific performance based on an unregistered sale deed dated 18.01.1974. The civil Court rejected the petitioners' request to mark the unregistered sale deed.
Finding of the Court:
The court invalidated the impugned order and called upon the civil Court to reconsider the petitioners' request in the light of the decision in S. Kaladevi Vs. V.R. Somasundaram, emphasizing the need for an expedited decision on merits.
Issues: Rejection of request to mark unregistered sale deed for collateral purposes in a suit for specific performance.
Ratio Decidendi: The provisions of Section 49 of the Indian Registration Act, 1908 and the decision in S. Kaladevi Vs. V.R. Somasundaram influenced the court's decision to invalidate the rejection of the petitioners' request.
Final Decision: The petition stands disposed off, invalidating the impugned order and calling upon the civil Court to reconsider the question of marking the unregistered sale deed for collateral purposes and to dispose of the suit expeditiously.
ORDER :
1. The petition is being disposed off at the threshold dispensing with notice to the respondents in light of the controversy presented for adjudication. The petitioners are plaintiffs in O.S. No. 1239/2006 on the file of III Additional Civil Judge, Bengaluru Rural District, Bengaluru (for short Civil Court). The Civil Court by the impugned order dated 23.05.2020 has rejected the petitioners request to mark unregistered sale deed dated 18.01.1974. The petitioners, who rely on unregistered sale deed dated 18.01.1974, have filed this suit for specific performance of an agreement to sell as evidenced by this unregistered deed dated 18.01.1974 and for a direction to the respondents to execute sale deed for the subject property.
2. The learned counsel for the petitioners relies on the decision of the Hon'ble Supreme Court in the case of S. Kaladevi Vs. V.R. Somasundaram reported in (2010) 5 SCC 401 and emphasizes that the civil Court should have considered the petitioners request for marking of the document dated 18.01.1974 in the light of the law declared by the Hon'ble Supreme Court in this decision. He submits that the Supreme Court in a set of very similar circumstances, where a plaint was presented for specific performance based on an unregistered sale deed, has found fault with the Court rejecting the request for marking of the unregistered document despite provisions of Section 49 of the Indian Registration Act, 1908.
3. On perusal of the impugned order and the decision of the Hon'ble Supreme Court in the aforesaid case, this Court is of the considered opinion that the impugned order must be invalidated and civil Court called upon to reconsider the petitioners request in the light of the aforesaid decision with reasonable opportunity to the respondents for effective and complete adjudication. The suit is pending from the year 2006 and there must be an expedited decision on merits.
4. Therefore, the petition stands disposed off invalidating the impugned order dated 23.05.2020 in O.S. No. 1239/2006 on the file of III Additional Civil Judge, Bengaluru Rural District, Bengaluru and calling upon the civil Court to reconsider the question of marking the deed dated 18.01.1974 for collateral purposes in the light of the decision in S. Kaladevi Vs. V.R. Somasundaram reported in (2010) 5 SCC 401 and dispose of the suit expeditiously.
The court emphasized the importance of considering the provisions of Section 49 of the Indian Registration Act, 1908 and the decision in S. Kaladevi Vs. V.R. Somasundaram in suits for specific perfor....
Unregistered sale agreements can be admitted as evidence in specific performance suits under the proviso to Section 49 of the Registration Act, despite the restrictions of Section 17(1A).
The court established that the civil court can entertain a suit for specific performance based on an unregistered sale agreement, and that the limitation point should be decided only on the judicial ....
Unregistered sale deeds have limited legal validity and cannot establish ownership or title; the burden of proof lies with appellants to substantiate claims in specific performance suits.
Unregistered agreement of sale is admissible in suit for specific performance; Section 17(1A) Registration Act applies only to part performance protection under Section 53A TP Act, not to enforcement....
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