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2025 Supreme(Chh) 204

HIGH COURT OF CHHATTISGARH AT BILASPUR 
NARESH KUMAR CHANDRAVANSHI, JJ.
Hirendra Kashyap S/o Late Shri Parmanand Kashyap - Appellant 
versus 
Laxminarayan Soni, S/o. Gangaprasad Soni – Respondent 
First Appeal No. 171 of 2007 
Decided on : 06-03-2025 

Advocates:
Advocate Appeared:
For the Appellant :Mr. Saurabh Gupta, Advocate
For the Respondent:Mr. HB Agrawal, Sr. Advocate with Ms. Preeti Yadav, Advocate Mr. Rajeev Bharat, Govt. Advocate

An unregistered agreement to sell immovable property is inadmissible in evidence and cannot confer rights unless registered, as per the Registration Act.

Headnote:

(A) Code of Civil Procedure, 1908 - Section 96 - Registration Act, 1908 - Sections 17 and 49 - Plaintiff's appeal against dismissal of civil suit for registration of sale deed - Trial Court granted refund of advance amount but dismissed the suit for registration due to lack of proof of joint family status and ownership rights of defendant No.1 - Agreement to sell was unregistered and thus inadmissible under Section 35 of the Stamp Act - Court upheld trial Court's findings regarding the age of defendants and their ownership rights. (Paras 1, 4, 19, 22)

(B) Agreement to Sell - Requirements for enforceability - An unregistered agreement to sell is inadmissible in evidence and cannot confer rights unless registered as per Section 17 of the Registration Act. (Paras 11, 19)

Facts of the case:
The plaintiff filed a civil suit against defendants for registration of a sale deed regarding a property, claiming an agreement to sell and possession, but defendants denied the joint family status and ownership of defendant No.1. (Paras 2, 4)

Findings of Court:
The trial Court found that the plaintiff failed to prove joint family status and that the agreement to sell was unregistered, thus not enforceable. (Paras 4, 22)

Issues: The main issues were whether the defendants were members of a joint family and whether the agreement to sell was enforceable. (Paras 4, 19)

Ratio Decidendi: The court ruled that an unregistered agreement to sell is inadmissible and cannot confer rights, emphasizing the necessity of registration for enforceability. (Paras 11, 19)

Result: Appeal dismissed.

Judgement Key Points

Key Points: - The judgment concerns admissibility and enforceability of an unregistered agreement to sell under the Registration Act, and its impact on rights to a sale deed (Section 17, 49, 17(1A)) (!) (!) (!) (!) (!) . - It deals with whether possession transferred under an unregistered agreement can be relied upon as a conveyance under the Stamp Act and its effect on admissibility under Section 35 (!) (!) (!) (!) . - It examines whether defendants 1–3 were members of a joint family and whether defendant 1 acted as Karta to authorize the sale/agreement (!) (!) (!) (!) . - It analyzes the effect of the unregistered agreement on the plaintiff’s claim for registration of a sale deed versus refund of advance money (!) (!) . - The court upholds trial court’s findings that the agreement was unregistered, and thus not enforceable to compel registration of a sale deed; the appeal is dismissed (!) (!) . - It cites legal doctrine on the deeming provision in the Stamp Act (explanation to Article 23, Schedule 1-A) and the exception under Section 49 and 17(1A) in specific circumstances (!) (!) (!) (!) . - The trial court’s alternate relief of refund of Rs. 40,000 with interest is affirmed; no decree for specific performance is granted (!) (!) . - The respondent’s claim of bona fide purchase by defendant No.4 is sustained based on registration and majority status of defendants 2 & 3 on the relevant date (!) (!) (!) (!) . - Conclusion: Unregistered agreement to sell cannot confer rights; registration is mandatory for enforceability, and non-registration bars admissibility or action upon the agreement (!) (!) (!) (!) .

Question 1?

Question 2?

Question 3?


Table of Content
1. plaintiff's claim and defendants' denial (Para 2 , 3)
2. trial court's findings (Para 4)
3. plaintiff's argument on joint family (Para 5)
4. defendant's argument on majority (Para 6 , 8 , 9 , 10)
5. court's review of evidence (Para 7)
6. admissibility of unregistered agreement (Para 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20 , 23 , 24)
7. appeal dismissed (Para 21 , 22)

Judgment :

(Naresh Kumar Chandravanshi, J.)

1. This first appeal has been preferred by the appellant/plaintiff under Section 96 of the Code of Civil Procedure , 1908, challenging the judgment and decree dated 02.11.2007 passed by District Judge, Mahasamund in Civil Suit No.8A/2006, dismissing the civil suit filed by the appellant/plaintiff against respondent/defendants to the extent of registration of sale deed in respect of suit property. However, alternative relief sought for by the plaintiff for refund of advance amount of Rs.40,000/-, has been granted by the trial Court in his favour.

[For sake of convenience , the parties would be referred to as per their status shown in the plaint filed before the trial Court]

2. Facts of the case, in nutshell are that, the plaintiff filed civil suit against defendants stating inter alia that defendant No.1 entered into agreement to sell suit property, i.e. piece of Khasra No.138 numbered as 138/2, area 0.56 hectare, situated at village Jhuipali, PH No.14, Revenue circle and Tahsil Basna, Distt. Mahasamund to him, as ‘Karta’ for sale consideration of Rs.1 lakh per acre. He had also received Rs.40,000/- as advance amount from the plaintiff and executed an agreement to sell on 08.3.2003 in stamp paper. Defendant No.1 had agreed to execute registered sale deed till 31.03.2003 after receiving outstanding sale consideration. He had also handed over possession of the suit property to the plaintiff, since then he is in possession over it. Despite repeated oral request to execute the sale deed, defendant No.1 kept procrastinating and assured the plaintiff that sale deed will be registered in his favour after entering names of defendants 2 & 3 (sons of defendant No.1) in revenue record as major, as their names have been recorded as minor. Subsequently, names of defendants 2 & 3 have been entered in revenue record on 04.01.2004 as major, thereafter the plaintiff again asked defendant No.1 for registration of sale deed, but, he did not do it even after service of legal notice, rather defendants 2 & 3 sold suit property to defendant No.4 vide registered sale deed. Therefore, the plaintiff filed civil suit for registration of sale deed in his favour by defendants 1 to 3 and he has also prayed that sale deed dated 06.01.2006 executed by defendants 2 & 3 in favour of defendant No.4 be declared null and void. Alternatively, he also sought relief for refund of advance amount with interest of 9%.

3. Defendants 1 to 3 remained ex-parte before the trial Court and they have not filed any written statement. Defendant No.4 filed written statement, in which she has denied substantive pleading of the plaintiff. She has denied that defendants 1 to 3 are members of the joint family and defendant No.1 is ‘Karta’ of the family, rather there was mutual partition between defendants 1 to 3, as such, defendant No.1 had no right to sell the suit property owned by defendants 2 & 3 as defendant 2 & 3 were recorded owner of it and they had attained the age of majority. She has further pleaded that she has purchased the suit property vide registered sale deed dated 06.01.2006 after payment of full sale consideration, as such she is bonafide purchaser. Hence, the plaintiff is not entitled to get any relief sought for by him in the plaint.

4. The trial Court on the basis of pleading put forth by the parties, has framed as many as 10 issues, recorded evidence of the parties and after considering the same, partly allowed the suit holding therein that the plaintiff has failed to prove that defendant 1 to 3 were members of the joint family and defendant

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