IN THE HIGH COURT OF KERALA AT ERNAKULAM
KAUSER EDAPPAGATH, J.
Thomas Baby, Son Of Thomas – Petitioner
Versus
Jojo V. George (Died), Son Of George and Ors. – Respondents
OP(C) No. 3120 Of 2018
Decided On : 12-06-2024
C.P.C. - Agreement for tapping rubber trees - Kerala Registration Act, Section 17(1)(c), Section 49 - The court discussed the interpretation of immovable property, standing timber, and the distinction between 'standing timber' and 'tree' as per various legal provisions and case laws. The court also highlighted the requirement of registration for documents acknowledging the receipt of payment for the creation of rights or interest in immovable property.
Fact of the Case:
The petitioner, the first defendant, challenged the dismissal of an application to reject an agreement for tapping rubber trees on the ground that it was a compulsorily registrable document.
Finding of the Court:
The court found that the agreement created an interest in immovable property and required registration. It also held that the trial court should have rejected the agreement under Order 13 Rule 3 of C.P.C.
Issues: Interpretation of immovable property, standing timber, and the requirement of registration for documents acknowledging the receipt of payment for the creation of rights or interest in immovable property.
Ratio Decidendi: The court's decision was based on the interpretation of legal provisions defining immovable property and standing timber, as well as the requirement of registration for documents creating rights or interest in immovable property.
Final Decision: The Original Petition was disposed of with the setting aside of the previous order and allowing the application to reject the agreement.
JUDGMENT :
Ext.P7 order dismissing an application under Order 13 Rule 3 of the Code of Civil Procedure (for short 'the C.P.C.') is under challenge in this Original Petition.
2. The petitioner is the first defendant, and the respondents are the plaintiff and the second defendant respectively, in O.S. No.36/2017 on the files of the Munsiff Court, Pala (for short 'the trial court').
3. The suit was one for permanent prohibitory injunction restraining the defendants from interfering with the tapping of rubber trees standing in the plaint schedule property. According to the plaintiff, an agreement dated 06.01.2015 was executed between him on one part and the first defendant through the second defendant as power of attorney holder on the other part, permitting him to tap the rubber trees situated in the plaint schedule property belonging to the first defendant and his wife. The agreement was produced along with the plaint. The first defendant entered appearance and disputed the execution of the agreement. It is contended that the agreement is a concocted one made by the plaintiff in collusion with the second defendant.
4. The first defendant filed Ex.P4 application (I.A. No.1094/2018) at the trial court, invoking Order 13 Rule 3 of the C.P.C. to reject the agreement on the ground that it is a compulsorily registrable document and hence cannot be admitted into evidence. The trial court, after hearing both sides, dismissed the application as per Ext.P7 order. It is challenging the said order; this Original Petition has been preferred.
5. During the pendency of this Original Petition, the plaintiff/first respondent died, and his legal heirs were impleaded as additional respondents 3 to 7.
6. I have heard Sri. Rajeev V. Kurup, the learned counsel for the petitioner and Sri. N. Rajesh the learned counsel for additional respondents 3 to 7.
7. The plaintiff claims the right to tap 750 yielding rubber trees situated in the plaint schedule property belonging to the first defendant and his wife based on the unregistered agreement dated 06.01.2015. As per the agreement, the plaintiff was given the right to tap the rubber trees for 15 years for a consideration of Rs.10,00,000/- (Rupees Ten lakh only).
8. The first defendant sought to reject the agreement relying on Section 17(1)(d) and Section 49 of the Kerala Registration Act. Section 17 of the Act deals with the documents of which registration is compulsory and Section 49 deals with the effect of non-registration of documents required to be registered. Section 17(1)(c) says that non-testamentary instruments which acknowledge the receipt of payment of any consideration on account of the creation, declaration, assignment, limitation or extinction of any right, title or interest in immovable property is a compulsorily registrable document. Section 49(c) provides that no document required by Section 17 to be registered shall be received as evidence of any transaction affecting such property or conferring such power unless it has been registered. Even though the contention of the first defendant was based on Section 17(1)(c) of the Registration Act, the trial court adverted to Section 17(1)(d) of the Registration Act and found that the document is only a license, not a lease. It was further found that the agreement in question did not create any interest over immovable property and hence it is not compulsorily registrable.
9. The learned counsel for the petitioner submitted that a reading of the agreement would show that it creates interest or right over the immovable property on receipt of consideration and hence, it requires registration. Reliance was placed on Shantabai v. State of Bombay and Others [AIR 1958 SC 532 (Y 45 C 79)], Joseph v. Joseph Annamma (1979 KLT 322), Velayudhan Padmanabhan v. Thyagarajan [2011 (3) KLT 867], Santhakumari v. Raghavan Unni and Another (2014 KHC 715) and Pathumuthumma v. Khaja Moideen [2019 (3) KLT 265]. On the other hand, the learned counsel for the respondents
The main legal point established in the judgment is the interpretation of immovable property and standing timber, as well as the requirement of registration for documents creating rights or interest ....
An unregistered agreement creating rights exceeding Rs. 100 is unenforceable under Section 17(1)(b) of the Registration Act; thus, the plaintiff's suit for mandatory injunction was rightly dismissed.
Unregistered document affecting immovable property and required by Registration Act to be registered may be received as evidence of a contract in a suit for specific performance.
An oral agreement for the sale of immovable property is unenforceable without a written and registered agreement under the Registration Act and Specific Relief Act.
An unregistered agreement to sell cannot serve as a basis for injunctive relief against a true owner of property, reflecting the necessity of registration under relevant laws.
Point of Law : Order XLII Rule 2 provides power of Court to direct that the appeal be heard on the question formulated by it.
An unregistered agreement to sell immovable property is inadmissible in evidence and cannot confer rights unless registered, as per the Registration Act.
An unregistered Agreement for Sale can be admitted as evidence in a suit for specific performance, and appellate courts should respect trial court discretion unless shown to be arbitrary.
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