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2025 Supreme(Ker) 2477

IN THE HIGH COURT OF KERALA AT ERNAKULAM
C.PRATHEEP KUMAR, J.
Ussan Sahib, S/o Khadar Sahib - Appellant 
Versus 
Muhammed Sanooj, S/o Late Noormuhammed - Respondent  
RFA No. 371 of 2010
Decided on : 12-08-2025

Advocates Appeared:
For the Appellant : SHRI S.V.BALAKRISHNA IYER, SHRI.P.B.KRISHNAN (SR.), SRI.P.B.SUBRAMANYAN, SRI.SABU GEORGE, SRI.MANU VYASAN PETER
For the Respondent: SRI.JOHN JOSEPH(ROY), SHRI.SURIN GEORGE IPE

Non-registration of an agreement does not bar a claim for specific performance, as unregistered documents can be evidence in such suits under the Registration Act.

Headnote:(A) Registration Act - Sections 17 and 49 - Specific Relief Act, 1963 - Appeal for specific performance of an unregistered agreement dated 14.10.2003 - Non-registration does not bar claim as per proviso to Section 49 allowing use as evidence in specific performance suits - Trial court dismissed the suit on technical grounds, failing to assess merits and the nature of the agreement - Plaintiff was always ready and willing to perform his part of the contract, established by evidence including a lawyer's notice and payment of advance - The execution of the agreement by the defendants was not disputed, and possession was handed over to the plaintiff. (Paras 2-20)

(B) The court held that even though the agreement was unregistered, it was admissible as evidence for specific performance claim as the provision in the Registration Act allows this in such context. The trial court's decision was found unjustified, leading to the granting of the decree. (Paras 8-13)

Facts of the case:
The plaintiff sought specific performance of a sale agreement executed by the defendants but faced dismissal from the trial court due to non-registration of the agreement, which the plaintiff contended was unjustified. The agreement had been acknowledged by both parties and possession was given to the plaintiff.

Findings of Court:
The plaintiff was always willing to perform his obligations, which constituted grounds for granting specific performance. The dismissal for lack of registration was not justified under the circumstances.

Issues: The central issues were whether non-registration of the agreement precluded the plaintiff from a specific performance decree and if the trial court's decision warranted interference.

Ratio Decidendi: The court determined that non-registration did not undermine the claim for specific performance given the nature of evidence allowed under the Registration Act, particularly the proviso to Section 49. The trial court's dismissal on technical grounds lacked a basis in merit.

Result: The appeal is allowed, and a decree for specific performance is granted.

Table of Content
1. agreement for sale executed with advance payment. (Para 1 , 2)
2. defendants contend sale agreement was security for a loan. (Para 3)
3. trial court dismissed suit on technical grounds. (Para 4 , 8 , 9)
4. court considers non-registration effect on specific performance. (Para 5)
5. hearing and representations of counsel noted. (Para 6)
6. court evaluates admissibility of ext.a1 based on registration act. (Para 7 , 13)
7. provisions of registration act allow specific performance. (Para 10 , 11 , 12)
8. plaintiff's readiness and willingness to perform contract established. (Para 14 , 15 , 16)
9. court notes financial implications and fairness in allowing specific performance. (Para 18)
10. plaintiff entitled to decree for specific performance. (Para 19 , 20)
11. final order granting specific performance. (Para 21)

JUDGMENT :

C.PRATHEEP KUMAR, J.

The plaintiff in OS 60/2004 on the file of the Additional Sub Court, Palakkad, is the appellant. (For the purpose of convenience, the parties are hereafter referred to as per their rank before the trial court.)

2. The plaintiff filed the above suit for specific performance of Ext.A1 agreement for sale dated 14.10.2003 executed by him along with defendants 1 to 5. According to the plaintiff, as per Ext.A1, the defendants agreed to sell an extent of 10 cents of property covered by settlement deed 1802/1992 of SRO Alathur (Ext.A2), for a consideration of Rs.45,000/- per cent. On the date of agreement itself, a sum of Rs.2,50,000/- was paid as advance and the possession of the scheduled property was handed over to the plaintiff. The period originally fixed for specific performance was upto 14.2.2004 and subsequently, it was extended till 28.2.2004, as per endorsement dated 30.1.2004. According to the plaintiff, though he was always ready and willing to perform his part of the contract, it could not be performed due to the default of the defendants. On 24.2.2004 a lawyers notice was issued to the defendants calling upon them to execute the sale deed after receiving the balance sale consideration. As mentioned in the said notice, he was present in the Alathur Sub Registrar's office on 27.2.2004 with sufficient funds, but the defendants did not turn up. After receiving the notice, the 1st defendant approached the plaintiff and requested for four days time stating that he had some urgent work in Bangalore. Since the defendants failed to execute the sale deed as promised, he preferred this suit.

3. During the pendency of the suit the 1st defendant died and additional defendants 6 to 9 were impleaded as his legal representatives. Defendants 2 and 3 remained ex parte. Defendants 4 and 5 filed written statement denying the execution of Ext.A1 agreement and contending that there was only a loan transaction with the plaintiff. According to them, the 1st defendant borrowed a sum of Rs.1,00,000/- from the plaintiff and at that time, as demanded by the plaintiff, he was forced to execute Ext.A1 agreement as a security. They also contended that at the time of the agreement, the scheduled property was subject to a mortgage with the bank. It is also contended that the actual value of the property was much more. Additional defendants 6 to 9 would contend that they are not aware Ext.A1 agreement. Therefore, they prayed for dismissing the suit.

4. The trial court framed five issues. The evidence in the case consists of the oral testimonies of PWs1 to 3, DWs1 and 2 and Exts.A1 to A4. After evaluating the evidence on record, the trial court dismissed the suit holding that since Ext.A1 was not registered, it cannot be received in evidence, in the light of Sections 17 and 49 of the REGISTRATION ACT . Aggrieved by the above judgment and decree of the trial court, the plaintiff preferred this appeal raising various grounds.

5. Now the points that arise for consideration are the following :-

i. Whether the non-registration of Ext.A1 agreement dis-entitles the plaintiff from getting a decree for specific performance

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