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1945 Supreme(Mad) 120

IN THE HIGH COURT OF MADRAS
Chandrasekhar Ayyar, J.
Duraiswami Reddi
Versus
Angappa Reddi and Anr.
Decided On : 09.03.1945

The main legal principle established in the judgment is that the document executed first in order of time has priority over the other, even if it was registered later, as per the provisions of Section 47 of the Registration Act.

Headnote:

Registration Act - Priority of Registered Documents - The court held that the document executed first in order of time has priority over the other, even if it was registered later than the subsequent document. The provisions of Section 47 of the Registration Act were crucial in determining the priority of the registered documents in the case.

Fact of the Case:

The plaintiff lost the sale deed for properties purchased from the first defendant and filed a suit for specific performance. The second defendant, who took a subsequent sale from the first defendant, was impleaded in the suit. Both lower courts decreed in favor of the plaintiff for recovery of possession of the properties, negating the second defendant's contention of priority due to earlier registration of the sale deed.

Finding of the Court:

The court analyzed the provisions of the Registration Act and held that the document executed first in order of time has priority over the other, even if it was registered later. The court emphasized that Section 47 of the Registration Act and Section 48 of the Transfer of Property Act were crucial in determining the priority of the registered documents.

Issues: The issues revolved around the priority of registered documents and the application of Section 47 of the Registration Act in determining the priority of the documents in the case.

Ratio Decidendi: The court relied on the provisions of Section 47 of the Registration Act to establish that the document executed first in order of time has priority over the other, even if it was registered later. The court emphasized that allowing a later document registered earlier to prevail over an earlier document registered later would lead to potential fraud.

Final Decision: The second appeal failed and was dismissed with costs, affirming the lower courts' decrees in favor of the plaintiff for recovery of possession of the properties.

JUDGMENT

Chandrasekhar Ayyar, J.

1. The second defendant is the appellant in this case. The properties in the suit were sold by the first defendant to the plaintiff on the gth July, 1941. The plaintiff lost the sale deed on the 29th July, 1941, and filed the suit for specific performance on the 14th August, 1941, alleging the loss of the sale deed, and asking for the execution of a fresh sale deed and for possession of the properties. To this suit, he impleaded the second defendant who took a subsequent sale from the first defendant of the properies with knowledge of the plaintiffs sale. The sale deed -to the second defendant was executed on the 16th July, 1941, and registered on the 23rd July, 1941. Before the suit proceeded to trial however the plaintiff recovered his lost sale deed and got it registered on the 22nd September, 1941. Both the lower Courts have given a decree to the plaintiff for recovery of possession of the properties negativing the second defendants contention that he is entitled to priority because his sale deed was registered earlier than the plaintiffs sale deed. Section 50 of the Registration Act has no application to the facts before us because there is no competition between a registered and an unregistered document. The competition now is between two registered documents, the plaintiffs being the earlier document but registered later and the second defendants being the later one : but registered earlier. Having regard to the terms of Section 47 of the Registration Act, there is no doubt about the answer to be given as to which of these two documents has to be given priority over the other. The later document, though registered earlier, must be postponed to the earlier document and that is what was laid down in Marayanav. Laxuman I.L.R. (1904) Bom. 42 and Surendranath Ghosh v. Haridas Biswas I.L.R.(1932) 60 Cal. 225.

2. It was however urged by Mr. Bhashyamthatonthe date of the suit the competition was as between a person who had an unregistered sale deed in his favpur and his client who had a registered sale deed, though of a later date. This is true; but on the discovery of the sale deed and its registration, the position materially changed in favour of the plaintiff and the suit, even though there was no formal amendment, must be regarded as one brought by the plaintiff on the basis of a registered, sale deed in his favour dated the 9th July, 1941. Viewed in this light the question of notice becomes immaterial. Even if the second defendant is able to show that he purchased the properties bona fide without notice of the earlier sale deed, he cannot succeed unless, of course, the earlier transferee is prevented from setting up his title as against the later transferee by any infirmative circumstances such as fraud pr estoppel. The question is really concluded by Section 47 of the Registration Act and Section 48 of the Transfer of Property Act. The law gives four months period for registration and if the document is registered within that date, the subsequent transferee cannot be heard to say that as he got his document without notice, and during this period allowed to the earlier transferee, got his own document registered he must be deemed to be a bona fide purchaser for value. Such a plea, if allowed, would lead to much fraud. If a later document registered earlier is to prevail over an earlier document registered later it would always be easy for the vendor and the later purchaser to enter into a transaction within the time given for registration of the earlier document and get the new deed registered immediately and thus defeat the purchaser under the earlier deed. The correct proposition is set down in the following short passsage in Mullas Indian Registration Act under Section 47:

If there is a competition between registerad documents relating to the same property, the document executed first in order of time has priority over the other, though the former document may not have been registered until

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