BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
P.T.Asha, J.
Kasthuri - Petitioner
Vs.
R.Hemalatha - Respondent
C.R.P.(MD) No.1877 of 2017 and C.M.P.(MD) No.9778 of 2017
Decided On : 01-02-2022
Registration Act, 1908 - Section 17, (1) (b) and © and 17 (2) (v) - Transfer of Property Act, 1882 – Section 54 - Tamil Nadu Amendment Act 29 of 2012 - Section 17 - Indian Registration Act, 1871 - Indian Stamp Act, 1899 – Article 5(i) - Agreement of sale - Learned 3rd Additional District Judge, Trichy - It is her case, defendant had entered into an agreement of sale with her to sell suit schedule properties for a total sum and on date of agreement, a sum was paid as advance and parties had agreed that balance sum would be paid within a period of 6 months from date of agreement - Defendant had undertaken to register the sale deed on receiving the said sum - Parties had clearly agreed that time would not be essence of contract - It is case of the plaintiff that defendant's husband was present, when parties had entered into agreement of sale and executed document - It is the also case of plaintiff that she was always ready and willing to proceed further with agreement - Defendant had been putting off the same - This constrained plaintiff to issue a legal notice which was refused to be received by defendant though intimation of same had been given to her for over 3 days - Whether an unregistered agreement of sale could be marked as evidence as a preliminary issue. [Para 29].
Finding of the Court: In light of court discussions regarding Section 17 and 49 of the Act and effect of amendments to proviso to Section 49, court of view that learned 3rd Additional District Judge, Trichy has committed an error in answering preliminary issue against plaintiff - Consequently, Civil Revision Petition is allowed - Order made in I.A. in O.S. on file of learned 3rd Additional District Judge, Trichy is set aside and document shall be received in evidence, considering the fact that suit in question is a suit for specific performance, which falls within first exception carved out in proviso to Section 49 and since proviso to Section 49 is not repugnant to amendments that has now been brought out into Section 17 of Act - This Court would also like to place on record its appreciation of arguments that have been placed on subject succinctly by both counsels.
Result: Petition allowed.
ORDER :
The plaintiff, who is the revision petitioner before this Court, is challenging the order passed by the learned 3rd Additional District Judge, Trichy in I.A.No.159 of 2017 in O.S.No.199 of 2014.
2. I.A.No.159 of 2017 was filed by the defendant to take up the issue as to whether an unregistered agreement of sale could be marked as evidence as a preliminary issue. After considering the application, the learned 3rd Additional District Judge, Trichy has come to the conclusion that the agreement of sale dated 10.09.2013 was sought to be marked to establish the primary purpose and therefore, it cannot be received in evidence.
3. Though the issue for consideration before this Court is purely a legal issue, there is a necessity to briefly touch upon the facts that have ultimately culminated in the passing of the impugned order.
FACTS OF THE CASE :-
4. The petitioner herein, who is the plaintiff, had filed a suit O.S.No.199 of 2014 for specific performance on the file of the learned 3rd Additional District Judge, Trichy. It is her case that on 10.09.2013, the defendant had entered into an agreement of sale with her to sell the suit schedule properties for a total sum of Rs.22,00,000/- and on the date of the agreement, a sum of Rs.20,00,000/- was paid as advance and the parties had agreed that the balance sum of Rs. 2,00,000/- would be paid within a period of 6 months from the date of the agreement. The defendant had undertaken to register the sale deed on receiving the said sum. The parties had clearly agreed that the time would not be essence of the contract.
5. It is the case of the plaintiff that the defendant's husband was present, when the parties had entered into the agreement of sale and executed the document. It is the also case of the plaintiff that she was always ready and willing to proceed further with the agreement. However, the defendant had been putting off the same. This constrained the plaintiff to issue a legal notice dated 01.02.2014, which was refused to be received by the defendant though intimation of the same had been given to her for over 3 days. On 14.12.2014, the plaintiff has also effected a paper publication informing the general public about her entering into an agreement of sale with the defendant. Since the defendant had failed to perform her part of the contract, the plaintiff had come forward with the instant suit for specific performance.
6. The defense to the above suit was that the plaintiff and the defendant's husband were known to each other for over 30 years and the plaintiff had been running a chit business, into which she had roped in the defendant's husband. It appears from the contentions of the written statement that the defendant's husband joined in various chits and also obtained the prize money. Meanwhile, the plaintiff had also borrowed a sum of Rs.15,00,000/- from the defendant's husband, for which, she had executed a promissory note in favour of the defendant's husband on 11.02.2015. The money was not returned and the plaintiff had cheated the defendant's husband for which he had given a criminal complaint. The suit is only a counter blast to the above complaint.
7. The defendant would further submit that when they had initially participated in the chit transactions, the title deeds of the defendant had been taken by the plaintiff and this has now been put into use for filing the above suit. She has come forward with the categoric case that there is no agreement of sale entered into between herself and the plaintiff and the signature therein is not her signature and neither is the signature of her husband, who is shown to have signed the document as a witness, the signature of her husband. Therefore, she sought for the dismissal of the suit.
8. After the chief examination of the plaintiff as P.W1, the defendant has come forward with the impugned petition. The plaintiff had filed a memo stating that she had no objection to the same being taken up as a preliminary issue. Ultimately, by the
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 unregistered sale agreement can be considered for proving possession and specific performance, and an agreement to sell does not confer any right, title, or interest over the property, thus not re....
The main legal point established in the judgment is that an unregistered agreement for the sale of immovable property is admissible in evidence in a suit for specific performance, and the protection ....
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).
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