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2025 Supreme(Mad) 5067

IN THE HIGH COURT OF JUDICATURE AT MADRAS
P.B. BALAJI, J.
Jayanthi – Appellant
Versus
Pichapillai – Respondent
C.R.P. (PD) No. 2600 of 2025, C.M.P. No. 14739 of 2025
Decided On : 28-08-2025

Advocates Appeared:
For the Appellant : T. Deeraj

An unregistered Sale Deed can be introduced in court for determining possession, provided no rights are established under the document, along with the requirement of paying deficit stamp duty for unstamped documents.

Headnote:(A) Transfer of Property Act, 1882 - Section 54 - Registration Act, 1908 - Section 17 and Section 49 - Unregistered Sale Deed - Petitioner sought to mark unregistered Sale Deed to establish factum of possession - Trial Court dismissed application citing non-registration - Supreme Court precedent states an unregistered Sale Deed can be considered for ascertaining possession - Trial Court overlooked that such documents can be used for collateral purposes - Must pay deficit stamp duty to rely on unstamped document. (Paras 3, 9, and 10)

(B) Purpose of Document - Allowed to use unregistered documents for determining possession but not for establishing rights - Court emphasizes collateral purpose usage. (Paras 6, 7, and 10) Fact of the case: The petitioner is the 5th defendant in a suit and seeks to mark an unregistered Sale Deed to prove possession, which was denied by the trial court.

Findings of Court:
The order of dismissal from the trial court is set aside; petitioner must pay the deficit stamp duty to utilize the document for the intended purpose.

Issues: The key issue addressed is whether an unregistered Sale Deed can be admitted for the purpose of proving possession without establishing any rights under it.

Ratio Decidendi: The court concluded that while unregistered documents generally require registration, they can be admitted for collateral inquiries regarding possession, providing the necessary duties are paid on unstamped documents.

Result: C.R.P. allowed and the trial court's order set aside.

Table of Content
1. factual background of the case (Para 1 , 2)
2. arguments for admissibility of unregistered deed (Para 3 , 4 , 9)
3. court's interpretation of legal provisions on possession (Para 5 , 6 , 7 , 8 , 10)
4. conclusion and order granted in favor of the petitioner (Para 11)

ORDER :

1. Heard Mr.T. Deeraj, learned counsel for the petitioner. Despite service of notice on the respondent, the respondent has neither appeared in person, nor through a counsel.

2. The petitioner is the 5th defendant in O.S. No.83 of 2014. An application in I.A. No.2 of 2020 was taken out to mark an unregistered Sale Deed, dated 31.10.1988. The trial Court finding that the petitioner is attempting to establish title through the said document, proceeded to dismiss the application. Aggrieved by the said order, the present revision has been filed.

3. The learned counsel for the petitioner states that the said unregistered Sale Deed is sought to be marked as a document only in order to establish the factum of possession, more specifically the commencement of possession being with the 1st defendant and subsequently with the 5th defendant. It is therefore the contention of Mr.T. Deeraj, learned counsel for the petitioner that the purpose for which the unregistered document is sought to be marked is only for collateral purpose. However, the trial Court has dismissed the application finding that admittedly the document is not a registered one as required under Section 17 of the REGISTRATION ACT , and therefore, the petitioner cannot be permitted to mark the said unregistered Sale Deed.

4. The learned counsel also relies on the following decisions :

i) Bondar Singh and others vs. Nihal Singh and others , (2003) 4 SCC 161

ii) Ramamoorthy vs. M. Shanmugam and others , (2009) 6 CTC 609

iii) Mayilu Ammal and another vs. Renganathan , (2005) 5 CTC 424

5. The Hon'ble Supreme Court in Bondar Singh's case has categorically held that an unregistered Sale Deed can be looked into for ascertaining the nature of possession.

6. In Ramamoorthy's case also, this Court held that an unregistered conveyance deed can be looked into for ascertaining the nature of possession and also boundaries of property.

7. In Mayilu Ammal's case, as well, this Court relying on ratio laid down in Bondar Singh's case held that an unregistered and unstamped document can be looked into for collateral purpose viz., for finding out nature of possession of the suit property.

8. I have carefully considered the submissions advanced by the learned counsel for the petitioner and I have also gone through the decisions on which reliance is placed on by the learned counsel for the petitioner.

9. The learned counsel for the petitioner has also taken me through the written statement filed in the said suit as well the application filed in I.A. No.2 of 2020, wherein, it is specifically contended that the purpose of marking the said unregistered document is only to establish the date of commencement of possession with the defendants viz., the 1st defendant, father and subsequently with the 5th defendant. The trial Court without adverting its attention to the request made by the petitioner has merely proceeded to hold that Section 54 of the Transfer of Property Act, 1882 read with Section 17 of the REGISTRATION ACT , 1908 requires the Sale Deed to be registered and duly stamped and in the instant case, the Sale Deed being unregistered as well as unstamped, cannot be permitted to be received as document.

10. The trial Court has lost sight of the fact that Section 49 permits a party to rely on even an unregistered document, as long as no right is sought to be established under the said document. Here, the specific case on which the application came to be filed was that the petitioner wanted to establish the commencement of possession being with the revision petitioner and incidentally the factum of possession being with the revision petitioner. It is certainly for a collateral purpose as held by the Hon'ble Suprem

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