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2012 Supreme(P&H) 1689

IN THE HIGH COURT OF PUNJAB AND HARYANA
Before
The Hon’ble Mr. Justice Nawab Singh
Civil Revision No. 2616 of 2011 (O&M)
Sukhwinder Kaur
v.
Amarjit Singh & Ors.
{Decided on 12/01/2012}

Advocates:
For the Petitioner:Mr. Vishal Sharma, Advocate.

Headnote:Agreement to Sell--Unregistered Document--Protection of possession of property in furtherance of such unregistered agreement to sell cannot be sought however specific performance of unregistered agreement to sell can be sought.

       (A) Registration Act, 1908, S. 17 & S.49 Proviso--Unregistered agreement to sell--Admissibility--Held, if any person takes possession in pursuance to a contract which is required to be registered but has not been registered, the transferee has no right to remain in possession of property--To give effect to this principle, S.17(1A) has accordingly been inserted in the Registration Act which mandates that such contract is now required to be registered--If such a contract entered into after the amendment is not registered then per S.49 of the Registration Act, same can neither affect any immovable property comprised therein nor will it be received as evidence of any transaction affecting such property or conferring such power--Transfer of Property Act, 1882, S. 53-A (as amended by Amendment Act of 2001). (Para 8)

       (B) Specific Relief Act, 1963, S.22--Unregistered agreement to sell--Suit for Specific Performance--Plaintiff is seeking possession of property by way of specific performance of agreement to sell--He is not seeking protection of his possession on the basis of agreement to sell--Held, a person seeking protection of his possession on the basis of unregistered agreement is a different situation and where a person seeks possession of property by way of specific performance of agreement which is unregistered is a different eventuality--In the latter class of cases, agreement to sell is not required to be registered as it does not fall within the ambit of either S.53-A of the TPA or S. 17(1A) of the Act and does not require any registration--Such agreement to sell falls under the mischief of S. 17(2)(v) of the Act--Registration Act, 1908, Ss. 17(1A), (2)(v), 49 Proviso--Transfer of Property Act, 1882, S. 53-A (as amended by Amendment Act of 2001). (Para 9)

JUDGMENT

Mr. Nawab Singh J., (Oral):- This defendant No.4’s revision is directed against the order dated March 25th, 2011 (Annexure P-5) passed by Civil Judge (Junior Division), Ludhiana whereby application filed by the defendants No.1, 3 and 4 under Order 7 Rule 11 of the Code of Civil Procedure for rejection of plaint, was dismissed.

2. Amarjit Singh-plaintiff-respondent No.1 filed suit for possession by way of specific performance of agreement to sell dated July 22nd, 2008 executed by Sangeeta-defendant No.1 through her attorney Sharanjit Singh Sodhi in favour of the plaintiff with respect to the property mentioned in the head note of the plaint. The plaintiff also sought a decree of declaration to the effect that sale deed dated December 20th, 2010 subsequently executed by defendant No.1 in favour of defendants No.3 and 4 be declared null and void. A decree of permanent injunction was also sought against the defendants.

3. During pendency of suit, the defendants moved application (Annexure P-3) seeking rejection of the plaint on the ground that the agreement to sell in question contains a recital that the possession of property in dispute has been delivered to the plaintiff. Hence, the same requires registration as per Section 17(1A) of the Registration Act, 1908 (for short “the Act”).

4. As afore-stated, by impugned order (Annexure P- 5), the application has been dismissed.

5. Learned counsel for the petitioner has urged that vide Amendment Act No.48 of 2001, Section 53-A of the Transfer of Property Act, 1882 (for short “ the TPA”), Section 17 and Section 49 of the Act have been amended. After the amendment, an agreement to sell which contains a recital regarding possession of the property is required to be compulsorily registered. If the agreement to sell is not registered then the same cannot be received as evidence of any transaction affecting such property.

6. In support of the contention, reliance has been placed on Gurbachan Singh vs. Raghubir Singh, [2010(3) Land L.R. 651 (P&H)] : 2010(3) CCC 731, wherein a single Bench of this Court held that an unregistered agreement does not give a right to seek decree for specific performance and as a necessary corollary, the plaintiff is not entitled to retain possession under the garb of such an agreement.

7. To understand the controversy, Section 53-A of TPA, Section 17 and Section 49 of the Act are reproduced as under:-

Section 53A of Transfer of Property Act, 1882.

Part Performance - Where any person contracts to transfer for consideration any immovable property by writing signed by him or on his behalf from which the terms necessary to constitute the transfer can be ascertained with reasonable certainty, and the transferee has, in part performance of the contract, taken possession of the property or any part thereof, or the transferee, being already in possession, continues in possession in part performance of the contract and has done some act in furtherance of the contract, and the transferee has performed or is willing to perform his part of this contract, then, notwithstanding that where there is an instrument of transfer, that the transfer has not been completed in the manner prescribed therefor by the law for the time being in force, the transferor or any person claiming under him shall be debarred from enforcing against the transferee and persons claiming under him any right in respect of the property of which the transferee has taken or continued in possession, other than a right expressly provided by the terms of the contract :

Provided that nothing in this section shall affect the rights of a transferee for consideration who has no notice of the contract or of the part performance thereof.]”

Section 17 of Indian Registration Act, 1908

17. Documents of which registration is compulsory .(1) The following documents shall be registered, if the property to which they relate is situate in a district in which, and if they have been executed on or after the date on whic





































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