An unregistered document can be admissible in a suit for specific performance, and a plaint cannot be rejected solely on the grounds of non-registration or insufficient stamp duty without trial evidence.

JUDGMENT :

SANJAY VASHISTH, J.

1. Present revision petition has been filed by the petitioner/defendant challenging the order dated 30.07.2021(Annexure P-5), passed by the Court of learned Civil Judge (Jr. Division) Ludhiana, whereby the application under Order VII Rule 11 of Civil Procedure Code (C.P.C), for rejection of plaint of respondent/plaintiff- Nitesh Kumar, has been dismissed.

2. On the basis of the alleged written document dated 17.12.2018 claiming it to be an agreement to sell, plaintiff filed a suit for possession and specific performance. Petitioner-defendant filed an application under Order VII Rule 11 C.P.C. for rejection of the plaint primarily on the following grounds:

“(i) The suit is false, frivolous, vexatious, and a sheer abuse & misuse of the process of law (ii) Absence of cause of action.

(iii) The suit is barred as the alleged agreement dated 17.12.2018 set up by the Respondent/Plaintiff is inadequately stamped & unenforceable.

(iv) The suit is barred as the alleged agreement dated 17.12.2018 set up by the Respondent/ Plaintiff is unregistered and unenforceable.

(v) The alleged agreement dated 17.12.2018 set up by the Respondent/ Plaintiff is completely contradictory &self-destructive.

(vi) The alleged agreement dated 17.12.2018 set up by the Respondent/ Plaintiff is void on account of vagueness and uncertainty.

(vii) Suit being barred by limitation.

(viii) Plaintiff being liable to pay ad-valorem court fee on the market value of the suit property.”

3. While dismissing the application, learned trial Court observed that at this stage, prayer for rejection of the plaint is wholly immaterial, and the only requirement under the law is that if the averments in the plaint ex facie do not disclose a cause of action or on a reading thereof the suit appears to be barred under any law, the plaint can be rejected. Further, learned trial Court observed that in all other situations, the claims will have to be adjusted in the course of the trial. It is also observed that the value of the suit property cannot be assessed at this stage and the issue of limitation and genuineness of agreement would depend on the evidence to be adduced by the parties. Thus, observed that the question of limitation and the question of genuineness of agreement are the subject matter for evidence.

4. Observations made by the learned trial Court are assailed by the petitioner-defendant primarily on the ground that looking at the nature of the document, it requires its registration under Indian Registration Act, 1908 (for short ‘ the Act 1908’). Due to the clever drafting, document has been made to be construed as an agreement to sell, whereas in fact, the suit is only for a symbolic possession and injunction in pursuance to the execution of the mortgage deed alongwith possession for an amount of Rs.20 lacs. Thus, without the document being duly stamped and registered, same is not admissible in evidence, therefore, same is without the statutory compliance which is inherent in it.

5. However, petitioner accepts that the question of limitation is mixed question of law and facts and the same is not addressed by him at this stage. Regarding non-registration of the documents, Mr. R. Kartikya, learned counsel for the petitioner relies upon the decision of Hon’ble Apex Court titled as, “K.B. Saha and sons Private Limited Vs. Development Consultant Limited, (2008)8 Supreme Court Cases 564 : Law Finder Doc Id #144176”, and refers to Section 49 of the Act, 1908, which is reproduced hereinbelow:

“49. Effect of non-registration of documents required to be registered.-No document required by section 17 [or by any provision of the Transfer of Property Act, 1882,] to be registered shall-

(a) affect any immovable property comprised therein, or

(b) confer any power to adopt, or

(c) be received as evidence of any transaction affecting such property or conferring such power, unless it has been registered :

[Provided that an unregistered document affecting immovable property and