IN THE HIGH COURT OF MADHYA PRADESH AT INDORE
SUBODH ABHYANKAR, J.
Skye Earth Developers (P) Ltd. – Petitioner
Versus
M.P. Real Estate Regulatory Authority – Respondent
Writ Petition No. 26515 of 2023
Decided On : 10-01-2024
Real Estate Regulation and Development Act - Registration of Decrees - Section 4(2)(l)(m) of the Act of 2016 - Section 17(2)(vi) of the Registration Act, 1908 - Supreme Court decisions in Gurcharan Singh and Others vs. Angrez Kaur and Another, (2020) 10 SCC 250 and Khushi Ram and Others vs. Nawal Singh and Others, 2021 SCC Online SC 128
Fact of the Case:
The petitioner filed a writ petition under Article 226 of the Constitution of India, challenging the rejection of their project registration application by the M.P. Real Estate Regulatory Authority due to non-registration of decrees dated 23.11.1994, in violation of Section 4(2)(l)(m) of the Act of 2016.
Finding of the Court:
The court found that the decrees in question, being declaratory in nature and not involving any land other than the suit land, were not required to be registered. The court set aside the order mandating registration of the decrees and directed the respondent to reconsider the petitioner's application for registration.
Issues: The main issue was whether the petitioner was required to register the decrees dated 23.11.1994, as mandated by the Real Estate Regulatory Authority.
Ratio Decidendi: The court relied on the interpretation of Section 17(2)(vi) of the Registration Act, 1908, and the Supreme Court decisions in Gurcharan Singh and Khushi Ram cases to determine that the decrees, being declaratory in nature and not involving any other land, were not compulsorily registrable.
Final Decision: The impugned order mandating the petitioner to register the decrees was set aside, and the respondent was directed to reconsider the petitioner's application for registration within four weeks.
ORDER :
1. Heard finally, with the consent of the parties.
2. This writ petition has been filed by the petitioner under Article 226 of the Constitution of India assailing the order dated 03.10.2023, passed by the M.P. Real Estate Regulatory Authority, Bhopal whereby the petitioner’s application for registration of project has been rejected on certain grounds including that the petitioner has not registered the decrees dated 23.11.1994, which is in violation of Section 4(2)(l)(m) of the Real Estate Regulation and Development Act, 2016 (in short “the Act of 2016”).
3. Shri Amit Agrawal, learned Senior counsel for the petitioner has drawn the attention of this Court to both the decrees dated 23.11.1994, which have been passed in favour of the owners of the land, namely, Hanif and Anwar respectively. Shri Agrawal has submitted that on the basis of the aforesaid decrees, which have already attained the finality, the owners of the land have entered into a development agreement with the petitioner-company vide development agreement dated 02.09.2021 (Annexure P/11). It is further submitted that the aforesaid agreement is also registered with stamp duty duly paid. Senior counsel has submitted that as per Section 17(2)(vi) of the Registration Act, 1908, a decree in itself is not compulsorily registrable, except a decree or order expressed to be made on a compromise and comprising immovable property other than that which is the subject matter of the suit or proceedings. It is submitted that the decrees were not passed in a compromise and also does not involve any other immovable property other than the subject matter of the suit. Thus, it is submitted that the petitioner was not required to get the aforesaid decrees registered, even as per Section 17(1)(e), the agreement between the parties, which can be termed to be a non-testamentary instruments transferring or assigning the decree, is already registered for which a stamp duty of Rs. 38,15,900/- and registration fees of Rs. 12,21,088/- have already been paid. Thus, it is submitted that the impugned order, so far as it relates to the condition imposed by the respondent (Real Estate Regulatory Authority) RERA to get the decrees registered, be set aside.
4. Senior counsel for the petitioner has relied upon certain decisions rendered by the Supreme Court in the case of Gurcharan Singh and Others vs. Angrez Kaur and Another, (2020) 10 SCC 250 and Khushi Ram and Others vs. Nawal Singh and Others, 2021 SCC Online SC 128.
5. Counsel appearing for the respondent has opposed the prayer and it is submitted that no case for interference is made out. In support of his submission, counsel for the respondent has also relied upon a decision rendered by the Supreme Court in the case of Bhoop Singh vs. Ram Singh Major and Others, 1995 (5) SCC 709. Relevant Paras 16, 17 and 18 of the same read as under:
17. It would, therefore, be the duty of the court to examine in each case whether the parties have pre-existing right to the immovable property, or whether under the order or decree of the court one party having right, title or interest therein agreed or suffered to extinguish the same and created right, title or interest in praesenti in immovable property of the value of Rs. 100 or upwards in favour of other party for the first time, either by compromise or pretended consent. If latter be the position, the document is compulsorily
The main legal point established is that decrees, if declaratory in nature and not involving any land other than the suit land, may not be compulsorily registrable under Section 17(2)(vi) of the Regi....
Compromise decree comprising immovable property other than which is subject-matter of suit or proceeding requires registration, although any decree or order of a court is exempted from registration.
The main legal point established in the judgment is that an agreement of sale which does not create interest in immovable property is not prohibited from registration under Section 22-A of the Regist....
A compromise decree creating new rights in immovable property requires registration under Section 17 of the Registration Act if it establishes rights for the first time.
A compromise decree that creates new rights in immovable property valued at Rs. 100 or more is compulsorily registrable under Section 17(1) of the Registration Act, 1908.
A valid decree must be registered by the Registrar without questioning its validity, as the power to set aside a decree lies solely with a competent Civil Court.
(1) Stamp duty is not chargeable on an order/decree of Court as the same do not fall within documents mentioned in Schedule I or I-A read with Section 3 of Stamp Act, 1899.(2) Registration of documen....
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