Unregistered documents may be admitted as evidence of oral agreements in specific performance cases under Section 49 of the Registration Act.

ORDER

1. Leave granted.

2. This appeal is against the order passed by the High Court of Judicature at Madras in CRP.PD. No. 2828 of 2015 dated 26.02.2021, whereby the High Court dismissed the Civil Revision Petition filed against the order passed by the Trial Court on 21.04.2015 dismissing the interlocutory application filed by the appellant seeking permission to place on record a document dated 01.01.2000.

3. Short facts leading to the filing of this appeal are as follows. It is the case of the appellant that on the basis of an agreement of dated 01.01.2000, the respondent agreed to sell his property upon receiving part consideration of Rs. 5000/- and also put the appellant in possession of the property. Subsequently, i.e. on 01.09.2002, it is alleged by the appellant that the parties have agreed that the property should be sold at the rate of Rs. 550 per cent and in furtherance of the said transaction the appellant also paid a sum of Rs. 10,000/- and is said to have paid balance consideration from time to time. However, as the respondent was not taking any steps for executing the sale deed, he was compelled to institute a suit, O.S. No. 78 of 2012 before the District Munsiff Court, Madurantakam (hereinafter referred to as ‘Trial Court’). for specific performance of the agreement and also for a permanent injunction.

4. Pending disposal of the suit, the appellant filed an interlocutory application, I.A. No. 1397 of 2014. under Order 7, Rule 14 (3) read with Section 151 of the Code of Civil Procedure, 1908, [Hereinafter referred to as ‘CPC’.], for bringing on record and marking the document dated 01.01.2000. In the said application, the appellant averred that for genuine reasons he was unable to produce the said document, which got mixed up with other documents. He averred that a photocopy of the said document was anyway enclosed with the plaint and therefore the respondent/defendant will not in any way be prejudiced if the prayer in the interlocutory application is allowed and the original of the said document is received and marked.

5. Learned Trial Court by order dated 21.04.2015 dismissed the said application holding that the reasons for not producing the original is not convincing and also that the said document was unstamped and unregistered and as such barred under Section 35 of the Indian Stamp Act , 1989, and that Section 17 of the Registration Act , 1908.

6. The appellant filed a Civil Revision Petition before the High Court and by the order impugned before us the High Court held that the document was unstamped and unregistered and cannot be brought on record.

7. Though notice was issued on 30.07.2021 and the case was adjourned from time to time, the respondents have not entered appearance. By order dated 22.03.2022 this Court recorded that service upon respondent no. 4 is deemed to have been completed in terms of order dated 29.11.2021. However, the case was further adjourned from time to time for almost two years and we have now decided to dispose of this appeal.

8. Learned counsel for the appellant submitted that the courts below have disregarded the proviso to Section 49 of the Registration Act which allows tendering of documents that endorses an oral agreement of sale. In support of his contention, he relied on the decision of this Court in S. Kaladevi v. V.R. Somasundaram , (2010) 5 SCC 401.. He also submitted that reliance on Section 17 (1A) of the Registration Act was not correct in as much as the document was executed on 01.01.2000.

9. Having considered the matter in detail, we are of the opinion that the prayer of the appellant in the interlocutory application falls under proviso to Section 49 of the Registration Act which provides that an unregistered document affecting immovable property may be received as evidence of a contract in a suit for specific performance. The proviso also enables the said document to be received in evidence of a collateral transaction. Section 49 reads as follows:

“49. Effect of non-