UNIT-II

REGISTRATION ACT

SECTION 17 OF THE REGISTRATION ACT, 1908: COMPULSORY REGISTRATION

OF DOCUMENTS
Section 17 of the Registration Act, 1908, mandates the compulsory registration of certain documents
to ensure legal authenticity, transparency, and the prevention of fraudulent transactions. The section
applies primarily to non-testamentary instruments that affect rights, title, or interest in immovable
property. This includes instruments of gift of immovable property, non-testamentary documents
transferring property worth ₹100 or more, leases exceeding one year, and instruments creating or
extinguishing rights in immovable property. Registration under Section 17 is crucial as it ensures that
such documents gain evidentiary value, public recognition, and legal enforceability. Failure to register
these documents renders them inadmissible in court as evidence to prove the transaction they embody,
as per Section 49, though they may still be used for collateral purposes. The rationale behind this
provision is to create a public record of significant transactions, thereby safeguarding ownership and
rights against future disputes
Key Documents That Require Compulsory Registration

1. Instruments of Gift of Immovable Property

Any document transferring immovable property as a gift must be registered.
2. Non-Testamentary Instruments Affecting Immovable Property
o Sale deeds, mortgages, partition deeds, exchange deeds, etc., transferring rights in
immovable property valued at ₹100 or more.

3. Leases of Immovable Property

o Leases exceeding one year or reserving yearly rent require registration.

4. Documents Creating or Acknowledging Rights in Immovable Property

o These include deeds that create charges, trusts, or any interest in immovable property.

Effect of Non-Registration of Compulsorily Registerable Documents

1. Inadmissibility in Evidence (Section 49 of the Registration Act)

If a document required to be registered is not registered, it:

  Cannot be admitted as evidence in court for the transaction it represents.
 Case Law:
o K.B. Saha & Sons v. Development Consultant Ltd. (2008): An unregistered
document affecting immovable property cannot be used as evidence of the transaction
but may be used for collateral purposes.

2. No Effect on Immovable Property Rights

An unregistered document cannot:

 Create, extinguish, or transfer rights in immovable property.

 Case Law:
o Avtar Singh v. Gurdial Singh (2006): The court emphasized that failure to register
invalidates the legal effect of a transaction.

3. Limited Use for Collateral Transactions

 Collateral transactions refer to subsidiary or secondary matters associated with a document

or agreement but not directly tied to the primary objective of the document, such as the
transfer of property rights. These are incidental or indirect uses of a document, particularly
one that is unregistered but otherwise valid.
 Under the Registration Act, 1908, an unregistered document that is otherwise required to be
registered cannot be used to establish rights, title, or interest in property. However, it may be
admissible in court for collateral purposes under Section 49.
 Example: Using an unregistered lease deed to prove possession.
 Case Law:
o Satish Chand Makhan v. Govardhan Das Byas (1984): The Supreme Court held
that unregistered documents may be used for collateral purposes but not to establish
ownership or title.

Procedure for Registration of Documents

1. Preparation of the Document

 Draft the document to reflect the transaction (e.g., sale deed, lease deed).

2. Payment of Stamp Duty

 Stamp duty as per applicable laws must be paid before registration.

3. Execution of the Document

 The document must be signed by all parties and witnesses.

4. Presentation for Registration (Section 32)

 Present the document at the Sub-Registrar’s Office within four months of its execution
(Section 23).
o If the document is executed outside India, it can be presented within four months of
arrival in India (Section 26).

Parties Required for Presentation (Section 32):

 The executor or executant of the document.

 Any representative or agent duly authorized by a power of attorney.
 Witnesses who attested the document.

5. Verification

 The Sub-Registrar verifies the identity of the parties and witnesses, along with the payment of
stamp duty.

6. Final Registration

 The document is entered in the register, stamped with the date, and indexed for public record.

Who is the Registration Officer?

The Registration Officer under the Act is:

1. Sub-Registrar:
o Primary officer responsible for registering documents in their jurisdiction.

2. Registrar:
o Supervisory authority over Sub-Registrars, who also handles appeals and specific
cases.

3. Inspector General of Registration (State Level):

o Governs and oversees the functioning of registration offices across the state.
Importance of Registration

1. Ensures Validity: Registered documents provide legal backing and prevent fraudulent
claims.
2. Provides Public Notice: Registration allows the public to access information about property
ownership or rights.
3. Evidentiary Value: Registered documents carry evidentiary weight in courts.

SECTION 18: OPTIONAL REGISTRATION

Section 18 of the Registration Act, 1908, allows parties to voluntarily register certain types of
documents that are not mandated for registration under Section 17 (compulsory registration). This
provision is designed to provide flexibility to individuals while promoting transparency and legal
security in their transactions. By choosing to register these optional documents, parties can ensure
they have greater evidentiary value and public recognition in case of disputes.

Objective of Optional Registration

1. Legal Flexibility:
o Section 18 enables individuals to decide whether they want to register specific
documents that are not strictly required to be registered by law.

2. Enhanced Credibility:
o Registration lends authenticity to documents, making them more reliable and easier to
prove in legal proceedings.

3. Public Notice:
o Registered documents are entered into a public record, which provides notice to third
parties about the existence and content of the document.

4. Reduced Disputes:
o By voluntarily registering a document, parties can avoid future conflicts, as the
document’s contents and execution are certified by a public authority.
Documents Eligible for Optional Registration

The following documents can be registered at the discretion of the parties:

1. Instruments Relating to Immovable Property

o Documents that do not affect rights, title, or interest in immovable property worth less
than ₹100.
o Example: Agreements for temporary land use, minor maintenance agreements.

2. Leases of Immovable Property

o Leases not exceeding one year or not reserving annual rent.
o Example: A six-month lease agreement for a small plot of land.

3. Wills (Testamentary Instruments)

o A will does not need to be registered to be valid. However, registering a will ensures
it is less likely to be challenged.
o Example: A testator may voluntarily register their will to add an extra layer of
security against claims of forgery.

4. Instruments Relating to Movable Property

o Documents concerning the transfer, pledge, or hypothecation of movable property.
o Example: An agreement for the sale of machinery.

5. Acknowledgments or Agreements
o Non-testamentary instruments that do not affect rights in immovable property but
involve other arrangements, such as acknowledgments of debts or contractual
obligations.
o Example: A written acknowledgment of a loan.

Advantages of Optional Registration

1. Enhanced Evidentiary Value:

Registered documents are admissible as evidence in court without requiring additional proof
of their execution.
o Case Law: Kalyan Singh v. Chhoti (1990): Registered documents were deemed more
credible in court disputes.
 2. Avoidance of Fraud:
Registration minimizes the risk of disputes related to forgery or claims of non-execution.
3. Protection of Rights:
Optional registration can protect parties’ rights by creating a formal record of agreements or
transactions.
4. Ease of Enforcement:
Registered documents are easier to enforce in case of legal challenges.

Why Choose Optional Registration?

While registration is not mandatory under Section 18, parties may opt for it for the following reasons:

 To ensure legal certainty in complex transactions or significant agreements.

 To create public notice, making the document accessible in the registration records.
 To provide proof of execution in case of disputes.
 To avoid future challenges regarding the authenticity or execution of the document.

Legal Precedents Supporting Optional Registration

1. Prem Singh v. Birbal (2006):

o The Supreme Court observed that optional registration is particularly useful for
documents like wills, where disputes among heirs can arise. Registration provides
additional protection and strengthens the will's validity.

2. Rachpal v. Bhagwandas (1950):

o The court noted that while certain agreements were not compulsorily registrable,
registering them provided better enforceability.

TIME AND PLACE FOR REGISTRATION (SECTIONS 23-31)

1. Time for Registration (Section 23)

 A document must be presented for registration within 4 months from the date of execution.
 If executed outside India, it can be presented within 4 months of arrival in India (Section 26).

2. Delay in Presentation (Section 25)

 If a document is not presented within the 4-month period, it may be accepted with a fine of up
to 10 times the registration fee, provided it is presented within an additional 4 months.
3. Place of Registration (Sections 28-31)

 Section 28: Documents affecting immovable property must be registered in the Sub-
Registrar’s office within the property’s jurisdiction.
 Section 29: Other documents can be registered at the Sub-Registrar’s office where the
executing party resides.
 Section 30: Registrars may accept documents that could have been registered by a Sub-
Registrar.
 Section 31: In special cases, documents can be registered at the residence of the executant
with the Registrar's approval.

EFFECTS OF REGISTRATION (SECTIONS 47-49)

Section 47: Registration Operates from the Date of Execution

 Registration has a retroactive effect: A registered document is deemed to take effect from
the date of its execution, not from the date of registration.
o Example: If a sale deed is executed on January 1 but registered on January 10, the
transfer of property is deemed to have occurred on January 1, not January 10.

Section 48: Priority of Registered Documents

 Priority over Unregistered Documents: A document that is duly registered prevails over
any unregistered document related to the same property or transaction.
o Example: If two sale deeds are executed for the same property, the one registered first
will take precedence over the other, even if the second sale deed was executed earlier.

Section 49: Effects of Non-Registration of Compulsory Documents

 Non-Registration Invalidates Certain Transactions:

o Compulsory documents under Section 17, such as sale deeds, mortgages, and leases
exceeding one year, are inadmissible in court as evidence unless they are registered.
o Non-registered documents that require compulsory registration cannot be used to
establish or transfer rights in immovable property.
o Example: A sale deed executed but not registered cannot be used in court to prove the
transfer of ownership.
 Collateral Purposes:
 o Non-registered documents can still be used for collateral purposes (e.g., proving the
existence of a transaction, possession of property, or payment of consideration), but
not to establish or transfer legal title to property.
o Example: An unregistered sale deed might be used to show that possession was
transferred, but it cannot be used to establish that the property was legally transferred.

EFFECTS OF NON-REGISTRATION (SECTION 50)

Section 50: Priority of Registered Documents

 Priority in Case of Multiple Documents:

o When two or more documents concern the same immovable property and are
executed between the same parties, the registered document takes priority over the
unregistered document, even if the unregistered document was executed first.
o Example: If a sale deed is registered after a power of attorney is executed but not
registered, the registered sale deed will take priority over the unregistered power of
attorney, even if it was executed earlier.