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    Sunday, 19 April 2015

    Effect and Value of Non-Registration

    1. Introduction
    Registration Act has provided concepts of compulsory and optional registration of documents. The reality is that it is registration of document, which makes document authentic in law. It means that there are some effects and value of registration of document. Similarly there are also some effects and value of unregistered document or non-registration of document.

    2. Relevant Provisions
    Section 49 Registration Act 1908 deals with effects of the non registration of the documents.

    3. Object of Registration
    The object of registering a document is to give notice to the world that such a document has been executed, to prevent fraud and forgery and to secure a reliable and complete account of all transactions affecting the title to the property.

    4. Effect of Non-Registration of Documents required to be registered

    Following are the effects

    (a) Essential Conditions
    For the application of this section conditions must exist.

    (i) There must be a document
    (ii) That document must be required to be registered
    (iii) That the document must not have been registered.

    (b) Effects of Non-Registration
    These are the effect of non-Registration
    (i) It shall not operate to create, declare assign, limit or extinguish any right, title or interest whether vested or contingent to or in immovable property.

    Instances:
    Following are the instances of these documents that cannot operate to create declare, limit or extinguish any right, title or interest in to immovable property.

    (i) Unregistered sale-deed
    (ii) Unregistered lease deed
    (iii) Unregistered charge
    (iv) Unregistered deed of gift

    (c) Evidentiary value of non-registered document
    A document which is not registered can be produced and admitted into evidence in order to prove the collateral purpose. Thus a person who has been put in possession of the property as a result of an unregistered document, can protect his possession by the production of that document.

    (d) Circumstances where unregistered document can be received in evidence

    (i) As evidence of receipt of consideration
    A document though unregistered can be received to prove a recital therein that ht executing party had received the consideration.

    (ii) As evidence of offence
    The document, though unregistered, admissible in evidence to prove an offence under Section 171-B of the P.P.C.

    (iii) As evidence of transaction
    Agreement for lease is not liable to compulsory registration but is admissible in evidence in support of transaction. Registration Act strikes only at documents and not at transactions.

    (iv) As evidence of a debt
    In the case of a simple mortgage land, an unregistered mortgage, though in valid as a mortgage, may be used to prove the debt.

    (v) As evidence of handwriting
    An unregistered document which is impeached as a forgery by the alleged executants may be admitted in evidence to compare the handwriting of the alleged executants with his admitted handwriting.

    (vi) As evidence of satisfaction of a decree
    An unregistered document, though inadmissible as a evidence of a transaction effecting immovable property comprised therein, is admissible in evidence to prove that a decree passed in favor of one of the parties against the other has been satisfied.

    (vii) As evidence of the date of taking possession
    An unregistered agreement of lease though inadmissible as evidence of the lease for want of registration may be received in evidence to prove the date of taking possession.

    Conclusion

    To conclude that documents which are compulsorily registereable if are not registered have no evidentiary value. Such unregistered document would not operate to create, declare, assign, limit or extinguish in present or in future, any right, title or interest whether vested, or contingent to or in immoveable property.
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    Item Reviewed: Effect and Value of Non-Registration Rating: 5 Reviewed By: Usman Ali
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