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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