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RAJIV GANDHI NATIONAL UNIVERSITY OF LAW,PUNJAB,

PATIALA

EVIDENTIARY VALUE OF NON REGISTERED DOCUMENTS

PROPERTY LAW PROJECT

VSEMESTER

SUBMITTED TO: SUBMITTED BY GROUP 11:

PROF.M.R.GARG ANAND RAJA (335)

SOURABH RATH (342)RAVINDRA MANI MISHRA (347)

ASHISH KUMAR (306)

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TABLE OF CONTENTS

ACKNOWLEDGEMENT...............................................................................................................1

1.INTRODUCTION......................................................................................................................2

1.1SCOPE OF THE PROJECT..................................................................................................2

1.2RESEARCH METHODOLOGY............................................................................................2

1.3DOCUMENT UNDER INDIAN LAW....................................................................................2

1.4THE EVIDENCEACT.........................................................................................................3

1.5THE REGISTRATIONACT.................................................................................................5

1.6THE PROPERTY ACT........................................................................................................6

1.7JUDICIAL PROCESS ANDREGISTRATION.........................................................................6

2.DOCUMENTS REQUIRING REGISTRATION............................................................................8

2.1REGISTRATIONACT,1908.................................................................................................8

2.2APPLICATION OF SECTION 17........................................................................................11

2.3COMPULSORYREGISTRATION.......................................................................................11

2.4BENEFITS OFREGISTRATION.........................................................................................12

3.LAND REGISTRATION IN OTHER JURISDICTIONS...............................................................13

3.1TORRENS TITLE.............................................................................................................13

4.EVIDENTIARY EFFECT OF NON REGISTRATION OF DOCUMENTS................................... 15

4.1EFFECT OF NON REGISTRATION OFSALE.................................................................15

4.2EFFECT OF NON REGISTRATION OF LEASE..............................................................16

4.2.1LEASE HOW MADE:EFFECT OF NON REGISTRATION OF DOCUMENTS.................. 16

4.3EFFECT OF NON REGISTRATION OF MORTGAGE..................................................... 19

4.4EFFECT OF NON REGISTRATION OF EXCHANGE...................................................... 20

4.5EFFECT OF NON REGISTRATION OF ACTIONABLE CLAIMS..................................... 21

4.6EFFECT OF NON-REGISTRATION OF GIFT DEED......................................................... 21

CONCLUSION...........................................................................................................................23

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BIBLIOGRAPHY........................................................................................................................24

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ACKNOWLEDGEMENT

We would like to thank Prof. M.R. Garg for giving us theopportunity for working on such ariveting topic. We are verygrateful for all the help and guidance he has provided us inthe

course of our work and research. We are also very grateful tothe library for maintaining and

updating it with current research materials. We would also liketo thank all the people who

were directly and indirectly associated with the making of thisproject. Last but not the least,

we would like to thank RGNUL for providing us the wonderfulinternet infrastructure which

formed a base for the majority of our research.

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I

INTRODUCTION

1.1 SCOPE OF THE PROJECT

The current project deals with one issue which is vast andconstricted at the same

time: The Evidentiary Value of Non-Registration of Documents.This project deals with three

pieces of legislation namely: the Indian Evidence Act, 1872, theRegistration Act, 1908 and

the Transfer of Property Act, 1882. The aim of this project isto examine the evidentiary

value of non-registration of documents and the necessity of suchregistration.

1.2 RESEARCH METHODOLOGY

Various kinds of sources have been consulted for the creation ofthis project; however

maximum reliance is on doctrinal sources, a la books, researcharticles, electronic sources,

judicial decisions and web sites. The citation format followedthroughout this project is the

Harvard Bluebook: A Uniform Method of Legal Citation.

1.3 DOCUMENT UNDER INDIAN LAW

Documents have had a very crucial role in the law of evidence invarious legal

systems around the world. The sole reason for this is thatdocuments are a form of permanent

record which cannot be easily altered or changed. If there aretwo different versions of the

same document then the authenticity of one can be easilyverified and pronounced.

Document as a word has been aptly defined in the Indian EvidenceAct, 1872.1

According to the definition provided in the above mentioned Act,a document is taken to

1 Defined in Section 3 of the Indian Evidence Act,1872:"Document" means any matter expressed or

described upon any substance by means of letter, figures ormakes, or by more than one of those means,

intended to be used, or which may be used, for the purpose ofrecording that matter.

A writing is a document;

Words printed, lithographed or photographed are document;

A map or plan is a document;

An inscription on a metal plate or stone is a document;

A caricature is a document.

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mean any matter described or expressed upon any substance in theform of letters, figures or

other images which is used specifically to record suchinformation. The definition then goes

on to provide many examples of what may be documents, i.e. awriting is a document, printed

words, lithographed words and photographs are documents, a mapis a document, a plan is a

document, a caricature, an inscription on a stone or a metalplate are all documents.

The definition of document thereby was limited to those exactwords of the legislature

till the year 2000 when theInformation Technology Act, 2000 waspassed by the Parliament.

The Act introduced some changes to theIndian Evidence Act, 1872which was dealt with in

Section 92 and Schedule II.2

Schedule 2 of the Act made various changes to the existingprovisions of the Indian

Evidence Act, 1872 in the sense that it included electronicrecords to be a form of evidence

and with the insertion of Section 65-B(1),3

electronic information which was printed on paper

or stored, recorded or copied on a magnetic or optical mediumwas deemed to be a document.

So in essence, theInformation Technology Act, 2000 deemedelectronic information to be a

document subject to certain conditions that the computerrecording the information had to

meet.4

This project discusses the evidentiary value of non-registereddocuments in the ambitof three legislations. The Registration Act,1908, the Indian Evidence Act, 1872 and the

Transfer of Property Act, 1882.

1.4 THE EVIDENCE ACT

The statutory provisions regarding evidence in India are allregulated by the Indian

Evidence Act, 1872. Evidence forms the basis of all forms oflitigation and court activities in

the world. It is the very basis on which an incident can bedeclared as a fact before a court of

2 Section 92, Information Technology Act, 2000: The IndianEvidence Act, 1872 shall be amended in the

manner specified in the Second Schedule of the Act.

3 Section 65-B(1), Indian Evidence Act, 1872: Notwithstandinganything contained in this Act, any

information contained in an electronic record which is printedon a paper, stored, recorded or copied in

optical or magnetic media produced by a computer (hereinafterreferred to as the computer output) shall be

deemed to be also a document, if the conditions mentioned inthis section are satisfied in relation to the

information and computer in question and shall be admissible inany proceedings, without further proof or

production of the original, as evidence of any contents of theoriginal or of any fact stated therein of which

direct evidence would be admissible.

4 See Section 65-B(2),Indian Evidence Act, 1872.

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law. Evidence is the very foundation on which a case moves fromdetermination to the

determination of legal issues. Every time a trial is in progressthere is an undisputable need

for evidence and all the substantial provisions of evidence inIndia are dealt with by the

Indian Evidence Act, 1872.

Evidence may be defined as any material which tends to persuadethe court of the

truth or probability of some fact asserted before it.5

At its most general level the term means

those items of information presented to the Court by partiestrying to persuade it of the

correctness of their argument.6

To put it even more simply, an evidence is something which

may satisfy an inquirer of the facts existence.7

Evidence as used in judicial proceedings has

several meanings. The two senses of the word are: first, themeans whereby the Court is

informed as to the issues of fact as ascertained by thepleadings; secondly, the subject matter

of such means.8

Prior to the creation of theIndian Evidence Act, 1872 evidencein India was a bunch

of confused rules which was worked on by the various provisionsmentioned in religious texts

and the drastically distinct personal laws. It was the work ofSir James Stephen that created a

consolidated form of rules regarding the admissibility andacceptability of various forms and

kinds of evidence.

The enactment and adoption of the Indian Evidence Act, 1872 wasa path-breaking

judicial measure introduced in India, which changed the entiresystem of concepts pertaining

to admissibility of evidences in the Indian courts of law. Up tothat point of time, the rules of

evidences were based on the traditional legal systems ofdifferent social groups and

communities of India and were different for different personsdepending on his or her caste,

religious faith and social position. The Indian Evidence Act,1872 removed this anomaly and

differentiation, and introduced a standard set of law applicableto all Indians.

5 PETER MURPHY,APRACTICAL APPROACH TO EVIDENCE 1(2nd ed.1985).

6STEVE UGLOW,EVIDENCE:CASES AND MATERIALS 14 (1997).

7 CROSS &TAPPER ,EVIDENCE 1(8th ed. 1995).

8 PHIPSON,EVIDENCE 2(15th ed. 2000).

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The preamble of theIndian Evidence Act, 18729

states its objective to consolidate and

amend the existing provisions regarding evidence in Indian lawand it achieves the very

same.

1.5 THE REGISTRATION ACT

TheRegistration Act, 1908 was implemented in India to ensure auniform substantive

and procedural provision for the registration of documents. Themain reasoning behind it was

to ensure information regarding all land deals were gathered bythe state in order to ensure

maintenance of correct land records.10

The Registration Act, 1908 is the single piece of

legislation that provides the procedure for the registration ofdocuments which are mandatory

to be registered.

The preamble ofThe Registration Act, 1908 declares the objectiveof the Act to be

one of consolidating the enactments related to the registrationof documents.11

Prior to the

implementation of this Act, the Registry laws relating toregistration of documents were to be

found in West Bengal Regulation, 1793; Bombay Regulation, 1800andMadras Regulation,

1802. TheIndian Registration Act, 1864 was enacted and it cameinto force in 1965, however

it was replace by Act 20 of 1866.

TheIndian Registration Act, 1871 was brought into force but itwas replaced by the

Indian Registration Act, 1877. After many amendments and changestheIndian Registration

Bill, 1908 was introduced in the legislature. This bill was theone that became the Indian

Registration Act, 1908 (16 of 1908). The Act was amended in196912

and the word Indian

was omitted. The Act then ultimately became the RegistrationAct, 1908. The Registration

Act, 1908 is divided into fifteen parts containing around ninetysections.

9Preamble,Indian Evidence Act, 1872 (Whereas it is expedient toconsolidate, define and amend the Law of

Evidence; it is hereby enacted as follows)

10 Seehttp://www.ccsindia.org/ccsindia/2006-dch/15_Registration%20of%20Documents.pdf(last visited on

October 12, 2010).

11 Preamble, The Registration Act, 1908.

12 Amended by TheIndian Registration (Amendment) Act, 1969.

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1.6 THE PROPERTY ACT

The legislation related to all manners of transactions in bothmovable and immovable

property is called as the Transfer of Property Act, 1882. Itsnot as if laws related to transfer

of property were non-existent in India before this enactment.They were strewn through the

various pieces of personal law that existed in India. Propertywas transferred by means of

succession, gift, etc. The preamble of the Act describes itsobjective as to amend certain parts

of the law relating to transfer of property by parties, therebyclearly showing that laws

regarding property were already pre-existing in India.

The Transfer of Property Act, 1882 allows various forms oftransfers, namely

mortgages,13

leases,14

gift,15

etc. all of which are executed in deeds and these deeds are

necessary to be registered in order for the state to maintain aproper record. Certain

documents mentioned within the Act are necessary to beregistered in order to be admissible

as evidence before an authority that can accept evidence and tohave the intended effect.16

In almost all property based disputes, it is pertinent to provea certain transaction was

made regarding that property and it can only be proved throughthese documents. Now the

multifarious rules of evidence have been constructed to providethe highest degree of fairness

and genuineness. That is part of the reason for the existence ofprovisions such as registrationin the first place.

1.7 JUDICIAL PROCESS AND REGISTRATION

Registration is an important part of the judicial process inIndia. Although it was

originally meant to be a provision which was for the purpose ofmaintaining a record, it has

been made an essential part of the litigation culture of ourcountry. There are side suits

happening along with the main matter to entertain a certaindocument as evidence due its

prima facie non admissibility because of non-registration.

13 See Chapter IV, Transfer of Property Act, 1882.

14 See Chapter V, Transfer of Property Act, 1882.

15 See Chapter VII, Transfer of Property Act, 1882.

16 See Section 53A, Transfer of Property Act, 1882.

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Judicial delays are caused because a matter is not decided onits merits owing to the

pendency and huge number of ancillary matters being argued upon,such as the late

production of documents, registration of documents, failure ofregistration of documents, etc.

The reason why suits take such a long time to be decided is dueto a myriad number of

reasons. But the lack of proper registration of documents formsa significant part of that

problem.

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II

DOCUMENTS REQUIRING REGISTRATION

2.1 REGISTRATIONACT,1908

TheRegistration Act, 1908 clearly mentions documents which needto be registered. Section

17 reads as follows:

(1) The following documents shall be registered, if theproperties to which they relate

is situate in a district in which, and if they have beenexecuted on or after the date on

which, Act No. XVI of 1864, of the Indian Registration Act 1866,or the IndianRegistration Act 1871, or the Indian Registration Act1877, or the this Act came or

comes into force, namely:-

(a) instruments of gift of immoveable property;

(b) other non-testamentary instruments which purport or operateto create, declare,

assign, limit or extinguish, whether in present or in future,any right, title or interest,

whether vested or contingent, of the value of one hundredrupees, and upwards, to or

in immoveable property;

(c) non-testamentary instruments which acknowledge the receiptor payment of any

consideration on account of the creation, declaration,assignment, limitation or

extinction of any such right, title or interest; and

(d) leases of immoveable property from year to year, or for anyterm exceeding one

year, or reserving a yearly rent;

(e) non-testamentary instruments transferring or assigning anydecree or order of a

court or any award when such decree or order or award purportsor operates to create,

declare, assign, limit or extinguish, whether in present or infuture, any right, title or

interest, whether vested or contingent, of the value of onehundred rupees and

upwards, to or in immoveable property (Added by Act No. 21 of1929);

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PROVIDED that the State Government may, by order published inOfficial Gazette,

exempt from the operation of this sub-section any leasesexecuted in any district, or

part of a district, the terms granted by which do not exceedfive years and the annual

rent reserved by which do not exceed fifty rupees.

(2) Nothing in clauses (b) and (c) of sub-section (1) applies to-

(i) any composition-deed; or

(ii) any instrument relating to shares in a joint stock company,notwithstanding that

the assets of such company consists in whole or in part ofimmoveable property; or

(iii) any debenture issued by any such company and not creating,declaring, assigning,

limiting or extinguishing any right, title or interest, to or inimmoveable property

except insofar as it entitles the holder to the securityafforded by a registered

instrument whereby the company has mortgaged, conveyed orotherwise transferred

the whole or part of its immoveable property or any interesttherein to trustees upon

trust for the benefit of the holders of such debentures; or

(iv) any endorsem*nt upon or transfer of any debenture issued byany such company;

or

(v) any document not itself creating, declaring, assigning,limiting or extinguishing

any right or title or interest of the value of one hundredrupees and upwards to or in

immoveable property, but merely creating a right to obtainanother document which

will, when executed, create, declare, assign, limit orextinguish any such right, title or

interest; or

(vi) any decree or order of a court [except a decree or orderexpressed to be made on a

compromise and comprising immoveable property other than thatwhich is the

subject-matter of the suit or proceedings] (Substituted by ActNo. 21 of 1929 for the

words 'and any award');

(vii) any grant of immoveable property by government; or

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(viii) any instrument of partition made by a revenue officer;or

(ix) any order granting a loan or instrument of collateralsecurity granted under the

Land Improvement Act 1871, or the Land Improvement Loans Act1883; or

(x) any order granting a loan under the Agriculturists Loans Act1884, or instrument

for securing the repayment of a loan made under that Act; or

[(x-a) any order made under the Charitable Endowments Act 1890(6 of 1890) vesting

any property in a treasurer of Charitable Endowments ordivesting any such treasurer

of any property; or] (Inserted by Act No. 39 of 1948)

(xi) any endorsem*nt on a mortgage-deed acknowledging thepayment of the whole or

any part of the mortgage-money, and any other receipt forpayment of money due

under a mortgage when the receipt does not purport to extinguishthe mortgage; or

(xii) any certificate of sale granted to the purchaser of anyproperty sold by public

auction by a civil or revenue officer.

[Explanation: A document purporting or operating to effect acontract for the sale of

immoveable property shall not be deemed to require or ever tohave required

registration by reason only of the fact that such documentcontains a recital of the

payment of any earnest money or of the whole or any part of thepurchase money.]

(Inserted by Act No. 2 of 1927)

(3) Authorities to adopt a son, executed after the 1st day ofJanuary 1872, and not

conferred by a will, shall also be registered.

The section aptly sums up all documents that are necessary to beregistered, i.e. they

have a legal requirement to be registered. The benefits ofregistration include an immediate

check as to the originality of the document and the presence ofreliability as to the evidentiary

value of said document.

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2.2 APPLICATION OF SECTION 17

Section 17 of the Registration Act, 1908 would be attracted in acase where the

dispute relates to a charge sought to be created by a debentureon immoveable property which

was existent at the date of the creation of the charge and wasin the ownership of the

company at that date. It would, therefore, necessarily followfrom it that a debenture which

seeks to create, declare or limit any right, title or interestto or in immoveable property would

be covered by section 1717

of theRegistration Act, 1908.

2.3 COMPULSORY REGISTRATION

There are several documents that are not required to beregistered compulsorily. Some

of them require high stamp duty and some of them do not. Eventhe ones that require high

stamp duty, if they are under stamped, can be rectified later bypaying a penal amount ten

times the original amount.18

Non-payment of stamp duty does not make the document void or

otherwise invalid. The consequences of under stamping as per theIndianStamp Act, 1899

are:

(1) to make the document inadmissible for the evidence beforeany authority capable of

receiving evidence of before any public authority.19

(2) the document can also be impounded for enforcing the paymentof full stamp value. An

under stamped instrument can be admitted as evidence in court,if penal stamp duty is ten

times the value of the original amount, and is paid.20

In conclusion it is best to always register a document which iscompulsory

registerable or for which stamp duty is not high. Documents forwhich stamp duty is high and

which do not require registration do not become invalid for wantof proper stamp duty alone.

But the rights of both parties should be protected in case ofdefault, so consult a lawyer.

Always give possession separately and never in the documentsitself.

17 Section 17 (1) (b),Registration Act, 1908.

18 See Chapter IV,Indian Stamp Act, 1899.

19 See Section 35,Indian Stamp Act, 1899.

20 See Section 33, 40,Indian Stamp Act, 1899.

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2.4 BENEFITS OF REGISTRATION

The most important question that comes up is what is the benefitof registering a

document that is not mandated to be registered by the law. Thebenefits that come are

ancillary in nature, not paying a fine when the document isrequired to be produced in

evidence,21

a benefit for the state to maintain a record of all landtransactions,22

etc.

Registration creates a positive bias regarding the genuinenessof the document;

however it is not something that is free from misuse. Althoughregistration is supposed to be

aprima facie check regarding authenticity, sometimes forgeddocuments are also registered.

This process results in the creation of an odd bias.

21 See Section 35,Indian Stamp Act, 1899.

22

Seehttp://www.ccsindia.org/ccsindia/2006-dch/15_Registration%20of%20Documents.pdf(last visited onOctober 12, 2010).

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III

LAND REGISTRATION IN OTHER JURISDICTIONS

3.1 TORRENS TITLE

Torrens title is a system of land title where a register of landholdings maintained by

the state guarantees an indefeasible title to those included inthe register. The system was

formulated to combat the problems of uncertainty, complexity andcost associated with old-

system title, which depended on proof of an unbroken chain oftitle back to a good root of

title.

The Torrens title system was introduced in South Australia in1858, formulated by

then colonial Premier of South Australia Sir Robert Torrens.Since then, it has become

pervasive around the Commonwealth of Nations and very commonaround the globe.

In the United States, states with a limited implementationinclude Minnesota,

Massachusetts, Colorado, Georgia, Hawaii, New York, NorthCarolina, Ohio, and

Washington. In the Dominican Republic, the system wasimplemented in 1920, and has been

in use since.

The effect of registration under the deeds registration systemwas to give the

instrument registered "priority" over all instruments that areeither unregistered or not

registered until later. The basic difference between the deedsregistration and Torrens systems

is that the former involves registration of instruments whilethe latter involves registration of

title.23

Moreover, though a register of who owned what land wasmaintained, it was

unreliable and could be challenged in the courts at any time.The limits of the deeds-

registration system meant that transfers of land were slow,expensive, and often unable to

create certain title.

The main difference between a common law title and a Torrenstitle is that a member

of the general community, acting in good faith, can rely on theinformation on the land

register as to the rights and interests of parties recordedthere, and act on the basis of that

information. A prospective purchaser, for example, is notrequired to look beyond that record.

23 TROUFF, AN ENGLISHMEN LOOKS AT THE TORRENS SYSTEM (1957).

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IV

EVIDENTIARY EFFECT OF NON REGISTRATION OF DOCUMENTS

4.1 EFFECT OF NON REGISTRATION OF SALE

A compulsorily registrable but unregistered deed of sale ofspecific property cannot

affect the property and cannot be used to prove the sale26

though it is admissible for collateral

purposes, for instance ascertaining he nature of purchaserspossession27

, or proving payment

of purchase-money28

, or for the purpose of proving dower and liability to payit29

.

When a sale deed becomes inoperative by reason ofnon-registration no parol

evidence of it is admissible30

. The same holds even if there is part-performance31

.

An unregistered letter cannot be received as evidence to showthat a registered sale-

deed was intended to operate only as a mortgage. Such anunregistered letter is inadmissible

in evidence to show that no title passed under the sale-deed forthat would amount using it as

evidence of a transaction affecting immoveable property. But anunregistered document

which merely shows that a registered sale-deed executedpreviously in respect of certain

immoveable property was only nominal in its nature has been heldto be admissible in

evidence in as much as it is not used as evidence of anytransaction affecting immoveable

property32

.

The test to determine the admissibility is whether the documentin question does not

support or operate to create, declare or extinguish any right,title or interest in immoveable

property. A sale-deed does create an interest in immoveableproperty. If a subsequent

document purports to extinguish it must be registered.

26Hushmat v. Jamir, AIR 1919 Cal. 325.

27Dawal v. Dharma, 19 Bom. LR 822.

28 Sambu Hanmanta Kobal v. Nama Narayan Naikde, 13 Bom LR867.

29 Mohd. Quasim v. Ruqia Begum, AIR 1935 lah. 375.

30Somu Gurukhal v. Rangammal, 7 MHC 13.

31 Jangir Singh v. Rulia, AIR 1954 Pepsu 133.

32 Abdul v. Arlien, AIR 1915 Mad. 530.

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A document which gives, or purports to give a right to haveimmoveable property put

to a sale with a view to the recovery, out of its proceeds, ofmoney lent (principle and

interest) is an instrument which creates an interest inimmoveable property and as such

cannot under Section 49 of the Act, be received in evidencewithout registration33

.

An unregistered sale-deed can be received as evidence of acontract in a suit for

specific performance under Chapter II of the Hyderabad ReliefAct or under Chapter II of the

Specific Relief Act, 1877, or as evidence of part performance ofthe contract for the purpose

of Section 53A of the Transfer of Property Act, 1882, or asevidence of any collateral

transaction not required to be effected by registeredinstrument34

.

4.2 EFFECT OF NON REGISTRATION OF LEASE

A lease of immovable property, which is compulsorilyregistrable, if not registered, is

void altogether35

, and cannot be received in evidence to prove the transactionaffecting the

immoveable property to which it relates36

or any of the terms if the transaction.37

An

unregistered document purporting to be lease of immoveableproperty is not admissible in

evidence to prove the rent agreed to be paid38

. It cannot be admitted in evidence to prove that

a property to which it relates was let for a term of years39

.

4.2.1 LEASE HOW MADE:EFFECT OF NON REGISTRATION OF DOCUMENTS

An unregistered lease being inoperative, the express contractuallease did not take

effect in law. It, therefore, follows from the observations thatthe plaintiff-respondents cannot

ask for ejectment of the defendant-appellant solely on the basisof the duration c1ause in the

unregistered deed. The unregistered deed can at best be lookedinto for ascertaining the

33Kalachand v. Gopal Chander, AIR 1953 Hyd. 225.

34Hamda Ammal v. Avadippa Pathar, AIR 1953 Hyd. 225.

35 Anand v. Taiyab, AIR 1949 All. 279.

36 Vasudev Reddy v. Nalappa Reddy, AIR 1914 Mad. 349.

37Fatelal Shah v. Dayalal Bishrambhai, AIR 1949 Nag. 218.

38 Atul Krishna v. Zayed, AIR 1941 Cal. 102.

39 Moti Sagar v. Dhanna Mat., AIR 1922 Lah.

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commencement of possession, rate of rent or Similar otherprovisions which are collateral to

the principal transaction40

.

The Privy Councl in Mitchel v. MathuraDas41, noted :

'The Registration Act was not passed to. avoid the mischief ofallowing a man to be in

possession of real property without having a registered deed,but as a check against

the production of forged documents, and in order that subsequentpurchasers, or

persons to whom subsequent conveyances of property were made,should not be

affected by previous conveyances unless those previousconveyances were

registered."

An unregistered lease deed executed from month to month for aperiod not exceeding

11 months, though reduced to writing and possession is deliveredthereunder to a tenant is not

compulsorily registerable instrument and therefore theprohibition contained in Sec 49 of the

Registration Act is inapplicable. Therefore, the document isadmissible in evidence to

consider the effect of the immovable property contained thereinor to receive as an evidence

of any transaction vis-a-vis such property42

.

Non-registration of leases for immoveable property for a periodless than a year and

with an yearly rent of rupees fifty or below rupees fifty maynot be hit by Sec. 49 of the

Registration Act43

.

The position is well settled that an unregistered lease deed isnot admissible to prove

the terms, duration or nature of tenancy except the nature andcharacter of possession of the

lessees. The prohibition which is mandatory is contained in Sec.49 (a) and (e) of the

Registration Act.

The creation of a tenancy can be proved by oral agreement or byacceptance of rent

and that the right of occupancy being a creature of the statutecan be acquired only under Sec.

24 of the Orissa Tenancy Act, 1913 and cannot be conferred bythe landlord by contract or

40 Rai Chand v. Miss Chandra Kanta Khosla, AIR 1991 SC 744.

4112 IA 150.

42 Satish Lumar v. Zarif Ahmed, 1997 (1) UJ (SC) 576.

43 Haji fateh Rather v. Anwar Sheikh, 1986 Kar. LJ 40.

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otherwise. In view of the admissibility of the unregisteredlease-deed for the limited purpose

as it is impossible to hold that the respondents acquired anyoccupancy right in the suit

property.

The disputed document, though inadmissible in evidence for thepurpose of proving

the terms and conditions of the document, can be admitted inevidence for collateral purpose

of proving the factum of partition and nature of possession ofthe parties44

. The document in

question can certainly be looked into for collateral purposeviz. for the purpose of proving the

character of possession45

.

If a lease deed contained a clause whereby the tenancythereunder was absolutely

determinable to any moment at the option of the lessor than thedeed was not compulsorily

registrable, notwithstanding that it also contained provisionsfor an "annual rental" and for

payment of "rent in advance each year". There is a decision ofthe Allahabad High Court in

Kishori v.Ram Swarup46, to the same effect. That was also a casewhere the lease deed fixed

the annual rent but stipulated that in case of default thetenant would be liable to ejectment

and that the lessor would always have a right to eject thetenant after giving him one month's

notice. The Court held that the document did not requireregistration47

.

If a decree purporting to create a lease is inadmissible inevidence for want of

registration, none of the terms of the lease can be admitted inevidence and that to use a

document for the purpose of proving an important clause in thelease is not using it as a

collateral purpose48

.

Unregistered document extinguishing lease is not admissible butcan be used for

collateral purpose to show handing over of possession49

.

44Kaheeda Mohn v. Md. Iqbal Ali, 1998 (5) ALT 704.

45 P. Sankara Pandi Therav v. C. Arumugam, 1999 (2) MLJ 438.

46 ILR (1996) 1 All, 229.

47TK Subramania Pillai v. Pennigton Committee, 1987 (2) MLJ39.

48 Bajaj Auto Ltd. v. Behari Lal Kohli, 39 (1989) DLT 55.

49 Kovil Patti Sri Dhandayuthapati Trust v. M. Tilakraj, 1993(1) MLJ 522 .

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An unregistered lease deed can be looked into for showing thenature and condition of

the building as well as the purpose for which it was letout50

.

4.3 EFFECT OF NON REGISTRATION OF MORTGAGEThe transfer ofmortgage to be effectual requires registration. An unregistered

mortgage is not valid as a mortgage and cannot operate as acharge.

When a suit is brought for money claim based on a covenant in acompulsorily

registrable, but unregistered mortgage-deed, the deed isinadmissible to prove the covenant

and hence the money claim51

. It is also not admissible to prove the covenant for thepayment

of compound interest52

. A suit by the mortgagor for redemption on the basis of an

unregistered mortgage is not maintainable53. It is, of course,open to the mortgagor to file suit

for the recovery of the possession of the property based on histitle in which case it may be

open to the defendant to plead that he had advanced moneys whichthough advanced on an

invalid mortgage, must in equity be re-paid to him before theplaintiff takes possession of his

lands54

. Such cases will now be decided under Sec. 53-A of the Transferof Property Act.

Although a person cannot sue for redemption on the strength ofan abortive or invalid

usufructuary mortgage, yet if he sues for possession and proveshis title and then the

defendant sets up adverse possession, the plaintiff may provethat the character of the

possession was not adverse by giving evidence of the factum ofmortgage though not of its

terms55

. Where a person obtains possession under a void (unregistered)mortgage he acquires

on the lapse of twelve years a prescriptive right to the limitedinterest by way of mortgage.

An unregistered mortgage will be received as evidence of apersonal obligation and

will be admitted in evidence to prove the debt for the purposeof granting simple money

decree, if the personal covenant to pay is separable from thecreation of security56

, but not if

50Dhalli Devi v. (Firm) Gopal Iron trading Company & other,1993 (2) Rent. LR 160.

51Mattogeny v. Ram Narain, ILR 4 Cal. 83.

52 Swami Chetty v. Ethirajulu Naidu, 34 IC 583 .

53 Sheikh Bhukhan Mian v. Srimati Radhika Kumari Debi, AIR 1938Pat. 479.

54Maung Po Sin v. Mg. Po Sin AIR 1926 Assam 291 (FB).

55 Halka v. Nannahon AIR 1932 All 259.

56 Jagappa v. lachchappa ILR 5 Mad. 119.

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the transaction if indivisible and if the loan cannot beseparated from the portion of document

charging the poperty57

. It may also be admissible in evidence to prove acknowledgmentof

the amount due under mortgage sufficient to save limitation. Acompulsorily registrable but

unregidtered deed of assignment of debt. Where in a mortgage thenature and terms of the

security negative a personal liability to pay the debt and ifthe deed is inadmissible for want

of registration as evidence of mortgage, it would not support asuit to recover the money. The

document may be used to show the payment of consideration58

.

An invalid (unregistered) mortgage, though it cannot be admittedin evidence to prove

initial delivery of possession, may be admissible in evidencefor a collateral purpose to

ascertain the nature and character of possession, and todetermine to quantum of interest and

the character of possession thereunder is not to use thedocument for the purpose of enforcing

the mortgage itself under the document59

.

An unregistered payment on hypothecation bond is admissible asconfirmatory proof

of a fact provable orally60

.

4.4 EFFECT OF NON REGISTRATION OF EXCHANGEIn the case ofMahomedYahia v. Bibi Soghra

61, the exchange of shares between co-

owners has been held not to affect any immoveable property andan instrument of such

exchange is admissible in evidence though it is not evidence bya registered instrument.

A letter written by A, to the plaintiff embodied an agreementfor the exchange of

lands that fell to each other's share. It was held to create nointerest in immoveable properly

but was merely an evidence of agreement to convey lands and wasadmissible in evidence

without registration62

.

57Mattogeney v. Ram Narain ILR 4 Cal. 667.

58 Hanif Shah v. Murad, 16 IC 125.

59 Rupa Nonia v. Ram Brich AIR 1959 Pat. 164.

60Venkataramma Naicker v. Chinnathsmbi Reddi, AIR 1999 SC56.

61 AIR 1937 Pat. 232.

62 G. Rama Brahman v. G. Kottayya 21 IC 777.

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By virtue of Cl. (a) of Sec. 49 of the Registration Act, effectof the non-registration of

the agreement to exchange would be that far from vesting anytitle in the immoveable

property such a document cannot even affect such property.Indeed because of Cl. (c) of the

said section such a document cannot be received as evidence ofany transaction affecting such

property and it; is common ground that the proviso to thesection is not attracted63

.

4.5 EFFECT OF NON REGISTRATION OF ACTIONABLE CLAIMSOnly wherethe terms of the agreement had been incorporated in decree ororder,

registration of the agreement was unnecessary even with regardto immoveable property

outside the scope of the particular suit in which the decree (ororder) was passed, as the entire

agreement must be considered to have been incorporated in thedecree (or order), the decree

(or order) being sufficient evidence of its terms.

The learned judges did not choose to give the expression orderor decree such a

wide meaning as was given by the Bombay and Lahore High Courts.It is however, clear that

the terms of the security bond were not embodied in any order ofthe Court. All that was done

was that the security bond was accepted by the Court. Thisacceptance by itself, will not

make the order as a substitute for the security bond. On thefacts of the present case there can

be no doubt that the liability under the security bond could notbe enforced unless it was

registered64

.

InAribam Keshorjit Sarma v. Kanjangham Amu Singh65

under Sec. 35 of the Indian

Stamp Act the Munsif was correct in calling upon the petitionerto deposit Rs. 34.50 towards

the deficit stamp duty and penalty. If they are deposited, thedocument in question becomes

validly stamped simple mortgage bond, still it can be relied onas evidence of the money debt.

4.6 EFFECT OF NON-REGISTRATION OF GIFT DEEDA gift can be dulyeffected by a registered instrument whether it is accompaniedby

possession or not. An unregistered instrument of gift cannot bereceived as evidence of the

gift. But it can go in not to prove any definite gift, but forwhat it is worth that there was talk

63Nachhattar Singh v. Jagir Kaur AIR 1986 P. & H. 197.

64 Narahariappa v. Mohd. Moulana AIR 1967 AP 5.

65 AIR 1969 Manipur 23.

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of making some assignment at that date." An unregisteredinstrument purporting to be an

instrument of gift of immoveable, property and actionableclaims, does not necessarily fall as

a gift of actionable claims, unless the donees getting ofactionable claims is ,conditional on

his also getting the immovables allotted to him.

A registered document operates from the time from which it wasintended to operate

and not from the date of registration.

A registered document, other than a will, relating to property,takes effect against any

oral agreement relating to such property. However, when the oralagreement is accompanied

by delivery of possession, then the oral agreement will prevailover the registered document.

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CONCLUSION

The provisions regarding registration of documents in India israther elaborate,

detailed and vast. The necessity of registration cannot bestressed upon enough. The Courts

have taken an elaborate stand regarding the position ofregistered documents. A certain

strictness has to be maintained to ensure that registerabledocuments need to registered to

maintain absolute records of all land transactions happeningwithin the state.

This strictness can only be brought about by Courts of law. Thisstate of strictness will

lead to a position where every-one registers every documentwhether it is mandatory or not.

This will lead to the creation of a smoother judicial systemwhere unnecessary delays and

side litigation is avoided on the basis of an invalidregistration, wrongful registration or lack

of registration.

The massive judicial backlog is partly due to the lackadaisicalattitude of the people

who fail to register mandatory documents and when suits happenon those documents, there

are delays due to additional litigation going on to admit acertain document as evidence.

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BIBLIOGRAPHY

BOOKS

1. A.K.BANERJEE,COMMENTARIES ON THE TRANSFER OF PROPERTY ACT(2007).2. ALISON CLASKE,PROPERTY LAW (2005).3. AVTAR SINGH,TRANSFEROF PROPERTY ACT (2007).4. B.CHRISTOPHER MUELLER &LAIRDC.KIRKPATRICK,EVIDENCE (2009).5. CROSS &TAPPER ,EVIDENCE (8thed. 1995).6. G.P.TRIPATHI,TRANSFER PROPERTY ACT (2006).7.H.P.GUPTA,LAW OF EVIDENCE (2007).8. I.H.DENNIS,LAW OF EVIDENCE (2ndEd. 2007).9. M.MONIR,THE LAW OF EVIDENCE (14th Ed.2006).10.MALIK,THE REGISTRATIONACT,1908(2004).11.P.P.SAXENA,PROPERTY LAW (2006).12.PETERMURPHY,APRACTICAL APPROACH TO EVIDENCE 1(2nd ed.1985).13.PHIPSON,EVIDENCE (15th ed. 2000).14.R.S.RAO,LECTURES ONTRANSFER OF PROPERTY (2006).15.RATANLAL RANCHODDAS &DHIRAJLALK.THAKORE,LAW OF EVIDENCE (2006).16.SOLI J.SORABJEE,TRANSFER OFPROPERTY ACT (2004).17.STEVE UGLOW,EVIDENCE:CASES AND MATERIALS(1997).18.V.KRISHNAMCHARI,LAW OF EVIDENCE (2007).19.VEPAP.SARATHI,LAW OF TRANSFER OF PROPERTY (2005).WEBSITES

1. www.google.com2. www.manupatra.com3. www.westlaw.com4.www.books.google.com5. www.westlawindia.com6. www.ccs.org