Summary
In a suit for specific performance of an unregistered agreement to sell dated 10 September 2013, the trial court held the agreement inadmissible because the Registration (Tamil Nadu Amendment) Act, 2012 inserted Section 17(1)(g) making agreements relating to sale of immovable property worth Rs. 100 and upwards compulsorily registrable and omitted the explanation to Section 17(2). The High Court in revision directed that the agreement be received in evidence under the proviso to Section 49. The Supreme Court affirmed: despite the State amendment there is no corresponding amendment to Section 49, whose proviso permits an unregistered document required to be registered to be received as evidence of a contract in a suit for specific performance, subject only to the exception in Section 17(1A), which did not apply to this agreement.
Issues
- Whether, after the Tamil Nadu Amendment Act, 2012 inserted Section 17(1)(g) in the Registration Act, 1908 making agreements relating to sale of immovable property compulsorily registrable, an unregistered agreement to sell can be received in evidence in a suit for specific performance under the proviso to Section 49.
Provisions considered
- Section 17(1)(g), Registration Act, 1908 (as amended by the Registration (Tamil Nadu Amendment) Act, 2012)Instruments of agreement relating to sale of immovable property of the value of Rs. 100 and upwards are compulsorily registrable in Tamil Nadu after the 2012 amendment, which also omitted the explanation to Section 17(2). (¶¶ 5, 8, 9)
- Section 49 and its proviso, Registration Act, 1908No corresponding amendment was made to Section 49; its proviso allows an unregistered document affecting immovable property and required to be registered to be received as evidence of a contract in a suit for specific performance under Chapter II of the Specific Relief Act, 1877, or of a collateral transaction, and is an exception to the first part of Section 49. (¶¶ 9, 10, 13)
- Section 17(1A), Registration Act, 1908Documents containing contracts to transfer immovable property for the purposes of Section 53A of the Transfer of Property Act executed after 24 September 2001 have no effect for that section unless registered; this is the only exception to the proviso to Section 49, and neither party contended the agreement fell within it. (¶¶ 12, 13)
Held
- Though Section 17(1)(g) inserted by the Tamil Nadu Amendment Act, 2012 makes an agreement relating to sale of immovable property compulsorily registrable and the explanation to Section 17(2) has been omitted, no corresponding amendment was made to Section 49; under its proviso an unregistered agreement to sell may be received as evidence of a contract in a suit for specific performance, subject to Section 17(1A), and the High Court rightly directed that the agreement be received in evidence. (¶¶ 9, 10, 12, 13)
Result
Appeal dismissed; High Court order dated 01.02.2022 in C.R.P.(MD) No. 1877 of 2017 directing that the unregistered agreement to sell be received in evidence in the suit for specific performance affirmed; no order as to costs.