PPT on Effect of non registration

under section 49 of the

registration act
Name: Utkarsh Pandey

Semester and section: 9 B

Enrollment no. 09114703820

 Introduction to the
Registration Act, 1908
The Registration Act, 1908 was enacted to establish a clear system of public records related to property transactions.
Before its implementation, disputes over land and property were common, as there was no centralized system for
documenting ownership, transfers, and rights over immovable property. The primary purpose of the Act was to
create legal certainty by making registration mandatory for certain types of documents.
 Purpose of the Act: The Act aims to protect the rights of property owners and provide a system of public
records. It ensures that documents, which create or transfer rights in immovable property, are properly
documented and legally recognized. Registration gives public notice to all interested parties, reducing fraudulent
transactions and disputes over property ownership.
 Historical Context: The law was enacted during the British colonial era to regulate property transactions in a
systematic manner. It was part of broader efforts to introduce uniformity and legal standards in India’s
administrative system, particularly with respect to land and immovable property. Over time, the Act has played a
crucial role in shaping India’s land laws and continues to be relevant today, especially in the context of real
estate and land disputes.
 Why Registration is Vital Today: In modern society, land and property have become valuable assets. With
urbanization, real estate development, and the increase in property-related transactions, registering documents
has become essential for ensuring the legal validity of property transfers. Unregistered documents lead to a wide
IMPORTANCE OF REGISTRATION

 Proof of Ownership: The registration of a document acts as conclusive proof of

ownership and rights over the property. Without registration, the legal title of the
property remains in doubt.
 Public Record: Once a document is registered, it becomes part of the public
record. This helps protect third parties, such as prospective buyers or creditors,
who may rely on these records to verify ownership or existing claims over the
property.
 Transparency: Registration brings transparency to property transactions by
making them accessible to the public. This helps prevent fraudulent sales and
duplication of transactions.
 Government Revenue: Registration ensures that proper stamp duty and
registration fees are paid, contributing to government revenue. It also provides a
legal framework for revenue collection from property transactions.
Key Provisions of the
Registration Act
Under the Registration Act, 1908, certain documents must be compulsorily registered, while others may be
registered at the discretion of the parties involved. Understanding which documents require registration is
crucial for analyzing the consequences of non-registration.
Section 17: Compulsory Registration Section 17 of the Act lists the documents that must be registered.
These include:
 Sale Deeds: When immovable property is sold, the sale deed must be registered for the buyer to obtain
legal ownership.
 Gift Deeds: Any transfer of immovable property as a gift must be registered. If it is not, the gift is not
legally valid.
 Leases for More Than 12 Months: Lease agreements for immovable property exceeding 12 months in
duration must be registered.
 Mortgages: Mortgage deeds that transfer an interest in immovable property as security for a loan must
be registered to be enforceable
 Partition Deeds: When co-owners of property divide it among themselves, the partition deed must be
registered.
Continued…

Section 18: Optional Registration Certain documents may be

registered, but registration is not mandatory. These include:
 Wills: While registration of wills is optional, it provides added
security against challenges to the validity of the will.
 Agreements to Sell: An agreement to sell property may be
registered, but it does not create any legal interest in the property
until a registered sale deed is executed.
 Power of Attorney: Powers of attorney, especially those dealing
with property, may be registered, though it is not compulsory
Rationale Behind Registration

1. Legal Certainty: Registration helps create clear legal titles, reducing the chances of
disputes over ownership.
2. Prevention of Fraud: By registering documents, the law ensures that no party can
claim ownership fraudulently or transfer property multiple times to different buyers.
3. Public Record: Registered documents become part of the public domain, allowing
for transparency in property dealings.
4. Protection of Rights: Registration offers protection to the parties involved in a
transaction, ensuring that their rights are legally recognized.
Section 49: Non-Registration

Section 49 of the Registration Act, 1908, addresses the legal implications of

failing to register a document that is required to be registered under Section 17.
It essentially states that:
 The document shall not affect any immovable property comprised therein: o If a document
required to be registered under Section 17 is not registered, it cannot affect the rights or interest in
the immovable property to which it relates. For example, a sale deed for land that is not registered
will not transfer the ownership of the land to the buyer. Illustration: If "A" sells a plot of land to
"B" but the sale deed is not registered, "B" cannot claim ownership of the land, and "A" remains
the legal owner.
 It shall not confer any power to adopt: This applies to documents related to adoption. If an
adoption deed is not registered, it does not legally confer the power of adoption.
 It cannot be received as evidence in any transaction affecting such property:The most significant
consequence of non-registration is that the document cannot be produced as evidence in any court
to prove a transaction related to immovable property. This renders the document inadmissible in
legal proceedings to prove ownership, transfer, or other rights over the property
In-Depth Explanation of
Consequences of Non-
Registration
No Effect on Immovable Property When a document required to
be registered is not registered, it has no legal effect on the rights
of the property in question. The ownership or rights of the
property remain unchanged in the eyes of the law. For instance:
Sale Deeds: If a sale deed is not registered, the buyer cannot
claim ownership, and the seller remains the legal owner. This is
important in disputes where the buyer may have paid for the
property but failed to register the document.
Gift Deeds: If a gift deed transferring immovable property is not
registered, the gift is legally ineffective, and the donor retains
ownership.
Continued…

No Power to Adopt
This applies in personal law matters where adoption deeds are involved. If an
adoption deed is not registered, it does not confer legal status or rights of
adoption, meaning the adoption may be challenged.
Inadmissibility in Court The Most Critical Consequence:
Non-registration renders the document inadmissible as evidence in court to
prove the main transaction. This means that the parties to the transaction cannot
use the unregistered document to assert any rights related to the property.
Example: If "A" sells land to "B" and the sale deed is not registered, "B" cannot
produce the unregistered deed in court to claim ownership. The court will
refuse to accept the document as evidence of the sale.
Collateral Purpose Exception

One important caveat to the strict rule of inadmissibility is the collateral purpose
exception. While the unregistered document cannot be used to prove the primary
transaction (such as the transfer of ownership), it can still be used for collateral
purposes.
What is a Collateral Purpose?
A collateral purpose refers to a secondary or incidental matter, not the main issue
in the case. This means that the unregistered document can be used to prove
something related to, but not central to, the property transaction. Examples: An
unregistered sale deed might be used to prove that a payment was made. An
unregistered lease deed could be used to show that the tenant had been paying
rent regularly, but not to prove the existence of the lease itself.
Case Law: K.B. Saha & Sons Private Limited vs Development Consultant
Limited (2008) In this case, the Supreme Court allowed the use of an
Optional Registration

Section 18 of the Registration Act, 1908 outlines the types of documents whose registration is
optional rather than mandatory. This section allows people to register certain documents if
they choose, though it's not required by law.
The specific types of documents that can be optionally registered under Section 18 include:
1. Instruments acknowledging the receipt or payment of any consideration money
related to documents registered under this Act.
2. Leases of immovable property for a term not exceeding one year.
3. Instruments (other than wills) that purport or operate to create, declare, assign, limit,
or extinguish any right, title, or interest in immovable property, with a value that does
not exceed one hundred rupees.
4. Wills and other testamentary documents.
5. Other documents not required to be registered under Section 17, provided they do not
contravene other requirements of the Act or any other law.
Ram Rattan vs. Parmananand

Facts: In this case, a dispute arose regarding the ownership of certain land in Uttar
Pradesh. The plaintiff claimed ownership based on an unregistered sale deed
executed by the defendant. The defendant contended that since the deed was
unregistered, it was invalid, and he remained the owner of the property.
Legal Issue: The core issue was whether the unregistered sale deed could be enforced
to establish ownership of the property.
Judgment: The court ruled in favor of the defendant, stating that the unregistered sale
deed could not be used to transfer title or ownership of the immovable property as
required under Section 49 of the Registration Act. The judgment reaffirmed the legal
principle that non-registration of a document meant it had no effect on the immovable
property and could not be relied upon as evidence in court.
Conclusion

In conclusion, Section 49 of the Registration Act plays a crucial role in ensuring legal
certainty and transparency in property transactions. The consequences of
nonregistration are severe, rendering unregistered documents legally ineffective for
transferring rights in immovable property. While the collateral purpose exception
provides limited relief, it does not diminish the importance of registering documents
to protect the legal rights of parties involved in property transactions.