Case Note & Summary
The petitioners, Kesar Corporation, Troika Constructions Company, and Dattashram Cooperative Housing Society Ltd., filed a writ petition against the Municipal Corporation of Greater Mumbai (MCGM) and the Assistant Commissioner (Estate) seeking renewal of lease and conveyance of Plot No. 62 of the Dadar Matunga Estate (South). The plot was originally leased to Shekhar Moreshwar Kirtikar under a registered Indenture of Lease dated 23rd August 1950. On 23rd August 1971, Kirtikar assigned the lease to Shanoor Begum and others. On 17th April 1980, Shanoor Begum and others assigned the property to Troika Constructions Company, and a formal Deed of Assignment was executed on 29th April 1981. The deed was presented for registration on the same day but was actually registered only on 20th September 2011. The MCGM refused to renew the lease or convey the property, contending that the assignment was not registered within the prescribed period and that the petitioners were not entitled to renewal. The court, relying on its earlier decision in Prabhat Sadan Properties Private Limited v Municipal Corporation of Greater Mumbai and Others, held that the delay in registration does not invalidate the assignment and that the petitioners are entitled to renewal and conveyance. The court allowed the petition and directed the MCGM to process the renewal and conveyance within a specified period.
Headnote
A) Property Law - Lease Renewal - Assignment of Lease - Delay in Registration - The court considered whether a lessee who acquired rights through an assignment deed that was registered after a long delay is entitled to renewal of lease and conveyance. The court held that the delay in registration does not invalidate the assignment and the lessee is entitled to renewal and conveyance as per the terms of the original lease and the Transfer of Property Act, 1882. (Paras 1-10) B) Property Law - Conveyance of Leasehold Property - Right to Conveyance - The court examined the right of a lessee to obtain conveyance of the leasehold property from the lessor. The court held that the lessee has a right to conveyance upon fulfillment of the terms of the lease, and the lessor cannot refuse conveyance on the ground of delay in registration of the assignment deed. (Paras 1-10) C) Registration Act, 1908 - Section 90 - Effect of Delay in Registration - The court interpreted Section 90 of the Indian Registration Act, 1908, and held that delay in registration of a document does not affect the validity of the transaction if the document is ultimately registered. The court relied on the principle that registration relates back to the date of execution. (Paras 1-10)
Issue of Consideration
Whether the petitioners are entitled to renewal of lease and conveyance of the leasehold plot despite the delay in registration of the assignment deed and whether the MCGM can refuse renewal on the ground that the assignment was not registered within the prescribed period.
Final Decision
The court allowed the writ petition and directed the MCGM to process the renewal of lease and conveyance of the plot to the petitioners within a specified period.
Law Points
- Lease renewal
- Conveyance of leasehold property
- Assignment of lease
- Registration of assignment deed
- Delay in registration
- Section 53A of Transfer of Property Act
- 1882
- Section 90 of Indian Registration Act
- 1908
- Section 105 of Transfer of Property Act
- Section 108 of Transfer of Property Act
