Case Note & Summary
The petitioners, legal representatives of the deceased Munikrishnappa, filed a writ petition under Articles 226 and 227 of the Constitution of India seeking a writ of certiorari to quash an order dated 30.07.2016 passed by the Deputy Commissioner and District Registrar, Shivajinagar Registration District, Bangalore (Respondent No.2). The order refused registration of a sale deed executed in favour of the petitioners pursuant to a decree for specific performance of an agreement of sale. The background of the case is that Munikrishnappa had entered into an agreement of sale with one Khader Mohiddin on 03.04.1994 for purchase of land measuring 2 acres 20 guntas in Survey No.110/5 at Varthur village for a total consideration of Rs.4,00,000/-. He paid Rs.3,50,000/- as advance and the balance was payable at the time of execution of the sale deed. Khader Mohiddin failed to perform his part, leading Munikrishnappa to file a suit for specific performance (OS No.759 of 1995). During the pendency of the suit, Munikrishnappa died, and his legal representatives (the petitioners) were brought on record. The suit was decreed in their favour, and a sale deed was executed by the court. However, when the petitioners presented the sale deed for registration, the Deputy Commissioner and District Registrar refused registration on the ground that the underlying agreement of sale was not registered and therefore could not be the basis for a decree. The petitioners challenged this order. The court analysed the provisions of the Registration Act, 1908, particularly Section 17, which lists documents that require compulsory registration. The court held that an agreement of sale does not fall under Section 17 as it does not by itself create any right, title, or interest in immovable property; it is merely a contract. The court also noted that an unregistered agreement of sale is admissible for collateral purposes under Section 49 of the Registration Act. The court further held that a decree for specific performance can be executed by legal representatives, and the sale deed executed pursuant to such decree is valid. The court also addressed the issue of lis pendens, stating that a sale deed executed during the pendency of a suit is not void but subject to the outcome. The court quashed the order of the Deputy Commissioner and directed the registration authorities to register the sale deed in accordance with law.
Headnote
A) Registration Act, 1908 - Section 17 - Compulsory Registration - Agreement of Sale - An agreement of sale does not require compulsory registration under Section 17 of the Registration Act, 1908, as it does not create any right, title, or interest in the immovable property. It is merely a document evidencing the terms of the contract. (Paras 5-6) B) Registration Act, 1908 - Section 49 - Admissibility of Unregistered Document - Collateral Purpose - An unregistered agreement of sale is admissible in evidence for collateral purposes, such as proving the nature of possession or the terms of the contract, even if it is not registered. (Para 6) C) Specific Relief Act, 1963 - Section 10 - Specific Performance of Contract - Decree - Legal Representatives - A decree for specific performance of an agreement of sale can be executed by the legal representatives of the deceased decree-holder, and the sale deed executed pursuant to such decree is valid and registrable. (Paras 7-8) D) Registration Act, 1908 - Section 17 - Lis Pendens - Transfer of Property Act, 1882 - Section 52 - A sale deed executed during the pendency of a suit (lis pendens) is not void but is subject to the outcome of the suit. The registering authority cannot refuse registration on the ground of lis pendens. (Para 9) E) Constitution of India - Article 226 - Writ of Certiorari - The High Court can quash an order of the Deputy Commissioner and District Registrar refusing registration of a sale deed if such order is based on erroneous grounds, such as the requirement of registration of an agreement of sale. (Para 10)
Issue of Consideration
Whether an agreement of sale requires compulsory registration under Section 17 of the Registration Act, 1908, and whether the Deputy Commissioner and District Registrar can refuse registration of a sale deed on the ground that the underlying agreement of sale is not registered.
Final Decision
The court allowed the writ petition, quashed the order dated 30.07.2016 passed by the Deputy Commissioner and District Registrar, and directed the respondents to register the sale deed in accordance with law.
Law Points
- Registration Act
- 1908
- Section 17
- Section 49
- Specific Relief Act
- 1963
- Section 10
- agreement of sale
- compulsory registration
- admissibility
- collateral purpose
- lis pendens
- legal representatives
- writ of certiorari
