Bombay High Court Allows Second Appeal in Property Dispute Over Unregistered Relinquishment Deed. Court Holds That a Deed of Relinquishment Without Consideration Requires Registration Under Section 17 of the Registration Act, 1908, and Remits Matter for Fresh Consideration.

High Court: Bombay High Court Bench: NAGPUR In Favour of Accused
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Case Note & Summary

The case involves a second appeal arising from a property dispute between the appellants (Bhaurao, Rekhlal, Dilip, Sakunbai, and Satyasheela) and the respondents (Santosh, Vithabai, and Nanda). The appellants sought to rely on a document styled as 'Deed of Relinquishment without Consideration' dated 30th March 1992, which they claimed evidenced a relinquishment of rights by the predecessor-in-interest. Both the trial court and the first appellate court refused to exhibit the document on the ground that it required registration under Section 17 of the Registration Act, 1908, and being unregistered, it was inadmissible. The appellants challenged this in the second appeal. The High Court framed a substantial question of law regarding the correctness of the lower courts' refusal to exhibit the document. After hearing counsel for both sides and perusing the document, the court found that the document indeed required registration as it dealt with rights in immovable property. However, the court noted that an unregistered document may still be admissible for collateral purposes, and the lower courts had erred in completely shutting out the document without considering its use for such purposes. The court held that the document should be exhibited and then the trial court should decide its evidentiary value. Consequently, the second appeal was allowed, the judgments of the lower courts were set aside, and the matter was remitted to the trial court for fresh disposal after exhibiting the document and giving both parties an opportunity to lead evidence. The court directed the trial court to decide the suit afresh within six months.

Headnote

A) Registration Act - Deed of Relinquishment - Section 17 - Admissibility - The document styled as 'Deed of Relinquishment without Consideration' dated 30th March 1992 was held to require registration under Section 17 of the Registration Act, 1908, as it purported to relinquish rights in immovable property. Both courts below erred in not exhibiting the document solely for want of registration, as an unregistered document may be admissible for collateral purposes. The matter was remitted to the trial court for fresh consideration after exhibiting the document. (Paras 2-5)

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Issue of Consideration

Whether the courts below erred in law in not exhibiting the document styled as 'Deed of Relinquishment without Consideration' dated 30th March 1992 for want of registration and, if yes, whether the proceedings are required to be remitted to the trial Judge?

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Final Decision

Second appeal allowed. The judgments and decrees of both courts below are set aside. The matter is remitted to the trial court for fresh disposal after exhibiting the document and giving both parties an opportunity to lead evidence. The trial court is directed to decide the suit afresh within six months.

Law Points

  • Registration Act
  • 1908
  • Section 17
  • Deed of Relinquishment
  • Admissibility of Unregistered Document
  • Substantial Question of Law
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Case Details

2014 LawText (BOM) (07) 154

Second Appeal No. 450/2013

2014-07-01

A.B. Chaudhari, J.

Mr. N.S. Popat with D.V. Mahajan, Advocates for appellants; Mr. R.K. Borkar, Adv. for respondents

Bhaurao s/o Harichand Sahare, Rekhlal s/o Harichand Sahare, Dilip s/o Harichand Sahare, Sakunbai w/o Ramesh Bhaskar, Satyasheela w/o Jamindas Sakhare

Santosh s/o Jairam Sahare, Vithabai wd/o Jairam Sahare, Nanda w/o Rupchand Bangre

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Nature of Litigation

Second appeal against concurrent findings of courts below refusing to exhibit a deed of relinquishment without consideration for want of registration.

Remedy Sought

Appellants sought to have the deed of relinquishment exhibited and considered as evidence in the suit.

Filing Reason

Both courts below refused to exhibit the document styled as 'Deed of Relinquishment without Consideration' dated 30th March 1992 on the ground that it required registration and was unregistered.

Previous Decisions

Trial court and first appellate court held that the document required registration and was not admissible, hence not exhibited.

Issues

Whether the courts below erred in law in not exhibiting the deed of relinquishment without consideration for want of registration? Whether the proceedings are required to be remitted to the trial Judge?

Submissions/Arguments

Appellants argued that the document should be exhibited and its evidentiary value considered. Respondents supported the lower courts' view that the document required registration and was inadmissible.

Ratio Decidendi

A deed of relinquishment without consideration requires registration under Section 17 of the Registration Act, 1908, but an unregistered document may be admissible for collateral purposes. The lower courts erred in completely refusing to exhibit the document without considering its use for collateral purposes.

Judgment Excerpts

Whether the Courts below erred in law in not exhibiting the document styled as 'Deed of relinquishment without consideration' dated 30th March. 1992 filed along with list Exh.61 in RCS No. 128/2009 for want of registration and, if yes, whether the proceedings are required to be remitted to the trial Judge? Both the Courts below have held that the said document required registration and since it was not registered, it was not admissible and was not exhibited. I have gone through the document carefully. What I find from the said document is that Dadu @ Jairam Sahare...

Procedural History

The suit (RCS No. 128/2009) was filed in the trial court. The trial court refused to exhibit the deed of relinquishment. The first appellate court upheld that decision. The appellants then filed the present second appeal.

Acts & Sections

  • Registration Act, 1908: Section 17
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