Karnataka High Court Allows Writ Petition Challenging Sub-Registrar's Refusal to Register Sale Deed Based on Unverified Encumbrance Entry. Court Holds That Sub-Registrar Cannot Refuse Registration Without Proper Inquiry Under Registration Act, 1908.

High Court: Karnataka High Court Bench: DHARWAD In Favour of Prosecution
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Case Note & Summary

The petitioner, Smt. Vaishali W/o Keshav Kadakol, filed a writ petition under Articles 226 and 227 of the Constitution of India before the Karnataka High Court, Dharwad Bench, challenging an endorsement dated 21.09.2021 made by the Sub-Registrar, Jamkhandi (Respondent No.2), refusing to register a sale deed dated 18.12.2010. The petitioner had purchased the property under the said sale deed and sought its registration. The Sub-Registrar refused registration on the ground that there was an encumbrance entry in the revenue records indicating a prior mortgage or charge. The petitioner contended that the encumbrance entry was unverified and that the Sub-Registrar had no authority to refuse registration without conducting a proper inquiry. The respondents, represented by the State of Karnataka and the Sub-Registrar, argued that the refusal was justified based on the encumbrance entry. The court analyzed the provisions of the Registration Act, 1908, particularly Section 22-A, and held that the Sub-Registrar's power to refuse registration is limited and cannot be exercised arbitrarily based on unverified entries. The court quashed the impugned endorsement and directed the Sub-Registrar to register the sale deed within 30 days, subject to payment of proper stamp duty and registration fees. The court also directed the State to make necessary corrections in the Kaveri online services website to reflect the registration.

Headnote

A) Registration Law - Refusal to Register - Sub-Registrar's Power - The Sub-Registrar cannot refuse registration of a sale deed solely on the basis of an unverified encumbrance entry in the revenue records; he must conduct a proper inquiry under the Registration Act, 1908, and if he finds any defect, he must record reasons and communicate the same to the parties. (Paras 1-10)

B) Constitutional Law - Writ Jurisdiction - Certiorari and Mandamus - The High Court under Articles 226 and 227 of the Constitution of India can quash an illegal endorsement refusing registration and direct the Sub-Registrar to register the document if the refusal is arbitrary and without jurisdiction. (Paras 1-10)

C) Registration Act, 1908 - Section 22-A - Scope - Section 22-A of the Registration Act, 1908, does not empower the Sub-Registrar to refuse registration based on unverified entries; the power to refuse is limited to cases where the document is prohibited by law or is otherwise invalid on its face. (Paras 1-10)

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Issue of Consideration

Whether the Sub-Registrar can refuse to register a sale deed based on an unverified encumbrance entry in the revenue records without conducting a proper inquiry under the Registration Act, 1908.

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Final Decision

The writ petition is allowed. The impugned endorsement dated 21.09.2021 is quashed. The Sub-Registrar, Jamkhandi, is directed to register the sale deed dated 18.12.2010 within 30 days from the date of receipt of a copy of this order, subject to payment of proper stamp duty and registration fees. The State is directed to make necessary corrections in the Kaveri online services website to reflect the registration.

Law Points

  • Registration Act
  • 1908
  • Section 17
  • Section 22-A
  • Karnataka Stamp Act
  • 1957
  • Article 226
  • Article 227
  • Writ of Certiorari
  • Writ of Mandamus
  • Encumbrance Certificate
  • Sub-Registrar's Power to Refuse Registration
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Case Details

2021 LawText (KAR) (10) 5

Writ Petition No.103813/2021 (GM-ST/RN)

2021-10-05

S.R. Krishna Kumar

Sri Girish A. Yadavad (for petitioner), Sri V.S. Kalasurmath (HCGP for respondents)

Smt. Vaishali W/o Keshav Kadakol

The State of Karnataka, Department of Stamps and Registration; The Sub-Registrar, Jamkhandi Sub-Division

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Nature of Litigation

Writ petition challenging the refusal of the Sub-Registrar to register a sale deed based on an unverified encumbrance entry.

Remedy Sought

Quashing of the impugned endorsement dated 21.09.2021 and direction to the Sub-Registrar to register the sale deed dated 18.12.2010.

Filing Reason

The Sub-Registrar refused to register the sale deed citing an encumbrance entry in the revenue records, which the petitioner claimed was unverified and not a valid ground for refusal.

Issues

Whether the Sub-Registrar can refuse registration of a sale deed based on an unverified encumbrance entry without conducting a proper inquiry under the Registration Act, 1908.

Submissions/Arguments

Petitioner argued that the encumbrance entry was unverified and the Sub-Registrar had no authority to refuse registration without proper inquiry. Respondents argued that the refusal was justified based on the encumbrance entry indicating a prior mortgage or charge.

Ratio Decidendi

The Sub-Registrar cannot refuse registration of a document based on unverified entries in revenue records; he must conduct a proper inquiry under the Registration Act, 1908, and if he finds any defect, he must record reasons and communicate the same to the parties. The power to refuse registration under Section 22-A of the Registration Act, 1908, is limited and cannot be exercised arbitrarily.

Judgment Excerpts

The Sub-Registrar cannot refuse registration of a sale deed solely on the basis of an unverified encumbrance entry in the revenue records. The power to refuse registration under Section 22-A of the Registration Act, 1908, is limited and cannot be exercised arbitrarily.

Procedural History

The petitioner filed a writ petition under Articles 226 and 227 of the Constitution of India before the Karnataka High Court, Dharwad Bench, challenging the endorsement dated 21.09.2021 made by the Sub-Registrar, Jamkhandi, refusing to register the sale deed dated 18.12.2010. The court heard the matter and delivered judgment on 05.10.2021.

Acts & Sections

  • Constitution of India: Article 226, Article 227
  • Registration Act, 1908: Section 22-A
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High Court Karnataka High Court Allows Writ Petition Challenging Sub-Registrar's Refusal to Register Sale Deed Based on Unverified Encumbrance Entry. Court Holds That Sub-Registrar Cannot Refuse Registration Without Proper Inquiry Under Registration Act, 1908.