High Court of Karnataka Dismisses Writ Petition Challenging Rejection of Unregistered Lease Deeds as Evidence. Lease Deeds Require Registration Under Registration Act, 1908 Irrespective of Term.

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

The petitioner, a defendant in a civil suit, challenged an interlocutory order of the trial court that held four unregistered lease deeds produced by him as inadmissible in evidence. The petitioner argued that three of the lease deeds had a term not exceeding one year and thus did not require compulsory registration under Section 17(1)(d) of the Registration Act, 1908. The High Court examined the interplay between Section 17(1)(d) of the Registration Act and Sections 4 and 107 of the Transfer of Property Act, 1882. The court noted that Section 107 of the Transfer of Property Act requires a lease of immovable property from year to year, or for any term exceeding one year, or reserving a yearly rent, to be made by a registered instrument. However, Section 4 of the Transfer of Property Act provides that the chapters and sections of that Act which relate to contracts are to be taken as part of the Indian Contract Act, 1872. The court reasoned that a lease deed, even for a term not exceeding one year, is a contract and therefore must comply with the Registration Act. The court held that Section 17(1)(d) of the Registration Act requires registration of all lease deeds, regardless of the term, and that unregistered lease deeds cannot be received as evidence of any transaction affecting the property. Consequently, the writ petition was dismissed, affirming the trial court's order.

Headnote

A) Registration Act - Lease Deed Registration - Section 17(1)(d) - Transfer of Property Act - Sections 4 and 107 - The court considered whether a lease deed with a term not exceeding one year requires registration. Held that such lease deeds also require registration under the Registration Act, 1908, and unregistered lease deeds cannot be received as evidence of any transaction affecting the property. (Paras 1-3.1)

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Issue of Consideration

Whether a lease deed where the term of lease stated therein does not exceed one year requires to be registered under the Registration Act, 1908.

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Final Decision

The writ petition was dismissed. The court held that lease deeds, even with a term not exceeding one year, require registration under the Registration Act, 1908, and unregistered lease deeds cannot be received as evidence of any transaction affecting the property.

Law Points

  • Registration Act
  • 1908
  • Section 17(1)(d)
  • Transfer of Property Act
  • 1882
  • Sections 4 and 107
  • lease deed registration
  • admissibility of unregistered lease deeds
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Case Details

2014 LawText (KAR) (04) 1

Writ Petition No.202769/2014 (GM-CPC)

2014-04-16

H.G.Ramesh

Smt. Hema L. Kulkarni, Sri Laxmikanth.K, Sri Gururaj Rao Kakkeri, Sri B.D.Hangarki

Abdul Rasheed

Srinivas

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Nature of Litigation

Civil writ petition challenging an interlocutory order in a suit.

Remedy Sought

Petitioner sought to set aside the trial court's order rejecting unregistered lease deeds as evidence.

Filing Reason

The trial court held that four unregistered lease deeds produced by the petitioner were inadmissible in evidence.

Previous Decisions

The trial court passed an interlocutory order dated 26.03.2014 in O.S.No.10/2009 holding the lease deeds inadmissible.

Issues

Whether a lease deed with a term not exceeding one year requires registration under the Registration Act, 1908. Whether unregistered lease deeds can be received as evidence of any transaction affecting property.

Submissions/Arguments

Petitioner argued that three lease deeds had a term not exceeding one year and thus did not require compulsory registration under Section 17(1)(d) of the Registration Act, 1908. Respondent supported the trial court's order.

Ratio Decidendi

Lease deeds, regardless of the term of lease, require registration under Section 17(1)(d) of the Registration Act, 1908, and unregistered lease deeds are inadmissible as evidence of any transaction affecting the property.

Judgment Excerpts

Whether a lease deed, where the term of lease stated therein does not exceed one year, requires to be registered under the provisions of the Registration Act, 1908 is the question that needs an answer in this writ petition. The question is answered in the affirmative. In law, the lease deeds of the aforesaid kind also require to be registered and therefore, such unregistered lease deeds cannot be received as evidence of any transaction affecting the property.

Procedural History

The petitioner filed a writ petition under Articles 226 and 227 of the Constitution of India challenging an interlocutory order dated 26.03.2014 passed by the Civil Judge (Jr.Dn.) at Sedam in O.S.No.10/2009, which held that four unregistered lease deeds produced by the petitioner were inadmissible in evidence.

Acts & Sections

  • Registration Act, 1908: 17(1)(d)
  • Transfer of Property Act, 1882: 4, 107
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