Online edition of India's National Newspaper
Saturday, May 03, 2008
Google



Property Plus Hyderabad
Published on Saturdays

Features: Magazine | Literary Review | Life | Metro Plus | Open Page | Education Plus | Book Review | Business | SciTech | NXg | Friday Review | Cinema Plus | Young World | Property Plus | Quest | Folio |

Property Plus    Bangalore    Chennai    Hyderabad    Kochi    Malabar    Thiruvananthapuram   

Printer Friendly Page Send this Article to a Friend

LEGAL CHAT

All about registration, contracts

N.C.S. RAGHAVAN
ARVIND RAGHAVAN

Section 17 of the Indian Registration Act, 1908 (hereinafter referred to as the “Act”), specifies various categories of instruments (documents) which are compulsorily registrable.

Matters relating to the presentation of such documents before registering authorities and the registration thereof are discussed below. The specific legal steps which are required to be carried out by the registering authority are also highlighted.

The following documents are compulsorily registrable:

Instrument of gift of immovable property of any value.

Non-testamentary instrument (other than a will) which purports to create, declare, assign, limit or extinguish, whether in present or in future, any right, title or interest, whether vested or contingent, in immovable property of the value of Rs.100 and upwards.

Any non-testamentary instrument which acknowledges the receipt of payment of consideration in respect of any of the aforesaid instruments.

Leases of immovable property for a period of one year or more.

Any non-testamentary instrument which transfers or assigns any decree or order or award which purports or operates to create, declare, assign, limit or extinguish, whether in present or in future any right, title or interest, whether vested or contingent in immovable property of the value of Rs.100 or upwards.

Any documents containing contracts of the nature specified in Section 53A of the Transfer of Property Act, 1882, are also to be compulsorily registrable. In this regard, it is useful to discuss the nature and scope of a contract referred to in Section 53A.

The section contemplates a contract for transfer of any immovable property in writing duly signed by the transferor and the transferee .

The contract specifies the terms under which the transfer is to be effected.

Equitable title

In such a case, when the transferee in part performance of the contract takes possession of the immovable property and the transferee expresses his willingness to perform his part of the contract, then, in such cases the transferee is known to have what is called “equitable title to the immovable property.”

Even though the deed of transfer is not executed in his favour, the transferee has the right to be in continuous possession of the property and the transferor or any other person (s) claiming through the transferor are debarred from claiming any right in the possession adverse to the transferee .

It is to be noted that in all the above cases, the instrument by itself deals with the vesting of rights, title and interests in immovable property and hence they are compulsorily registrable.

However, now it is a well settled proposition of law that when a subsequent document merely confirms an earlier transaction in immovable property duly recorded in an instrument, such a subsequent document is not compulsorily registrable.

In this context the utility and effectiveness of sworn affidavits have to be emphasised.

Sworn affidavit

A sworn affidavit duly attested by a Notary or courts or statutory authorities can confirm and affirm the execution of an earlier instrument which is compulsorily registrable dealing with rights, titles and interests in immovable property.

Such affidavits by themselves need not be registered and they attract a nominal stamp duty of Rs.50 (in Karnataka).

They can prove to be an effective record to confirm and affirm an earlier transaction in immovable property and can be also adduced as evidence in Courts of Law, before other legal forums and statutory authorities in any legal proceedings dealing with disputes in respect of any immovable property.

Section 18 of the Act deals with instruments where the registration is only optional and they are indicated below.

Instruments dealing with immovable property of a value less than Rs.100.

Leases of immovable property for a period less than one year.

Instruments dealing with movable property, wills and other documents which are not specifically referred to as compulsorily registrable under Section 17 of the Act (as mentioned above).

The legal steps relating to the presentation of documents before the registering authority and scrutiny of the contents will be discussed in the subsequent issues.

(N.C.S. Raghavan is a chartered accountant and Arvind Raghavan, an advocate)

Printer friendly page  
Send this article to Friends by E-Mail



Property Plus    Bangalore    Chennai    Hyderabad    Kochi    Malabar    Thiruvananthapuram   

Features: Magazine | Literary Review | Life | Metro Plus | Open Page | Education Plus | Book Review | Business | SciTech | NXg | Friday Review | Cinema Plus | Young World | Property Plus | Quest | Folio |


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | Publications | eBooks | Images | Home |

Comments to : thehindu@vsnl.com   Copyright © 2008, The Hindu
Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu