Effect of Registration and Non-Registration Under the Registration Act, 1908

Introduction:

Registered Documents have its benefits and unregistered documents have their disadvantages when compulsory registration is required. The effect of the registration according to Sections 47, 48, 49 and 50 of the Registration Act,1908 is as follows:

Section 47: Time at which registered document is operating

A registered document shall be in effect from the time it would have started to function, if it had not been necessary or made to register, and not from the time it was registered.

Section 48: Licensed records relating to property when oral agreements take place

All non-testamentary records duly recorded in compliance with this Act and relating to any property, whether movable or immovable, shall take effect against any oral agreement or declaration relating to that property, unless the agreement or declaration precedes or follows the delivery of the property and the same constitutes, for the time being, a lawful transfer under any law

 Section 49:Effect of non-registration of necessary documents

No document needed to be registered under section 17 or any clause of the Transfer of Property Act, 1882-

(A) impact any immovable assets found therein, or

(B) grant some authority to adopt, or

(C) be obtained as proof of any transaction affecting or conferring any power in respect of such land, unless registered:

Section 50:All land-related documents to take action against unregistered documents

(1) Any document of the kind referred to in clauses (a), (b), (c) and (d) of section 17, sub-section (1), and clauses(a) and (b) of section 18 shall take effect, if properly registered, in respect of the property contained therein, against any unregistered document relating to the same property, and not as a decree or order, if the unregistered document is of the same nature as the registered document.

(2) Nothing in sub-section (1) applies to leases exempted under sub-section(1 ) of section 17 or to any document mentioned in sub-section (2) of the same section; or to any registered document which had not a priority under the law in force at the commencement of this Act.

Effects due to Registration of Documents

Registration is the act of registering a document with a recognized officer and preserving the original copies thereof. Any text, whether binding or non-binding, shall be reported in the manner necessary. It is not necessary to register every document, but doing so confirms the authenticity and helps to avoid legal processes. Many people are unfamiliar with the registration concept and therefore do not understand its importance in the eyes of law. To be familiar with registration and what it entails in order to prevent conflicts is important. According to the Registration Act, 1908, there are two forms of registration, namely “Mandatory Registration” and “Optional Registration”. A person wishing to register should also have to know the following:-

• Who can register?
• Where to register?
• When to register?
• What fees to be paid?

If the person knows all of these then he will be able to apply without any difficulty for registration of a document.

Mandatory Registration

Indian Registration Act, 1908, section 17 provides for compulsory registration of such documents. Those are the following:-

1. Deed of gift relating to immovable property;
2. Instruments not testamentary:  

a.  Subject to the establishment, transfer, declaration and extinguishment of any interest in immovable property valued at Rs.100 and above;                                                        b. Which acknowledge receipt or payment of any creation, assignment, declaration or restriction in respect of any right, title or interest;

3. Lease of immovable property for any period of more than one year or annual rent reservation;

4.    Contracts for the transfer of immovable property for the purposes of Section 53A of the Transfer of Property Act, 1882 shall be performed on or after the coming into force of the Registration and Other Relevant Laws (Amendment ) Act, 2001.

Failure to do so would result in invalid transfers.

Optional Registration

We don’t have to register all the documents. Section 18 provides for the optional registration of certain documents, such as:-

• Adoption Deed
• Instrument relating to joint-stock business shares
• Debentures provided by the joint venture
• Will
• Rental of immovable property not greater than 1 year
• Past transaction document
• Power of Counsel in relation to movable properties
• Decree or court order containing an immovable property valued under Rs. 100
• Sale certificate issued
• Mortgage Agreement
• Promissory note
• Revenue Officer partitioning instrument
• State award of immovable real estate

What are the Benefits of Registration of Documents?

A paper registration makes for a more open contract. Even if a registered document is lost or damaged, the document’s authenticity is proved in the registration records. A record indicating that a Power of Attorney has been revoked should also be registered so that after revocation there is no misuse. Easy access also helps in finding the owner who has the title and right to the property and whether there is any case against him or any existing liability before anybody decides to buy it. Registration also prohibits forgeries or fraud in particular transactions, tax, stamp duty etc.

Although certain documents are automatically registered, it is still best to register them as this will prove the validity of the document and set aside any questions that might arise as a result of it.

Effects due to Non-Registration

The Registration Act provided for the definitions of mandatory and voluntary record registration. The reality is that it is document registration which makes documents authentic in law. This means that document registration has certain effects and value. Likewise, there are also other consequences and effects of unregistered documents.

Section 49 of Registration Act 1908 deals with effects of the non-registration of the documents.

  Effects of non-registration of a compulsorily registrable instruction may be discussed in the following heads

1. Inoperativeness of a document

That no document is necessary to be registered under this Act or under any earlier law providing for or relating to the registration of documents shall be used to establish, grant, allocate, restrict or extinguish any right, title or interest.whether vested or contingent, in or in respect of the immovable property.

2.No Conferment of power to Adopt

Under the section, an adoption deed not duly registered, as required by section 17 of the Registration Act, shall not grant any power of adoption.

3.Inadmissibility as evidence

A document required to be registered and which is not registered can not be taken as evidence of the creation of any right, title or interest in or on certain immovable property. Consequently, non-registration destroys the evidential value of an instrument, but it can be used as evidence of certain collateral transactions.

4.Admissibility for collateral Transactions

Where a document required by law to be registered is not registered then it cannot affect any immovable property contained therein nor can it be received as evidence of any transaction affecting such property pursuant to section 49 of the Registration Act. However, such a document may be admitted to prove a party’s admission in respect of the property ‘s character, i.e. whether it is joint or otherwise.

Conclusion

The purpose of registering a document is to notify the world that such a document has been executed, to prevent fraud and forgery and to secure a reliable and complete account of all transactions affecting the property’s title. Consequently, it can be seen that registration of a document is of utmost importance and should be done as soon as possible otherwise it would lead to long years of a legal battle.

References:

www.indiankanoon.com

www.myadvo.in

thelawstudy.blogspot.com

www.advocatekhoj.com

 By

Shaik Uzma