Registration of Documents

Introduction:

The Black Law’s dictionary defines word Registration as a system by which owner of real property may file a petition in court for Certificate of such title as being the owner whose name appears on Certificate. Registration is the process of recording a document which signifies right over some immovable property, with recognized officers to safeguard the copies in original. The documents irrespective of their binding nature ought to be registered before the appropriate authority.

The registration is used synonymously with recognization of any document in the eye of law. Along with providing authenticity, the registration certificate helps to avoid future conflicts and legal process pertaining to rights over that immovable property. The rights over an immovable property may range from ownership, of mere use in form of lease or license, under the trust or otherwise.

Enactment Behind Registration

The Registration Act 1908 is the Indian Statute governing the subject matter, object, processes, breach and penalties in case of registration within the territory of India. The Act 1908 serves the purpose of specifying the manner to record and register instruments along with providing legality. The contents of the document are preserved and put in public records.

The idea to get the documents recognized is to conserve evidence, assure title, publish document in the public domain and prevent frauds. The orderliness, discipline and public notice regarding transactions and eliminate possible chances of fraud and forgeries in documents of transfer are basic ideas behind Registration Act 1908[1]

Subject Matter of Registration

Act 1908 deals with the set of documents which need to be registered. On the basis of necessity to register, there are three categories of documents.

• Firstly, all documents which relate to substantive laws need to be necessarily registered for proper enforceability. The efficiency of the document and it’s enforceability wholly lie on registration.
• Secondly, transactions like partition, releases and settlement can be effected without writing. But if they relate to any immovable property their registration becomes necessary. The steps, therefore, to register such document are enshrined under sec 17(1) of the Registration Act 1908 with exception of Will under 17(2). The registration by authorities for such a document is done under Sec 17(3). These documents include:
  • Gift deed related to immovable property;[2]
  • Contracts for transfer of immovable property for a consideration for purpose of Section 53A of Transfer of Property Act, 1882 is executed on or after the inception of Registration and Other Related Laws (Amendment) Act, 2001.
  • Lease of immovable property for any term exceeding one year or reservation of yearly rent;
  • Non-testamentary instruments:    
    • purporting to creation, assignment, declaration, the extinguishing of any interest in any immovable property worth Rs. 100 and above; 
    • which acknowledge receipt or payment of any consideration for creation, assignment, declaration or limitation of any right, title or interest;[3]
• Lastly, The documents which aren’t falling under either of the two above mentioned category and specified under Sec 18 are treated as Optional Registration Documents. Their enforceability of such documents doesn’t depend on the registration of such documents.  Unlike the compulsory registered document, the law doesn’t create obligations to get these documents registered. These documents include:
  • Will
  • Adoption Deed
  • Instrument relating to shares in a joint-stock company
  • Lease of immovable property not exceeding 1 year
  • Debentures issued by joint-stock company
  • Decree or order of court comprising an immovable property valued below Rs. 100
  • Certificate of Sale granted
  • Agreement of Mortgage
  • Promissory note
  • Instrument of partition by Revenue Officer
  • Grant of immovable property by Government
  • Power of Attorney with respect to movable property
  • Document of a past transaction

People Eligible to Apply Documents for Registration

It is a well-known principle that registration is done as a means to safeguard the interests in the property of immovable nature so such person must get registration. In other words, the set of people who acquire, have acquired or will be acquiring or in any form otherwise, the interest in any immovable property by law are eligible to get the document registered.

The Sec 32 in exception to section 31. Sec 88 and section 89 provides for the persons who qualify for getting documents registered before the appropriate authority. Section 32 specifically discusses the registration of documents where interests are acquired from a decree or order of any court.[4]

So following persons are eligible to apply for registration of document when they are

• Decree holder, the person executing or claiming under it
• Representative or assignee of abovementioned person
• Agent, representative or assignee, who is duly authorized under Power of Attorney executed and authenticated in the manner prescribed.

The person presenting the document must affix passport size photograph along with fingerprint. The transfer of immovable properties needs photographs and fingerprints of all buyer(s)and Seller(s)  mentioned in the document. The process of attestation is discussed under sec 32A of Act 1908.

Additionally for Wills or Authority to Adopt under Sec 40 and Sec 41, the following person can present the concerned document before Registrar or Sub-registrar for registration respectively

• Testator
• Donor
• After the death of testator , any executor in cases of will
• After the death of Doner, done or adoptive son

Moreover, a hurdle of satisfaction of Registrar or Sub- Registrar on the following ground is placed

• The document was actually executed by the Executor or Donor on whose behalf it is intended in the document
• There is death of testator or donor
• The person presenting is duly authorized either by Act of Man or by Law[5]

Place of Registering the Document

The most accepted principles for an immovable property are all the disputes fall according to the territorial jurisdiction of the concerned authority where it is located. The Sec 28 of Act 1908 to supports the abovementioned principle and jurisdiction of all registration lies with following

• In the office of Sub-Registrar in whose sub-district the document was executed; or
• In the office of any other Sub-Registrar under State Government where all individuals desire the document to be registered.

The registration of document may be presented before sub-registrar within whose district such property or part thereof is situated. The officer authorized to register can go to an individual’s private residence who desires to register or deposit will under Sec 31 if the special cause is shown.

Time Period for Registering the Document

Law obligates the person(s) to get documents registered as early as possible. A mandate of registering the document within four months of its execution as under Sec 23.

If the documents are executed by a different person at a different time it must be registered and re-registered after each execution within four months in regard to each execution. If the document is presented later than these four months, and reasonable grounds are present for such delay, the documents are registered with fee as much as ten times the actual fee of registration. Such reasonable and unavoidable grounds of delay must be subject to satisfaction of the Registrar. Under Sec 25, such delays and registrations must be notified by the Sub-registrar to the Registrar, to whom it is subordinate. In case of execution outside India, the document must be registered within four months after it’s arrival in India under Sec 26.

Fee Prescribed for Registration

The fee to get any document registered is in accordance to Sec 80.

Benefits of Registered Documents

• The registration provides for more transparent dealing in immovable properties.
• In case of any damage or losing of the document, a registered document may get a copy from Public records.
• The additional benefits of authenticity and enforceability by law also add the boons of registering.
• The registration provided for easy identification of the owner of any property
• It helps to determine the price and position of that property along with any pending encumbrances.
• It reduces the possible frauds and forgery
• It aids the tax authority while taxes are collected
• Though some documents are registered optionally but it is a safe choice to get all documents registered in light of abovementioned benefits.

Effect of Non-Registeration of Documents

Under sec 49 of Act 1908, the Non-Registration of Document is discussed. The provision states that documents which need to be compulsorily registered under sec 17 if left unregistered creates no rights or liability and will have no evidential value in eyes of law.

Following are ingredients of the abovementioned provision.

• There must be a document which is in writing
• The document needs to be registered compulsorily under sec 17 for its implementation
• The documents pertain to some rights or liability in respect to any immovable property, adoption or confer any other power in relation to any transaction.

If the document remains unregistered following consequence can be seen

• The document will have no evidential value
• The document will not be legally binding and enforceable before a court of law
• The document will be inoperative in granting, creating, extinguish, declaring or assigning any right, liability or disability
• The document may bar any assignment, creation, grant, declaration of any rights in future in connection to said matter

Having said that the document may be admitted by the court even though unregistered as a piece of collateral evidence to prove character, conduct, relationships, any associated offence, handwriting or otherwise in matter connected thereof.

All in all, the document which is unregistered fails to grant the rights, benefits and authorization intended by the draftsmen of the document.

Conclusion:

The registration is a form of action where we put the documents which involved transactions taking or giving rights, obligation and disability related to immovable property. Section 17 and Section 18 combined study provided for the idea for enforceability of certain documents which is highly dependent on legal recognization while some don’t need such compulsory registration.

The registration in addition to legal recognization provides for authenticity and force of law along with an attempt to avoid fraud and forgery.

Although the ideals to register are to ease up and provide convenience to the holder of the certificate but the lengthy and complex process often makes people function without registration and this lead to the whole of controversy before the various courts of law. It is saddening that the concept which was devised to grant and protect rights often is the process to deprive innocent people who failed to register due to lack of awareness and knowledge of this field.

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References:

[1] Suraj Lamp and Industries Pvt. Ltd. versus State of Haryana and Another AIR 2012 SC 206

[2] Narinder Singh Rao v. Air Vice Marshal Mahinder Singh Rao CIVIL APPEAL NOS. 6918-6919 OF 2011

[3] Haji Mokshed Mondal Vs. Del Rouson Bibi. AIR 1971 Cal. 162

[4]  Satya Pal Anand v. State of M.P. & Ors. Civil Appeal No. 6673 of 2014

[5] Narandas Karsondas vs. S.A. Kantam AIR 1977 SC 774,

• “Compulsory registration required Documents” http://thelawstudies.blogspot.com/2016/08/documents-require-compulsory registration.html?m=1 Retrieved 30 October 2020
• “Sec 17 of Indian Registration Act, 1908” http://www.legalserviceindia.com/article/l408-Sec-17-of-Indian-Registration-Act,-1908.html Retrieved 30 October 2020
• “Registration of documents under the Registration Act, 1908” https://blog.ipleaders.in/registration-of-documents/amp/ Retrieved 30 October 2020
• “COMPULSORY REGISTRATION OF DOCUMENTS UNDER REGISTRATION ACT, 1908” http://www.theindianlawyer.in/blog/2017/10/31/compulsory-registration-documents-registration-act 1908/#:~:text=The%20Registration%20Act%2C%201908%20serves,of%20copies%20of%20original%20document Retrieved 30 October 2020