Indian Registration Act

Indian Registration Act, 1908:Indian Registration Act is an act to consolidate the enactments relating to the registration of
documents. Registration means recording of the contents of the document. The object of registration
is conservation of evidence and title. Section 17 of the Indian Registration Act 1908, deals with the
documents that are compulsory to be registered.

Section 17 - Indian Registration Act, 1908 A document purporting or operating to effect a contract for the sale of immoveable property shall not
be deemed to require or ever to have required registration by reason only of the fact that such
document contains a recital of the payment of any earnest money or of the whole or any part of the
purchase money.1

Scope of section 17:(1) Where the award was made prior to the enforcement of the Registration Amending Act of
1929, held its non-registration would not affect its validity.
(2) It was held that even though a part of the compromise related to the property which was
beyond the subject matter of the suit, had been incorporated in the compromise decree and
although not being a part of the operative portion thereof did not require registration.
(3) It was further observed that in spite of this it narrowed the scope of the exemption clause and
provided that if the decree or order referred to the property other than that which was the
subject-matter of the suit or proceeding, it would require registration.
(4) Where the registration of an instrument embodying a contract is necessary, it is essential that
each of the parties thereto should do for the acts all that is necessary towards securing
registration of the instrument.
(5) Where the terms of the document render it compulsory registered under section 17, it cannot
make be taken out of its purview merely because it cannot be admitted to registration as it
does not specify the property as required by section 21.
(6) In the context of section 17 of the Act, a document is the same as an instrument and to draw
nice distinctions between the two only serves to baffle, not to illumine.

When A Document Needs Registration?

1 Inserted by Act No. 2 of 1927
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There are several documents that are not compulsorily register able under section 17 of the
Registration Act 1908. Some of them require high stamp duty and some of them do not. Even the
ones that require high stamp duty, if they are under stamped, can be rectified later by paying a penal
amount ten times the original amount. Non-payment of stamp duty does not make the document void
or otherwise invalid.

The consequences of under stamping as per the stamp act are:

(1) to make the document inadmissible for the evidence before any authority capable of receiving
evidence of before any public authority.
(2) the document can also be impounded for enforcing the payment of full stamp value. An under
stamped instrument can be admitted as evidence in court, if penal stamp duty is ten times the value
of the original amount, and is paid.
In conclusion, always register a document which is compulsory register able or for which stamp duty
is not high. Documents for which stamp duty is high and which do not require registration do not
become invalid for want of proper stamp duty alone. But the rights of both parties should be
protected in case of default, so consult a lawyer. Always give possession separately and never in the
documents itself.

Section 17 & Section 53-A of Transfer of Property Act 1882:

The combined effect of section 53-A of the Transfer of Property Act 1908 and section 17 of the
Indian Registration Act is that an incomplete deed of transfer, though not registered or even attested,
is regarded, as a contract in writing but such a deed must have been signed by the transferor or his
agent.
An unregistered document affecting immoveable property, required by the Transfer of Property Act
1882 or the Registration Act 1908 to be registered, may be received in evidence of a contract in the
suit for the specific performance or as evidence of part-performance of a contract for the purpose of
section 53-A or as evidence of any collateral transaction not required by a registered instrument.
Where the parties execute an unregistered sale deed without prior permission of the competent
authority, the transaction will be void and this section will not be applicable. In cases, where land is
transferred in lieu of dower and the bride was put in possession of it and a kabulnama was executed
which was unregistered evidencing the transfer, it was held that section 53-A of the Transfer of
Property Act 1882 would apply to such a case and a suit by the father in law and a declaration of title
and possession will fall.
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In Haji Mokshed Mondal Vs. Del Rouson Bibi 2., it was held that section 53-A of the Transfer of
Property Act 1882 precludes from enforcing any rights in respect of the disputed property
inconsistent with or not mentioned in the said contract and therefore, the suit was dismissed.

Section 17 and Section 54 of Transfer of Property Act 1882:

The combined effect of section 54 of the Transfer of Property Act 1882 and section 17 of the
Registration Act 1908 is that, a contract of sale in respect of immoveable property of the value of
more than one hundred rupees without registration cannot extinguish the equity of redemption. In
India, it is only on execution of the conveyance and registration of transfer of the mortgager's interest
by registered instrument that the mortgagor's right of redemption will be extinguished. The
conferment of power to sell without intervention of the court in a mortgage deed by itself will not
deprive the mortgagor of his right to redemption. The extinction of the right to redemption has to be
subsequent to the deed conferring such power. The right of redemption is not extinguished at the
expiry of the period. The equity of redemption is not extinguished by mere contract of sale.
The mortgagor's right to redeem will survive until there has been completion of sale by the
mortgagee by a registered deed. It must also be noted that section 17 of the Indian Registration Act
1908 or the second paragraph of the Transfer of Property Act 1882, will have no application to the
agreement to recover property, being non-creation of any interest in the immoveable property.
Narandas Karsondas vs. S.A. Kantam 3, it was held that the mortgagor has a right to redeem unless
the sale of the property was complete by registration in accordance with the provisions of the
Registration Act 1908, and therefore, the appeal was dismissed.

Essentials of Section 17:

Section 17 of the Indian Registration Act (Act XVI of 1908) would be attracted in a case where the
disputes relates to a charge sought to be created by a debenture on immoveable property which was
existent at the date of the creation of the charge and was in the ownership of the company at that
date. It would, therefore, necessarily follow from it that a debenture which seeks to create, declare or
limit any right, title or interest to or in immoveable property would be covered by clause (b) of subsection (1) of section 17 of the Indian Registration Act 1908.
2 AIR

1971 Cal. 162

3 AIR 1977 SC 774

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Section 49 in The Registration Act, 1908:

Effect of non-registration of documents required to be registered.No document required by section

17 1[or by any provision of the Transfer of Property Act, 1882 (4 of 1882)], to be registered shall
(a) affect any immovable property comprised therein, or
(b) confer any power to adopt, or
(c) be received as evidence of any transaction affecting such property or conferring such power,
unless it has been registered: 54 [Provided that an unregistered document affecting immovable
property and required by this Act or the Transfer of Property Act, 1882 (4 of 1882), to be registered
may be received as evidence of a contract in a suit for specific performance under Chapter II of the
Specific Relief Act, 1877 (3 of 1877) 55, 56 [***] or as evidence of any collateral transaction not
required to be effected by registered instrument.] State Amendment Uttar Pradesh:
In section 49,
(i) in the first paragraph, after the words or by any provision of the Transfer of Property Act, 1882
insert the words or of any other law for the time being in force,
(ii) substitute clause (b) as under: (b) confer any power or create any right or relationship, or,
(iii) in clause (c), after the words such power, insert the words or creating such right or
relationship,
(iv) in the proviso, omit the words as evidence of a contract in a suit for specific performance under
Chapter II of the Specific Relief Act, 1877, or. [Vide Uttar Pradesh Act 57 of 1976, sec. 34 (w.e.f. 11-1977)].

Whose document has to be registered?

Section 28 of the Registration Act, 1908 states that all documents of which registration is compulsory
if it relates to an immovable property as well as a few documents of which registration is optional
should normally be presented for registration in the office of Sub-Registrar within whose sub-district
the whole or some portion of the property to which the document relates is situated.

What procedure is followed at the time of lodging a document for registration?

For registration of any instrument, the original document which should be typed/printed on one side
only along with two photocopies of the original have to be submitted to the Registering Officer. The
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copies are required to be photocopied only on one side of the paper and there has to be a butter paper
between the two photocopies papers. This is done so as to prevent the typed matter from getting
spoilt. The registration procedure also requires the presence of two witnesses and the payment of the
appropriate registration fees. On completion of the procedure, a receipt bearing a distinct serial
number is issued. The following requirements are completing the registration are usually stated on
the receipt:
(a)

Market Value of the property;

(b)
Income-Tax clearance, i.e. NOC. under Section 269 YL (3) issued by the Appropriate
Authority constituted under Chapter XX-C of the Income Tax Act, 1961 if the same is applicable;
(c)
Certificate under section 230-A of the Income Tax Act, 1961 granted to the Transferor by the
assessing officer of the Transferor
d) Urban Land Ceiling declarations of the transferor/s and the transferee/s.

What are the fees for registration of a document?

The State Government has been empowered to fix the fees for registration of the document. The
registration fees at present fixed for registering documents relating to property transactions are
approximately 1 % of the consideration of the document but subject to a maximum limit of Rs.
20,000/- The registration fee for the following immovable property transactions is liveable on the
market value of property on which stamp duty is charged. The transactions are as under:
(i)

Conveyance,

(ii)

Exchange,

(iii)

Gift,

(iv)

Partition

(v)

Transfer of Lease by way of Assignment,

(vi)

Sale

(vii)

Settlement

(viii)

Power of Attorney given for consideration and

(ix)

Authorising the attorney to sell the property.

In the case of lease, the amount of registration fees will be dependent either on the premium or on the
sum payable under the lease or period/periods of lease.

Who can present the document for registration?

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Section 32 of the Registration Act, 1908 deals with the provisions relating to the presenting of
documents for registration by a person. Subject to certain exceptions, every document which is to be
registered under the provisions of the Act should be presented at the proper registration office by: (a)
the concerned person himself/herself, or (b) the representative or the agent of such a person duly
authorised in manner as is stated in Section 33 of the Registration Act, 1908.

What are those documents, of which registration is optional?

Section 18 of the Act lays down the instruments of which registration is optional. Some of these
instruments are listed as under:A. Instruments (other than instruments of gifts and wills) relating to the transfer of an
immovable property, the value of which is less than one hundred rupees.
B. Instruments acknowledging the receipt or payment of any consideration.
C. Lease of an immovable property for a term not exceeding one year.
D. Instruments transferring any decree or order of a court where the subject matter of such
value of which less that one hundred decree or order is an immovable property, the is rupees.
E. Wills.

What is the procedure on admitting a document to registration?

If all the persons executing the document appear personally before the officer and/or are personally
known to him or if he is otherwise satisfied that they are the persons they represent themselves to be
and if they all admit the execution of the document, the Registering Officer should register the
document as required under Section 58 of the said Act.
He should endorse the following particulars, namely:
(a)
The signature and admission of every person admitting the execution of the document in
person or by his representative, assign or agent;
(b)

The signature and admission of every person examined in reference to such a document;

(c)
Any payment of money or delivery of goods made in the presence of the Registering Officer
in reference to the execution of the document and any admission or receipt of consideration made in
his presence in reference to such execution. If any person admitting the execution of a document
refuses to endorse the same, the Registering Officer nevertheless is empowered to register such a
document but he should endorse a note of such a refusal and as required under Section 59 of the Act,
as he should affix the date and his signature to all endorsements made under Sections 52 and 58 of
the Act which is relating to the same document.
After completion of all formalities related to registration, the Registering Officer shall endorse on the
document a certificate containing the word Registered together with the number and page of the
book in which the document has been copied. Later, the endorsements and certificate shall thereupon
be copied into the margin of the Register book. The copy of maps on plans of any, shall be filed in
Book No.1. The registration of the document is then deemed to be completed and the document is
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returned to the person who presented the same for registration or to such other person if any, who has
been nominated in writing in that behalf on the receipt mentioned in Section 52 of the Act. However,
such original documents are returned by post or by hand delivery only after the proper procedure for
the preservation of the original document has been completed by the Registration Authorities.

Where the registration of document is done?

As per Section 28 and 29 of the Registration Act the document should be presented for
registration at the office of the Sub-Registrar of Assurances within whose sub district the
whole or some portion of the property to which such document relates is situated or in the
office of the Sub-Registrar situated at Mumbai, Delhi, Madras or Calcutta.

Under what circumstances the registration of document is refused?

The normal grounds for non-registration of document/s are:(a)
(b)
(c)
(d)

Document is opposed to public policy.

Parties have not complied with the formalities as laid by the Registration Act and
by any reasons by which registering authority is not satisfied.
The Survey No. Of the property is not mentioned in the document/s.
The language in which the document is executed is not in the language that is
normally prevalent in the area where the office of the registering authority is
situated.

Conclusion
In the light of the analysis of section 17 of Indian Registration Act 1908 and a comparative study of
section 17 and section 53-A and section 54 of the Transfer of Property Act 1882, it can be fairly
concluded that(1) an incomplete deed of transfer, though not registered or even attested, is regarded, as a
contract in writing but such a deed must have been signed by the transferor or his agent and
an unregistered document, affecting immoveable property, required by the Transfer of
Property Act 1882, or the Indian Registration Act 1908, to be registered, may be received in
evidence of part-performance of a contract or as evidence of any collateral transaction not
required by a registered instrument.
(2) a contract of sale in respect of immoveable property of the value of more than one hundred
rupees without registration cannot extinguish the equity of redemption.

Indian Registration Act

Indian Registration Act