LAW OF REGISTRATION

ACADEMIC ASSESSMENT APRIL 2020

Name: Trisha Mukherjee Date: 21st April 2020

Class: BA LLB 5th Year

Semester: X

Roll no: 1511

 UNIT 1

Question 1: What are the documents regarding which registration is optional?

Answer:

Introduction to Registration Act, 1908

The Registration Act, 1908 is having object of proper recording and registration of
documents/instruments, which give them more authenticity. Registration means recording of
the contents of a document with a Registering Officer, and preservation of copies of original
document. Documents are registered for the purpose of conservation of evidence, assurance
of title, publicity of documents and prevention of fraud . The real purpose of the Registration
Act, 1908 is to provide a method of public registration of documents so as to give
information to people regarding legal rights and obligations arising or affecting a particular
property, and to perpetuate documents which may afterwards be of legal importance, and to
secure every person dealing with any property against fraud. The scheme of the Act is to
consolidate the law relating to registration.

Registration of Document:

Registrations1 lend inviolability and importance to certain types of documents. At the time of
registration, it is very essential to see that the officer is duly competent to register a
document2 and that the document is not presented to unqualified or a wrong registration
circle, as otherwise such registration would be of no use or validity. If the language in the
document is not understood by the registering officer, he shall refuse to register the
document. Also, no non-testamentary deed relating to immovable property would be accepted
for registration, unless it contains a description of such property sufficient to identify the
same.

The documents registrable under the Act fall under three categories. In the first category,
documents relating to transactions which according to the law, can be effected only by
registered documents.3 In the second category, there are certain transactions which can be
effected without writing, i.e. partitions, releases, settlements etc. But, if the transaction is
evidenced by a writing and relates to immovable property, the Registration Act steps in and

1
The term registration means enforcement of document of immovable property under the Government stamp.
2
An instrument on which is recorded, by means of letters, figures or marks, the original, or legal form of
something which may be evidentially used.
3
Compulsory Registration of Documents, Section 17 of Registration Act, 1908.
clauses (b) and (c) of Section 17(1) of said Act require registration of such documents,
subject to the exception specified in sub-section 2 of that section.

At this juncture, the third category, comes into been. It is open to the parties, if they choose to
get certain documents registered at their option and this is permitted by Section 18 of the Act.
All sorts of documents are not compulsorily registreable under the Registration Act there are
documents on which registration is at the option of the party. The non-registration of such
documents does not affect the validity or admissibility in the evidence. In other
words, Registration Act has provided concepts of compulsory registration and optional
registration of documents. In this Act, different documents have been mentioned; some of
them are those documents of which registration is compulsory, and some documents are those
documents of which registration is not compulsory.

Documents of which registration is option under Section 18 of Registration Act, 1908:

Following are those documents of which registration is not compulsory:

(i) Deed of Adoption

A deed of adoption does not require registration. This is because it is not deed, but the
adoption itself, that created the status of adopted son and confers an interest in property.4
(ii) Instruments, which relate to share in Joint Stock Company
Those instruments do not require compulsory registration when such instruments relate to
shares in Joint Stock Company.5
(iii) Debenture, which is issued by Joint Stock Company
Debenture does not require compulsory registration when Joint stock C9ompany issues such
debenture.6
(iv)Endorsement upon or Transfer of Debenture, which is issued by Joint Stock
Company
Any endorsement upon or transfer of any debenture does not require compulsory registration,
when Joint Stock Company issues such debenture.7
(v) Document value of Hundred Rupees
Any document does not require compulsory registration when such document does not create,
declare, assign, limit or extinguish any right, title or interest of value of one hundred rupees

4
Madhusudan v Water Resources Depatment AIR 2017 JHC 345.
5
Avtar Singh Brar, Chandigarh v Assessee ITA No. 276/Chd/2011.
6
K Roy and Bros. v Ramanath Das and Ors. AIR 1945 Cal 37.
7
Ashwin K. Doshi v SEBI, AIR 2016 SC 1952
and upwards to or in immoveable property, but merely creates a right to obtain another
document which creates, declares, assigns, limits or extinguishes any such right, title or
interest thought its execution.8
(vi)Document of past transaction
Document evidencing merely a record of past transaction and not containing terms of
contract or bargain operating in praesenti 9would qualify as a mere memorandum and does
not require registration.
(vii) Decree or order of Court
Any decree or order of court does not require compulsory registration when such decree or
order is not made on compromise and does not comprise immoveable property, which is
other than that property, 10which is subject-matter of suit or proceeding.
(viii) Instrument of Collateral Security
Instrument of collateral security does not require compulsory registration 11 when such
instrument is granted under Land Improvement Loans Act.
(ix)Power of Attorney
A power of attorney is not one of those documents enumerated by section 17 of the Act
which are compulsorily registerable. However it can be registered under section 18 of the
Act.12
(x) Agreement to Sell
A mere agreement to sell does not require registration by reason only of the fact that such
document contains a recital of the payment of an earnest money or of the whole or any part of
the purchase money.
(xi)Agreement of Mortgage
An agreement by a debtor to execute a mortgage of his immovable property to his creditor
does not by itself create an interest in the immovable property but merely creates a right to
obtain a deed of mortgage from the debtor. Hence does not require registration, but it may be
registered at the option of one party.
(xii) Instrument of Partition
Any instrument of partition does not require compulsory registration when such instrument is
made by a revenue-officer.13
8
Union of India v Shri Harbhajan Singh Dhillion, AIR 2005 SC 1061.
9
Jayalakshmi Trading Co v Krishnamurthy and Ors AIR 2006 Mad 179.
10
Rita Chakraborty v Kalidas Bhattacharjee AIR 2014 Cal 456.
11
Nabha Investment Pvt. Ltd. v Harkishnan Lukhmi Dass 1998 VAD Delhi 745.
12
Basant Nahata v The State of Rajasthan 2001(1) WLC 433.
13
M. Vidyasagar Reddy v M Padmamma AIR 2011 Adh 371.
 (xiii) Certificate of Sale
Any certificate of sale does not require compulsory registration when such certificate is
granted to purchaser of any property, which is sold by public auction by civil or revenue
officer.14
(xiv) Counterpart of Lease
Any counterpart of lease does not require compulsory registration, when lease, which
corresponds to such counterpart, has itself been registered.15
(xv) Promissory Note
A promissory note is not required to be compulsorily registered. However, it can be
registered under this section.16
(xvi) Will
As per section 18(e) of the Act, the registration of a will is mere optional. A will need not be
compulsorily registered; the fact that a will is not registered is not a circumstance against the
genuineness.17 Similarly, the Honourable Apex Court has held that no inference can be drawn
against the genuineness of a will solely on the ground of non registration.18

Conclusion:

To conclude, it can be stated that registration Act has provided provisions for registration of
some documents. It is not only through such provisions, but it is also through precedents that
it is decided whether a document is register able of not. The reason is that provisions of
Registration act about registration of documents are not exhaustive ones. Therefore, guidance
is sometimes, taken from precedents as far as registration of documents is concerned.

UNIT 2

Question 2: Under the Courts Fee Act, 1870 what are the various modes of levying fees?

Answer:

Introduction of Court Fees Act, 1870:

The Courts are institutions where the aggrieved go to seek justice. With the establishment of
Courts in India, a system evolved for the payment of fees for the adjudication of cases. The
rates of stamp fees leviable in courts and offices established beyond the local jurisdiction of

14
In Re v Unknown AIR 2018 Mad 200.
15
Seth Behari Lal v Amin Chand and Anr. 79 Ind Cas 1029.
16
HG Nanjappa v MFC Industries (P) Ltd AIR 1987 Mad 108.
17
Basaut v. Brij Raj, A.I.R. 1935 (Privy Council) 132.
18
Ishwardeo v. Kaunta Devi, A.I.R. 1954 S.C. 280.
the ordinary original civil jurisdiction of the High Courts of Judicature at Fort William in
Calcutta, Madras, and Bombay and in proceedings on the appellate jurisdiction of High
Courts were governed by the Act XXVI of 1867. However, within a span of about two years,
it was considered necessary to make a general reduction in the rates on the institution of civil
suits and to rely on the principle of maximum fee which was obtained under the previous law.
Also, in order to rectify the repressive effect and to avoid future confusion between stamp-
revenue proper and the revenue derived, a comprehensive bill known as the Court Fees Bill
was introduced in the Legislature. Now it is known as the Court Fees Act, 1870.

Types of Court Fees

Ad Valorem Court fees Fixed or specific court fees

(Schedule 1) – it means (Schedule 2)- it means
according to the valuation. valuation of the subject
Ad valorem duties are matter of a suit on the basis
always estimated at a of market value, ascribing an
certain per cent, on the artificial value or by
valuation of the property as requiring the plaintiff
opposed to fixed or specific himself to the value of relief.
duties.

Modes of levying of fees under the Court Fees Act, 1870

Under the Court Fees Act, 1870, the mode of levying of fees is given under Chapter V,
which encompasses S. 25 to S.30. Collection of fees (under S.3 or chargeable under this Act)
has to be done by way of stamps 19. Further, every state has their own rules but the central
legislation, i.e. the Court Fees Act, 1870 forms the basis of it.

The stamps, which are used to denote any fees chargeable under this Act are to be impressed
or adhesive, or partly impressed and partly adhesive, as the Appropriate Government may, by
notification in the Official Gazette, from time to time direct20.

Further, the Appropriate Government may, from time to time, make rules for regulating—
(a) the supply of stamps to be used under this Act;

(b) the number of stamps to be used for denoting any fee chargeable under this Act;
19
S. 25 of the Court Fees Act, 1870.
20
S. 26 of the Court Fees Act, 1870.
(c) the renewal of damaged or spoiled stamps; and

(d) the keeping accounts of all stamps used under this Act.

Provided that, in the case of stamps used under section 3 in a High Court, such rules shall be
made with the concurrence of the Chief Justice of such Court.

All such rules shall be published in the Official Gazette, and shall thereupon have the force of
law.21

The Act even stipulates that no document which ought to bear a stamp under this Act shall be
of any validity, unless and until it is properly stamped. 22But, if any such document is through
mistake or inadvertence received, filed or used in any Court or office without being properly
stamped, the presiding Judge or the heed of the office, as the case may be, or, in the case of a
High Court, any Judge of such Court, may, if he thinks fit, order that such document be
stamped as he may direct; and, on such document being stamped accordingly, the same and
every proceeding relative thereto shell be as valid as if it had been properly stamped in the
first instance.

Where any such document is amended in order merely to correct a mistake and to make it
conform to the original intention of the parties, it shall not be necessary to impose a fresh
stamp.23

The act further provides that no document requiring a stamp under this Act shall be filed or
acted upon in any proceeding in any Court or office until the stamp has been cancelled. Such
officer as the Court or the head of the office may from time to time appoint shall, on
receiving any such document, forthwith effect such cancellation by punching out the figure-
head so as to leave the amount designated on the stamp untouched, and the part removed by
punching shall be burnt or otherwise destroyed.24

UNIT 3
21
S. 27 of the Court Fees Act, 1870.
22
S. 28 of the Court Fees Act, 1870.
23
S. 29 of the Court Fees Act, 1870.
24
S. 30 of the Court Fees Act, 1870.
Question 3: Time for presentation of documents for Registration

Answer:

According to Section 23 of The Registration Act, 1908, all documents except a will have to
be presented for registration within 4 months from the date of execution. If a document is
executed by several persons at different times then that document has to be presented for
registration and re-registration within 4 months from the date of each execution.25.

If due to any urgency or unavoidable accident, any executed document or a copy of decree or
order is not presented within 4 months but it is presented after its expiry will be accepted for
registration provided that 10 times the amount of registration fees is paid and delay in
presentation does not exceed 4 months.

Application for such a step has to be made to Sub-Registrar who will forward such
application to the Registrar to whom he is a subordinate 26. If a document is executed outside
India by any or all of the parties and is presented after expiry 4 months then it will be
accepted for registration provided that it was executed and presented for registration within 4
months after its arrival to India27.

Case: V.K. Goel & Ors case.

It was held that the Plea that registration of compromise decree is option, therefore the time
limit prescribed in S. 23 of the Act would not be applicable is not tenable. Non-mention of S.
18 in S. 23 clearly leads to an inference that documents of which registration is optional are
also required to be presented within the time period provided in S. 23.

Case: M. Rehman v. Jamila Khaitan

Held: The provisions of Registration Act regarding the time within which certain acts are to
be done are pre-emptory in character and are not capable of being extended in the absence of
express provisions in this behalf.

Question 4: Object of Indian Registration Act

25
Section 24 of the Registration Act, 1908.
26
Section 25 of the Registration Act, 1908.
27
Section 26 of the Registration Act, 1908.
Answer:

The Registration Act 1908 is used for proper recording and registration of documents /
instruments, which give them more authenticity. Registration refers to the recording of the
contents of a document with a Registering Officer appointed by the State Government. The
State Government may exclude any district or tracts of country from its operation. The
Registering Officer performs the important function of preservation of copies of the original
document.

The Act deals with cases where transactions between individuals are reduced to writing and
provide for compulsory or optional registration, as the case may be, of such written
instruments. It does not deal with transaction not reduced to writing.

This Act is divided into XV PARTS containing 93 sections, and 1 Schedule. The Registration
Act 1908 extends to the whole of India except to the State of Jammu and Kashmir.

Registration is the process of recording a document with a recognized officer and to

safeguard its original copies. Any document whether binding or non-binding shall be
registered in a required manner. Registration of every document is not necessary but doing so
affirms the authenticity and helps in avoiding legal process.

The purpose of the Registration Act, amongst other things, is to provide a method of public
registration of documents so as to give information to people regarding legal rights and
obligations arising or affecting a particular property, and to perpetuate documents which may
afterwards be of legal importance, and also to prevent fraud. Registration lends inviolability
and importance to certain classes of documents.

Case: Suraj Lamp and Industries Pvt. Ltd. versus State of Haryana and Another28

The Honourable Supreme Court held that

“The Registration Act, 1908, was enacted with the intention of providing orderliness, discipline and
public notice in regard to transactions relating to immovable property and protection from fraud and
forgery of documents of transfer.”

28
AIR 2012 SC 206.