Understanding Section 17 of Registration Act, 1908

Introduction

The Registration Act ensures that the transactions related to the property are backed by law. Consequentially, it provides more authenticity and accuracy to the documents. Slammed with the workload, people cannot afford to go for legal battles for a continuous period due to improper or non-registration of documents. The document attains its legal sanctity on registration. Subsequently, the opposite party cannot rebut its credibility.

What is Section 17?

The courts across the country currently, due to reason of non-registration of documents, have held the transfers of property to be invalid. According to the principle enunciated under section 17,  documents registered are recognized by law. As per this section, various documents relating to the transfer of movable and immovable properties to be registered compulsorily are the instrument of gifts of immovable property, Mortgage deed, Charge, Instrument of Partition, Floating Charge, Leases, and other such transactions.

The objective of Section 17

The Honourable Supreme Court in the case of Suraj Lamp and Industries Pvt. Ltd. vs. State of Haryana and Another[1] laid down the main objective, as follows, “The Registration Act, 1908, was enacted to provide orderliness, discipline and public notice in regard to transactions relating to immovable property and protection from fraud and forgery of documents of transfer.” Therefore, documents pertaining to the immovable property have to be compulsorily registered to make it enforceable. If not so, it will be regarded as redundant and is not applicable as evidence in any court of law.

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Importance of Section 17

The decision of the Honourable Supreme Court in Narinder Singh Rao vs. Avm Mahinder Singh Rao & Ors [2] has highlighted the significance of Section 17. The deceased on a piece of paper wrote down that his wife gets his property after his death, attested by one person. It was also not registered. The widow later executed a will, in favour of one of her nine children bequeathing the entire property. The aggrieved siblings took the matter to court contesting that the mother did not lawfully inherit the property, and she had no right. The court applied the rule of succession is dividing the property as the father’s will was invalid and was in favour of the siblings. This case lays down the importance of proper and complete attestation and Registration of documents.

Benefits procured by Section 17

1. Voluntary consent – The parties give their free and voluntary consent to execute the transaction. Registration of a document implies that the transaction was not affected by any vitiating elements of a contract. A party cannot later come up with an argument of coercion, force, undue influence, or threat. Registration of a document establishes that the parties intended to be part of the transaction, knowing the legal obligations attached to it.
2. Credibility –Registration brings in transparency and legitimately secures the transactions. For instance, the registered documents are in the public domain and provide accessibility of documents. Registration helps in the prevention of fraudulent transactions.
3. To Maintain Cordial Relationships – For instance, in the case of partition, family members get into an agreement initially, and it is highly probable that there are chances of a difference of opinion later. Section 17 ensures the document stays valid even during unpleasant situations.
4. Prevention of Backlog of Cases -Additionally, by bringing a finality into agreements, a lot of disputes can be evaded, and this is only achievable through the Registration of documents which acts a legitimate proof. It becomes especially crucial when we consider the backlog of cases that our courts already have in existence.
5. Uphold the rule of law – Furthermore, government officials can take power into their hands and forge documents. Registration helps in preventing fraud or forgery and the principles of the rule of law are upheld.
6. Source Of Evidence – Another advantage is that registered documents are a source of evidence under the court of law. The Honourable Delhi High Court in Rajinder Kumar Kapur v. Madan Mohan Lal Kapur[3] laid down that, under the provision of section 17 of the Registration Act read with the provisions of the Indian Evidence Act, registered documents ought to be read in evidence. The same carries a sanctity in law and is presumed to have been executed.

 Effect of Non-Registration

The effects of non-registration as laid down in Section 49 is that a document cannot effect:

1. any immovable property
2. any power to adopt
3. as evidence of any transaction affecting such property or conferring such power.

Procedure for Registration

Sub-Registrar registers the documents relating to the immovable property as per Section 28. It is essential that within the jurisdiction of the office the property or part of a property must be situated  The documents must be registered within four months from the date of its execution as per Section 28.  In case of all other documents, it has to be submitted in the office of the Sub-Registrar. If the Sub-Registrar refuses to register without providing any justification for it, then the aggrieved person can report this to the District Registrar.

Conclusion

In conclusion, Section 17, by making registration mandatory, plays an integral role in keeping a check on documents pertaining to property in order to prevent unlawful activities and fraudulent transactions. Registration subsequently upholds justice by bringing sanctity and finality to transactions.

[1] Special Leave Petition (C) No.13917 Of 2009

[2] Civil Appeal Nos. 6918-6919 Of 2011

[3]  2019 SCC Online Del 9472

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