1997 (8) TMI 481 - HC - VAT and Sales Tax

Summary

Issues:
1. Interpretation of the effective date of a registered lease deed in relation to an unregistered lease deed.
2. Validity of ratification of the father's act by the son in executing a lease deed.
3. Application of legal principles regarding ratification in property transactions.

Analysis:
The petitioner sought an eligibility certificate under the U.P. Sales Tax Act, 1948, which was granted from July 20, 1992, based on the non-fulfillment of conditions on the date of the first sale in 1989. The petitioner contended that a registered lease deed executed by the son ratified the father's earlier unregistered lease deed, making it effective from June 1, 1989. The key question was whether the registered lease deed could be deemed effective from the earlier date. The court referenced precedents to establish that a registered document can relate back to its date of execution. In a similar case, the court recognized the ratification of acts by a younger brother in the context of property transactions, supporting the petitioner's argument of ratification in this case.

The court relied on legal principles to conclude that the son's ratification of the father's act in executing the lease deed validated the earlier unregistered lease deed from June 1, 1989. By applying the doctrine of relation back, the registered lease deed was deemed effective from the earlier date, ensuring compliance with all conditions as of the first sale in 1989. Consequently, the eligibility certificate's operation could not be restricted from July 20, 1992, as all eligibility conditions were considered fulfilled as of the first sale date. The court allowed the petition, quashing the earlier order and directing the respondents to grant the eligibility certificate from the date of the first sale in 1989.

In conclusion, the judgment clarified the legal validity of ratification in property transactions, emphasizing the significance of relation back doctrine in determining the effective date of registered documents. By recognizing the ratification of the father's act by the son in executing the lease deed, the court ensured that the petitioner met all eligibility conditions as of the first sale date, leading to the grant of the eligibility certificate from the initial transaction date.