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Issues Involved:
1. Admissibility of an unregistered document (Ex. B-18) under Section 17(1)(b) of the Indian Registration Act. 2. Nature of a partner's interest in partnership property, specifically whether it constitutes an interest in immovable property. 3. Impact of past events recited in the document on its requirement for registration. Detailed Analysis: Admissibility of an Unregistered Document (Ex. B-18): The primary issue was whether Ex. B-18, an unregistered document, was admissible in evidence under Section 17(1)(b) of the Indian Registration Act. The plaintiffs argued that Ex. B-18, in which they purportedly relinquished their share in the partnership property, was inadmissible due to lack of registration. The defendants contended that the document did not require registration. The court examined Section 17(1)(b) of the Registration Act, which mandates registration for non-testamentary instruments that create, declare, assign, limit, or extinguish any right, title, or interest in immovable property valued at Rs. 100 or more. The court concluded that if the document intended to extinguish interest in immovable property, it would require registration. Nature of a Partner's Interest in Partnership Property: The court delved into the nature of a partner's interest in partnership property, particularly whether it constitutes an interest in immovable property. The court referred to the Indian Partnership Act, 1932, which replaced the relevant provisions of the Indian Contract Act. It was noted that under the Partnership Act, a partner's share is not in the specific assets but in the partnership as a whole, which is realized only after the dissolution and settlement of accounts. The court cited English law and Indian precedents, emphasizing that a partner's interest in partnership property, including immovable property, is considered personal property. The court noted that the share of a partner is essentially a right to a proportionate share of the partnership assets after converting them into money and settling the debts. Thus, a partner cannot claim a specific share in immovable property. Impact of Past Events Recited in the Document: The plaintiffs argued that the consideration for relinquishment involved the transfer of certain immovable property by the first defendant, as mentioned in Ex. B-18. The court examined the sentence in Ex. B-18 which stated, "Herefor, you have given up to us the property forming our Venkatasubbayya's share which you have purchased and delivered possession of the same to us even previously." The court concluded that this sentence referred to a past event and did not create any new interest in immovable property. Since the first defendant, who purportedly transferred the property, did not execute Ex. B-18, the document did not create any interest in immovable property within the meaning of Section 17(1)(b) of the Registration Act. Therefore, Ex. B-18 did not require registration and was rightly admitted in evidence. Conclusion: The Full Bench held that the interest of a partner in partnership assets cannot be regarded as a right or interest in immovable property within the meaning of Section 17(1)(b) of the Registration Act. Consequently, Ex. B-18 did not require registration and was admissible in evidence. The second appeal was dismissed with costs, and an additional sum of Rs. 100 was allowed as Advocate's fee due to the reference to the Full Bench.
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