2024 (1) TMI 1333 - SC - Indian Laws

Interpretation of Section 47 of The Registration Act, 1908 in a property dispute case - HELD THAT - The consideration was entirely paid on the date of the execution of the sale deed. The sale deed was registered with the interpolation made about the description/area of the property sold. The first defendant admittedly made the said interpolation after it was executed but before it was registered. In terms of Section 47 of the Registration Act, a registered sale deed where entire consideration is paid would operate from the date of its execution. Thus, the sale deed as originally executed will operate - It is not even the first defendant's case that the subsequent correction or interpolation was made before its registration with the consent of the original plaintiff. Therefore, in this case, what will operate is the sale deed as it existed when it was executed. There are no error in the view taken by the High Court - The decision of the first Appellate Court was contrary to Section 47 of the Registration Act. The High Court was justified in interfering with the decision of the first Appellate Court in a second appeal under Section 41 of the Punjab Courts Act. Appeal dismissed.

Summary

Issues:
Interpretation of Section 47 of The Registration Act, 1908 in a property dispute case.

Detailed Analysis:

Factual Background:
The appeal was filed by unsuccessful defendants against a judgment passed by the Punjab and Haryana High Court in a suit for declaration of ownership over a land measuring 71 kanals 8 marlas. The dispute arose from an alleged interpolation in a sale deed executed by the first defendant, leading to a claim by the plaintiff for the entire land sold. The Trial Court decreed in favor of the plaintiff, which was later reversed by the District Court but reinstated by the High Court post the plaintiff's demise.

Submissions and Considerations:
The appellants argued that the vast area sold under the sale deed contradicted the price paid and that the sale deed should prevail over revenue records. The High Court relied on Section 47 of The Registration Act, 1908, which dictates that a registered document operates from a date earlier than its registration if no registration was required. The Constitution Bench's decision in Ram Saran Lall v. Domini Kuer was cited to emphasize that Section 47 does not determine the completion of a sale but only the date from which a registered document operates.

Legal Analysis:
Section 54 of the Transfer of Property Act, 1984 mandates registration for property worth over Rs. 100, making a sale deed effective only post-registration. The judgment clarified that Section 47 does not address the completion of a sale but the operation of a registered document from an earlier date. In the present case, since the consideration was paid during execution, the sale deed would operate from that date, disregarding subsequent unilateral corrections made by the first defendant before registration without the plaintiff's consent.

Conclusion:
The High Court's decision was upheld as it correctly applied Section 47 of The Registration Act, 1908. The appeal was dismissed, citing the applicability of Section 41 of the Punjab Courts Act, 1918, which allows interference in decisions contrary to law. The judgment reaffirmed the significance of the original sale deed's terms at the time of execution in property disputes governed by registration laws.