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2006 (10) TMI 517

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..... ppointed by the State Government, is bound to refuse registration when a cancellation deed is presented? When cancellation deed is registered how the grievance, if any, is to be redressed in law? These and other incidental questions are required to be answered by this Full Bench. Background Facts 2. At the outset, brief reference may be made to the pleadings, in these petitions. W.P. No. 23005 of 2004' is filed by the petitioner seeking a writ of mandamus declaring the action of the third respondent (hereafter called, Sub-Registrar) in registering the deed of cancellation, dated 20.8.2003, bearing Document No. 2854 of 2003 executed by respondents 4 and 5. It is the case of the petitioner that her husband purchased Flat No. 302 in II Floor of Ashwood Villa under a registered sale deed, dated 12.1.1994, together with undivided share in the land admeasuring 100 square yards. The same was executed by respondents 5 and 6. The petitioner took possession of the flat and allegedly invested considerable amounts on improvements. It appears there is a dispute between the builder on one side and respondents 4 and 5 on the other side, who are seeking redressal before various authorities. .....

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..... tion of sale deeds, gift deeds etc., are in the realm of private law and requires to be adjudicated only in common law proceedings, such as a suit under the Specific Relief Act, 1963. 4. In W.P. No. 25661 of 2005, the petitioner seeks a writ of certiorari quashing the registered document bearing No. 6119 of 2005, dated 24.10.2005, (cancellation of sale deed) and for a consequential direction to the respondents, namely, the Sub-Registrar, Deputy Registrar and one Nawab Mohammed Haji Khan, to declare the petitioner as the owner of the land covered by registered sale deed, dated 16.9.2005, bearing Document No. 4995 of 2005. It is the case of the petitioner that third respondent, who is the owner of land admeasuring Acs.107.00 in Survey Nos. 181/1 to 181/6 and 182 of Nagaram Village, executed agreements of sale-cum-General Power of Attorney documents in favour of one Syed Waheed Ahmed and that he purchased the land admeasuring Acs.20.38 guntas in Survey Nos. 181/3 of Nagaram Village under registered sale deed, dated 16.9.2005, executed by General Power of Attorney holder. The petitioner received a notice from the Sub-Registrar to the effect that the third respondent cancelled the said .....

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..... -Registrar, therefore, does not suffer from any illegality or impropriety. 6. The case of the Registering Officer is as follows. The Sub-Registrar filed a common counter in most of the writ petitions. It is stated that the Office of the Sub-Registrar is accepting and registering documents of "cancellation deeds" keeping in view the decision of this Court in Writ Appeal No. 972 of 2004, dated 11.10.2004, to the effect that the Registrar cannot look into validity of the document before registering the same. A reference is also made to circular Memo No. G 1/4838/04 , dated 17.12.2004, issued by the Commissioner and Inspector General of Registration and Stamps (the IG, for brevity) directing the Registering Officers to add a footnote to the effect that the cancellation deed is registered under the provisions of the Registration Act and that such unilateral cancellation is not valid unless the deed, which is cancelled, is annulled by the competent Court. It is also stated that in terms of the judgment of the Division Bench, the IG has taken all necessary steps for intimation to the buyers about the registration of the document to enable them to seek immediate redressal in the .....

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..... tion that the respondents received sale consideration is denied. The writ petition is also opposed on the ground that the dispute in private law cannot be redressed in a public law remedy under Article 226 of Constitution of India. In all other writ petitions, the facts and allegations are on the same lines. Reference to Full Bench 9. At this stage, the genesis of the reference to the Full Bench may be noticed. In W.P. No. 14007 of 2004, the action of the Joint Sub-Registrar, Karimnagar, in accepting the deed of cancellation cancelling gift deed, dated 2.8.2004, was questioned. A learned Single Judge of this Court placing reliance on the judgment delivered by one of us (Justice V.V.S. Rao) in Property Association of Baptist Churches v. Sub-Registrar, Jangoan 2003(4) ALD 671 , dismissed the writ petition observing that a party aggrieved by a registered document of conveyance has to file a suit seeking proper declaration. The judgment of the learned Single Judge was assailed in W.A. No. 1486 of 2004, dated 11.10.2004. The Division Bench considered the question whether registering authority is duty bound to make any enquiry before registering the deed of cancellation. The Division B .....

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..... ublic authorities have to act within the ambit of registration law and if a document does not fall under any of the categories in Sections 17 and 18 of the Registration Act, the Registering Officer is bound to refuse to admit the document for registration. A deed of cancellation (of sale deed) is one such species of the document, which ought to have been refused by the Registering Officer for registration. If the cancellation deed is considered to be a registerable document and the Registering Officer is permitted to register the cancellation deed, the same would be contrary to public policy. 12. After insertion of Section 32A by the Registration and Other Related Laws (Amendment), 2001 (Act No. 48 of 2001), whenever a document relating to transfer of ownership is presented for registration, the. passport size photograph and finger print of the vendor and vendee shall have to be affixed to the document. It is the submission of the learned Counsel that even when a cancellation deed is prevented, the provisions of Section 32A of Registration Act requires compliance. The Registering Officers have not followed this and, therefore, cancellation deeds impugned in the writ petitions cann .....

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..... isdiction as it is a private law dispute. Secondly, they would urge that in all the matters the vendees obtained sale deeds from persons, who had no valid title or authority to execute sale deeds, and from person, who played fraud on the real owners and without proper compliance with the requirements of law. These issues require recording and appreciating evidence before arriving at conclusions on the questions of fact and, therefore, writ petition is not proper remedy to adjudicate and resolve the controversy. They nextly contend that the Registering Officers are bound to register any document, which is compulsorily registerable under Section 17 of the Registration Act or which is presented before the Registering Officer as a document optionally registerable. According to the learned Counsel, Section 35 of the Registration Act contemplates only two situations when the Registering Officer can refuse a registration and the scope of Section 35 cannot be enlarged by the Court, which would amount to legislation. They urge that though under Rule 26 of the Registration Rules, the Registering Officers are entitled to examine the document, they have no judicial powers to decide the inter s .....

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..... le or immovable' (Sections 5 - 34). Part-B deals with ''Transfer of immovable property' (Sections 38 to 53-A). A transfer as defined by Section 5 of TP Act is conveyance of property by one living person to one or more living persons or to him in present or in future. Section 6 of TP Act declares that property of any kind may be transferred except the transfer of property, which is prohibited by TP Act. Clauses (a) to (h) under Section 6 of TP Act, deal with some of prohibited transfers. Clause (h) lays down that "no transfer can be made (i) insofar as it is opposed to the nature of the interest affected thereby, or (ii) for an unlawful object, or consideration within the meaning of Section 23 of the Indian Contract Act, 1872, or (iii) to a person legally disqualified to be transferee." Section 7 of TP Act enumerates that every person entitled to transferable property or authorized to dispose of transferred property, not his own, can transfer the property provided he is competent to do so. Section 8 of TP Act deals with 'operation of transfer'. It is to the effect that a transfer of property passes forthwith to the transferee of the interest, which .....

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..... umstances to the extent and in the manner allowed and prescribed by any law for the time being in force. 8. Operation of transfer.- Unless a different intention is expressed or necessarily implied, a transfer of property passes forthwith to the transferee all the interest which the transferor is then capable of passing in the property and in the legal incidents thereof. Such incidents include, where the property is land, the easements annexed thereto, the rents and profits thereof accruing after the transfer, and all things attached to the earth; And, where the property is machinery attached to the earth the movable parts thereof; And, where the property is a house, the easements annexed thereto, the rent thereof accruing after the transfer, and the locks, keys, bars, doors, windows and all other things provided for permanent use therewith; And, where the property is a debt or other actionable claim, the securities therefore (except where they are also for other debts or claims not transferred to the transferee), but not arrears of interest accrued before the transfer; And, where the property is money or other property yielding income, the interest or income thereof acc .....

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..... tence of the contract of transfer. Here again 'good faith' comes to the rescue of the transferee buying the property without there being a validly vested title in the transferor. Section 53 of TP Act speaks about fraudulent transfer. It reads as under. 53. Fraudulent transfer.-(1) Every transfer of immovable property made with intent to defeat or delay the creditors of the transferor shall be voidable at the option of any creditor so defeated or delayed. Nothing in this sub-section shall impair the rights of a transferee in good faith and for consideration. Nothing in this sub-section shall affect any law for the time being in force relating to insolvency. A suit instituted by a creditor (which term includes a decree-holder whether he has or has not applied for execution of his decree) to avoid transfer on the ground that it has been made with intent to defeat or delay the creditors of the transferor shall be instituted on behalf of, or for the benefit of, all the creditors. (2) Every transfer of immovable property made without consideration with intent to defraud a subsequent transferee shall be voidable at the option of such transferee. For the purposes of thi .....

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..... the Contract Act). In the case of transfer by a seller having improper title in him, the situation would be different. Here again, there could be different circumstances. These are (i) a person having authority to transfer immovable property only under certain circumstances, when the transferee can assume that such circumstances existed at the time of transfer (Section 38 of TP Act); (ii) a transfer of property burdened with an obligation operating as an encumbrance on the land, is valid insofar as the transferee who was not put on a notice regarding such obligation even though the beneficiary of such burden of the property in law is entitled to the benefit of an obligation arising out of contract (Sections 39 and 40 of the TP Act); (iii) If the transfer is made by an ostensible owner (who on the face of it is inferred to be authoritative transferor of property) for consideration, the transfer shall not be voidable on that ground provided the transferee has taken reasonable care to ascertain that the transferor had power to make the transfer (Section 41 of the TP Act); (iv) in a transfer of property where the seller reserves the power to revoke the transfer, the subsequent purchas .....

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..... g with law of contracts. Whenever the provisions of the Contract Act do not apply the principles of English Law in turn would apply. (See Bhavandas v. Girdharlal & Co. [1966] 1 SCR 656 , and Superintendence Co. of India v. Krishna Murgai (1981) ILLJ 121 SC ). Be that as it is, sale of immovable property being contract, it is necessary to recapitulate the basic principles of contract. An agreement enforceable by law is a contract and agreement not enforceable by law is void, though an agreement enforceable at the option of one or more parties thereto becomes voidable. All agreements become contracts when there is a valid proposal and reciprocal acceptance of the proposal agreeing with the conditions subject to which one party makes the proposal and the other party accepts such proposal. A person who is of sound mind and who is not disqualified by any law is alone competent to contract. Sections 13, 14, 15, 16, 17, 18 and 19 of Contract Act define and explain the terms often used in the law of contract, namely, "consent", "free consent", "coercion", "undue influence, "fraud" and "misrepresentation" respectively. Sections 20, 24 - .....

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..... rty (contract), which is between two persons in respect of his own property and which is void on the face of it for the reason that the vendor of the said transaction has no authority to transfer the property to the vendee, to file a suit? Can he not execute and register a deed cancelling the offending sale deed? 25. The above queries need consideration of two aspects. When a suit for cancellation of an instrument/deed or document is maintainable? When such a suit at the instance of original owner is not maintainable and what are the other remedies to such a person? Sections 31 and 34 of Specific Relief Act are relevant and read as under. 31. When cancellation may be ordered: (1) Any person against whom a written instrument is void or voidable, and who has reasonable apprehension that such instrument, if left outstanding may cause him serious injury, may sue to have it adjudged void or voidable; and the Court may, in its discretion, so adjudge it and order it to be delivered up and cancelled. (2) If the instrument has been registered under the Indian Registration Act, 1908, the Court shall also send a copy of its decree to the officer in whose office the instrument has been .....

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..... hom a written instrument is void or voidable, who has reasonable apprehension that such instrument, if left outstanding, may cause him serious injury, may sue to have it cancelled. The test is "reasonable apprehension of serious injury". Whether that exists or not, depends upon the circumstances of each case. It cannot be laid down, as a rule of law, that in no case can a man, who has parted with the property in respect of which a void or voidable instrument exists, sue to have such instrument cancelled. 28. In lyyappa v. Ramalakshmamma ILR 13 549 , the Madras Division Bench laid down that a suit for cancellation of an instrument will be maintainable only by the person who executed the document. In that case, the suit-was brought alleging that the defendant forged the sale deed in the name of the plaintiff as executant and alternatively if it was in fact executed by the plaintiff the execution had been obtained by fraud and no consideration had passed upon him. The Court held that if the plaintiff did not execute the document and it was forgery, the suit for cancellation is not maintainable and if the sale consideration was not paid, the action should be for payment of m .....

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..... deliver it up to him. The principle of the relief is the same as in quia timet actions. It was further laid down as under. The provisions of Section 39 make it clear that three conditions are requisite for the exercise of the jurisdiction to cancel an instrument: (1) the instrument is void or voidable against the plaintiff; (2) plaintiff may reasonably apprehend serious injury by the instrument being left outstanding; (3) in the circumstances of the case, the Court considers it proper to grant this relief of preventive justice. On the third aspect of the question the English and American authorities hold that where the document is void on its face the Court would not exercise its jurisdiction while it would if it were not so apparent. In India it is a matter entirely for the discretion of the Court. The question that has to be considered depends on the first and second conditions set out above. As the principle is one of potential mischief, by the document remaining outstanding, it stands to reason the executant of the document should be either the plaintiff or a person who can in certain circumstances bind him. It is only then it could be said that the instrument is voidable .....

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..... cloud upon their title or cause them serious injury because the cloud upon their title will not be removed merely by a decree for cancellation of the instrument. The cloud will continue to hang over the plaintiffs by the hostile assertion of title by the executant of the sale-deed and those who claim a title to it. Therefore, the proper relief for the plaintiffs to seek in a case of this kind is a declaration of their own title or a declaration that the executant of the sale-deed in dispute has no title to the property. 32. The law, therefore, may be taken as well settled that in all cases of void or voidable transactions, a suit for cancellation of a deed is not maintainable. In a case where immovable property is transferred by a person without authority to a third person, it is no answer to say that the true owner who has authority and entitlement to transfer can file a suit under Section 31 of the Specific Relief Act for the simple reason that such a suit is not maintainable. Further, in case of an instrument, which is void or voidable against executant, a suit would be maintainable for cancellation of such instrument and can be decreed only when it is adjudicated by the compet .....

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..... nth edn., (1939), Sweet and Maxwell, pp.528-529.]. In case of fraud, the vendor cannot maintain any action against the purchaser. The legal maxim 'ex dolo malo non oritur actio' applies and the vendor who knowingly committed an act declared by the law to be criminal cannot maintain action against the purchaser who refuses to take the title conveyed under the deed. The maxim 'dolus mains' vitiates all transactions effected by fraud, [Ibid pp. 497; 540.]. Insofar as the buyer is concerned, as observed by Herbert Broom in his compilation of Legal Maxims (p.540), he may abide by the contract induced by fraud and bring an action for deceit (i.e., cheating in Indian law), for the damages sustained by the fraud. The buyer may also rescind the contract returning the goods if already accepted and recover the price paid. 35. What would be the remedy for the person who actually and factually holds a valid title to a property in respect of which a fraudulent transfer was effected by deceitful vendors and vendees or deceitful vendors and genuine vendees, who parted with consideration. The legal maxims 'nemo dat quod non habet' and 'nemo plus iuris ad alium transferr .....

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..... o have a lien in the property to the extent of the deposit, interest and costs of the suit. 36. The position of transferee under a fraudulent instrument of conveyance is different from the true owner of the title to the property in question. Section 31 of the Specific Relief Act provides one remedy, namely, cancellation of the instrument by showing to the Court that such instrument is void or voidable and that if such instrument is allowed to outstanding, it would cause serious injury. The injury referred to in Section 31 need not be with reference to the person i.e., the true owner of the title, but can as well encompass the property involved. Indeed, Sub-section (2) of Section 31 of the Specific Relief Act requires the Court trying a suit for cancellation of instrument to send a copy of the decree to the Registering Officer, who shall note on the copy of the instrument contained in the books of registration the fact of its cancellation. This would only show that the law is anxious to protect the title to the immovable property from all deceitful encumbrances. Should there be a fraudulent transfer or a transfer vitiated by misrepresentation and collusion between two unconcerned p .....

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..... the policy of law. He observed that public policy must take into consideration the interest of all sections of the public ignoring the small section of the public who might be benefited by such an interpretation, which ignores the large sections of the public. His Lordship further held that public policy does not remain static in any given community. It may vary from generation to generation and may differ in the same generation, and public policy would be useless if it remains in fixed moulds for all time. It was also observed as under: The Courts may have to strike a balance in express terms between community interests and sectional interests. So, here we are concerned with the general freedom of contract which everyone possesses as against the principle that this freedom shall not be used to subject a class, to the harassment of suits without valid or reasonable grounds. Yet again it was observed: If it is variable, if it depends on the welfare of the community at any given time, how are the Courts to ascertain it? The Judges are more to be trusted as interpreters of the law than as expounders of public policy. However, there is no alternative under our system but to vest .....

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..... tion of India. The Court, further, observed that the term 'public policy' is required to be interpreted in the context of the jurisdiction of the Court and giving a wider meaning to prevent patently illegal results. 40. After giving our anxious consideration to these questions, we are of the opinion that the existing law is still effective to come to the rescue of the true owner of the immovable property to take steps rendering fraudulent transactions of transfer between two strangers to the property ineffective. Some more reasons for this conclusion are discussed in part IV of this judgment. Part - IV 41. It is a misconception to assume that whenever there is an instrument evidencing transfer of immovable property, a person has to seek a decree for cancellation of such instrument. This remedy has its own limitations. It is also a misconception to assume that the owner of the property cannot seek cancellation of an instrument or sale deed, which in some way affects his own right, on the principle that the transfer of property divests the rightful owner of the property. 42. The rule is nemo dat quod non habet; no one can give what he does not have. Thus, if a person has .....

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..... ious transactions. The purpose was to assure people that if a document evidencing transaction or conveyance is registered, no one can claim any interest by creating a forged or sham document. In Hemanta Kumaki v. Zamindari Co. AIR 1919 PC 79 (at p 81), and Tilakdhari Lal v. Khedan Lal AIR 1921 PC 112 (at pp 116-117), the Judicial Committee observed that, the object of registering a document is to give notice to the world that a document has been executed to prevent fraud and forgery and to secure a reliable and complete account of all transactions effecting the title to the property. In the latter decision, it was also observed that so as to classify as a valid document, such document should be registered strictly complying with the provisions of the Registration Act. Therefore, the purpose of giving information to people who deal with the property as to nature and extent of rights which might be affected in relation to property, can be achieved by maintaining the solemnity of transactions among the people and giving due importance to ethics. 44. The Registration Act contains fifteen Parts or Chapters. Part I contains the definitions clause and Part II deals with "Registratio .....

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..... st, whether vested or contingent, of the value of one hundred rupees and upwards, to or in immovable property; (c) non-testamentary instruments which acknowledge the receipt or payment of any consideration on account of the creation, declaration, assignment, limitation or extinction of any such right, title or interest; and (d) leases of immovable property; (e) non-testamentary instruments transferring or assigning any decree or order of a Court or any award when such decree or order or award purports or operates to create, declare, assign, limit or extinguish, whether in present or in future, any right, title or interest, whether vested or contingent of the value of one hundred rupees and upwards, to or in immovable property; (f) any decree or order or award or a copy thereof passed by a civil Court, on consent of the defendants or on circumstantial evidence but not on the basis of any instrument which is admissible in evidence under Section 35 of the Indian Stamp Act, 1899, such as registered title deed produced by the plaintiff where such decree or order or award purports or operate to create, declare, assign, limit, extinguish whether in present or in future any right, .....

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..... e hundred rupees to or in immovable property; (d) instruments (other than wills) which purport or operate to create, declare, assign, limit or extinguish any right, title or interest to or in immovable property; (e) wills; and (f) all other documents not required by Section 17 to be registered. 48. There is no dispute that a sale deed under which immovable property is transferred by one person to another person falls under Section 17(1)(b) of the Registration Act. As already noticed supra, under Section 54 of TP Act, transfer of ownership in immovable property (sale) can only be made by a registered instrument, and therefore, the interpretation of Section 17(1)(b) is important in the context. The contention of some of the learned Counsel for the petitioners is that the sale of immovable property under registered document being absolute, the vendor who is divested of title by reason of transfer to the vendee cannot again execute another deed nullifying the earlier one. Section 17(1)(b) deals with non-testamentary instruments other than instruments of gift. Any instrument which purports to create or operate to create, declare, assign, limit or extinguish any right, title or in .....

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..... rporting to convey". In LAW LEXICON, [The Lexicon by P. Ramanatha Aiyar, (reprint edn., 1993, p. 1053) 101], the word 'purport' is defined as under: Purport. The word "purport", as used in speaking of the purport of an instrument, means the substance thereof as it appears on the face thereof to every eye that reads it. Purport imports what appears on the face of the instrument. It is usually intended to express the substance and effect as appears from the face of the instrument, in distinction from 'tenor', which means a copy or exactness. Purport means the design or tendency, the meaning or import when used in the expression, "An instrument purports." An instrument purports to be a particular instrument which it more or less resembles and this definition applies to a part, as well as the whole, of an instrument. The purport of an instrument means the substance of it, as it appears on the face of it, in the eyes of all who read it. "An instrument purports to be that which, on the face of the instrument, it more or less accurately resembles. The definition of purporting is the same whether applicable to the whole or to a part .....

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..... fer of title. Every sale deed must be treated as non-testamentary instrument, which purports to transfer. This interpretation is also supported by Section 18(a), which is to the effect that all instruments other than instruments of gifts and wills which purport to or create or assign right, title or interest in property of less than Rs. 100/- can be registered at the option of the parties. If Section 17(1)(b) is interpreted as dealing with all documents, which absolutely transfer the right, title and interest, the provisions of Sections 31 and 34 of the Specific Relief Act would be rendered otiose. Such an interpretation has to be avoided. Therefore, this Court must conclude that whenever sale deed is registered by one person in favour of the other person, the vendor can still has locus to question such sale deed under which the title is transferred or purportedly (allegedly) transferred. A document on the face of it, may appear to be sale deed evidencing transfer of property, but for reasons more than one; it may be a void document. Duty and Power of Registering Officers 53. At this juncture, it is necessary to consider the powers of the Registering Officers in discharge of thei .....

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..... servation of records, the method and manner of keeping the documents, and of late registration of documents through CARD, [Computer-Aided Administration of Registration Department]. The rules also contain as many as ten appendices dealing with different types of registers and entries to be made therein etc. 55. Rule 26, to which a reference has been made by some of the learned Counsel, gives the nature of examination to be made by the Registering Officer. The same reads as under. Rule 26 (i) Every document shall, before acceptance for registration, be examined by the Registering Officer to ensure that all the requirements prescribed in the Act and in these rules have been complied with, for instance,- (a) that it has been presented in the proper office (Sections 28, 29 and 30); (b) that the person is entitled to present it (Sections 32 and 40); (c) that if it is a non-testamentary document and relates to immovable property, it contains a description of property sufficient to identify the same and fulfils the requirements of Rules 18 to 20. (d) that if it is written in a language not commonly used in the district and not understood by the Registering Officer it is accom .....

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..... about to appear before him are not the persons they profess to be; (b) that the document is forged; (c) that the person appearing as a representative, assign or agent, has no right to appear in that capacity; (d) that the existing party is not really dead as alleged by the party applying for registration; or 57. Though Rule 58 prohibits the Registering Officers from enquiring into validity of the document, Rule 26 read-with Rule 58 reveals that it is always permissible for the Registering Officer to examine the document presented for registration as to whether the person who presented the document is entitled to present, whether such person is known to the officer or has been properly identified by the identifying witnesses, and also examine the document with reference to the various provisions referred to hereinabove. If any objection is raised, the Registering Officer has to consider whether the parties appearing before him are not the parties they profess to be, whether the document is forged and whether the document is presented without proper authority by representative, and whether the executing party is dead or not. In case, the Registering Officer is not satisfied, h .....

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..... into the margin of the Register-book, and the copy of the map or plan (if any) mentioned in Section 21 shall be filed in Book No. l: Provided that the copying of the items referred to may be done using electronic devices like scanner. (2) The registration of the document shall thereupon be deemed complete, and the document shall then be returned to the person who presented the same for registration, or to such other person (if any) as he has nominated in writing in that behalf on the receipt mentioned in Section 52. 60. The above provisions would show that unless and until there is compliance with the provisions of the Registration Act and also with the provisions of Sections 34, 35, 58 and 59 of the Registration Act, there cannot be any presumption about the regularity of the proceedings before the Sub-Registrar as contemplated under Sub-section (2) of Section 60. When once an endorsement is made as stipulated in Section 60 of the Registration Act, under Sub-section (2) of Section 61, registration shall be deemed complete and the document so registered shall have to be returned to the person, who presented for the registration. 61. The Courts in India have taken the view th .....

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..... ave been the time when he first became aware that the registration of the document was invalid. 62. When a document is registered at the instance of a person not duly empowered to present the same, any person claiming under the document, may within four months from the date of knowledge that such document is invalid, may present such document in accordance with the provisions of Part VI (Sections 32 - 35) of the Registration Act. In such event, Registering Officer after following the same procedure contemplated under the Act, can re-register the document as if it has not been registered previously. Thus, it is not possible to accept the submission of the learned Counsel for petitioners that the Registering Officer ought to have rejected the documents submitted for cancellation of the sale deeds. Supplying Casus Omissus 63. This Court has referred to relevant provisions of the Registration Act, which would reveal that under specific conditions only the Registering Officer can reject registration and if a document registered earlier is invalid, the Registering Officer can even re-register the document at the instance of the person who is entitled to execute and register the docume .....

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..... y other legislation, he cannot be prevented from felling trees in his garden land. It was also urged that the Court cannot supply casus omissus when there was no such prohibition for felling the trees from non-forest private land. The Apex Court referred to the decisions in Commissioner of Sales-Tax v. Parson Tools and Plants [1975] 3 SCR 743 and Sankar Ram & Co. v. Kasi Naicker AIR 2003 SC 4156 and held that when the language of the statute is plain and unambiguous, casus omissus cannot be supplied. It was observed as under: It is well-settled principle of interpretation that a statute is to be interpreted on its plain reading; in the absence of any doubt or difficulty arising out of such reading of a statute defeating or frustrating the object and purpose of an enactment, it must be read and understood by its plain reading. However, in case of any difficulty or doubt arising in interpreting a provision of an enactment, Courts will interpret such a provision keeping in mind the objects sought to be achieved and the purpose intended to be served by such a provision so as to advance the cause for which the enactment is brought into force. If two interpretations are possible, the o .....

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..... nd with accountability. There is always presumption - though rebuttable; in law that all public functions are discharged for public good in accordance with law. If a public authority is induced to discharge the trust (exercise power) in a manner which is fraudulent, whether such public authority can recall/revoke earlier fraudulent order? Insofar as the judicial authorities and Courts are concerned, it is now settled law that every Court in judicial hierarchy has inherent power to revoke an earlier order obtained by fraud. 68. Fraud is a conduct which induces another person or authority to take a definite determinative stand in response to such person's conduct by words or letter. In his treatise on the 'Law of Fraud and Mistake', Kerr describes the elements of fraud as consisting in one man's endeavour by deception to alter another man's general rights; or in one man's endeavouring by circumvention to alter general rights of another or in one man's endeavouring by deception to alter another man's particular rights. Fraud and dispensation of justice by any authority - be it judicial or executive; do not go together. One species of fraud is misrepres .....

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..... IR 1994 SC 853 , quoting Lord Edward Coke (that 'fraud avoids all judicial acts, ecclesiastical or temporal',) Supreme Court of India emphasised that the judgment or decree obtained by fraud on the Court is nullity and non est in the eye of law. It was also held that a decree/judgment vitiated by fraud must be ignored treating it as nullity by every Court whether superior or inferior as "finality of litigation is not available when fraud is alleged". The following passage from the said judgment is relevant here. ....The principle of "finality of litigation" cannot be passed to the extent of such an absurdity that it becomes an engine of fraud in the hands of dishonest litigants. The Courts of law are meant for imparting justice between the parties. One who comes to the Court, must come with clean hands. We are constrained to say that more often than not. Process of the Court is being abused. Property-grabbers, tax-evaders, bank-loan-dodgers and other unscrupulous persons from all walks of life find the Court-process a convenient lever to retain the illegal gains indefinitely. We have no hesitation to say that a person whose case is based on falsehood, .....

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..... mma v. Mammen Mammen 1955 Ker. LT 459). The Court has also the inherent power to set aside a sale brought about by fraud practised upon the Court (Ishwar Mahton v. Sitaram Kumar AIR 1954 Pat. 450) or to set aside the order recording compromise obtained by fraud. (Bindeshwari Pd. Chaudhary v. Debendra Pd. Singh AIR 1958 Pat 618 ; Tara Bai v. V.S. Krishnaswamy Rao. (emphasis supplied) 72. It is thus law of the land that even administrative authorities have inherent powers to recall or revoke their own orders if such order was obtained by playing fraud on such public authority. As a necessary corollary if something is done by public authority at the behest of a person who played fraud, the same public authority can nullify that was done as vitiated by fraud. As observed by the Supreme Court in Indian Bank (supra), inherent powers spring not from legislation but from the nature and conservation of the authorities, to enable them to maintain their dignity, secure obedience to process and ensure transparency. This Court is able to place its hands on two decisions of the Supreme Court, in which the administrative authorities rectified their earlier orders on the ground of fraud and the .....

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..... against in departmental enquiries and were called upon to have their say and thereafter have been removed from service. Such orders or removal would amount to recalling of fraudulently obtained erroneous appointment orders which were avoided by the employer-appellant after following the due procedure of law and complying with the principles of natural justice. Therefore, even independently of Rule 3(1)(i) and (in) of the Rules, such fraudulently obtained appointment orders could be legitimately treated as voidable at the option of the employer and could be recalled by the employer and in such cases merely because the respondent-employees have continued in service for a number of years on the basis of such fraudulently obtained employment orders cannot create any equity in their favour or any estoppel against the employer. (emphasis supplied) 75. It is therefore axiomatic that in India, the judicial, quasi judicial and administrative authorities have inherent powers to recall their orders or proceedings at a latter point of time if it is shown that such order was obtained by playing fraud and misrepresentation. The question of applicability of law of limitation to exercise such i .....

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..... . Any person desiring an entry to be made must make a written application giving particulars of the entry required. If the applicant is the proprietor of the land, or the liability, right or interest has been created by the proprietor, and if in either case there is no caution, restriction or inhibition on the register, an entry of the existence of the liability, right or interest may be made accordingly. In other cases evidence satisfactory to the Registrar must be produced of the existence of the liability, right or interest. The proprietor of the land, if not the applicant, must have notice of the application; and the matter must be proceeded with as the Registrar directs. Any entry of the existence of the liability, right or interest, if made, must be against the title in the charges register; and such entry must be made so far as practicable and convenient by reference to the instrument creating the right or by setting out an extract from it. No claim to an easement, right or privilege not created by an instrument may be noted against the title to the servient land if the proprietor of that land (after 14 days' notice or such longer period as the Registrar deems advisa .....

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..... e GPA holder played fraud and misrepresented, that he has such authority or power to execute sale deeds and that the executant obtained GPA by playing fraud on the real owner. 80. Assuming that the petitioners filed suits before the civil Court for the relief, as is prayed herein before this Court, having regard to the pleadings, the civil Court has to necessarily frame the issues, which would be somewhat like this, namely, (i) whether the sale deeds executed by the vendors in favour of the petitioners are valid and binding on the owners of the property; (ii) whether the GPA executed by the owner in favour of the persons, who executed sale deeds enables such GPA holder to convey or transfer the immovable property; (iii) whether the person who obtained GPA from the real owner has not played fraud and misrepresentation on the real owner; (iv) whether the sale deed executed is void or voidable as vitiated by fraud and misrepresentation; and (v) whether the cancellation deed is liable to be cancelled. There could be other incidental or related issues but mainly these will be issues in case the petitioners go to civil Court. This Court cannot resolve these issues in writ petitions. Eac .....

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..... ction. Similar is the case in the event of registration of a sale deed, mortgage deed or licence deed, compromise deed and/or cancellation of any of these deeds. 83. Judicial review has its own limitations and all decisions of public bodies are not amenable to this public law power. Nor is it permissible for a reviewing Court to deal with matters which lack adjudicative disposition by reason of prerogative nature of the power exercised by the public authority or exclusive entrustment of powers to a specialized body of the State. As the legislative and executive wings are prohibited from usurping the judicial functions of the State, the judiciary is not expected to discharge legislative and executive functions. The exposition of the principles of judicial review by Lord Diplock in Council of Civil Service Unions v. Minister for the Civil Service (1985) AC 374, has attained the classical status of law of judicial review. While grouping the grounds of judicial review into three broad points, namely, illegality, irrationality and impropriety, the noble Lord observed: For a decision to be susceptible to judicial review the decision-maker must be empowered by public law (and not merel .....

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..... thority and that its decisions do not occasion miscarriage of justice. (v) The Courts cannot be called upon to undertake the Government duties and functions. The Court shall not ordinarily interfere with a policy decision of the State. Social and economic belief of a Judge should not be invoked as a substitute for the judgment of the legislative bodies. 85. Apart from the limitations pointed out by the Supreme Court, the power of judicial review is not available when there is an effective alternative remedy to the aggrieved person. When granting redressal involves adjudication of disputed questions of facts, which require adducing of evidence by the parties, then also ordinarily an application for a judicial review is not accepted. (See Whirlpool Corporation v. Registrar of Trade Marks AIR 1999 SC 22 ). There is justification for the principle. Clive Lewis in 'Judicial Remedies in Public Law' (first edition 1992, Sweet and Maxwell, pp.229 and 230), explained the rationale for the principle as under: The rationale for the exhaustion of remedies principle is relevant to the scope of that principle. A two-fold justification has been put forward. First, that where Parliame .....

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..... o the extent of charging registration fee for the service of registration as well as keeping the registers. Therefore, any instrument between the two persons, is governed by private law principles and registration thereof does not play any pervading role in rendering the transaction legal or otherwise. For instance, if a contract is prohibited by reason of its being against public policy, the registration of the document evidencing such contract does not render it valid. Similarly, if two joint owners of immovable property decide to exchange properties and do so without going to registering authority, no law prohibits such exchange. However, if either of them wants to produce such deed as evidence, by reason of Section 49(c) of Registration Act, the same cannot be received as evidence of transaction between them. The registration in certain circumstances is notice of a transaction relating to immovable property to a limited extent. Therefore, Registration Act and registering authorities acting thereunder mainly deal and regulate transactions in the realm of private law. For this reason also, the writ petition cannot be entertained. 88. At this stage, cases decided by this Court ma .....

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..... ion of Baptist Churches (supra), categorically held that the limited power of the Registering Officer to enquire into the objections that the executing party had no right to execute document get extinguished the moment the document is registered. No power inheres in the Registering Officer or the District Registrar to cancel the deeds, unless another document is presented with proper stamp duty and registration purpose. A party aggrieved by a registered document on conveyance has to file a civil suit seeking proper declaration under Section 34 of the Specific Relief Act. In the present case, earlier Gift Deed, which was registered in favour of the petitioner was cancelled through Cancellation Deed and presented for registration and the same was registered. The moment it is registered, the remedy of the petitioner, if any, is to approach the civil Court seeking proper declaration. 90. In K. Gopal Reddy v. Secretary and Ors. 2004 (6) ALD 317, another learned Single Judge allowed the writ petition restraining the vendors from alienating and conveying the immovable property in favour of others. The learned Judge observed as under: If the cancellation of sale deed is by a private i .....

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..... r the registering authority is duty bound to make any enquiry as such before registering the deeds of cancellation. The learned Counsel for the appellant very fairly stated before us that there is no provision, which enables or obligates the registering authority to make any such enquiry before registering the cancellation deed. In such view of the matter, in our considered opinion, the public law remedy invoked by the appellant herein is ill suited to resolve the controversy between the appellant and the third respondent. The dispute essentially is between the appellant and the third respondent. The third respondent having executed the gift deed appears to have cancelled the document and according to the appellant, without any reason or justification. That dispute lies essentially in the realm of private law, which is required to be adjudicated only in a common law proceeding. ... It is not as if the appellant is left without any remedy. He is always entitled to seek proper declaration under Section 34 of the Specific Relief Act as has been rightly observed by the learned Single Judge. We accordingly find no merit in the appeal and the same shall accordingly stand dismissed. 92. .....

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..... o pointed out to us by the learned Government Pleader that as per the instructions issued by the IG under Section 69 of the Registration Act, the registering authority is issuing a notice to the earlier purchasers and also endorsing on the cancellation deed that such cancellation deed does not alter the rights. 95. That disputed questions of fact cannot be gone into in a writ petition is axiomatic. A copious reference to case law is not necessary. As pointed out earlier, among many; it is one of the limitations on the exercise of power of judicial review. A reference may be made to two decisions of the Supreme Court in this context. In State of Bihar v. Jain Plastics and Chemicals Limited AIR 2002 SC 206 , the law was summarized as under: It is to be reiterated that writ petition under Article 226 is not the proper proceeding for adjudicating such disputes. Under the law, it was open to the respondent to approach the Court of competent jurisdiction for appropriate relief for breach of contract. It is settled law that when an alternative and equally efficacious remedy is open to the litigant, he should be required to pursue that remedy and not invoke the writ jurisdiction of the .....

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..... already referred to in these cases, there are serious disputed questions of fact regarding the allegations of fraud and misrepresentation played by the vendors as well as vendees against each other, there are also questions raised regarding the competence and entitlement of a person executing the document. In some cases (W.P. Nos. 22298, 23005 and 23088 of 2004), the sale deeds were cancelled sometime in August, 2003, but the writ petitions are filed with considerable delay. In some cases, there are complaints of cancellation of deeds/instruments after lapse of ten years after execution of the original deed. In the opinion of this Court, these are the matters which are to be decided based on evidence and the affidavit evidence available on record is hardly sufficient to decide the issues in such a manner to meet the ends of justice. Indeed, in some of the matters (W.P. Nos. 879, 880, 881, 882, 979, 980 and 981 of 2006), suits are already filed for injunction and the orders of status quo are in force. Therefore, this Court is of considered opinion that the parties should be relegated to the civil Court to file suit either under Section 31 or under Section 34 of Specific Relief Act. .....

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..... to another Division Bench. The Division Bench referred the matters to the Full Bench. This is the background in which these matters have come up before us. 101. The learned Single Judge in Writ Petition Nos. 23005 and 23088 of 2004, was of the opinion that the law laid down by this Court in Writ Appeal No. 1486 of 2004 was sought to be applied to sale deeds whereas registration of cancellation of gift deed was the subject-matter in Writ Appeal No. 1486 of 2004. The learned Single Judge in his reference order, observed- In this regard, it needs to be noticed that a gift deed, on the one hand, and a sale deed, on the other, stand on different footing. Under Section 126 of the Transfer of Property Act, it is competent for a Donor, to suspend or revoke a gift deed, executed by him, whereas similar facility is not available, in case of a sale deed. Gift is a transfer, without any monetary consideration, whereas under a sale transaction, mutual rights and obligations exist, as between a Vendor and Vendee. Section 31 of the Specific Relief Act prescribes the manner, in which a document can be cancelled. What is required to be done through the decree of a Court, cannot be permitted to .....

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..... the Registration Act that the Act reduces the chances of fraud. It is further contended by the learned Counsel for the petitioners that sale is governed by the provisions of Transfer of Property Act, 1882 (hereinafter referred to as 'the TP Act') and 'sale' is defined under Section 54 of the TP Act as, ""Sale" is a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised. " It further lays down that in case of such transfer, in the case of tangible immovable property of the value of one hundred rupees and upwards, can only be made by a registered instrument, and Section 17 of the Registration Act makes a sale deed compulsorily registerable. Therefore, it is contended on behalf of petitioners that it is not the registration of the document which is sought to be cancelled by preparing cancellation deeds and getting them registered, in effect, what is sought to be done is cancellation of the sale itself, which is not permissible. Sale, by its definition in the TP Act, is a transfer of ownership in exchange of consideration, which means that there cannot be a unilateral sale. A person must be owner of the propert .....

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..... s to the erstwhile vendors. These documents are only executed for the purpose of creating a mischief and blackmailing the vendees. It was submitted that these documents, after registration, are presented to banking authorities and are given publicity so that the bankers and the prospective purchasers entertain doubts about the title of the land and the vendees-the bona fide purchasers, find difficulty in raising finances, using the property or transfer the property. 107. The argument of the other side is that the Registration Officer is bound to register any document, which is presented before him. He is not supposed to conduct an enquiry whether the document confers any right on the person who presents the documents for registration or who execute such a document. It is further contended that if the petitioners are aggrieved of registration of any document, the remedy available to them is to go to a civil Court and get a declaration. 108. In the light of these submissions, this Court will have to see whether the registration authorities are duty bound to register such sham documents. Let us now see the provisions of the Registration Act. Section 17 of the Registration Act make c .....

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..... o the transferee all the interest which the transferor is then capable of passing in the property and in the legal incidents thereof. Such incidents include, where the property is land, the easements annexed thereto, the rents and profits thereof accruing after the transfer, and all things attached to the earth; and, where the property is machinery attached to the earth, the movable parts thereof; and, where the property is a house, the easements annexed thereto, the rent thereof accruing after the transfer, and the locks, keys, bars, doors, windows, and all other things provided for permanent use therewith; and, where the property is a debt or other actionable claim, the securities therefore (except where they are also for other debts or claims not transferred to the transferee), but not arrears of interest accrued before the transfer; and, where the property is money or other property yielding income, the interest or income thereof accruing after the transfer takes effect. 113. Section 53 of TP Act lays down- 53. Fraudulent transfer :-(1) Every transfer of immovable property made with intent to defeat or delay the creditors of the transferor shall be voidable at the .....

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..... 28. The expression 'public policy' has an entirely different meaning from 'policy of the law' and one much more extensive. Nevertheless, the term 'public policy' is used by the House of Lords itself apparently as synonymous with the policy of the law or the policy of a statute (see Hollinshead v. Hazleton 1916 AC 428). Yet it is clearly so used without intent to repudiate or disregard the distinction so clearly drawn in Egerton v. Brownlow (1853) 4 HLC 1 . It seems clear that the conception of public policy is not only now quite distinct from that of the policy of law but has in fact always been so except is some exceptional instances of confusion which have had no substantial effect on the general course of authority. See W.S.M. Knight, "Public Policy in English Law", 38, Law Quarterly Rev., 207, at pp. 217-218. 116. In Para 30 of the judgment, it defined 'public policy' on the basis of the definition of Winfield as a principle of judicial legislation or interpretation founded on the current needs of the community. Para 30 is reproduced hereunder- 30. "Public policy" has been defined by Winfield as "a principle of judi .....

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..... eved of registration of a sale deed which they had executed, themselves should have gone to the civil Court for such a remedy. I do not agree with my learned brother that the writs are not maintainable, as the remedy to the petitioners is at common law by going to a civil Court. The effect of registration of a cancellation deed is against public policy and it will create a chaos if such deeds are allowed to be registered. The purpose of registration of a document is not only to see that the rights of the vendor are extinguished and rights of the vendee are created, but the purpose is much more than that. It has been consistently held by the Courts that the purpose of registration is to inform and give notice to the world at large that such a document has been executed. Registration of a document is a notice to all the subsequent purchasers or encumbrances of the same property. The doctrine of constructive notice can be extended to others besides subsequent purchasers or encumbrances, as has been held in Tatyarao Venkatrao Vase v. Puttappa Kotrappa 12 Bom.L.R. 940. Therefore, the effect of registration of a sale deed is not effecting the rights of the present petitioners alone, but .....

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..... ol.76, p.525: "Systems looking toward the registration of titles to land, as distinguished from the practice under Recording Acts generally of recording or registering the evidence of such title, are in effect by virtue of statute in several of the United States, and the Courts are bound by such provisions rather than by any doctrine of the common law which is in contravention thereof. These systems are quite generally known as Torrens systems' and the statutes providing therefore as 'Torrens Acts' from the name of the author of the Australian Act of 1857, the underlying principle of which they follow. These systems are limited in their application to titles to lane. The predominant object of such legislation is the establishment of a method whereby the title to a particular tract or parcel of real estate will always be ascertainable by reference to a register of conclusive veracity, maintained by the designated public official. In other words, the purpose of these laws is to simplify the transfer of real estate, and to render titles thereto safe and indefeasible through the registration of such titles, the bringing together in one place of all of the facts rel .....

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..... nfirmed by power given to the Lord Chancellor to provide by order that all titles registered under the Land Registry Act, 1862 should be registered under the Land Registration Act, 1925 without cost to the parties interested. 121. To the same effect, reference can also be made to the Supreme Court judgments in Oil and Natural Gas Corporation Ltd. v. Saw Pipes Ltd. [2003] 3 SCR 691 , and also in State of Rajasthan v. Basant Nahata AIR 2005 SC 3401 . 122. Lastly, it was contended by the respondents that under no provision of law the Sub-Registrar is required to register a document after an enquiry as to the ownership of the property with respect to which a document is sought to be registered. It may be true that there is no such provision in the Registration Act, but if strictly interpreted, then the Registration Act would not empower the registering authority to register any document unless it falls within Section 17 or 18 of the Registration Act. Section 17 mentions those documents which are compulsorily registerable and Section 18 mentions those documents, of which, the registration is optional, but, the whole scheme of the Registration Act shows that it is incumbent upon the Re .....

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..... o. 22, Jubilee Hills, Hyderabad - A.P. Hereinafter called the "Second parry/party of the Second Part. WHEREAS the party of the first part herein has executed a Registered Sale Deed in favour of the party of the Second part in respect of undivided share of the property bearing M.C.H.8-2-322, admeasuring 100 Sq.yards, out of total land measuring 800 Sq.yards, situated at Road No. 7, Banjara Hills, Hyderabad - A.P., under a Regd. Sale Deed, Regd. As Document No. 3600 of 1994, Book-I, Volume: 1612, pages: 291 to 304, dated: 30th August, 1994, Regd. at the office of the Sub-Registrar, Khairatabad, Hyderabad-A.P. AND WHEREAS due to some un-avoidable circumstances not specific to mention hereunder the Sale Deed mentioned above executed by the Party of the First part in favour of the party of the Second part; could not be finalized for the reasons mentioned hereunder: i. That the sale consideration was not received by the first party from the second party though the same was written as received in the principal Sale Deed. ii. That it is hereby further declared that the physical possession of the Schedule property still vests with the first party and the same was never delive .....

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..... re reproducing the whole judgment- Order (Annexure P-6) issued by Sub-Registrar, Pehowa, on August 10, 1992, is challenged by the petitioner in this writ petition, as having been issued without any authority of law. The petitioner had taken a loan from the bank-respondent No. 4. Subsequently the bank asked the petitioner to furnish additional security that a document was prepared and submitted to the Sub-Registrar, Pehowa, for registration. It was duly registered. Subsequently this notice (Annexure P-6) was issued, calling upon the petitioner to pay deficiency of Rs. 29,000/- on the aforesaid deed. 2. On notice of motion having been issued, written statement was filed on behalf of the official respondents, inter alia, asserting that the said deed was a mortgage-deed and required more stamp duty, for which notice was issued. Maintainability of the writ petition was also disputed. 3. We have heard Counsel for the parties and we are of the opinion that after a document is registered, the Sub-Registrar ceases to have jurisdiction over the matter. It is only before registering the document that for the reasons to be recorded, the Sub-Registrar could refuse to register it under Sec .....

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..... ered was or was not duly stamped and to impound it. As soon as the Registering Officer registers a document presented to him for registration, the Junction in the performance of which the document was produced before him is over and thereafter, becomes functus officio having no power under Section 33 to impound the instrument. The Supreme Court, while coming to this conclusion, relied on an earlier judgment in Government of Uttar Pradesh v. Mohammad Amir Ahmad Khan. That was a case where the question arose whether the Collector had any power to impound an instrument sent to him for adjudication under Section 31 of the Stamp Act. The Supreme Court held that under that section, the Collector had no such power, as under Section 31 of the Stamp Act, the Collector could only give his opinion as regards the duty, with which, in his judgment, the instrument was chargeable and once that duty was performed by the Collector, he would become functus officio. 125. By registering so-called 'Cancellation of Sale Deeds', what the Sub-Registrars are doing, in effect, is that they are cancelling the registrations made earlier and once a registration is made, the Sub-Registrar has no power .....

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..... lators to make necessary amendments and this Court under Article 226 of the Constitution of India cannot step into the shoes of the legislators. At this juncture it is necessary to look into the judgment of the Constitutional Bench of the Apex Court in Padma Sundara Rao v. State of T.N. [2002] 255 ITR 147(SC) . The facts in the said case reveal that a notification under Section 4(1) of the Land Acquisition Act, 1894 was issued and a declaration under Section 6(1) of the said Act was made and published in Official Gazette within the period of three years prescribed under the proviso thereto, which was subsequently substituted by Act 68 of 1984. The notification has been quashed by the High Court. The question that arose for consideration before the Apex Court was whether after quashing of the notification under Section 6 of the said Act, fresh period of limitation was available to the State Government to issue another notification under Section 6. It was contended on behalf of the appellant therein that the declaration under Section 6 has to be issued within the specified time and merely because the Court has quashed the declaration concerned, an extended time period is not to be pr .....

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