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TMI Blog2023 (4) TMI 1408X X X X Extracts X X X X X X X X Extracts X X X X ..... ntroduced by the State of Tamil Nadu bearing in mind the loss to the exchequer as public were executing the documents relating to sale of immovable property etc. on white paper or on stamp paper of nominal value. At this stage, it is required to be noted that the proviso to Section 49 came to be inserted vide Act No. 21 of 1929 and thereafter, Section 17(1A) came to be inserted by Act No. 48 of 2001 with effect from 24.09.2001 by which the documents containing contracts to transfer or consideration any immovable property for the purpose of Section 53 of the Transfer of Properties Act is made compulsorily to be registered if they have been executed on or after 2001 and if such documents are not registered on or after such commencement, then there shall have no effect for the purposes of said Section 53A. So, the exception to the proviso to Section 49 is provided under Section 17(1A) of the Registration Act. Otherwise, the proviso to Section 49 with respect to the documents other than referred to in Section 17(1A) shall be applicable. As per proviso to Section 49 of the Registration Act, an unregistered document affecting immovable property and required by Registration Act or the T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Indian Registration Act, under which the instruments of agreement relating to sale of immovable property of the value of Rs. 100/- and upwards is compulsorily required to be registered, the said unregistered document shall be inadmissible in evidence. On the other hand, relying upon Section 49(a) and (c) of the Act, it was submitted that an unregistered Agreement to Sell can be admitted as evidence of a contract in a suit for specific performance. The learned Trial Court held the preliminary issue in favour of the defendant and against the plaintiff by observing that the unregistered Agreement dated 10.09.2013 shall not be admissible in evidence. 2.2 Feeling aggrieved and dissatisfied with the order of the learned Trial Court, the plaintiff preferred the present revision application before the High Court. By the impugned judgment and order, the High Court has allowed the revision petition relying upon Section 49 of the Registration Act by setting aside the order passed by the learned Trial Court and directed that the agreement in question be received in evidence considering the fact that the suit in question is a suit for specific performance, which falls within the first except ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the 2012 amendment, an Agreement to Sell for Rs. 100/- or upwards is to be compulsorily registered. An agreement recital for payment of advance is also to be compulsorily registered as the "explanation" in Section 17(2) introduced by 1927 amendment after Dayal Singh's case, has been omitted by the present amendment. The advance amount and sale consideration are part and parcel of the transactions between the parties. 3.4 It is submitted that as per Section 49(a) and (c) of the Registration Act, a document requires to be registered, if not registered shall not affect the immovable property comprised therein and shall not be received as evidence of any transaction affecting such property. It is submitted that prior to 2012 amendment, when an Agreement to Sell was not required to be registered, Section 49(a) and (c) had no operation in relation to an Agreement to Sell. So an unregistered Agreement to Sell had no restriction in being received as evidence of any transaction affecting such immovable property or affecting immovable property as such. Thus, the terms of the document and the transaction embodied in it could be relied on in its entirety in any proceeding in the preamendm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty compulsorily required to be registered, there is no corresponding amendment to Section 49 more particularly proviso to Section 49 of the Registration Act. 4.2 It is further submitted that even the object and purpose of Tamil Nadu Amendment Act, 2012 more particularly inserting Section 17(1) (g) is required to be considered which has been elaborately dealt with and considered by the Hon'ble High Court in the impugned judgment and order. It is submitted that a perusal of statement of objects and reasons to the Act No. 29 of 2012 would suggest that primarily the amendment has been introduced by the State of Tamil Nadu by reason of the fact that instruments of agreement relating to sale of immovable property, instruments of power of attorney relating to immovable property and instruments evidencing agreement of deposit of title deeds, which were not registrable were resulting in loss to the exchequer as the public were executing these documents on white paper or on stamp paper of nominal value. 4.3 With the above submissions and heavily relying upon the proviso to Section 49 of the Registration Act, it is prayed to dismiss the present appeal. 5. We have heard the learned counse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the value of one hundred rupees and upwards, to or in immovable property:] Provided that the [State Government] may, by order published in the [Official Gazette], exempt from the operation of this subsection any lease executed in any district, or part of a district, the terms granted by which do not exceed five years and the annual rents reserved by which do not exceed fifty rupees. [(1A) The documents containing contracts to transfer for consideration, any immovable property for the purpose of section 53A of the Transfer of Property Act, 1882 (4 of 1882) shall be registered if they have been executed on or after the commencement of the Registration and Other Related laws (Amendment) Act, 2001 (48 of 2001) and if such documents are not registered on or after such commencement, then, they shall have no effect for the purposes of the said section 53A.] (2) Nothing in clauses (b) and (c) of subsection (1) applies to- (i) any composition deed; or (ii) any instrument relating to shares in a joint stock Company, notwithstanding that the assets of such Company consist in whole or in part of immovable property; or (iii) any debenture issued by any such Company and not creat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est money or of the whole or any part of the purchase money.]" 8. By Tamil Nadu Amendment Act, 2012, Section 17(1)(g) has been inserted and "explanation" to Section 17(2) has been omitted. Section 17(1) (g) as inserted by Tamil Nadu Amendment Act, 2012, reads as under: "17(1)(g) instruments of agreement relating to sale of immovable property of the value of one hundred rupees and upwards." 9. Thus, on and after the Tamil Nadu Amendment Act, 2012, as per Section 17(1) (g), instrument of agreement relating to sale of immovable property of the value of Rs. 100/- and upwards is required to be registered compulsorily. However, despite the same and despite the "explanation" to subsection (2) of Section 17 has been omitted, there is no corresponding amendment made to Section 49 of the Registration Act. Section 49 of the Registration Act is as under: "49. Effect of nonregistration of documents required to be registered.- No document required by section 17 [or by any provision of the Transfer of Property Act, 1882 (4 of 1882)], to be registered shall- (a) affect any immovable property comprised therein, or (b) confer any power to adopt, or (c) be received as evidence of any tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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