CS Professional · Drafting, Pleadings and Appearances · Laws relating to Drafting and Conveyancing
Kavita Shah executes an unregistered lease deed of a shop that required registration. The tenant, Imran, also signed a separate unregistered side letter in which he agrees to supply the shop's electricity wiring work, a matter not requiring a registered instrument. Which statement is correct under section 49 of the Registration Act, 1908?
The side letter may be received as evidence of a collateral transaction. The proviso to section 49 allows an unregistered document to prove any collateral transaction not required to be effected by a registered instrument, while the unregistered lease itself cannot affect the shop.
- AThe side letter may be received as evidence of a collateral transaction not required to be effected by a registered instrumentCorrect
- BThe lease deed affects the shop as soon as possession is given
- CThe side letter is inadmissible because it is linked to the unregistered lease
- DNeither document may be received for any purpose
Explanation
The proviso to section 49 lets an unregistered document be received as evidence of any collateral transaction not required to be effected by registered instrument. The wiring arrangement is such a collateral matter. The lease deed itself still cannot affect the shop.
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