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CS Professional · Drafting, Pleadings and Appearances · Laws relating to Drafting and Conveyancing

Meera Iyer executes an unregistered deed of gift of her house in Pune to her nephew Arjun and hands over possession. Arjun later relies on the deed in court to prove his ownership of the house. Under the Registration Act, 1908, what is the position of the deed?

The unregistered gift deed cannot affect the house or be received as evidence of the transfer. Section 49 of the Registration Act bars such a document, required to be registered, from affecting immovable property or proving the transaction unless it is registered; delivery of possession does not cure this.

  1. AIt cannot affect the immovable property or be received as evidence of the transfer, because a document required to be registered has not been registeredCorrect
  2. BIt is valid because delivery of possession cures the lack of registration for gifts
  3. CIt is receivable as evidence of the gift but cannot be used to prove title to any other property
  4. DIt is valid if Arjun pays stamp duty on it later

Explanation

Section 49 provides that a document required to be registered shall not affect the immovable property comprised in it or be received as evidence of any transaction affecting that property unless registered. A gift of immovable property must be made by a registered instrument, so possession alone does not cure the defect. The option on possession is wrong because section 49 has no such exception for gifts.

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