Skip to content

CS Professional · Drafting, Pleadings and Appearances · Drafting of Agreements, Deeds and Documents

Meera Traders executes a sale deed of a shop in favour of Anil, and the deed is duly registered. Earlier, the seller had only made an oral agreement to sell the same shop to Ramesh, with no delivery of possession to Ramesh. Whose claim prevails under the Registration Act, 1908?

Anil prevails. A duly registered non-testamentary document relating to property takes effect against an oral agreement or declaration, unless that oral agreement was accompanied or followed by delivery of possession amounting to a valid transfer. Ramesh never received possession, so the exception fails.

  1. ARamesh, because his oral agreement came first in time
  2. BAnil, because a duly registered non-testamentary document takes effect against an oral agreement not followed by delivery of possessionCorrect
  3. CNeither, because oral agreements and registered deeds cancel each other
  4. DRamesh, because oral agreements always override written documents

Explanation

Section 48 provides that a duly registered non-testamentary document relating to property takes effect against any oral agreement or declaration relating to it, unless the agreement was accompanied or followed by delivery of possession that constitutes a valid transfer. Here there was no delivery of possession to Ramesh, so the exception does not apply. Timing of the oral agreement is irrelevant.

Did you get it right without looking?

One question tells you little. A timed set on Drafting of Agreements, Deeds and Documents shows your real accuracy, how long you take and where you lose marks.

Practise Drafting of Agreements, Deeds and DocumentsFree diagnostic mock

More Drafting of Agreements, Deeds and Documents questions