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

Nisha first sells a plot to Omkar by a non-testamentary deed duly registered under the Registration Act, 1908. Later she orally agrees to give the same plot to Pran, with no delivery of possession. Which statement reflects Section 48 of that Act?

The registered deed takes effect against the oral agreement. Under Section 48 of the Registration Act, a duly registered non-testamentary document prevails over an oral agreement unless that agreement was accompanied or followed by delivery of possession and is a valid transfer, which is absent here.

  1. AThe registered deed takes effect against the oral agreementCorrect
  2. BThe oral agreement prevails because it is later
  3. CBoth take effect equally
  4. DThe registered deed fails because stamp duty was not paid on the oral agreement

Explanation

Section 48 says duly registered non-testamentary documents relating to property take effect against any oral agreement or declaration, unless the agreement was accompanied or followed by delivery of possession and constitutes a valid transfer. Here there was no delivery of possession, so the registered deed prevails.

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