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

Rahul signs an unregistered agreement for sale of a flat, a document that is required to be registered. The seller refuses to perform, and Rahul files a suit for specific performance. Can the unregistered document be received in evidence?

Yes. Although an unregistered document that should be registered cannot ordinarily affect the property or be received as evidence of the transaction, the proviso to section 49 lets it be received as evidence of a contract in a suit for specific performance. It does not itself transfer the property.

  1. ANo, an unregistered document can never be received in evidence
  2. BYes, the proviso allows it to be received as evidence of the contract in a suit for specific performanceCorrect
  3. CYes, but only to prove that the flat was transferred
  4. DNo, unless the seller consents in writing

Explanation

Section 49 bars unregistered compulsorily registrable documents from affecting the property or being received as evidence of a transaction affecting it. The proviso permits such a document to be received as evidence of a contract in a suit for specific performance, or of a collateral transaction not required to be registered. It does not make the property transfer effective.

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