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CS Professional · Drafting, Pleadings and Appearances · Types of Documents

Ravi Traders executed an unregistered sale deed for a flat worth Rs 40 lakh in favour of Meena. Under the Registration Act, 1908, a sale of immovable property of value of Rs 100 or more must be registered. Meena now wants to rely on the deed in a suit to prove her title. What is the legal position?

An unregistered sale deed of immovable property worth Rs 100 or more cannot be received as evidence of the transaction affecting that property. It may be used only for collateral purposes. Paying stamp duty and penalty cures only the stamping defect and does not replace the registration requirement.

  1. AThe deed is fully admissible as evidence of title because it was duly signed by the seller
  2. BThe deed cannot be received as evidence affecting the immovable property, except for collateral purposesCorrect
  3. CThe deed is admissible if Meena pays the stamp duty with a penalty, and registration is then not needed
  4. DThe deed is void ab initio and cannot be used even for any collateral purpose

Explanation

Under the Registration Act, 1908, a compulsorily registrable document that is unregistered does not affect the immovable property it comprises and cannot be received as evidence of any transaction affecting that property. It can be used only for collateral purposes. Option 3 wrongly treats stamp penalty as a substitute for registration, and option 4 is wrong because collateral use is allowed.

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