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

Sunil executed an unregistered document that is required to be registered, transferring a flat to Tara. In a dispute, Tara wants to use the same document only to prove a collateral transaction, namely that Sunil had separately agreed to pay her rent, which does not need to be effected by a registered instrument. What is the position?

The document can be received to prove the rent arrangement. The proviso to section 49 allows an unregistered document that requires registration to be used as evidence of a collateral transaction that does not itself need a registered instrument, though not to prove the transfer of the flat.

  1. AThe document may be received as evidence of a collateral transaction not required to be effected by registered instrumentCorrect
  2. BThe document is wholly inadmissible for every purpose
  3. CThe document is admissible only if registered within four months afterwards
  4. DThe document is admissible only to prove the transfer of the flat

Explanation

The proviso to section 49 allows an unregistered document to be received as evidence of any collateral transaction not required to be effected by registered instrument. Option 1 ignores this proviso, and option 3 reverses it, since proof of the transfer itself is barred.

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