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

Sunita executes a registered sale deed of her Nashik plot in favour of Anil on 5 March. Earlier, she had orally agreed to give the same plot to Vikram, but no possession was ever delivered to Vikram. Under the Registration Act, 1908, which position holds?

The registered sale deed in favour of Anil takes effect against the oral agreement. Section 48 of the Registration Act, 1908 gives registered non-testamentary documents priority over oral agreements unless the oral agreement was followed by delivery of possession amounting to a valid transfer, which did not happen here.

  1. AThe oral agreement prevails because it was made earlier
  2. BThe registered deed to Anil takes effect against the oral agreementCorrect
  3. CBoth claims rank equally and the plot is shared
  4. DThe registered deed is void until Vikram consents

Explanation

Section 48 says non-testamentary registered documents relating to property take effect against any oral agreement or declaration, unless the agreement was accompanied or followed by delivery of possession that constitutes a valid transfer. No possession was delivered to Vikram, so the exception does not apply. The earlier date of the oral agreement is irrelevant.

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