As held by the Supreme Court of India in a recent landmark judgment, all such sale deeds which have not been registered within a period of four months of their execution, shall be invalid as per the Registration Act, 1908. The Apex Court passed the judgement while deciding a land dispute case of Mahnoor Fatima Imran & Ors. vs. M/s Visweswara Infrastructure Pvt. Ltd. & Ors.
Related legal provisions under the Registration Act
According to Section 17 of the Registration Act, it is necessary to register a sale, lease, or gift of immovable property for the transfer to be legally valid.
Time Limit for Registration
Section 23 of the Act provides that such registration must be completed within a period of four months from the date of execution.
Fine for Late Registration
As provided under Section 34(1) Proviso, an additional term of four months could also be allowed with payment of fine. However, the total permissible delay could not be for more than a period of eight months.
Facts of the Case
In present case, the sale was finalised in the year 1982, however the property was registered in the 2006, after 24 years. The deed was held to be as valid by the Telangana High Court, however the Supreme Court held the registration to be fraudulent, thereby overturning the judgement of the High Court.
Observation by the Court
- The Bench of Justices Sudhanshu Dhulia and K. Vinod Chandran held that:“The agreement from 1982 — whether original or revalidated in 2006 — is not valid. Just registering it later doesn’t make it legal.”
- “Good faith is not enough – follow the law.” The Apex Court further observed that claims which are based on old or unregistered agreements must not be entertained by the Courts.
Key Legal Questions Raised
The primary issue raised before the Court was if an old, unregistered sale deed can create rights of ownership or could protect one from eviction.
- It was argued by the respondent that the agreement made in the year 1982 was registered the Assistant Registrar in 2006.
- The appellants, including the State of Telangana, objected to the above argument claiming that the transfer was invalid as the registration took place after the designated time for registration.
Registration of Property- Importance
- Any Sale of property over which involves an amount of more than ₹100 should be registered.
- In case the you do not register the property-
- You do not have any ownership right over the property.
- Such sale document cannot be used in the Court.
- You could be legally evicted in case of absence of registration even after the sale has been executed.
Validation After Years Is Not Valid
The concept of “validation” after decades, has been rejected by the Court, putting that no law allows ownership which is based on an outdated and unregistered document.
Timely Registration- Importance
Legal Validity- It is not option to register your property, the transfer of property Registration is not optional. Without it, no legal title passes from seller to buyer.
Prevention of Fraud- Registered documents will be a part of the official records, hence decreasing cases related to double sales and false claims to property.
Clear Ownership Trail- Only registered deeds can update land records or support loan applications and resale.
Significance of the Ruling
A Stricter Compliance in the Property Business- as per the ruling the parties must follow the deadline set or else the sale shall be rendered as void.
Possession Alone won’t be considered as ownership- Even if one lives on a property or has possession of it, would not ultimately lead to ownership in the absence of a registered sale deed.
What Should Buyers and Sellers Do ?
- Every sale agreement should be promptly registered.
- One should not rely on the possession of the property alone for ownership.
- It is advised that you seek advice from an experienced Property Lawyer before buying or selling property.
- Also make sure that you follow legal deadlines as discussed above.
Conclusion
To conclude, the judgement by the Hon’ble Supreme Court of India serves as a wake-up call for all the stakeholders dealing in the property business and could be summarised as “If it’s not registered, it’s not yours.”
Thus, even if you had an agreement many years before or have later tried to validate it, a timely registration only would ensure your ownership on the property.
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