UNIVERSITY INSTITUTE OF LEGAL STUDIES

PANJAB UNIVERSITY,CHANDIGARH

LAW OF REGISTRATION
SECTION 17 OF REGISTRATION ACT 1908

SUBMITTED TO: SUBMITTED BY:

Ms. Garima Nayyar Divay Kathuria

Registration Law Professor B.COM L.L.B.

UILS,PU Section D

Chandigarh 207/21

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 ACKNOWLEDGEMENT

The success and outcome of this project required guidance and I am privileged to have the
requisite assistance for the completion of my assignment.

I respect and thank Ms. Garima Nayyar for providing me with an opportunity to research on
project topic “Section 17 of Registration Act 1908”. I am extremely thankful to her for providing
me with relevant information and direction. I am grateful and fortunate to get constant
encouragement and suggestions. I would also like to acknowledge all those who provided me
with kind support and help to complete this project. Any omission in this brief acknowledgement
does not mean a lack of gratitude.

Divay Kathuria

B.COM L.L.B. (Hons.)

8th Semester

Section D

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 INDEX

 Compulsory Registraion of Documents……………………………………4.

 Instrunment of Gift of Immovable Property……………………………….4,5.
 Other Non-Testamentary Instrunment……………………………………..5,6.
 Reciept Acknowledging Payment………………………………………….7.
 Lease of Immovable Property………………………………………………8.
 Non-Testamentary Instrunment Relating to Decree, Order and Award……8.
 Documents relating to Section 53-A of the Transfer of Property Act, 1882..8.
 Authorities to Adopt a Son…………………………………………………...9.
 Exceptions to Section 17(1)(b) and Section 17 (1)(c)……………………….9,10,11,12.
 Bibliography…………………………………………………………………13.

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 Compulsory Registration of Instruments (Section 17)

Section 17 of the Registration Act is a very comprehensive provision as it specifies in detail the
documents and instruments which would become effective only after registration. In Rani
Hemanta Kumari v. Midnapur Zamindari Co., (1919 PC),1 it was observed that the object of
registering a document is to give notice to the world that a document has been executed, to
prevent fraud and forgery, and to secure a reliable and complete account of all transactions
affecting the title to the property. The Supreme Court in Suraj Lamp and Industries Pvt. Ltd.
v. State of Haryana,2 (2012 SC), observed that registration provides safety and security to
transaction relating to immovable property even if the document is lost or destroyed. It gives
publicity and public exposure to documents thereby preventing forgeries and frauds in regard to
transaction and execution of documents. Registration provides information to people who may
deal with a property, as to the nature and extent of the rights which persons may have, affecting
that property. It enables people to find out whether any particular property with which they are
concerned, has been subjected to any legal obligation or liability and who is or are the person(s)
presently having right, title, and interest in the property. It ensures that every person dealing with
immovable property can rely with confidence upon statements contained in the registers as a full
and complete account of all transactions by which the title to the property may be affected and
secure extracts/copies duly certified.

 Instrunment of Gift of Immovable property

Section 17(1)(a) of the Act provides that instruments of gifts of immovable property require
compulsory registration.

Section 2(14) of the Indian Stamp Act, 1899 defines “Instrument” as every document by which
any right or liability is, or purports to be, created, transferred, limited, extended, extinguished or
recorded. The General Clauses Act defines “Document” as document shall include any matter
written, expressed or described upon any substance by means of letters, figures or marks, or by
more than one of those means which is intended to be used, or which may be used, for the

1
AIR 1915 CALCUTTA 505
2
AIR 2012 SC 206

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purpose of recording that matter. The Registration Act does not define the term “gift”; however,
the Transfer of Property Act defines “gift” under section 122 as: “Gift is the transfer of certain
existing movable or immovable property made voluntarily and without consideration, by one
person, called the donor, to another, called the donee, and accepted by or on behalf of the
donee”. Further, section 123 of the Transfer of Property Act provides that a gift of immovable
property must be effected by a registered instrument signed by or on behalf of the donor, and
attested by at least two witnesses.

In Venkati Rama Reddi v. Pillati Rama Reddy, (1916 Madras),3 the question in consideration
was “whether a deed of gift registered by the donee after the death of the donor without the
consent of the legal representatives of the donor is valid”? The Madras High Court answered in
affirmative and held that the donor has, by executing the deed, done all that he needed to, and
registration can be effected even without his cooperation.

In Mahboob Sahab v. Syed Ismail,4 (1995 SC), it was held that gift by a Muhammadan is not
required to be in writing and consequently need not be registered under the Registration Act.

 Other Non-Testamentary Instrunments

Section 17(1)(b) of the Act applies to other non-testamentary instruments which purport or
operate to create, declare, assign, limit or extinguish, whether in present or in future, any right,
title or interest, whether vested or contingent, of the value of one hundred rupees and upwards, to
or in immovable property.

Essential conditions:

1.The instrument should be non-testamentary,

2. The effect of such instrument should be the creation, declaration, assignment, limitation or
extinction of any right, title or interest (vested or contingent),

3. Of the value of one hundred rupees or upwards, to or in immovable property.

3
1916 31 MLJ 690
4
1995 AIR 1205

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A testamentary document is last “will” and testament or some other document that meets the
statutory requirements of a will. As a corollary to this, non-testamentary documents would be
documents that are not related to a last “will” and testament.

Arbitration Award: In Satish Kumar v. Surinder Kumar,5 (1969 SC), it was held that an award
made by an arbitrator which affected right, title or interest of the value of more than Rs. 100 in
immovable property would require registration. In Sardar Singh v. Krishna Devi,6 (1994 SC),
it was held that if an award is a foundation, creating right, title and interest in immovable
property of the value of Rs. 100 or above, it is compulsorily registrable and non-registration
renders it inadmissible in evidence. If it contains a mere declaration of a pre-existing right, it is
not creating a right, title and interest in praesenti, in which event it is not a compulsorily
registrable instrument.

Document evidencing partition: In Nani Bai v. Gita Bai Kom Rama Gunge,7 (1958 SC), it
has been held that though partition amongst the Hindus may be effected orally but if the parties
reduce it in writing to a formal document which is intended to be evidence of partition, it would
have the effect of declaring the exclusive title of the coparcener to whom a particular property
was allotted in partition and thus the document would be required to be compulsorily registered
under section 17(1)(b) of the Registration Act.

Consent deed: In Shobharam Budhaji Bhagat v. Parvatbai,8 (2010 Mah.), it was held that it
is only if there is a transfer or relinquishment of right, title or interest in the property that the
document (consent deed) would require registration.

Illustrations

 Mortgage deed: A mortgage deed is registered under this clause. Section 58 of the
Transfer property act, 1882 provides that where the property secured is RS 100 or
upwards, a mortgage ( than the mortgage of title deed) can be affected only by a
registered instrument.

5
1970 AIR 833
6
1995 AIR 491
7
1958 AIR 706
8
Second Appeal no.414 of 1996

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  Charge: Documents creating a charge or immovable property of the value of Rs. 100 or
upwards require registration under this Act.
 Instrument of Partition: Instrument of partition of immovable property of the value of Rs.
100 and upwards is compulsorily registerable under this clause.

 Reciepts Acknowledging Payment

Section 17(1)(c) of the Act requires compulsory registration of non-testamentary instruments

which acknowledge the receipt or payment of any consideration on account of the creation,
declaration, assignment, limitation or extinction of any such right, title or interest.

A receipt to be compulsory registrable under this clause, must satisfy the following conditions:

(a)It must be the receipt of a consideration, and

(b)It must, on the face of it, be an acknowledgment of payment of some consideration on account
of the creation, declaration, assignment, limitation or extinction of an interest of the value of Rs.
100 or upwards in immovable property.

For example: If A sells land to B for Rs. 200/- and gives a receipt for the price, the receipt might
simply be – „Received from B the sum of Rs. 200‟ – then it would not require registration.
However, the receipt might equally well be – „Received from B the sum of Rs. 200 being the
price of my land which I have sold to him and in which I have no further interest‟ – in this case
the receipt would require registration.

In Chamroo v. Stephen,9 it has held that where there is already a registered sale deed, the
subsequent receipt acknowledging payment of consideration on account of the creation of right
does not require registration.

Illustration

 A sale-deed requires registration under this clause, whereby not only the immovable
property is conveyed but the price thereof is also acknowledged..

9
1947 25 Patna 523

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  Receipt for Premium: A receipt that purports to be for "Nazrana" paid for a lease requires
registration, but not if the sum is less than Rs. 100
 Lease of immovable Property

Section 17(1)(d) provides that leases of immovable property from year to year, or for any term
exceeding one year, or reserving a yearly rent are required to be registered.

In Rajendra Pratap Singh v. Rameshwar Prasad,10 the Court held that where a lease of
immovable property is for a period exceeding one year and the instrument of lease was not
registered, lease deed cannot be admitted as evidence in view of section 17 of the Registration
Act either for proving the terms of lease or otherwise. In Siri Chand v. Surinder Singh,11 the
Apex Court held that when the lease deed does not mention the period of tenancy, other
conditions of the lease/rent deed and intention of the parties has to be gathered to find out the
true nature of the lease/rent deed.

 Non-Testamentary Instruments relating to Decree, Order or Award

As per section 17(1) (e), non-testamentary instruments transferring or assigning any decree or
order of a Court or any award when such decree or order or award purports or operates to create,
declare, assign, limit or extinguish, whether in present or future, any right, title or interest,
whether vested or contingent, of the value of one hundred rupees and upwards, to or in
immovable property, require registration.

This provision was added by an amending Act in 1929. There was formerly a conflict of
authority as to whether an assignment of decree creating or declaring rights to or in immovable
property exceeding Rs. 100 in value was compulsorily registrable under section 17(1) (b) of the
Act. The Calcutta High Court in Gous v. Khawas, (1896) and the Allahabad High Court in
Abdul Majid v. Muhammad, (1890), had held that registration was not compulsory as the
assignment is of the decree and not that of immovable property. However, the Bombay High
Court in Gopal v. Trimbak, (1876) had held that it did require registration as the assignment
gave the assignee the right to sell the property covered by the decree. Clause (e) gives effect to
the view of Bombay High Court.

10
AIR 1999 SC 37
11
2020 (2) RCR (Rent) 11

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 Documents relating to Section 53-A of the Transfer of Property Act, 1882

The documents containing contracts to transfer for consideration, any immovable property for
the purpose of section 53A of the Transfer of Property Act, 1882 (4 of 1882) shall be registered
if they have been executed on or after the commencement of the Registration and Other Related
laws (Amendment) Act, 2001 (48 of 2001) and if such documents are not registered on or after
such commencement, then, they shall have no effect for the purposes of the said section 53A.

 Authorities to Adopt a Son

As per section 17(3), authorities to adopt a son, not conferred by a will, shall be registered. Sub-
section 3 of Section 17 only refers to the mandatory requirement of registration of an
authorization that may be given for adopting a son. It has been held in the decision reported in
Vishvanath Ramji Karale V. Rahibai Ramji Karale and others12 - AIR 1931 Bombay 105
by a deed of adoption as distinguished from authority to adopt does not require registration.

Exceptions to Section 17(1) (b) and 17(1) (c)

(i) Composition Deed

In Bamanji Manikji v. Naoruji Palanji, (1864), it has been held that the agreement
whereby the property was assigned to trustees for the benefit of the creditors; signing the
trust deed was a composition deed.

The Bombay High Court, in Chandrashankar Pranshankar v. Bai Magan, (1914),13 held
that the deed vide which whole of the properties and assets belonging to the family were
made over to the trustees for the benefit of the creditors, was a composition deed and thereby,
exempted from registration.

(ii) Shares in a joint stock company

Under section 17(2)(ii), any instrument relating to shares in a joint stock company,
notwithstanding that the assets of such company consist in whole or in part of immovable
property, are exempted from registration.

12
AIR 1931 Bombay 105
13
1914 16 BOMLR 236

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(iii) Debentures

Debentures issued by a joint stock company which do not have the effect of creating, declaring,
assigning, limiting or extinguishing any right, title or interest, to or in immovable property are
exempt from registration except insofar as it entitles the holder to the security afforded by a
registered instrument whereby the company has mortgaged, conveyed or otherwise transferred
the whole or part of its immovable property or any interest therein to trustees upon trust for the
benefit of the holders of such debentures.

(iv) Any endorsement upon or transfer of any debenture issued by any such company

As clause (iii) of section 17(2) exempts debentures issued by a joint stock company from the
requirement of registration, clause (iv) also exempts from registration any endorsement upon the
transfer of any such debenture.

(v) Document not itself creating a right

Clause (v) makes the position clear that a document not itself creating a right in immovable
property of the value Rs. 100 or upwards, but merely creating the right to obtain another
document, which will, when executed create any such right, need not be registered.

In Konchadi v. Shiva Rao, (1904), the Bombay High Court held that an agreement by a debtor
to execute a mortgage of his immovable property to his creditor, does not by itself create an
interest in the immovable property, but merely creates a right to obtain a deed of mortgage from
the debtor. Such an agreement falls within section 17(2)(v) and does not require registration.

(vi) Decree or order of a Court

As per clause (vi):

(a) A decree or order of the Court does not require registration;

(b) A decree or order of the Court based upon a compromise and comprising immovable
property which is the subject matter of the suit or proceeding, does not require registration;

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(c) A decree or order of the Court based upon a compromise and comprising immovable
property other than that, which is the subject matter of the suit or proceeding, requires
registration.

(vii) Any grant of immovable property by the Government

In Power Grid Corp. of India Ltd. v. State of Chhattisgarh, (2015),14 the government allotted
land to the petitioner on lease for construction of dam. State authorities directed the petitioner to
get the lease deed registered and to pay stamp duty and registration fees. Petitioner preferred the
writ petition seeking quashment of the orders passed by the State authorities. Allowing the
petition, the Court held that as the assignment of land on lease by the government is a grant
within the meaning of section 17(2)(vii) of the Registration Act, it did not require compulsory
registration.

(viii) Any instrument of partition made by a Revenue Officer is exempted from

registration.
(ix) Any order granting a loan or instrument of collateral security granted under the
Land Improvement Act, 1871, or the Land Improvement Loans Act, 1883 is
exempted from registration.
(x) Any order granting loan under the Agriculturists Loans Act, 1884, or instrument
for securing the repayment of a loan made under that Act, is exempted from
registration.

(x-a) Any order made under the Charitable Endowments Act, 1890, vesting any property
in a Treasurer of Charitable Endowments or divesting any such Treasurer of any property,
is exempted from registration.

(xi) Any endorsement on a mortgage-deed acknowledging the payment of the whole or

any part of the mortgage-money, and any other receipt for payment of money due
under a mortgage when the receipt does not purport to extinguish the mortgage.

Illustrations
14
Appeal no.233 of 2013

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(a)A receipt endorsed on a mortgage-bond by the mortgagee runs in these terms: “Paid on
21.12.1881, Rs. 3500/-” (part of the mortgage debt). The receipt does not require registration.

(b)A receipt passed by a mortgagee to the mortgagor is in these terms: “I have this day received
payment from you of Rs. 350 for principal and interest on account of the mortgage debt. I have
excused payment of balance of interest. Nothing remains due under the mortgage.” The receipt
does not require registration. It does not on the face of it purports to extinguish the mortgage.

(c)The receipt passed by a mortgagee to the mortgagor runs in these terms: “I have received Rs.
500 in full satisfaction of the mortgage debt, and I will return the title deeds to you.” The receipt
requires registration as it purports to extinguish the mortgage.

(d)An endorsement made by a mortgagee on a mortgage deed releasing the mortgaged property
in consideration of a cash payment of Rs. 300, requires registration.

(e)An endorsement made by a mortgagee on a mortgage deed of receipt of money paid under the
mortgage which does not purport to extinguish the mortgage, does not require registration.

(xii) Any certificate of sale granted to the purchaser of any property sold by public
auction by a Civil or Revenue Officer.

BIBLIOGRAPHY

 https://indiankanoon.org/doc/561156/
 https://www.thelawstudies.com/2016/08/documents-require-compulsory-registration.html
 https://blog.ipleaders.in/registration-of-documents/
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 The Registration Act by Mulla, 15th Edition

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