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KORUKONDA CHALAPATHI RAO & ANR. versus KORUKONDA ANNAPURNA SAMPATH KUMAR

Citation: [2021] 11 S.C.R. 836 · Decided: 01-10-2021 · Supreme Court of India · Bench: K.M. JOSEPH · Disposal: Appeal(s) allowed

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Judgment (excerpt)

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836
SUPREME COURT REPORTS
[2021] 11 S.C.R.
[2021] 11 S.C.R. 836
836
KORUKONDA CHALAPATHI RAO & ANR.
v.
KORUKONDA ANNAPURNA SAMPATH KUMAR
(Civil Appeal No(s). 6141 of 2021)
OCTOBER 01, 2021
[K. M. JOSEPH AND S. RAVINDRA BHAT, JJ.]
Registration Act, 1908 – ss. 17(1)(b), 49 – Partition – Family
Settlement, if required registration – Suit filed by respondent inter
alia for declaration of title over the plaint schedule property and
eviction of the appellants – Appellants filed the evidence affidavit
and sought to mark Kharurunama - the family settlement and a receipt,
allowed by trial court – High Court held that the documents being
unregistered and unstamped were inadmissible in evidence – On
appeal, held: Words used in the document referred to the
arrangements allegedly which the parties made in the past – It does
not purport to by itself create, declare, assign, extinguish or limit
right in properties and thus, the Khararunama may not attract
s.49(1)(a) – If the Khararunama by itself, does not ‘affect’ immovable
property, being a record of the alleged past transaction, though
relating to immovable property, there would be no breach of
s.49(1)(c), as it is not being used as evidence of a transaction
effecting such property – Being let in evidence is different from
being used as evidence of the transaction – Mere admission, in
evidence of the Khararunama and the receipt would not produce
any legal effect on the immovable properties in question – Further,
in view of the nature of the Khararunama, being record of the alleged
transactions, it may not require to be stamped – Impugned judgment
set aside – Transfer of Property Act, 1882 – Code of Civil Procedure,
1908 – Or.13, rr.3, 4 – Deeds and Documents.
Registration Act, 1908 – Proviso to s.49, exceptions under –
Discussed.
Allowing the appeal, the Court
HELD: 1.1 Section 49 deals with the effect of non-
registration of documents which are compulsorily registrable
under Section 17 of the Registration Act and Transfer of Property
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837
Act. Section 49(a) of the Registration Act declares that an
unregistered document which is compulsorily registrable cannot
‘affect’ any immovable property comprised therein. Section 49(c)
of Registration Act prohibits the admitting of compulsorily
registrable documents which are unregistered as evidence of any
transaction affecting immovable property unless it has been
registered. The proviso carves out two exceptions. This Court
is only concerned, in this case, with only one of them and that is
contained in the last limb of the proviso. The unregistered
document can be used as evidence of any collateral transaction.
This is however subject to the condition that the said collateral
transaction should not itself be one which must be effected by a
registered document. What would constitute a collateral
transaction? If it were collateral transaction, then an unregistered
document can indeed be used as evidence to prove the same.
Would possession being enjoyed or the nature of the possession
on the basis of the unregistered document, be a transaction and
further would it be a collateral transaction? This question is posed
as the contention of the appellants is that even if the Khararunama
dated 15.4.1986 cannot be used as evidence to prove the factum
of relinquishment of right which took place in the past, the
Khararunama can be looked into to prove the conduct of the
parties and the nature of the possession which was enjoyed by
the parties. The law is not that in every case where a party sets
up the plea that the court may look into an unregistered
documents to show the nature of the possession that the court
would agree to it. The cardinal principle would be whether by
allowing the case of the party to consider an unregistered
document it would result in the breach of the mandate of the
Section 49 of the Registration Act. [Paras 24-26, 29][851-B-C,
E-F; 852-B-E; 853-G-H; 854-A]
1.2 If this Court applies the test as to whether the Khararunama
in this case by itself ‘affects’, i.e., by itself creates, declares, limits
or extinguishes rights in the immovable properties in question or
whether it merely refers to what the appellants alleged were past
transactions which have been entered into by the parties, then,
going by the words used in the document, they indicate that the
words are intended to refer to the arrangements allegedly
KORUKONDA CHALAPATHI RAO v. KORUKONDA ANNAPURNA
SAMPATH KUMAR
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SUPREM

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