Registration Act

2011(4) CURRENT TAMILNADU CASES – Page 574 – SUPREME COURT

Section 16(1)(a) – Registration Act, 1908 (16 of 1908), Sections 17 & 49 – Admissibility of unregistered lease deed in evidence when it requires compulsory registration – Duty of court – Document which requires to be registered compulsorily is not admissible in evidence except in two cases viz, (a) when it as evidence of contract in suit for Specific performance; (b) as evidence of collateral transaction – But in case of collateral transaction unregistered document could be received in evidence – Arbitration clause in contract is collateral transaction - Arbitration clause in independent of other terms of contract – Even if contract containing Arbitration clause is terminated, Arbitration clause would still survive for purpose of resolution of disputes arising under or in connection with contract – Document affecting immovable property containing Arbitration Clause would also be of similar nature as Arbitration clause is collateral term relating to resolution of disputes unrelated to transfer of immovable property – Arbitration clause contained in Lease Deed which requires registration but unregistered would survive inadmissibility of Deed – Court should adopt procedure whereby it would (a) check whether document is sufficiently stamped (b) if sufficiently stamped impound document and follow procedure under Stamp Act (c) determine whether document is compulsorily registrable or not (d) if not compulsorily registrable act in terms of Arbitration Clause (e) if compulsorily registrable and delink Arbitration Clause from main agreement as per section 16(1)(a) except where Arbitration Agreement is void and unenforceable (f) if plea of invalidity of document is raised it should also be considered by court – Arbitrator appointed as per terms contained in unregistered Lease Deed, cannot receive deed in evidence and cannot enforce Lease Deed – Case remanded.