Document of which Registration is compulsory under Registration Act (1908)
What is Registration
We all know that we need to have a written document of any valuable transaction and it is required by law but only written document is not enough in most of the cases it must be registered too.
When you do anything valuable you must keep a record for the future for reference or evidence to avoid any unexpected situation and also assure future remedy; exactly that is done by the government via the Registration process. Government save a copy of your document for future reference and help you get proper remedy, if necessary. Not to mention, it keeps you safe from fraud and illegal activities. It is also one of the sources of government revenue.
Importance of Registration
Registration is an essential part of any document to be legally enforceable, it ensures your documents are real and valid. Without registration a document is a mare paper which cannot be specifically enforceable before a court, in another way it can be said that a document without registration cannot be placed before the court as main document or evidence but it can only be a supportive document which may require collaboration and other legal support. On the other hand, the result of the remedy and scope of legal application will vary drastically.
Here is a simple example:
Rahim agreed to Karim that he (Rahim) will purchase 100 unit Server PC with software from Karim and karim will deliver it within 3 months; he will pay 25% of the amount which is 25,00,000 taka at present and the rest will be paid after product delivery. Being agreed on this deal the made a Deed of sale on 300 taka non-judicial stamp paper but they never registered this Deed of Sale.
Now, what is the consequence of non-registration?
As Rahim did not register the deed on time he cannot sue (only based on the deed of sale) to get his money back, nor he can ask for specific performance of the contract. He is also barred to ask for any loss that he has suffered due to this breach of contract. but this could have bee the opposite if he registered the document.
Where Registration of Documents is compulsory
The law of Registration deals with the registration procedure of document of transfer of property and which documents are compulsory and optional document for registration in the eye of law. That means if you are a party of the following documents you must be concerned and confirm the registration of the document.
The following documents shall be registered in a certain district where the property relates is situated and if they have been executed before or after the commencement of The Registration Act, 1908
- 1. Instrument of gift of immovable property: Section,17(1)(a) [here Gift means the transfer of ownership in an existing immovable property without any consideration(under Section-122 of the Transfer of Property Act), even Transfer of Property Act also says that gift of immovable property shall become valid after the process of registration(under Section-123 of Transfer of Property Act)]
- 2. Declaration of Heba under Muslim Personal Law: Section, 17(1)(aa)
- 3.Other non-testamentery instruments which may capable of being in force whether in present or future, whether vested or contingent(summarized): Section, 17(1)(b)
- 4. Receipt of any consideration of a deed other than mention in clause (b) of Section, 17(1) of the Registration Act- Section-17(1)(c)
- 5. Instrument of mortgage referred to Section-59 of the Transfer of Property Act 1882: Section, 17(1)(cc) [here the word “Mortgage” means the transfer of an interest in specific immovable property for the purpose of securing pecuniary liability (under Section, 58 of the Transfer of Property Act)Conditions of Mortgage
- Property has to be immovable.
- It should be for a certain time.
- Here consideration should be “Mortgage money”
- Mortgage deed.
- Here the debtor is Mortgagor and creditor is Mortgagee.
Transfer of Property Act also says that Mortgage of deposited title deed shall be effective after the registration process (Under Section, 59 of the Transfer of Property Act)]
- 6. Lease of immovable property from year to year, or for any term exceeding one year or reserving a yearly rent- Section-17(1)(d) [ here the word “lease means transfer of a right to enjoy immovable property made for a certain time or in perpetuity (under Section-105 of Transfer of Property Act)Elements of a lease
- The parties (lessor and lesse)
- Subject matter- immovable property.
- The consideration (Rent or Premium)
- For a certain time.
- Right to possession ]
- 7. Non-testamentery instrument 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 in future, any right, title or interest, whether vested or contingent or in immovable property.- Section-17(1)(e)
- 8. Instrument of partition of immovable property effected by persons upon inheritance according to their respective personal laws- Section-17(1)(f)
- 9. The instrument of sale in pursuance of an order of the court under Section-96(Pre-emption) of the SAT Act 1950- Section-17(1)(g)
- 10. Authorities to adopt a son, executed after the first day of January 1872 and not conferred by will, shall also be registered- Section-17(3)
- 11. A contract for sale of an immovable property shall be subject to be registered within 30 days of the execution of the said contract- Section-17A [a contract for sale of immovable property is a contract that a sale of such property shall take place on the terms settled between the parties (under Section-54 of Transfer of Property Act 1882)]Case laws:
- 1. “MS Eagle Star Insurance Co. Ltd” [21 PLD Karachi 133]” Mortgage by deposite of title deeds purporting to create in present interest in favour of plaintiff such document is compulsorily registerable” <sec-17(1)cc>
- 2. “Zainab bai vs Ibrahimji”[ PLD 1962(WP) Karachi 209 ] “dissolution of a partnership, relinquishment of share in partnership by one partner, deed must be registered” <sec-17(1)c>
- 3. “Faqirullah vs Mir Khan” [PLD 1958 Azad J & K 19(DB)] – “If any Muslim desires to transfer his property in the name of somebody he can do so only by a registered deed” <sec-17(1)f>
- 4. “37 CWN 33 Cal 610” – “in an ejectment suit possession under unrecognized lease may be relied on”