According to a recent historic ruling by the Supreme Court of India, any sale deeds that are not registered within four months after their execution will be void under the Registration Act of 1908. When resolving the land dispute between Mahnoor Fatima Imran & Ors. vs. M/s Visweswara Infrastructure Pvt. Ltd. & Ors., the Apex Court rendered its decision.
Relevant provisions of the Registration Act’s legislation
• Registration Is Required A sale, lease, or gift of immovable property must be registered in accordance with Section 17 of the Registration Act in order for the transfer to be deemed lawful.
• Registration Time Limit According to Section 23 of the Act, this registration has to be finished within four months of the execution date.
• Penalty for Late Registration An extra four months may also be granted upon payment of a fine, as stipulated in Section 34(1) Proviso. However, a maximum of eight months may be the maximum amount of time that was allowed for the delay.
Case Facts
In this instance, the sale was completed in 1982, but the property wasn’t registered until 2006, twenty-four years later. The Telangana High Court ruled that the deed was legitimate, but the Supreme Court overturned the High Court’s decision by ruling that the registration was fraudulent.
The Court’s Observation
• The 1982 agreement, whether original or revalidated in 2006, is invalid, according to the ruling of the bench consisting of Justices Sudhanshu Dhulia and K. Vinod Chandran. It isn’t legal just because you registered it afterward.
• “Follow the law; good faith is not enough.” The Apex Court also noted that courts should not consider claims based on outdated or unregistered agreements.
Important Legal Issues Raised
• Whether an old, unregistered sale deed might confer ownership rights or shield someone from eviction was the main question put to the Court.
• The respondent contended that the 1982 agreement was registered with the Assistant Registrar in 2006.
• The State of Telangana was among the appellants who objected to the aforementioned rationale, arguing that the transfer was unlawful because the registration occurred after the allotted period.
Property Registration: Significance
Any real estate transaction involving more than ₹100 should be recorded.
If you fail to register the property:
• Regarding the property, you have no ownership rights.
• Such a sale document is not admissible in court.
• If you fail to register, even after the sale has been completed, you may be legally evicted.
Years Later, Validation Is Invalid
After decades, the Court rejected the idea of “validation,” stating that no law permits ownership based on an out-of-date, unregistered document.
Importance of Timely Registration
• Legal Validity: Registering your property is a must for the transfer of your property; it is not an alternative. No legal title is transferred from seller to buyer without it.
• Fraud Prevention: Since registered documents will be included in official records, there would be fewer instances of multiple transactions and fraudulent property claims.
• Clear Ownership Trail: Only registered deeds have the ability to support loan applications, sales, and land record updates.
Importance of the Decision
• A Stricter Compliance in the Property Business: the parties are required by the ruling to adhere to the deadline, failing which the sale would be deemed null and invalid.
• Even if someone lives on a property or has possession of it, this does not automatically translate into ownership in the absence of a registered sale deed.
What Do Sellers and Buyers Need to Do?
• Every selling agreement needs to be registered right away.
• Ownership should not be inferred just from property possession.
• Before purchasing or selling real estate, it is recommended that you consult with a knowledgeable property lawyer.
• Additionally, be sure to adhere to the above mentioned legal timeframes.
Conclusion
The Hon’ble Supreme Court of India’s ruling, which may be summed up as “If it’s not registered, it’s not yours,” serves as a wake-up call for all parties involved in the real estate industry.
Therefore, a timely registration alone would guarantee your ownership of the property, regardless of how long ago you had the agreement or how you have since attempted to authenticate it.
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