Inadmissibility of Unregistered Compromise Deed: Delhi High Court Sets Aside Eviction Order

In a significant judgment, the Delhi High Court has set aside the eviction order in the case of Dheeraj Jain & Ors versus Savitri Devi & Ors, remarking on the criticality of adherence to the Registration Act, 1908. Justice Tushar Rao Gedela remanded the case for a fresh decision by the Rent Control Tribunal, emphasizing the inadmissibility of an unregistered and unproved compromise deed in property disputes.

The property dispute stemmed from a will bequeathed by Mahant Narsingh Dass, and the subsequent alleged compromise between Chela Har Narain and Chela Budh Ram. The Court observed, “The Compromise Deed/Relinquishment Deed was never tested for its authenticity or evidentiary value in any of the courts of law,” highlighting its inadmissibility due to the lack of registration and proof.

Justice Gedela further noted, “A relinquishment of a share in a property, that too worth more than Rs.100 could be possible, subject to the said document of relinquishment being mandatorily registered under section 17 of the Registration Act, 1908.” The judgment accentuates the mandatory registration of documents in property-related transactions and their critical role in legal proceedings.

The case revolved around the challenge of the judgments in RCT No. 30310/16 & Eviction Petition E No. 1096/2006, concerning the legal validity of the succession of property as per the will of Mahant Narsingh Dass. The High Court's decision to set aside the lower courts' judgments based on an unregistered compromise deed represents a significant reinforcement of the principles governing property laws in India.

The judgment has been remitted to the Rent Control Tribunal for a fresh decision, with the High Court directing that if necessary, the Tribunal may direct adduction of fresh evidence on issues arising from the observations.

 Date of Decision: 02.02.2024

 DHEERAJ JAIN & ORS. VS SAVITRI DEVI & ORS.