Unregistered Agreements Admissible in Specific Performance Suits: Patna High Court

In a significant ruling, the Patna High Court, presided over by Honourable Mr. Justice Sunil Dutta Mishra, has upheld the admissibility of unregistered agreements in suits for specific performance. The judgement delivered on November 24, 2023, reaffirms the principles governing the interpretation of unregistered documents in legal proceedings related to the sale of immovable property.

The case, Involving a dispute over an unregistered contract for the sale of property, witnessed a civil revision petition challenging the trial court’s rejection of an application for dismissal of a plaint under Order 7 Rule 11 of the Code of Civil Procedure (C.P.C.). The petitioners contested the validity of an unregistered contract for sale, which was central to the dispute.

Justice Mishra, in his ruling, emphasized the importance of unregistered documents in legal proceedings, stating, “even where the sale agreement is not registered, the document can be received as evidence for considering the relief of specific performance.” This observation underlines the court’s position on the significant but limited role of unregistered agreements in specific performance suits.

Further, the judgement clarified the interpretation of Section 17(1A) of the Registration Act, 1908, highlighting that while an unregistered agreement to sell is admissible as evidence in specific performance suits, it does not extend the protections offered under Section 53A of the Transfer of Property Act, 1882.

The court’s decision to uphold the trial court’s judgement and proceed with the suit marks a pivotal stance in the legal landscape, particularly concerning property transactions and civil procedure. Advocates Awadhesh Prasad Sinha and Deepak Kumar, representing the petitioners and the opposite parties respectively, presented their arguments, which were integral to the court’s comprehensive evaluation of the case.

Date of Decision: November 24, 2023

Musmat Shanti Devi and Others vs Lallu Ram Son of Ganga Ram and Others