PART III – OF REGISTRABLE DOCUMENTS

 

Section 17 – Documents of Which Registration is Compulsory

I. INTRODUCTION AND OBJECT OF SECTION 17

The Registration Act, 1908 was enacted to provide certainty, publicity, and authenticity to transactions affecting immovable property. Section 17 lies at the heart of the Act, as it specifies which documents must be compulsorily registered in order to have legal effect.

Registration serves multiple purposes:

1. Prevention of fraud by ensuring public notice of transactions.

2. Protection of titles and reduction of disputes.

3. Maintenance of public records concerning rights in immovable property.

4. Ensuring certainty in property transactions.

Section 17 enumerates documents which must be registered, failing which they become inadmissible in evidence under Section 49 of the Act and do not affect immovable property.

II. SCOPE AND APPLICABILITY OF SECTION 17

Section 17 applies to:

• Documents relating to immovable property

• Property valued at ₹100 and above

• Documents executed after the commencement of the relevant Registration Act in the concerned district

The section covers non-testamentary instruments, i.e., documents taking effect inter vivos (between living persons), as opposed to wills.

III. DOCUMENTS COMPULSORILY REGISTRABLE UNDER SECTION 17(1)

A. Section 17(1)(a): Instruments of Gift of Immovable Property

Meaning

A gift is the voluntary transfer of property without consideration (Section 122, Transfer of Property Act, 1882).

Legal Position

• All instruments gifting immovable property must be registered, irrespective of value.

• Oral gift of immovable property is invalid, except in the case of Muslim law (where oral gift may be valid but written instruments require registration).

Illustration

If A executes a gift deed transferring land to B, registration is mandatory. Without registration, the gift is void.

Case Law

Renikuntla Rajamma v. K. Sarwanamma
Facts: A gift deed was executed but possession was not delivered.
Held: Registration is mandatory, but delivery of possession is not essential for validity of a registered gift deed.
Significance: Emphasised that registration perfects a gift.

B. Section 17(1)(b): Non-Testamentary Instruments Creating or Affecting Rights in Immovable Property

This clause is the widest and most litigated provision.

Coverage

Documents which purport or operate to:

• Create

• Declare

• Assign

• Limit

• Extinguish

any right, title, or interest (present or future, vested or contingent) in immovable property of ₹100 or more.

Examples

• Sale deed

• Mortgage deed

• Exchange deed

• Settlement deed

• Release deed (if it extinguishes rights)

Key Expressions Explained

“Purport or operate” – Even if a document claims to affect rights, registration is required.

“Present or future” – Includes documents creating future interests.

“Vested or contingent” – Even uncertain interests require registration.

Landmark Case

Narandas Karsondas v. S.A. Kamtam

Facts: An agreement to sell was executed without registration.
Issue: Whether ownership passes by agreement to sell.
Ratio:
An agreement to sell does not create any right, title or interest in immovable property.
Significance: Clarified the distinction between sale deed (registrable) and agreement to sell (generally not registrable).

C. Section 17(1)(c): Instruments Acknowledging Receipt of Consideration

This clause covers documents which acknowledge receipt or payment of consideration relating to transactions affecting immovable property.

Purpose

To prevent parties from avoiding registration by separating the transaction and acknowledgment of consideration.

Illustration

A executes an unregistered document acknowledging receipt of sale consideration for land—registration is mandatory.

D. Section 17(1)(d): Leases of Immovable Property

Registration is compulsory for leases:

• From year to year, or

• For any term exceeding one year, or

• Reserving a yearly rent

Legal Consequence

An unregistered lease deed for more than one year:

• Is inadmissible in evidence

• Creates only a month-to-month tenancy under Section 106, TPA

Case Law

Anthony v. K.C. Ittoop & Sons
Held: An unregistered lease deed exceeding one year cannot be relied upon to prove lease terms, but possession may create a month-to-month tenancy.

E. Section 17(1)(e): Transfer or Assignment of Decrees or Awards

Inserted by the Registration (Amendment) Act, 1929.

Registration is required where:

• A decree, order, or award is transferred or assigned

• And it affects rights in immovable property of ₹100 or more

F. Proviso to Section 17(1): State Government Exemptions

State Governments may exempt:

• Leases not exceeding 5 years

• Annual rent not exceeding ₹50

This provision recognises local socio-economic realities.

IV. SECTION 17(1A): AGREEMENTS UNDER SECTION 53A, TRANSFER OF PROPERTY ACT

Background

Section 53A (Doctrine of Part Performance) allowed protection of possession based on an unregistered agreement.

Amendment (2001)

After the Registration and Other Related Laws (Amendment) Act, 2001:

• Contracts for transfer of immovable property for consideration must be registered

• Otherwise, no protection under Section 53A is available

Landmark Case

Suraj Lamp & Industries Pvt. Ltd. v. State of Haryana

Facts: Property transactions through GPA, agreement to sell, and will.
Ratio:
GPA sales do not convey ownership; only registered conveyance deeds transfer title.
Significance: Reinforced compulsory registration and curbed benami/fraudulent transactions.

V. DOCUMENTS EXEMPTED FROM COMPULSORY REGISTRATION – SECTION 17(2)

Section 17(2) lists exceptions to clauses (b) and (c).

1. Composition Deeds – Section 17(2)(i)

A composition deed settling debts with creditors does not require registration.

2. Instruments Relating to Company Shares – Section 17(2)(ii)

Even if company assets include immovable property, transfer of shares does not require registration.

3. Debentures – Section 17(2)(iii) & (iv)

Debentures not directly creating rights in immovable property are exempt.

4. Documents Creating Right to Obtain Another Document – Section 17(2)(v)

Meaning

Documents that merely create a right to obtain a future registered document.

Example

Agreement to sell.

Case Law

K.B. Saha and Sons Pvt. Ltd. v. Development Consultant Ltd.
Held: Unregistered agreements may be used for collateral purposes but not to affect property rights.

5. Decrees or Orders of Court – Section 17(2)(vi)

Exception

Compromise decrees involving property not subject matter of the suit require registration.

Case Law

Bhoop Singh v. Ram Singh Major

Facts: Compromise decree included property outside suit.
Held: Such decree requires registration.
Significance: Prevents misuse of compromise decrees to evade stamp and registration laws.

6. Government Grants – Section 17(2)(vii)

Grants by Government are exempt due to sovereign authority.

7. Partition by Revenue Officer – Section 17(2)(viii)

Administrative partitions do not require registration.

8. Agricultural and Improvement Loans – Section 17(2)(ix) & (x)

Orders granting loans under specified Acts are exempt.

9. Charitable Endowments Orders – Section 17(2)(xa)

Orders vesting property in Treasurer of Charitable Endowments are exempt.

10. Mortgage Receipts – Section 17(2)(xi)

Acknowledgment of mortgage payment does not require registration unless it extinguishes the mortgage.

11. Certificate of Sale – Section 17(2)(xii)

Auction sale certificates issued by court officers do not require registration.

Case Law

B. Arvind Kumar v. Government of India
Held: Sale certificate issued by court is sufficient to convey title without registration.

VI. EXPLANATION TO SECTION 17

The explanation clarifies that:

• A document effecting a contract for sale does not require registration merely because it recites payment of earnest money.

This reinforces the distinction between contract for sale and conveyance of title.

VII. SECTION 17(3): AUTHORITIES TO ADOPT A SON

Authorities to adopt a son (not by will), executed after 1 January 1872, must be registered.

Purpose

• Ensures authenticity

• Prevents fraudulent claims of adoption affecting succession rights

VIII. CONSEQUENCES OF NON-REGISTRATION (SECTION 49)

An unregistered document required to be registered:

1. Cannot affect immovable property

2. Cannot confer any power

3. Cannot be received as evidence, except:

   • For collateral purposes

   • To prove possession or nature of holding

IX. OVERALL SIGNIFICANCE OF SECTION 17

1. Forms the backbone of property law transactions

2. Ensures transparency and public notice

3. Balances strictness with reasonable exemptions

4. Post-2001 amendments strengthened anti-fraud measures

5. Regularly tested in courts due to evolving property practices

X. CONCLUSION

Section 17 of the Registration Act, 1908 establishes a mandatory registration regime for significant property transactions while carving out well-defined exceptions. Judicial interpretation has consistently upheld its object—certainty of title, prevention of fraud, and public confidence in land records.

Understanding Section 17 is essential for:

• Property law

• Transfer of Property Act

• Civil procedure

• Judiciary and competitive exams