Supreme Court Explains Law on Unregistered Documents

 Supreme Court Explains Law on Unregistered documents 

Hon'ble Supreme Court has given numerous judgments. 

In K.B. Saha & Sons Pvt Ltd v Development Consultant Ltd [2008] GCtR 4223 (SC) it has been held thus : - 

"1. A document required to be registered, if unregistered is not admissible into evidence under S.49 of Registration Act

2.Such unregistered document can however be used as an evidence of collateral purpose as provided in the Proviso to S.49 of Registration Act, 1908.

3. A collateral transaction must be independent of, or divisible from, the transaction to effect which the law required registration.

4. A collateral transaction must be a transaction not itself required to be effected by a registered document, that is, a transaction creating, etc. any right, title or interest in Immovable property of the value of one hundred rupees and upwards.

5. If a document is inadmissible in evidence for want of registration, none of its terms can be admitted in evidence and that to use a document for the purpose of proving an important clause would not be using it as a collateral purpose."

Written by 

Vishal

Delhi

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