ADJUDICATION OF MATTERS CONCERNING PAYMENT OF STAMP

ADJUDICATIONOF MATTERS CONCERNING PAYMENT OF STAMP

                              

ADJUDICATION means that a choice that is rendered by a competent authority or a choose on controversial or disagreed problems. It’s often disputed or disagreed within the matters of stamp tax payable by persons seeking registration of certain instruments.

In spite of clear description of quality of stamp tax underneath the assorted Articles of the karnataka stampact, disagreements between executants and the registering authority and conjointly sure doubts do enter into the minds of person wanting to register.In order to get rid of such disagreements or doubts, someone is sceptred underneath the provisions of the karnataka Stamp Act 1957 to adjudicate the difficulty or request the opinion of the District Registrar/ Deputy Commissioner on correctstamp tax to avoid complications like, under-valuation and penalty at later stage.

The Registering authority himself is additionally sceptred underneath the Act to create a relation to the Deputy Commissioner / District Registrar for determination of the stamp tax on the property just in case of disagreements or disputes arise wherever the person is declined to pay the stamp tax set forth by him. As provided underneath the Act, any instrument that is either dead or not and antecedently sealed or not will be brought to the District Registrar / Deputy Commissioner to have his opinion as to the Stamp Duty with that it is indictable.

For doing thus, the person ought to build an application with a fee of Rs.100 and also furnish an abstract of the instrument and an affidavit or other evidence as would support his claim on set forth value or such duty to be determined by the District Registrar.

Admission

On receipt of such application on with fee, abstract of the instrument or alternative evidences, the Deputy Commissioner/District Registrar having glad all told respects, shall build his best judgment to see the stamp tax to be collectible or decide that the duty claimed by the person suffices the right description of chargeability alternatively decide that the stamp tax already paid is up to the duty thus determined by him or in his opinion, such instrument is not indictable. Oncesatisfying the case, the Deputy Commissioner / District Registrar shall certify the endorsement on such instrument consequently and fitly.It is conjointly only if the District Registrar/Deputy Commissioner might also refuse to proceed during this judgment, if the person doesn't fulfill the conditions stipulated in that.

The provision of the Act provides that no proof fitted out in pursuance of this judgment shall be utilized in any civil proceedings against someone except in any enquiry relating chargeability of stamp tax. Further, all and sundry by whom any such proof is fitted out shall, on payment of the complete stamp tax that is proportionate with thechargeability of the instrument, be alleviated of penalty for his omission.Endorsement not sceptred

However, the Deputy Commissioner/District Registrar isn't sceptred underneath the availability ofthe Act to allow endorsement on the instruments of the kinds hereinafter delivered to him.

a)After expiration of 1 month from the date of its execution or initial execution in Bharat.

b) dead or initial dead out of india and delivered to him once expiration of 3 months once it's been initial received within the State of karnataka.

c) Or any instruments indictable with duty not surpassing fifteen paise or a mortgage crop with a obligation of twenty 5 paise once delivered to him once the execution there of, on paper not punctually sealed.

Referencefor call

It is conjointly provided underneath the Act that even the Deputy Commissioner / District Registrar is enabled to refer his own call in pursuance of this judgment, just in case of his doubt concerning the chargeability of stamp tax, to the Chief dominant Revenue Authority who also will provide his call in that. More so, the Chief dominant Revenue Authority, is additionally sceptred suo moto among 5 years from the date of order elapsed the Deputy Commissioner/ District register, to incorporate and examine the records about such order elapsed Deputy Commissioner / Registrar once examining records and hearing the parties, pass an order in writing confirming, modifying or setting aside such order and direct the Deputy Commissioner / District Registrar. Again, the Chief dominant Revenue Authority will refer its opinion to the supreme court of Mysore for a choice.

Generally, the Sub-Registrar is underneath duty and obligations to simply accept the instruments for registration once perceptive all formalities. In cases wherever the registeringauthority is deemed to own set forth the stamp worth that, in step with the person needing to register, is more. The person aggrieved will undoubtedly approach the Deputy Commissioner/District Registrar, with application, fee and other documents, for applicable relief.

ADDITIONS,ALTERATIONS AND CANCELLATIONS TO PROPERTY DOCUMENTS

ADDITIONS, ALTERATIONS AND CANCELLATIONS TO PROPERTY DOCUMENTS

                          

Documents are the record of assortedtransactions; they contain sure terms, conditions, thought quantity, and names of the parties to the dealing, date of the dealing, clear and complete description of the topic of dealing, thus on build them simply known. For example; Sale Deed of a property contains the origin, flow of the title, gift standing, names of marketer and buyer, thought quantity, easementary right and temporary description of the property with construction and limits. They’re the permanent records that are relied on for generations. Such documents should be clear, readable, and freed from error and will not produce any doubts or disputes. They replicate the terms of dealing that each the parties have freely consented.

At times, some additions, alterations, cancellations are inevitable, that are noticed at the time of execution. Any such alterations, cancellations, additions ought to be done before presenting the document for registration. All such modifications ought to be attested by full signature of all the parties to the documents. But, signature of witness isn't necessary for such modifications. Solely full signatures and not initials or short signature ought to be insisted. For cancellations, the initial words ought to be showing neatness stricken off; it ought to be signed by parties to the document.

Erasing with fluid shouldn't be used. Registering Authority records such additions, alterations, cancellations page wise on the document itself. This validates the additions, alterations, cancellation etc. Any modifications done once the registration aren't valid and don't kind a part of the document. Moreover, the document itself becomes invalid. Copies of the registered documents are maintained at registering Offices and authorized copies issued by such Authorities additionally record on certified copies the amount of cancellations, additions and alterations done before registration. They are doing not contain something supplemental, deleted, changed once registration. So, correct care should be taken so all the modifications are done before registration below the complete signatures of all the parties to the transactions. If something should be modified once registration a separate Rectification Deed should be dead.

Fillingup the blanks

Some documents could have blanks because the needed info are going to be out there solely at the time of execution. Typically date of execution is left blank, till the date is finalized. The small print of demand drafts, cheques like range, name of Bank, branches are all left blank. All such blanks ought to be crammed up before presenting the document for registration and will be attested by all the parties to the document or executor below full signature.

Attestation

Attestation means that witnessing the documents. Sure documents like can, Agreement to Sale, Sale Deed need attestation. Execution of the documents ought to be witnessed by 2 Persons, who are Major and of Sound mind. Each the witnesses ought to affix their full signature and will furnish their address. Attestation isn't necessary just in case of sure documents.

ThumbImpression

There are many folks who cannot sign. Thumb impression of such folks is taken for execution of documents rather than signature. Left hand Thumb impression (LTM) in case of males and right hand Thumb Impressions (RTM) in case of females ought to be obtained on documents for execution. Temporary description “LTM   or   RTM of Sri/Smt…………………        “Has to be written at once below the thumb impression. Because the persons, who affix thumb impression are illiterate, who cannot browse or write, the whole contents of the documents ought to be browse over and explained to them and a separate note thereto result should be annexed to the document ideally signed by an Advocate.

Thus, the transfer or assignment of right, title and interest over the properly, no matter the character of transfer, entirely depends upon the Deed of Conveyance. Any ambiguity, inadvertent addition or deletion within the Deed could create to disputes. Therefore, to avoid any unsavory things care ought to be taken whereas drafting the property documents.

Possessionof property

It is important that, the transferrer transfers possession of the property in favor of the Transferee. It’s not necessary that actual physical possession should be bimanual over to the Transferee, however even grant of ownership can transfer and make right and interest over the property in favor of the Transferee.

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Advocate S.Selvakumar

ABOUT A SALE DEED

ABOUT A SALE DEED


                               

 




Sale Deed is also known as conveyance deed. This is the document by

which the seller transfers his right to the purchaser, who, in turn, acquires

an absolute ownership of the property. This document is executed

subsequent to the execution of the sale agreement and after compliance

of various terms and conditions detailed in the sale agreement.

Before the execution of the sale deed the title of the seller is to be

established beyond doubt. Copies of the documents of title must be

scrutinized by an advocate, well versed and experienced in property

dealings.



If there is any encumbrance on the property, such encumbrance is to be

cleared by the seller at his cost.All statutory payments like property tax,

water and power charges and any other payments due on the property

should be cleared before the execution of the Sale Deed. Any previous

charges or mortgage should be clear before execution of the Sale Deed.

Clearances, and permissions required to be obtained by the seller should

be obtained prior to execution of the sale deed.Latest encumbrance

certificate of the property, subsequent to the date of the sale agreement

up to the proximate date of sale deed should be obtained, and such

certificate should be of nil encumbrance.All the persons having interest in

the property should be made parties to the deed. Particular attention

needs to be paid in case of purchase of properties from a Limited

Company, Partnership Firm, Hindu Undivided Family, Trust, Power of

Attorney Holder and Minor.



Draft Sale Deed

A draft Sale Deed, containing full details of the parties, advance amount

paid, mode of balance amount payable, receipt of the balance amount by

the seller, handing over the original documents of the property, handing

over the possession of the property, handing over the authorization letter

to transfer power and water meters, signing of the application for transfer

of khatha, title of the seller of the property, indemnifying the purchaser in

case of defect in the title, easement rights, will be prepared by the

purchaser’s advocate. Such draft Sale Deed should be captioned as draft

Sale Deed and shall be signed by the purchaser’s advocate.


A copy of the draft Sale Deed will be given to the seller for his approval.

The seller and his advocate will verify the draft sale deed and approve it,

or may suggest suitable deletions, additions or amendments. The purpose

is to bring forth the correct intention of the parties to the Sale Deed.

On approval of the draft Sale Deed, the same has to be prepared on a

quality or a document paper. In Karnataka it may be prepared on good

quality paper like bond paper or green paper and the stamp duty may be

paid by way of demand draft or pay order or cash. The exact amount of

stamp duty should be ascertained from the Sub Registrar office. Purchaser

is liable to pay the Stamp duty as per value stated in the documents or as

per the Sub- Registrar office value whichever is higher.



Execution

After the Sale Deed is prepared all the parties to the deed shall execute it

by affixing full signatures. Each page should be signed by all the sellers.

Any overwriting, cancellations, erasures and additions have to be

authenticated by full signatures of the parties.The execution of the Sale

Deed requires to be witnessed by two witnesses. The witnesses shall give

their full particulars and addresses.

Sale Deed of immovable property of value more than Rupees one hundred

needs compulsory registration. The duly executed sale deed should be

presented at the jurisdictional sub-registrar office. All the parties,

including the confirmation witnesses shall be present at the time of

registration and admit the execution. Purchaser also has to be presented

for the execution of the documents at the Sub Registrars office. In case

the purchaser is not in position to be present before Sub Registrar, he can

give Power of Attorney to any of his persons to sign and present the

documents on his behalf. In case seller signs the Sale Deed, it is

compulsory that through the registered Power of Attorney holder only can

represent for him to present the documents before the Sub-Registrar.

Registration

2 In Karnataka, the Sub-Registrars office, take the photos of purchaser,

vendors, witness and also their thumb impressions and print the same on

the Sale Deed.The vendors has to produce all the original documents

pertaining to the property to the purchaser. If the property is divided into

one or more portions, the seller has to give certified copy or Xerox copy of

the documents to the purchaser and has to give declaration to that effect.

Generally, the larger portion holder should get the original documents.

There is a time limit for presenting the documents for registration. The

time limit is four months from the date of execution.  Thereafter a grace

period of another four months is allowed on payment of penalty. The

maximum penalty is ten times of registration charges.

At times, the registering authorities may dispute the stamp duty paid. In

such cases, the purchaser has an option of paying the additional stamp

duty by way of cash or payorder. The purchaser may contest it in which

case the Sub Registrar will do the pending registrations and send it to the

Registrar of Under Valuation to arrive at proper Stamp Duty.

Parties have to quote their Income Tax Permanent Account Number in

case the transactions are done in cash for the property which values more

than Rs 5,00,000. Parties, who have not yet been allotted Permanent

Account Number, will have to file Form No.60 or Form No. 61 in case of

Agriculturists.



The purchaser’s advocate has to take all precautions while preparing Sale

Deed. It is a most important document and decides the fate of the

purchaser.  The purchaser has to preserve the Sale Deed very safely.


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Advocate S. Selvakumar

ACTIONABLE CLAIM

ACTIONABLE CLAIM

                                      

Actionable claim is defined in Section 3 of the Transfer of Property Act as a ‘claim to any debt other than a debt secured by mortgage of immovable property or by hypothecation or pledge of moveable property or to any beneficial interest in the moveable property not in the possession, either actual or constructive of the claimant which the civil courts recognize as affording grounds for relief, whether such debt, or beneficial interest be existent, accruing, conditional or contingent.

Accordingly, this mean, it excludes not only a claim to any immovable property for a debt but also a debt secured or any moveable property in possession of the claimant. It follows, therefore that it is a claim for a simple debt or liability and which can be realized by a legal action.  

An actionable claim is called, in English Law, a chose in action or a thing in action as against a chose or money in possession. It denotes incorporeal personal property of all disciplines and an interest in corporeal personal property not in possession of the owner which accordingly can only be claimed or enforced in action. Therefore, while the different types of moveable property governed by the Sale of Goods Act can be called as chose in possession, an actionable claim is also a type of moveable property called chose in action.  It is also a moveable property because a debt is a property and anything which is not immoveable property is moveable property.

Actionable claim as defined in Section 3 of the Transfer ofProperty Act, as a chose in action is different from two other such chooses in action namely the right or property by way of copyright, trade-mark, patent, or design, and also to stocks and shares or debentures of a limited Company or the negotiable instruments under the Negotiable Instruments Act, which also evidence a debt and which are recoverable by legal action.

Section 137 of the Transfer of Property Act clearly provides that sections 130 to 136 will not apply to stocks and shares or debentures or to instruments which are negotiable or to mercantile documents of title to goods.  Marine Insurance claim is also excluded by Section 135 A of that Act and is dealt with in the Marine Insurance Act, XI of 1933. They are also governed by independent separate statutes passed in respect thereof and are not, therefore, governed by the Transfer of Property Act.  That Act in Section 130 only provides for transfer of actionable claims as defined and circumscribed by the Transfer of Property Act. As to transfer of the earlier mentioned actionable claims separate provisions are made for transfer thereof by the statutes governing them.

Actionable claims within the meaning of Section 3 of the Transfer of Property Act, therefore, cover (i) claims to unsecured debts and (ii) claims to beneficial interest in moveable property not in possession actual or constructive whether present or future., conditional or contingent. Such actionable claims could be (a) a right to claim maintenance (b) a right to arrears of rent (c) a right to annuities (d) moneys payable under a contract for price or advance (e) a right to claim benefit of a contract (f) a partner’s claim for accounts and his share therein (g) insurance claim, other than marine insurance (h) salary in arrears (i) book debts (j) a fixed deposit receipt, etc.  However, a mere right to sue is not assignable.  Similarly, a decree is not assignable under this section, as no legal action is required to be taken to recover the claim.  The decree itself can be executed. Similarly any other property which is not transferable, under Section 6 of the Transfer of Property Act is not assignable under Section 130 of the Transfer of Property Act. Marine Insurance Policy, negotiable instrument and documents of title to goods are specifically excluded by Section 135 A and Section 137 of the Transfer of Property Act as stated above.

Assignment:

Every actionable claim or chose in action is assignable except in four cases:

(1)  where the assignment is prohibited by law,

(2) where the terms of the contract under which the claim accrues prohibit such assignment,

(3)  where the contract is of a personal nature, and

(4)  where the assignment would increase the burden on the other party.

An actionable claim can be recovered by a legal action by the person who is the claimant or creditor. Section 130 of the Transfer of Property Act provides that a transfer of an actionable claim shall be effected by execution of an instrument in writing, signed by the transferor or his duly authorized agent in favour of the transferee and in that case all the rights and remedies of the transferor, whether by way of damages or otherwise shall vest in the transferee, whether notice of such transfer is given to the debtor or not. But when no such notice of transfer is given to the debtor and the debtor in ignorance of such transfer repays the debt or claim to the original creditor or claimant, he would be discharged from the liability.  On such transfer the Transferee would get all the rights of the creditor including the right independently to recover the debt without the original claimant’s consent or co-operation.  The deed of transfer need not be signed by the transferee and also does not require attestation or registration.

The written instrument assigning a debt can be in any form, if the intention to transfer is clear. A mere letter to the assignee by the claimant that he has assigned the debt to him is sufficient.

An assignment of a debt may be absolute or by way of security or even as a gift. The words with or without consideration in the definition of actionable claims are used to cover even a gift.

An assignment becomes effective from the date of writing, unlike English Law under which it becomes effective from the date of notice to the debtor.

The provision in the Transfer of Property Act regarding assignment of actionable claim does not apply to claims under Marine Insurance Policy or Fire Insurance Policy or affect any provisions of the Insurance Aft, 1938.

Section 134 of the Transfer of Property Act also shows that assignment of the actionable claim by way of charge is also possible to secure the debt due by the transferor to the transferee and provides how the debt assigned when recovered is to be applied viz., first in payment of costs of recovery, secondly, in satisfaction of the amount secured and thirdly, in payment of the balance if any to the transferor or other person entitled thereto.  Section 136 if the Transfer of Property Act above quoted does not apply to assignment by a charge or security, though such assignment is also recognized in English Law as equitable assignment.

An actionable claim would include

(a)     any debt due to or moneys recoverable by the transferor (except the moneys payable under a negotiable instrument)

(b)     any moveable property belonging to the transferor and not in his possession or power and which he has a right to recover or receive and

©       any claim or benefit under a contract belonging to the transferor but without any liability attached thereto.

An Assignment can be made either by a formal document or even by a letter to the debtor of the transferer but not orally.  An irrevocable Power of Attorney to recover a debt and to adjust it towards the amount due to the done is held as an assignment. An actionable claim can be assigned even as a gift that is without consideration as Section 130 of the Transfer of Property Act in terms so provides.

Apart from what is stated above, the following are held to be actionable claims:

     (1)a debt due or to become due, or whether conditional or contingent

     (2)  future rents

     (3)  amounts payable under a deed

     (4)  amount due under a policy of life insurance

     (5)  a letter of credit

     (6)  right under a contract

     (7)  beneficial interest in moveable property

     (8)  confirmed sale price

     (9)  earnest money becoming repayable

   (10)  deposit receipt

   (11)  dividend due on shares, etc.

But a mere right to sue or claim for damages or mesns profits are not assignable.As regards transfer of shares, stock and debentures, the provision in respect thereof is made in the Companies Act.

As regards actionable claims in the nature of negotiable instruments, the Negotiable Instruments Act, makes special provision for the transfer thereof by endorsement. It may however be stated that a promissory note whether negotiable or not or other such instruments can be transferred by a separate instrument of transfer instead of by mere endorsement.

An assignment of an actionable claim is not required to be registered under the Registration Act.It is desirable that the document of assignment is executed both by the Assignor and the Assignee and in duplicate, one copy remaining with the Assignor and other with the Assignee.        

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Advocate sevakumar

A COMPARATIVE LOOK AT NRIs, OCIs AND PIOs

A COMPARATIVE LOOK ATNRIs, OCIs AND PIOs

Indian citizenship and citizenship of a Foreign country cannot be held at the same time as it is not allowed by the Constitution of India.  A new class of Citizenship i.e.,Overseas Citizen of India (OCI) was therefore created by amending the Constitution to compromise with dual citizenship.

Dual Citizenship and holding of two nationalities at the same time of two different  countries is categorically prohibited by both Article 9 of the Constitution of India and Section 9 of the Indian Citizenship Act, 1955.OCI are specifically prohibited political rights and other rights by Section 7B of the Citizenship Act and they have only multiple entry lifelong visa facility to visit India any time for any purpose.

Under the Ministry of Home Affairs Scheme of August 19, 2002, the registration of Person of Indian Origin ( PIO ) Card holders was started and from December 2, 2005 the OCI scheme became operational.  We need to know the difference between an NRI, a PIO and an OCI.

For this purpose, the following description is given:

Non-Residential Indians ( NRIs ):

A person resident in India and a person resident outside India are defined in Section 2 of the Foreign Exchange Management Act, 1999 ( FEMA ).  However, this portion does not define the term NRI.  According to a notification, NRI means a person resident outside India who is either a Citizen of India or is a person of Indian Origin.

A person who resides in India for more than 182 days  in the preceding financial year and who comes or stays in India for any purpose is a person ‘resident’ in India according to FEMA.  A person who is not a resident in India is defined as a ‘Non Resident’.  An NRI, therefore, is an Indian Citizen who ordinarily residents outside India and holds Indian passport.

Persons of Indian Origin (PIO):

A foreign citizen who held an Indian Passport at any time; or he/she or either of his/her parents, grandparents or great grandparents was born in and was a permanent resident in India; or he/she is a spouse of a citizen of India or of a person of Indian Origin is what is meant by a Person of Indian Origin.

PIO card holders are permitted to visit India  without visa for 15 years and have to register with Foreigners Registration Officer ( FRO ) in India if the stay is more than 180 days continuously.  PIOs have equality with NRIs where certain facilities are concerned but do not have any political rights and may apply for Indian Citizenship after residing in India for a minimum of seven years.

Overseas Citizen ofIndia ( OCI ):  

A foreign national is eligible for registration as OCI if he was eligible to become a Citizen of India on January 26, 1950, or was a citizen of India on or at any time after the said date or belonged to a territory that became part of India after August 15, 1947 and his / her children and grand children are also eligible for registration as OCIs.  They will enjoy a multiple entry, multi purpose life long visa to visit India, do not have to register with Foreigners Registration Officer (FRO)/Police authorities however long they may stay in India and have the right to benefits notified under Section 7B of the Indian Citizenship Act, 1955.  If an OCI is registered for five years and resides in India for one year he can be granted Indian Citizenship but will have no political rights.

Bank accounts in India can be opened out of funds remitted from abroad, foreign exchange brought in from abroad or out of funds legitimately due to them in India by NRIs / PIOs.  They can open these accounts with Banks that are authorized by the Reserve Bank of India.  

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ADVOCATE SELVAKUMAR.

REGISTRATION OF PROPERTY DOCUMENTS OPPOSED BY PUBLIC POLICY­­

REGISTRATION OF PROPERTY DOCUMENTS OPPOSED BY PUBLIC POLICY­­

Can a registration of a document be claimed as a matter of right? Indian Registration Act, 1908, has under section17 prescribed certain documents which are compulsorily registerable and under section 18, the documents, the registration of which is optional. As such can anybody claim as a matter of right, registration of a document which is compulsory under section17 of Indian Registration Act 1908.Various States have amended the main Registration Act and have framed rules there under.

Karnataka Government has inserted a new section 22-A, with effect from 23.10.1976 which empowers the State Government to prohibit the registration of certain documents as opposed to public policy, by notifying in official gazette, and the registering officers shall refuse to register any such document.

Government of Karnataka through Revenue Secretariat Notification No. RD/141

MUNOMV/2005, date.23/04/2005, has in exercise of powers conferred under section 22-A of Registration Act as amended by Karnataka Act 55 of 1976 has declared registration of following documents as opposed to the public policy. This is effective from 06/05/2005.

1.   Site with or without building in agricultural land which is not converted for non-agricultural purpose under section 95 of Karnataka Land Revenue Act 1964.

2.   Site described as Gramathana site (form no. 9, 10) or other site declared under form no.19 under rules framed under Karnataka Municipality Act 1964, but not actually converted as site.

3.   Site on a revenue land described as Gramathana Site or other site or a site with a building on which no layout plan is approved and a release certificate is issued from local planning authority like BDA, BMRDA, BIAAPA, BMIC.

4. Site on a revenue land described as Gramathana site or other site, fiats, industrial site, commercial site, without requisite permission under section 79A and 7B read with section 109 of Karnataka Land Reforms Act.

Thus the transfer of only the following properties is permitted.

a)Properties falling under Bruhat Bangalore Mahanagara Palike.

b) Properties allotted by BDA

c) Properties in BDA approved layouts

d) Properties in layouts approved by other local planning authorities like BMRDA, BlAAPA, BMIC etc.

In the preamble the notification, it is stated that many properties are registered based on bogus and fabricated documents which do not pass on legally perfect title to the purchaser. In many cases, the agricultural land is transferred by registration as non-agricultural land without actually converting it to a non-agricultural purpose in accordance with Section 95 of Karnataka Land Revenue Act 1964 and Karnataka Land Grant Rules 1989. This has led to haphazard growth of Bangalore and other cities.

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Advocate Selvakumar

REGISTRATION OF PROPERTY

REGISTRATION OF PROPERTY

All documents do not require registration compulsorily. The Transfer of Property Act, 1882 and the Indian Registration Act, 1908 have made registration of certain documents compulsory while in respect of certain other documents it is optional. According to Section 17 of the Indian Registration Act, 1908 registration of documents is compulsory if they relate to an immovable property.  Similarly, Section 54 of Transfer of Property Act 1882, stipulates that sale of immovable property the value of which is one hundred rupees or more should be registered. Since no immovable property is available for rupees one hundred or less than rupees one hundred, implicitly all sale deeds of immovable property need compulsory registration.  

Most of the instruments dealing with the immovable property for creating, declaring, assigning, limiting or extinguishing any right, title or interest in the property require compulsory registration, as enumerated under the Indian Registration Act, 1908. For executing an instrument, the first and the foremost aspect to be considered is the nature of the right intended to be transferred. If the document falls within the category of the documents which warrants compulsory registration, any avoidance of registration of such document would invalidate the document itself.  For documents which require mandatory registration certain procedures are prescribed.

Time limit for registration

Under Section 23 of the Registration Act, subject to certain exceptions, any document other than a Will has to be presented for registration within four months from the date of its execution.  Execution means signing of the document. It is not uncommon that the date of execution and the date of registration may differ. For the non-testamentary documents such as Sale Deed, Gift Deed,Mortgage Deed, etc, the time limit within which the document has to be registered is four months from the date of execution. Decrees drawn in terms of Compromise Petition wherein shares of the parties are allotted by metes and bounds require registration.

Even for registration of the court decree, four months time limit is stipulated under the Act. If the document is executed by all or any of the parties residing abroad, the same can be accepted for registration within four months from the date of receipt of the document in India. In case of doubt as to the validity of registration, the document may be re-registered within four months from the date when it is noticed that the registration is invalid or of doubtful validity. Where a document is executed by several persons at different times, it should be presented within four months from the date of the latest execution for registration. If a document is not presented for registration within the prescribed period of four months and the delay in presentation of the document does not exceed a further period of four months, then the parties can apply to the Registrar for registration of the document who may direct, upon payment of fine not exceeding ten times the actual registration fees, for registration of such a document [Sec.25].

A document relating to an immovable property can be executed out of India and later it can be presented for registration in India.  As per section 26 of the Registration Act, 1908, if a document purporting to have been executed by all or any of the parties out of India is presented within the prescribed period of time for registration, the Registering Officer may, on payment of proper registration fee accept such document for registration if he is satisfied that the instrument was executed out of India and the instrument has been presented for registration within four months after its arrival in India.

Fees of Registration

Fees charged for the registration or searching the register are prescribed by State Governments through Notifications.

Testamentary instrument

In case of Testamentary instrument, that is, Will, registration is optional and time limit is not prescribed. It can be registered any time before the death of the Testator. How-ever, it is advisable to register the same as soon as possible in order to avoid disputes about the genuineness of its execution. In case of registration of Will, the same may be presented by the Testator during his life time and after his death, by the beneficiary or the administrator, for registration.

A Will may be deposited with the Sub-Registrar in a sealed cover and such deposit may be done through an agent. After the death of the Testator, the sealed envelope will be opened and the contents recorded in the relevant register maintained in the Sub-Registrar's Office. The Original copy of the 'Will' will be in the custody of the Sub-Registrar.

Jurisdictional Sub-Registrar Offices

Generally documents have to be presented for registration only at the Sub-Registrar's office within whose jurisdiction the immovable property is situated. However, in certain exceptional cases, documents may be presented for registration with the Registrar who has been conferred with the power to register the documents. In fact, Sub-Registrars have been vested with the special power to register the document at the residence or office of the executants or to accept deposit of Will.

Presentation of the document

Documents which require mandatory registration have to be presented in the concerned Sub-Registrar Office for registration by the executants or person claiming under the Decree. However, in certain cases, the representatives of the Executants, duly authorized under Power of Attorney, can also execute the same on behalf of the Executants. A power of Attorney holder can execute the document, representing the Principal only if an authority has been vested in him under Power of Attorney, which is authenticated by the Registering authority within whose jurisdiction the Principal resides. If the Principal does not reside in India, then the Power of Attorney should be executed before and authenticated by a Notary Public or any Court, Judge, Magistrate, Indian Consul or Vice-Consul or the Representative of Central Government in that country and the same is required to be presented with the concerned registrar in India with in a period of three months of its receipt in India. When a document has been executed by more than one executants and after execution of the same, one of the executants refrain from attending the concerned Sub-Registrar's Office for registration, then the remaining executants can compel attendance of the executant reluctant to be present before the registering authority through the process of law.

Enquiry by the Registering authority

The Registering Officer is empowered under sec. 34 of the Registration Act to enquire whether or not the person is the same by whom it purports to have been executed such a document.  He may insist on production of proof for his identity and in case any person is appearing as a representative or agent, the Registrar may ask for relevant documents to show that the agent or representative has the right to appear on behalf of his principal.    

Effect of non-registration

What would be the repercussion if a document which requirescompulsory registration  is not registered? Section 49 of Indian Registration Act deals with this situation. It states clearly that such un-registered documents do not convey to the transferee a legally valid title and such documents are not admitted as evidence for any transaction affecting the property referred to in the document. However, there is an exception provided in the Act. The unregistered documents may be admitted as evidence in a suit for specific performance under Specific Relief Act or in any other related transaction, not required to be effected under a registered instrument.

Documents are mainly registered for conservation of evidence, assurance of title, and to help an intending purchaser to know if the title deeds of a particular property have been deposited with any financial institution or person for purpose of obtaining loan or advance against security of the property. Registration of documents acts as notice to the public and to protect oneself against the likely fraud. Therefore, it is advisable to register all documents connected with the immovable property irrespective of whether the registration is compulsory or not as it creates a permanent record of event which are reflected in encumbrance certificates.

As registered documents have higher value of evidence than unregistered documents it is always beneficial to you if you  get all your property documents registered within the stipulated period  irrespective of the fact that such registration is mandatory or not.

Endorsement

After accepting the document for registration, the Registering authority shall endorse the document regarding affixation of the signature of the Executant, payment of consideration, date and other relevant particulars. If registration is declined by either of the party, the same shall be endorsed on the document itself. Apart from this, the Registering authority shall also endorse on the Document the registration number, Book number, pages, volume or CD number and affix the seal of the office of the Sub-Registrar. Such a Certificate shall be copied in the Register meant for the purpose and copy of the map or plan, if any, shall be filed in Book No.1. Thereafter, the registered document will be returned to the person who has presented the same for registration or to his representatives.

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Advocate Selvakumar