UNIVERSITY INSTITUTE OF LEGAL STUDIES,

PANJAB UNIVERSITY, CHANDIGARH

SECTION 17 OF THE REGISTRATION ACT, 1908

A project report to be submitted on the
the above topic in the subject of Law of
Registration and Court Fee Act, 1870 for partial fulfilment of the curriculum of the
degree B.A. LL.B. (Hons.), 8th Semester.

SUBMITTED TO:: SUBMITTED BY:

BY

MS. ANANNYA AMANDEEP KAUR

B.A. LL.B.. (HONS.)

(HONS.

SEMESTER – 8TH

SECTTION – C

ROLL NO. – 176/19

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ACKNOWLEDGEMENT
The success and the final outcome of this project required a lot of guidance and assistance from
many people and I am extremely privileged to have got this all along the completion of my
project. All that I have done is only due to such supervision and assistance and I would not forget
to thank them.

I respect and thank, Ms. Anannya for providing me an opportunity to do the project of Law of
Registration and Court Fee Act, 1870 on the topic of “Section 17 of the Registration Act,
1908” and giving me all support and guidance, which made me complete the project duly. I am
extremely thankful to her for providing such a nice support and guidance, although she had busy
schedule managing the corporate affairs.

I would also like to thank my parents and friends who helped me a lot in finalizing this project
within the limited time frame.

Amandeep Kaur

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TABLE OF CONTENTS
ACKNOWLEDGEMENT .............................................................................................................. 2

TABLE OF CONTENTS ................................................................................................................ 3

INTRODUCTION .......................................................................................................................... 4

SCOPE OF SECTION 17 ............................................................................................................... 4

DOCUMENTS WHICH REQUIRE COMPULSORY REGISTRATION .................................... 5

1. Instruments of gifts of immovable property ........................................................................ 5

2. Other Non-Testamentary Instruments.................................................................................. 7

3. Other non testamentary instruments acknowledging receipt or payment of consideration:

12

4. Leases of Immovable Property: ......................................................................................... 13

5. Non-Testamentary Instruments Transferring or Assigning any Decree, Order or Award of

a Court ....................................................................................................................................... 14

6. Documents Containing Contracts to Transfer for Consideration, any Immovable Property

for the Purpose of Section 53-A of the Transfer of Property Act, 1882: .................................. 14

7. Authorities to Adopt a Son ................................................................................................ 15

CONCLUSION ............................................................................................................................. 15

BIBLIOGRAPHY ......................................................................................................................... 16

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INTRODUCTION
The Registration Act, 1908 deals with the enactments relating to the registration of documents.
Registration is the procedure through which all the documents are recorded by a recognized
officer along with other necessary information to ensure its transparency and authenticity.

Registration is deemed to prevent fraud. The object of registering a document is to give notice to
the world that such a document has been executed. Registration of a document does not confer
the title over the property as mentioned in the document registered, but provides an evidence of
such transactions being registered, based on which title over the property could be established.
For registration of documents relating to conveyance of properties belonging to Government,
local bodies or religious institutions, “No Objection Certificate” is required from the relevant
authorities concerned.

SCOPE OF SECTION 17
Section 17 of the Registration Act is a very comprehensive provision as it specifies in detail the
documents and instruments which would become effective only after registration. The object of
the provision is very laudatory. In Hemanta Kumari v. Zemindart Co1, the Judicial Committee
observed that the object of registering a document is to give notice to the world that a document
has been executed to prevent fraud and forgery and to secure a reliable and complete account of
all transactions affecting the title to the property.

The Hon’ble Supreme Court in Suraj Lamp and Industries Pvt. Ltd. v. State of Haryana2 has
explained the object of registration of documents as, “The Registration Act, 1908, was enacted
with the intention of providing orderliness, discipline and public notice in regard to transactions
relating to immovable property and protection from fraud and forgery of documents of transfer.
This is achieved by requiring compulsory registration of certain types of documents and
providing for consequences of non-registration. Section 17 of the Registration Act clearly
provides that any document (other) than testamentary instruments which purports or operates to
create, declare, assign, limit or extinguish whether in present or in future “any right, title or

1
AIR 1919 PC 79.
2
2012 AIR (SC) 206.

4
interest” whether vested or contingent of the value of Rs. 100 and upwards to or in immovable
property is compulsorily registrable.”

DOCUMENTS WHICH REQUIRE COMPULSORY

REGISTRATION
1. Instruments of gifts of immovable property

It is apparent from Section 17(1) (a) that instruments of gifts of immovable property require
compulsory registration.

Meaning of the Word “Instrument”: The word “Instrument” has been defined by Indian
Stamps Act as follows: “Instrument includes every document by which any right or liability is, or
purports to be, created, transferred, limited, extended, extinguished or recorded;

Whereas the word “Document” has been defined by Section 3 of the General Clauses Act, 1897
as follows: “Document shall include any matter written, expressed or described upon any
substance by means of letters, figures or makes, or by more than one of those means, which is
intended to be used, or which may be used, for the purpose of recording that matter.”

A perusal of both the definitions makes it clear that the term document is a wider term and all the
instruments are documents, all the documents are not instruments.

Meaning of the Term “Gift”

Registration Act does not define the term "Gift". For this purpose reference may be had to
Section 122 of Transfer of Property Act which defines the term Gift as under:
“Gift is the transfer of certain existing movable or immovable property made voluntarily and
without consideration, by one person, called the donor, to another, called the donee, and accepted
by or on behalf of the donee.
Acceptance when to be made: Such acceptance must be made during the lifetime of the donor
and while he is still capable of giving. If the donee dies before acceptance, the gift is void.”

As to the manner of effecting gifts, Section 123 of Transfer of Property Act says:

“For the purpose of making a gift of immovable property, the transfer must be effected by a
registered instrument signed by or on behalf of the donor, and attested by at least two witnesses.

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For the purpose of making a gift of movable property, the transfer may be effected either by a
registered instrument signed as aforesaid or by delivery. Such delivery may be made in the same
way as goods sold may be delivered.”

Thus, a gift of immovable property can be made only by a registered instrument. However, in
case of movable property, gift may be made either by registered instrument or by delivery.
Section 17 of the Registration Act requires that the instruments of gift of immovable property
shall be registered irrespective of value of property.

In T.V. Kalyana Sundaram Pillai v. Karappa Mooppanar3, their Lordships of the Privy Council
were dealing with a case of transfer by way of gift which also requires registration. It has been
held that where the donor of immovable property had handed over to the donee an instrument of
gift duly executed and attested, and the gift has been accepted by the donee, the donor has no
power to revoke the gift prior to the registration of the instrument.

Gifts under Muhammaden Law

Section 123 of the Act stipulates that for the purpose of making a gift of immovable property, the
transfer must be effected by a registered instrument signed by or on behalf of the donor, and
attested by at least two witnesses. Section 129 provides for savings of donations mortis causal
and the gifts made under the Muhammadan Law It is clear from the said provision that the
Chapter relating to gifts including registration would not affect any rule of Muhammadan Law.

In Kamarunnissa Bibi v. Hussaini Bibi, and Karam Ilahi v. Shafruddin4, Allahabad High
Court has held that the essentials of a gift under the Muhammadan Law are a declaration of 'hiba'
by the donor, an acceptance, express or implied, of the gift by the donee, and delivery of
possession of the property, the subject-matter of the gift, according to its nature. A simple gift
can only be made by going through the above formalities and no written instrument is required.
In fact no writing is necessary to validate a gift and if a gift is made by a written instrument
without delivery of possession, it is invalid, in law.

3
AIR 1927 PC 42.
4
AIR 1916 All 351.

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 2. Other Non-Testamentary Instruments

Section 17(1)(b) of the Act applies to any non testamentary instrument which purports or
operates to create, declare, assign, limit or extinguish, whether in present or in future, any right,
title or interest, whether vested or contingent, of the value of one hundred rupees and upwards, to
or in immovable property. This provision has been so broadly worded in order to ensure that any
document evidencing transfer of property may not escape compulsory registration.

In the case of Jiwan Ali Beg v. Basa Mal5, Full Bench of Allahabad High Court has held that,
“An instrument to come within Section 17(1)(b) of the Registration Act, must in itself purport or
operate to create, declare, assign, limit, or extinguish some right, title or interest, of the value of
Rs. 100 or upwards in immovable property.”

Essential Conditions for Applicability of Section 17(1)(b):

1. The instrument should be non testamentary,

2. The effect of such instrument should be the creation, declaration, assignment, limitation
or extinction of any right, title or interest (vested or contingent),
3. Of the value of one hundred rupees or upwards, to or in immovable property.

Meaning of Word “Non Testamentary”

A testamentary document is last will and testament or some other document that meets the
statutory requirements of a will. As a corollary to this, non-testamentary documents would be
documents that are not related to a last Will and testament.

Purport: The purport of an instrument generally refers to its facial appearance or import, as
distinguished from the tenor of an instrument, which means an exact copy or duplicate.

The word “purport” means the substance of writing, as it appears on the face of it, to the eye that
reads it; it differs from tenor.

Purport or Operate to Create Etc.: In Garuda Satyanarayana v. Grandhi Venkatachala

Rao6, Andhra Pradesh High Court has held that the words 'which purports or operates to create
etc. must be taken to mean 'which in themselves purport or operate to create'. These words refer

5
(1886) ILR 9 All.
6
AIR 1969 AP 131.

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to the immediate intention of the document and not to ultimate consequences or its collateral
effects.

Declare: The word “Declare” has been interpreted by various judicial decisions the earliest
being Sakharam Krishnaji v. Madan Krishnaj7. The question there was that the document had
not been registered, and it was objected that it could not be put in evidence in order to contradict
a witness. Court held that the document is not itself one which declares a right in immovable
property, in the sense probably intended by Section 17. There ‘declare’ is placed along with
‘create’, ‘assign’, ‘limit’, or ‘extinguish’ a ‘right, title or interest’, and these words imply a
definite change of legal relation to the property by an expression of will embodied in the
document referred to. The word declare implies a declaration of will, not a mere statement of a
fact, and thus a deed of partition, which causes a change of legal relation to the property divided
amongst all the parties to it, is a declaration in the intended sense; but a letter containing an
admission, direct or inferential, that a partition once took place, does not ‘declare’ a right within
the meaning of the section.

Assign: The word “assign” means to transfer to another person any asset such as real property or
a valuable right such as a contract or promissory note.

Limit or Extinguish: The word limit generally means bounds, restraints or confinements. To
extinguish means to terminate; to put an end to; to cancel; or to discharge. Extinguishment in law
means the cessation or cancellation of some right or interest.

In Garuda Satyanarayana v. Grandhi Venkatachala Rao8, the Hon'ble Court held that it cannot
be doubted that a right of easement over another man's property is an interest in the property, but
it cannot be said that the dominant owner has a right or title to the servant tenant. A right to
easement does create an interest in the servant tenant. Further the Court held that being a
disabling provision, Section 17 must receive the strict construction and unless a document is
clearly brought within its purview, its non-registration would be no bar to the admissibility of the
document in evidence. If there is any doubt on the matter, the benefit of such doubt must
obviously be given to the person who wants the Court to receive the document in evidence.

7
(1881) ILR 5 Bom 232.
8
AIR 1969 AP 131

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In Future: The words “in future” have reference to estates in remainder or reversion or to estates
otherwise deferred in enjoyment. In Dalip Singh v. Jagat Singh9, Lahore High Court held that if
two persons agree to divide between them certain property, in certain shares, if they succeed in
purchasing it, the agreement does not create any interest in future within the meaning of clause
(b) and does not require registration.

Whether a Family Settlement/Memorandum of Family Settlement Requires Registration?

In the case, Kale v. Deputy Director of Consolidation10, Hon'ble Supreme Court has laid down
following principles regarding registration of family settlement:

(1) The family settlement must be a bona fide one so as to resolve family disputes and rival
claims by a fair and equitable division or allotment of properties between the various
members of the family.
(2) The said settlement must be voluntary and should not be induced by fraud, coercion or undue
influence;
(3) The family arrangements may be even oral in which case no registration is necessary;
(4) It is well settled that registration would be necessary only if the terms of the family
arrangement are reduced into writing. In such a case the memorandum itself does not create
or extinguish any rights in immovable properties and therefore does not fall within the
mischief of Section 17(1)(b) of the Registration Act and is, therefore, not compulsorily
registrable.

In Vikram Singh v. Ajit Inder Singh11, the Delhi High Court has reaffirmed the position that
deed of family settlement is a memorandum i.e. a written record of what parties had orally
agreed upon at an earlier point of time and had acted thereupon. Such a document of family
Settlement does not require any registration and is admissible in evidence.

Arbitration Award: S.V. Chandra Pandian v. S.V. Sivalinga Nadar12, a three judge Bench of
the Supreme Court has held that when dissolution of partnership takes place and residue is
distributed among partners after settlement of accounts, no petition, transfer or extinguishment of

9
AIR 1938 Lah 149
10
AIR 1976 SC 807.
11
AIR 2014 Del 173.
12
Civil Appeal nos 1749-1752 of 1992, D/d 11.1.1993.

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interest takes place attracting compulsory registration and therefore as the residue in eye of law
is movable property, arbitration award for settlement of same does not require registration.

Mortgage by Deposit of Title Deeds

In State of Haryana v. Navir Singh13, loan was taken from Bank by deposit of title deeds of
immovable property. Supreme Court held that it creates mortgage by deposit of title deeds³ and
such deed does not require registration under Registration Act. Charge of mortgage can be
entered into revenue record.

Document Evidencing Partition: In Nani Bai v. Gita Bai Kom Rama Gunge14, it has been held
by the Supreme Court that though partition amongst the Hindus may be effected orally but if the
parties reduce it in writing to a formal document which is intended to be evidence of partition, it
would have the effect of declaring the exclusive title of the coparcener to whom a particular
property was allotted in partition and thus the document would be required to be compulsorily
registered under Section 17(1)(b) of the Registration Act. However, if the document did not
evidence any partition by metes and bounds, it would be outside the purview of Section 17(1)(b)
of the Indian Registration Act.

Thus, a document which is memorandum of a past event (partition) can be received in evidence
though it is not registered.

Exchange Deed: The apex Court in Piar Chand & Others v. Sant Ram & Others15, the Court
held that title of immovable property, having value of more than Rs. 100/-, can only be
transferred by registered documents, as provided under Section 17 of the Registration Act, 1908.
Further, no document as required by Section 17 to be registered shall, affect any immovable
property comprised therein or received as evidence of any transaction affected such property
unless it is registered.

Dedication of Property to an Idol: In Ramalinga Chetti v. Sivachidambara Chetty16, it was

held that the dedication of property to an idol of a temple is not Srequired by law to be in writing

13
Civil Appeal no. 9030 of 2013 (@SLP (Civil) No. 18323 of 2008). D/d 7.10.2013.
14
AIR 1958 SC 706.
15
(RSA No. 23 of 2006) decided on 5.5.2017.
16
ILR (1918) M 440.

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and may be made orally. In Tammi Reddi v. Gangi Reddi17 also it has been held that no
document was necessary for the dedication of property to charity.

Distribution of Partnership Assets: In SV Chandra Pandian v. SV Shivalinga Nadar18, on the

dissolution of partnership firm and distribution of the assets of the firm by an arbitration award,
it was contended that the award involved a partition of immovable properties as a consequence
of dissolution of the firm and since the value of the immovable properties which are the subject-
matter of the award indisputably exceed the value of Rs. 100/-, the award was compulsorily
registrable in view of the mandatory nature of the language of Section 17(1) which uses the
expression 'shall be registered'. On the mandatory character of the provision there is no dispute.
The question which requires determination is whether on the dissolution of the partnership the
distribution of the assets of the firm comprising both movable and immovable properties after
meeting its obligations on settlement of accounts amongst the partners of the firm in proportion
to their respective shares amounts to a partition of immovable properties or a relinquishment or
extinguishment of a share in immovable property requiring registration under Section 17 of the
Registration Act?

Hon'ble Supreme Court held that when dissolution of partnership takes place and residue is
distributed among partners after settlement of accounts in proportion to the share of their profits,
no transfer, partition or extinguishment of interest takes place attracting compulsory registration.
Residue is movable property in the eyes of law and therefore, arbitration award distributing such
assets does not require registration.

Power of Attorney: In State of Rajasthan v. Basant Nahata19, SC clarified the nature of power
of attorney and held that a deed of power of attorney is not compulsorily registrable.

Consent Deed: In Shobharam Budhaji Bhagat v. Parvatbai20, the issue before the Nagpur
Bench of Bombay High Court was whether the consent deed is required to be registered
compulsorily under Section 17 of the Registration Act? If yes, whether the alleged consent deed
is of no effect and cannot affect any immovable property which it purports to affect and whether
such consent deed is void in the absence of registration?

17
42 MLJ 570.
18
1993 (1) SCC 589.
19
(2005) 12 SCC 77.
20
2010 (1) MhLJ 45.

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The contention of the plaintiff is that a dispute arose between the plaintiff and defendant no.2
over the boundaries of the plots in sanctioned lay out and there was a settlement between the
plaintiff and the defendants no.2 and 3 on 31/12/1981 and in spite of that defendant no.2 sold
plots nos. 53 to 55 to defendant no.1 i.e. the appellant. There was a written consent deed between
the parties. It is on the basis of this, that the plaintiff claims to be the exclusive owner of these
three plots and claims that defendant no.2 had no right to sell them. It is this settlement-cum-
consent deed that is the subject matter of the substantial questions of law.

The suit of the plaintiff was dismissed by the trial Court but the District judge, in appeal, decreed
the suit in favour of the plaintiff. It is against this order that an appeal has been filed. Dismissing
the appeal, High Court held that it is only if there is a transfer or relinquishment of right, title or
interest in the property that it would require registration. The document (Consent deed) does not
purport to create or extinguish or declare or assign any interest in the property for the first time.
The plaintiff already had a title to one acre of land. This document only purports to show or
demarcate which are those plots which fall within one acre. It is not that defendant nos.2 and 3
have given up their rights in favour of plaintiff and assigned their interest or transferred their
interest in the property. In the circumstances, consent deed requires no registration.

3. Other non testamentary instruments acknowledging receipt or payment

of consideration:
Section 17(1)(c) of Registration Act requires compulsory registration of non-testamentary
instruments which acknowledge the receipt or payment of any consideration on account of the
creation, declaration, assignment, limitation or extinction of any such right, title or interest.

A receipt to be compulsory registrable under this clause, must satisfy the following conditions:

(a) It must be the receipt of a consideration, and

(b) it must, on the face of it, be an acknowledgment of payment of some consideration on
account of the creation, declaration, assignment, limitation or extinction of an interest of the
value of Rs. 100 or upwards in immovable property.

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Punjab High Court in the case of Sher v. Muzaffar21 held that if in the receipt, a recital is made
that the amount was the consideration on account of the creation etc, of a right, title or interest in
immovable property, the document would require registration even though the transaction itself
was oral. Patna High Court in Chamroo v. Stephen22 held that where there is already a registered
sale deed, the subsequent receipt acknowledging payment of consideration on account of the
creation of right does not require registration.

4. Leases of Immovable Property:

Under Section 17(1)(d), leases of immovable property from year to year, or for any term
exceeding one year, or reserving a yearly rent are required.

Section 107 of the Transfer of Property Act provides that:

A lease of immovable property from year to year, or for any term exceeding one year or
reserving a yearly rent, can be made only by a registered instrument.

All other leases of immovable property may be made either by a registered instrument or by oral
agreement accompanied by delivery of possession.

Where a lease of immovable property is made by a registered instrument such instrument or,
where there are more instruments than one, each such instrument shall be executed by both the
lessor and the lessee:

Provided that the State Government may from time to time, by notification in the Official
Gazette, direct that leases of immovable property, other than leases from year to year, or for any
term exceeding one year, or reserving a yearly rent, or any class of such leases, may be made by
unregistered instrument or by oral agreement without delivery of possession.

In Sevoke Properties Ltd. v. West Bengal State Electricity Distribution Company Ltd.23,
Supreme Court has held that lease of immovable property for term exceeding one year can only
be made by registered instrument. Unregistered contents of indenture would be inadmissible in
evidence for purpose of determining terms of contract between parties. Only purpose for which
lease can be looked at is for assessing nature and character of possession of lessee.

21
(1920) 1 Lah 25.
22
(1947) 25 Pat 523.
23
AIR 2019 SC 2664.

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In Rajendra Pratap Singh v. Rameshwar Prasad24, Hon'ble Supreme Court has reasserted the
proposition that where lease of immovable property is for a period exceeding one year and the
instrument of lease was no registered, lease deed cannot be admitted as evidence in view of
Section 17 of Registration Act either for proving the terms of lease or otherwise.

5. Non-Testamentary Instruments Transferring or Assigning any Decree,

Order or Award of a Court

As per Section 17(1)(e), non-testamentary instruments transferring or assigning any decree or

order of a Court or any award when such decree or order or award purports or operates to create,
declare, assign, limit or extinguish, whether in present or in future, any right, title or interest,
whether vested or contingent, of the value of one hundred rupees and upwards, to or in
immovable property, require registration.

This provision by which transfers and assignments of decrees are made compulsorily registrable
was added by an amending Act in 1929. There was formerly a conflict of authority as to whether
an assignment of decree creating or declaring rights to or in immovable property exceeding Rs.
100 in value was compulsorily registrable under Section 17(1) (b) of the Registration Act.
Calcutta and Allahabad High Courts had held that registration was not compulsory as the
assignment is of the decree and not that of immovable property. However, the Bombay High
Court in Gopal v. Trimbak25 held that it did require registration as the assignment gave the
assignee the right to sell the property covered by the decree. Clause (e) gives effect to the view
of Bombay High Court.

6. Documents Containing Contracts to Transfer for Consideration, any

Immovable Property for the Purpose of Section 53-A of the Transfer of
Property Act, 1882:
Section 17(1A) requires that the documents containing contracts to transfer for consideration,
any immovable property for the purpose of Section 53-A of the Transfer of Property Act, 1882,
shall be registered if they have been executed on or after the commencement of the Registration

24
AIR 1999 SC 37.
25
(1876) 1 Bom 267.

14
and Other Related Laws (Amendment) Act, 2001, and if such documents are not registered on or
after such commencement then, they shall have no effect for the purposes of the said Sec. 53-A.

On a plain reading of this provision, it is amply clear that the document containing contract to
transfer the right, title or interest in an immovable property for consideration is required to be
registered, if the party wants to rely on the same for the purposes of Section 53A of the Transfer
of Property Act, 1882 to protect its possession over the stated property. If it is not a registered
document, the only consequence provided in this provision is to declare that such document shall
have no effect for the purposes of the said Section 53A of the 1882 Act26.

However, the position has now changed after the Amending Act 48 of 2001 and now the plea of
part performance on the basis of unregistered document is no longer possible.

7. Authorities to Adopt a Son

As per Section 17(3), authorities to adopt a son, executed after the first day of January, 1872, and
not conferred by a will, shall also be registered.

The Law Commission of India in its Sixth report observed that an oral authority to adopt is valid
under the law, but if it is in writing, other than a Will, it requires registration. Therefore, the
Commission recommended that substantive law should be altered to provide that an authority
can be conferred only by a writing, which should be registered, except where the writing is a
Will. The Commission noticed that Hindu Adoptions and Maintenance Act, 1956 does not
provide that an adoption can be made only by a registered instrument, but it provides an
incentive towards registration by creating a presumption of valid adoption in cases where the
adoption is evidenced by a registered deed.

CONCLUSION
Registration of a document gives a more transparent deal. Even if a registered document is lost
or damaged, the registration records prove the authenticity of the document. A document stating
that a Power of Attorney has been revoked should also be registered so that there is no misuse
after revocation. Easy access also helps in finding the owner who has the title and right to the
property and whether there is any case against him or an existing liability before someone

26
Ameer Minhaj v. Dierdre Elizabeth Issar, 2018 (7) SCC 639.

15
decides to buy it. Registration also prevents forgeries or fraud in transactions specifically in tax,
stamp duty etc.

Even though some documents are registered on an optional basis, it is still advised to register
them as this will prove the authenticity of the document and set aside any doubts arising because
of it.

Therefore, it can be seen that registration of a document is of utmost importance and must be
done as soon as possible otherwise it would lead to long years of legal battle which is costly and
time consuming.

BIBLIOGRAPHY
1. “Registration of documents under the Registration Act, 1908” available at
https://blog.ipleaders.in/ , (last visited on 10th March, 2022).

2. “Section 17 of Indian Registration Act, 1908” available at https://

www.legalserviceindia.com/ , (last visited on 10th March, 2022).
3. Gupta Neetu, Fundamentals of Registration Act, Shree Ram Law House, 1st Edition,
2021.

4. The Registration Act, 1908

16