JUDGEMENT
-
(1.)Heard learned counsel for the parties.
Leave granted.
This Appeal is by the contesting defendants in a suit filed by Respondent No.1 herein for recovery of possession of the suit property in enforcement of a right of pre-emption claimed by him. The plaintiff claimed that a half share in the suit property had been relinquished in favour of himself and his brother by Sheoram a co-owner with the assignor of the contesting defendants and the said relinquishment had been recognised by the court by decreeing the claim made by the present plaintiff and his brother in Civil Suit No.398 of 1980. Thus, having become a co-owner with the assignor of the contesting defendants, the plaintiff was entitled to enforce a right of pre-emption and recover possession of the property from the assignee of the other co-owner. The contesting defendants resisted the suit. The contention germane to this appeal that was raised by the contesting defendants was that a right was created in the present plaintiff by the decree in Civil Suit No.398 of 1980 which was one based on a compromise and since the decree purported to create a right in the plaintiff in a property in which he had no pre-existing right, the compromise decree required registration in terms of Section 17(1) of the Registration Act and the decree not having been registered, the plaintiff was not entitled to enforce the alleged right of pre-emption as against the contesting defendants or their assignor, the other co-owner.
(2.)The trial court held that the decree in Civil Suit No.398 of 1980 was enforceable even without registration as it was not hit by Section 17(1) of the Registration Act; that the said decree had recognised the right claimed by the plaintiff and in the circumstances the plaintiff was entitled to a decree for possession from the assignee of the other co-owner in enforcement of his right of pre-emption. On appeal, the lower appellate court affirmed this view of the trial court. The lower appellate court also held that what was involved in Civil Suit No.398 of 1980 was a family arrangement and since a bona fide family arrangement among the members of a family in the larger sense of the term, did not require registration, no objection could be raised by the contesting defendants to the enforceability of the title claimed by the plaintiff. Thus, the decree of the trial court was affirmed. The contesting defendants filed a second appeal. They raised the substantial question of law that the decree in Civil Suit No.398 of 1980 created rights in favour of the plaintiff in a property in which he had no pre-existing right and such a decree, to become enforceable, required registration. Reliance was placed on the decision of this Court in Bhoop Singh vs. Ram Singh Major and others 1995 (S3) SCR 466 in support. The High Court held that the decree in Civil Suit No.398 of 1980 was based on a family settlement which did not require registration and that the decree itself did not require registration in view of Section 17(2)(vi) of the Registration Act. Thus, the substantial question of law formulated was answered in favour of the plaintiff, the judgments and decrees of the courts below were confirmed and the second appeal filed by the contesting defendants was dismissed. It is challenging this decision of the High Court that this appeal by special leave is filed by the contesting defendants.
(3.)Before proceeding to consider the question argued before us, we think that it is proper to notice that the case arises from the State of Haryana which was originally a part of the State of Punjab and that the Transfer of Property Act as such did not apply to the State. But, Sections 54, 107 and 123 of the Transfer of Property Act were made applicable to the State of Punjab with effect from 01.04.1955 vide notification dated 23.03.1955. As is clear, Section 54 of the Transfer of Property Act relates to a sale of immovable property of the value of Rs.100/- and upwards, Section 107 deals with leases of immovable property and Section 123 indicates how the transfer of immovable property by way of gift is to be effected. It insists that for making a gift of immovable property, the transfer must be effected by a registered instrument singed by or on behalf of the donor and attested by at least two witnesses. One other aspect to be noted is the introduction of sub-section (1A) of Section 17 of the Registration Act made prospective from the date of coming into force of the Registration and Other Related Laws (Amendment) Act, 2001 insisting that documents containing contracts to transfer for consideration any immovable property for the purpose of Section 53A of the Transfer of Property Act, shall be registered if they have been created after the commencement of sub-section (1A) of Section 17 of the Transfer of Property Act.
Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.