Friday, 11 July 2014

Whether relinquishment deed only acknowledging acts already done requires registration?



Following substantial question of law arose for consideration of the Court as to whether the Courts below erred in law in not exhibiting the document styled as 'Deed of relinquishment without consideration' for want of registration and, if yes, whether the proceedings to be remitted to the trial Judge?
The document in question was deed of relinquishment without consideration. Courts below had held that the said document required registration and since it was not registered, it was not admissible in evidence.
It was observed that vide said document in question, two real brothers acknowledged that they mutually effected partition of the ancestral property number of years back and one of them having received the allotted share had also sold the land of his share.
In fact the document in question was more in form of an acknowledgment of something which had taken place years back and on the basis thereof the declaring party concerned did not wanted to exercise any right over the property mentioned in the document. The document in question did not lead to creation or extinguishing of right/title/interest in the property.
In the instant matter, the Court held that such document does not require registration under section 17(1) (b) of the Registration Act and the Courts below erred in law by rejecting or ignoring the said document and accordingly the matter was remanded back.

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
 BENCH AT NAGPUR, NAGPUR.

SECOND APPEAL NO.  450/  2013 
Bhaurao   s/o Harichand Sahare
    
VERSUS

Santosh s/o Jairam Sahare

CORAM:   A.B.CHAUDHARI,  J 

 .
DATED:    1st July,  2014.


Admit. The instant Second Appeal is  taken up for final 
1.
disposal with the consent of the rival parties. 
2.
The following substantial question of   law   arises for 
my   consideration,   after   hearing   the   learned   counsel   for   rival 
parties:
Whether  the Courts below erred
in law in not exhibiting the 
document styled as  'Deed of

relinquishment without consideration’
dated 30th March. 1992   filed along with
list  Exh.61   in RCS No. 128/2009 for
want of  registration and, if yes,  whether 
the proceedings are required to be 
remitted to the trial Judge?
3
Heard   learned   counsel   for   the   rival   parties   for   quite 
3.
..Yes.

some   time.   Perused   the   deed   of   relinquishment   without 
consideration dated 30th March 1992.  Both the Courts below have 
held that the said document   required registration and   since it 
was not  registered, it  was not admissible and  was not  exhibited. 
As   a   result   it     was   not     proved   and   remained   a   unproved 
documents with the list Exh.61.
4.
I have gone  through the document  carefully.    What I 
find   from the   said   document is that     Dadu   @ Jairam Sahare 
and Harichand Sahare, the real brothers, stated in the document 
that     they   had   ancestral   property     at   Mouza   Jabbartola       and 
Mouza  Khairbodi.   Both  of them had mutually effected partition 
number of years before and accordingly Dadu @  Jairam   having 
received the allotted share, also sold the land of his share. It is also 

stated that 0.20R   area   of land out of   Gut No. 648,     0.81R of 
Mouza  Khairbodi was sold to one  Patiram Chaudhari. It is further 
stated   that   therefore,   he   has   no       right/title   over     the   lands 
described   in   the   document   executed   by   him   in   any   manner. 
Therefore,   though   Talathi   record   shows   the   names   of   the   two 

brothers   jointly   in   respect   of   the   said   lands   mentioned   in   the 
document,     Dadu   @   Jairam   has   given   up   his   right,   title     and 
interest   in   those   lands   in   favour   of   his   brother­Harichand.   It   is 
further declared that, therefore, Harichand would be the exclusive 
owner of the   agricultural   land   described and   accordingly the 
entries should be corrected/deleted/modified   solely in the name 
of Harichand Sahara for which Dadu @ Jairam had no objection. 
Section 17(1) (b) of the  Registration  Act, 1908     reads thus:
“17(1):
The     following     documents     shall   be 
registered,   if   the   property   to   which   they   relate   is 
situate in a  district in which, and if they have been 
executed on or after the date on which, Act XVI  of 
1864, or the Indian Registration Act, 1866, or the 
Indian   Registration   Act,   1871,   or   the   Indian 
Registration Act, 1877, or this Act came or comes 

into force, namely,­
......
(b) other   non­testamentary   instruments   which 
(a) 
purport or operate 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 
...............
........”
(c)

upwards, to or in immovable property;
Undoubtedly,   a   superficial   reading   of   the   said   document   shows 
that   it   declares,   creates   and   extinguishes   the   right,   title   and 
interest and also vests in relation to immovable property value of 
which is above Rs. 100/­. The document, in fact, records   a very 
material   fact   that   years   before   both   the   brothers   made   oral 
partition of their ancestral   property   and took their   respective 
shares and not only that  Dadu @ Jairam even  sold his share. That 
was   why   he   did   not       want   to     exercise     any   right     over   the 
property mentioned in the document  as he acknowledged that the 
property   was of   Harichand.       Therefore, it is not   that by this 
very document   right/title/interest was   created or extinguished. 

But the recitals which I have  quoted earlier,  clearly show that the 
right, title  and interest   vesting   or extinguishment was all done 
in   the   previous   or   past   years     and   the   mention   thereof   only   is 
found in the present documents by way of   acknowledgment of 
past event of partition  which was  acted upon  or the notes. It is 

thus clear that the present document   does not itself   inherently 
divest, vest, extinguish   any right, title or interest in any of the 
parties and, therefore, in the light of the decision of the Supreme 
Court in the case of Roshan Singh  vs. Zile Singh :  AIR 1988 SC  
881    and other catena of   decisions following the said   decision, 
the   Courts   below   have   committed   an   error   in   treating   the   said 
document as the one  requiring  registration under  section 17(1) 
(b)  of the Registration Act. It would be  apt to quote the following 
paragraphs from the decision in Roshan Singh (supra):­
“13.
On   its     true   construction,   the   document 
Exh. P­12 as well as the subsequent confirmatory panch 
faisla   Exh.P­1   merely     contains   the   recitals   of   a   past 
event,   namely,   a   decision   arrived     at     between   the 
parties   as   to   the   manner   in   which   the   parties   would 
enjoy   the   distinct     items   of   joint   family   property   in 

severalty.    What follows in Exh. P­12 is a mere list of 
properties   allotted   at   a   partition   and   it   cannot   be 
construed to be an instrument of partition and therefore 
did not require registration under S.17(1)(b) of the Act. 
That apart, the document could always be  looked into 
for   the   collateral   purpose   of   proving   the   nature   and 
14.

allotted to the members.
character     of   possession   of   each   item   of   property 
The matter   can be viewed   from another 
angle.   The   true   and   intrinsic     character   of   the 
memorandum Exh.P­12 as later confirmed by the panch 
failsa Exh.P­1   was to record the settlement of family 
arrangement.   The parties  set up   competing  claims 
to the properties  and there was  an adjustment of the 
rights of the parties. By such  an  arrangement, it  was 
intended   to   set     at   rest     competing   claims   amongst 
various   members   of   the   family   to   secure     peace   and 
amity.   The compromise was on the footing that  there 
was an antecedent  title of the parties to the properties 
and the   settlement acknowledged and defined title of 
each of the parties.  ......... ...
15.

This     view     was   adopted   by   the   Privy 
Council  in subsequent   decisions and the High Courts 
in India. To the same effect is the decision of this Court 
in Sau Madho Das   v. Mukand Ram,(1955) 2 SCR 22: 

(AIR  1955 SC 481). The  true principle  that emerges 
can be stated thus,: If  the arrangement  of  compromise 
is  one under which a person having an absolute title to 
the   property     transfers   his   title   in   some   of   the   items 
thereof to the others, the formalities prescribed  by law 
have to be complied with, since the transferees  derive 
their  respective  title through the transferor. If, on the 
other hand, the parties set up   competing titles and the 

differences are resolved by the compromise,  there is no 
question   of   one   deriving     title     from     the   other,   and 
therefore,   the   arrangement     does   not   fall   within   the 
mischief of S.17  read with S.49   of the Registration Act 
as no interest in property is created or declared  by the 
document   for the first time. As   pointed out   by this 
Court in Sau Madho Das’ case, it is   assumed that the 
title had always   resided in   him or her so far   as the 
property   falling   to   his   or   her   share   is   concerned   and 
therefore no conveyance is necessary. 
16.
........... The document   Exh.P­12   does not 
effect a partition but merely records   the nature   of the 
arrangement arrived at   as regards the division of the 
remaining property.         A mere agreement     to divide 
does   not   require   registration.   But   if   the   writing   itself 
effects  a division, it must be registered. See : Rajangam 
Ayyar v. Rajangam Ayyar, (1923) 69 Ind Cas 123: (AIR 
1922 PC 266) and Nani Bai vs. Gita  Bai, AIR  1958 SC 

706.   It   is   well­settled   that   the   document   though 
unregistered     can   however   be   looked   into   for   the 
limited purpose of   establishing a severance in status, 
though     that     severance   would   ultimately     affect   the 
nature of the possession held   by the   members of the 
separated family as co­tenants.   The document     Exh. 
P­12  can be used for the limited and collateral purpose 
of   showing     that   the   subsequent     division   of   the 

properties   allotted     was   in   pursuance   of   the   original 
intention to divide. In any view,   the document Edxh. 
P­12 was  a  mere list of properties allotted to the shares 
of the parties.”
5.
From   the   submissions   made   by   the   rival     counsel,   it 
appears to me that the said  document was   the fulcrum   of the 
lis  and since I have found that the Courts below have erred in law 
in rejecting or ignoring the said document, the only way out now 
is to remand the matter (R.C.S.No. 128/2009) to the trial Court 
for exhibiting the document  and also  allowing both the parties  to 
lead   evidence   on   the   said   document   and   related     aspect   of   the 
matter     and   also     for   cross­examination   and     for   judging     the 
evidentiary   value   thereof.   That   being   so,     in   my   opinion,   the 

ORDER
following order will have to be made.   Hence the order:
10
1) Second Appeal No. 450/2013 is partly allowed.
2) The   judgment   and     decree     made   by   the   Courts   below, 
namely   (1)       dated       31.08.2013     passed   by     Principal   District 
Judge,   Gondia   in   Regular   Civil   Appeal   No.177/2012   ;   and   (2) 

judgment   and   decree     dated     24.09.2012   passed   by   Joint   Civil 
Judge, Sr.Dn. Gondia in Regular Civil Suit No.128/2009,    are set 
3)
aside.
The proceedings   of R.C.S.   No.128/2009 are sent back to 
the trial Judge  who shall   exhibit the document  with list Exh.61 
and   allow   the   parties   to   lead   their   evidence   afresh   in   the   Suit 
including  cross­examination  of  the witnesses again.
4)
Since the Suit relates to the year 2009, the trial Judge shall 
expedite   hearing   of   the   Suit   and   decide   the   same   as     early   as 
possible and, in any case,   within a period of one year from the 
date of appearance of the parties.
5)
The parties shall appear before the trial Judge on 4   August,  
  th 

2014.
6)
No order  as to costs.

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