Pre-existing title in immovable property need not be registered where an arbitration award merely declares an already existing half share.

An instrument is compulsorily registrable only when it itself creates, declares, assigns, limits or extinguishes rights in immovable property. A private arbitration award that merely recognises a pre-existing half-share, based on the party's contribution to consideration and existing entitlement from the date of purchase, does not create a new right and is not caught by compulsory registration. Such an award may therefore be relied on as supporting title where it only records or declares an already existing interest. Authorities dealing with awards or instruments that created or altered title for the first time were distinguished on that basis.

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Issues: Whether an unregistered private arbitration award declaring the appellant to be owner of a half share in immovable property was compulsorily registrable under the Registration Act, and whether, if not registered, it could be relied upon as the source of title.

Analysis: A document attracts compulsory registration only if it purports or operates to create, declare, assign, limit, or extinguish rights in immovable property. The distinction is between an instrument that for the first time creates a right in praesenti and one that merely records or declares an already existing title. An award made by private arbitrators is a non-testamentary instrument, but its legal effect must be ascertained from what it purports to do. If the award merely recognises that the appellant had contributed half the consideration and was already entitled to a half share from the date of purchase, it does not itself create a new right in immovable property. In that situation, the award is not hit by compulsory registration. The decisions relied upon on behalf of the respondents were distinguished on the basis that they concerned awards or instruments which created rights for the first time or otherwise altered title in immovable property.

Conclusion: The award was not compulsorily registrable on the facts found, and the appellant was entitled to rely on it in support of his half-share title.

Final Conclusion: The appeal succeeded and the appellant's claim to a half share in the property was upheld.

Ratio Decidendi: An instrument that merely declares or recognises a pre-existing right in immovable property does not, by that reason alone, require compulsory registration under the Registration Act.

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