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        Case ID :

        1905 (1) TMI 1 - HC - Indian Laws

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        Unregistered patta for market dues held to be an immovable-property interest requiring registration and proving inadmissible. An unregistered patta granting the right to enter land temporarily and collect market dues from a weekly fair was treated as a benefit arising out of land ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.

                            Unregistered patta for market dues held to be an immovable-property interest requiring registration and proving inadmissible.

                            An unregistered patta granting the right to enter land temporarily and collect market dues from a weekly fair was treated as a benefit arising out of land and therefore an interest in immovable property. Because the arrangement operated as a lease for a term exceeding one year with yearly rent, registration was required under the Transfer of Property Act and the Registration Act. In the absence of registration, the instrument could not transfer the claimed interest or be admitted in evidence. The remand order was set aside and the decree dismissing the suit was restored.




                            Issues: Whether an unregistered patta purporting to transfer the right to collect market dues from land used for a weekly fair was a transfer of immovable property and, if so, whether it was inadmissible in evidence for want of registration.

                            Analysis: The right claimed was not merely a personal permission, but a right to enter upon land temporarily and to receive dues arising from that land. Such a right fell within the statutory expression "any other benefit to arise out of land" in the definition of immovable property. As the transaction was a lease for a term exceeding one year reserving yearly rent, it required registration under the relevant provisions of the Transfer of Property Act and the Registration Act. The unregistered patta therefore could not operate to transfer the interest or be received in evidence.

                            Conclusion: The unregistered instrument was ineffective to convey the right claimed and was inadmissible in evidence. The order of remand was set aside and the decree dismissing the suit was restored.

                            Final Conclusion: The appeal succeeded, and the trial court's dismissal of the suit was reinstated on the ground that the claimed market-dues right was an immovable-property interest requiring registration.

                            Ratio Decidendi: A right to collect dues from land, where it is annexed to temporary enjoyment of the land, is a "benefit to arise out of land" and therefore immovable property requiring registration when transferred by lease.


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