Registered documents operate from execution date; priority follows execution time, and a later sale deed is not automatically cancelled.
A registered document operates from the date of execution, not from the date of registration, under Section 47 of the Registration Act, 1908. Where competing documents are executed on the same day, priority depends on the time of execution, and the earlier executed document prevails. On that principle, the later sale deed could not be treated as automatically cancelled merely because a decree for specific performance existed; the challenge to the later deed was rejected and the lower appellate court's decree was left undisturbed.
Issues: (i) whether an agreement registered later was void or operative only from the date of registration; and (ii) whether a decree for specific performance by itself implied cancellation of the subsequent sale deed.
Issue (i): whether an agreement registered later was void or operative only from the date of registration.
Analysis: Section 47 of the Registration Act, 1908 provides that a registered document operates from the time from which it would have commenced to operate if registration had not been required. On that principle, a document takes effect from the date of its execution and not from the date of registration. Where two documents are executed on the same day, priority depends on the time of execution, and the earlier executed document prevails.
Conclusion: The issue was answered in the negative, and the registered agreement was held to operate from the date of execution.
Issue (ii): whether a decree for specific performance by itself implied cancellation of the subsequent sale deed.
Analysis: The challenge to the later sale deed was considered in the light of the prior agreement and the finding that the earlier agreement had priority in law. In that setting, the Court held both framed questions against the appellants and found no basis to disturb the appellate court's decision.
Conclusion: The issue was answered in the negative.
Final Conclusion: The appeal failed, and the lower appellate court's decree was left undisturbed.
Ratio Decidendi: A registered document operates from the date of execution, and in case of competing documents, priority is determined by the time of execution rather than the date of registration.
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