TaxTMI 
TaxTMI 
2019 (3) TMI 2101
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....alle. 2. The suit OS. No. 241 of 2009 is filed for partition of the plaint schedule property and to allot a share to the plaintiffs. In the said suit, the plaintiffs have taken a plea by way of amendment that a sale deed dated 31.01.1987 which is executed in favour of defendant No. 4 is not valid. The sale deed dated 31.01.1987 is an unregistered document executed on stamp paper worth Rs. 5/-. The plaintiffs filed a petition under Order 13 Rule 3 read with Sections 17 and 49 of the Registration Act, read with Section 151 CPC., for a direction that the said document cannot be accepted in evidence as it is not registered and is not adequately stamped. Respondents filed a counter in this application IA.No.839 of 2017 stating that they are r....
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....d that the document suffers from registration and lack of stamp duty. The contention of the learned counsel is that the respondents in the revision and the petitioners in the interlocutory application are using the said document to prove their title to the property. Therefore, the counsel contends that the lower Court committed a serious error in allowing the application. 6. On the other hand, the respondents contend that the document can be received for establishing the collateral purpose of the possession. Learned counsel relies upon a judgment reported in Annamadevulu Chandrarao v. M.Veera Raghavulu [2015 (4) ALT 463] and argues that the document can be received for a collateral purpose. 7. The question that arises for consideratio....
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....to impound the document by following the procedure under the Stamp Act and ensure that the requisite stamp duty is paid. Only after the requisite stamp duty is paid, the document becomes admissible in evidence. If the duty/penalty is not paid, it is wholly inadmissible. 11. Coming to the aspect of registration, Section 49 of the Registration Act, states that no document which has to be registered shall be received in evidence of any transaction effecting such property unless it is registered. Section 49 is to the following effect: 49. Effect of non-registration of documents required to be registered.- No document required by section 171 [for by any provision of the Transfer of Property Act, 1882 (4 of 1882)], to be registered sh....
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....document can however be used as an evidence of collateral purpose as provided in the proviso to Section 49 of the Registration Act. 3*. A collateral transaction must be independent of, or divisible from, the transaction to effect which the law required registration. 4*. A collateral transaction must be a transaction not itself required to be effected by a registered document, that is, a transaction creating, etc. any right, title or interest in immovable property of the value of one hundred rupees and upwards. 5*. If a document is inadmissible in evidence for want of registration, none of its terms can be admitted in evidence and that to use a document for the purpose of proving an important clause would not be us....
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....u Chandrarao's case (3 supra) cited by the respondent, the suit was filed for partition. In the course of examination of DW.1, a document was sought to be filed which has an enumeration of the shares allotted to each sharer in an earlier oral partition. This is clear from para 2 of the judgment. In those circumstances, i.e. an earlier partition and the later enumeration of the shares, the learned single Judge of this Court held that the document was admissible and it can be received in evidence for a 'collateral' purpose. In para 12 of the judgment, the learned single Judge clearly cautioned that the document can be received by making an endorsement on the face of it that it is marked for a collateral purpose of proving the possession of th....