Effect of an
Unregistered Document:
Supreme Court in
KB Saha and Sons Pvt Ltd vs Development Consultant Ltd 2008 (5) CTC 260 – held
–
“From the
principles laid down in the various decisions of SC and HCs – it is evident
that:
1)
a
document required to be registered is not admissible into evidence under s.49
of Registration Act.
2)
Such
unregistered document can however be used as an evidence of collateral purpose
as provided in the PROVISO to S.49 of Regn. 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 Rs.100/- 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 using it as a collateral purpose.
**
