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Case Law Details

Case Name : Korukonda Chalapathi Rao & Anr. Vs Korukonda Annapurna Sampath Kumar (Supreme Court of India)
Appeal Number : Civil Appeal No(S).6141 of 2021
Date of Judgement/Order : 01/10/2021
Related Assessment Year :
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Korukonda Chalapathi Rao & Anr. Vs Korukonda Annapurna Sampath Kumar (Supreme Court of India)

In the facts of this case, the contention of the appellants is that the Kharurunama dated 04.1986 merely sets out the arrangement arrived at between the brothers which is the family arrangement and it was a mere record of the past transaction and therefore by itself it did not create or extinguish any right over immovable property. Resultantly, the document did not attract Section 17 (1) (b) of the Registration Act. In other words, it is contended that even if there is relinquishment of rights by the family member, since the document is only a record of what had already happened in the past, the law did not mandate registration.

If we apply the test as to whether the Khararunama in this case by itself ‘affects’, e., by itself creates, declares, limits or extinguishes rights in the immovable properties in question or whether it merely refers to what the appellants alleged were past transactions which have been entered into by the parties, then, going by the words used in the document, they indicate that the words are intended to refer to the arrangements allegedly which the parties made in the past. The document does not purport to by itself create, declare, assign, extinguish or limit right in properties. Thus, the Khararunama may not attract Section 49(1) (a) of the Registration Act.

Family Settlement

As far as Section 49(1) (c) of the Registration Act is concerned, it provides for the other consequence of a compulsorily registrable document not being so registered. That is, under Section 49(1) (a), a compulsorily registrable document, which is not registered, cannot produce any effect on the rights in immovable property by way of creation, declaration, assignment, limiting or extinguishment. Section 49(1) (c) in effect, reinforces and safeguards against the dilution of the mandate of Section 49(1) (a). Thus, it prevents an unregistered document being used ‘as’ evidence of the transaction, which ‘affects’ immovable property. If the Khararunama by itself, does not ‘affect’ immovable property, as already explained, being a record of the alleged past transaction, though relating to immovable property, there would be no breach of Section 49(1) (c), as it is not being used as evidence of a transaction effecting such property. However, being let in evidence, being different from being used as evidence of the transaction is pertinent [See Muruga Mudallar (supra)]. Thus, the transaction or the past transactions cannot be proved by using the Khararunama as evidence of the transaction. That is, it is to be noted that, merely admitting the Khararunama containing record of the alleged past transaction, is not to be, however, understood as meaning that if those past transactions require registration, then, the mere admission, in evidence of the Khararunama and the receipt would produce any legal effect on the immovable properties in question.

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