Unregistered Sale Agreements: Admissible Evidence in Specific Performance Suits
Published on: June 28, 2025 | Author: K Rajasekharan
Table of Contents
Introduction
In Indian property law, the admissibility of unregistered sale agreements in suits for specific performance has been a subject of legal scrutiny. While such agreements are not registered under the Registration Act, 1908, recent judicial pronouncements have clarified their role as evidence in specific performance suits.
Legal Framework
The Registration Act, 1908 mandates the registration of certain documents affecting immovable property. Section 17 specifies documents that must be registered, including agreements relating to the sale of immovable property. However, Section 49 provides exceptions, allowing unregistered documents to be admissible as evidence in specific circumstances, particularly in suits for specific performance under the Specific Relief Act, 1963.
Key Judicial Precedents
Several landmark judgments have shaped the understanding of unregistered sale agreements:
| Case | Court | Year | Key Takeaway |
|---|---|---|---|
| R. Hemalatha v. Kasthuri | Supreme Court | 2023 | Unregistered agreements can be admitted as evidence in specific performance suits. |
| Muruganandam v. Muniyandi | Supreme Court | 2025 | Clarified that unregistered sale agreements are admissible to prove the existence of a contract. |
| Shaju v. Victory Granite Bricks Pvt. Ltd. | Kerala High Court | 2025 | Emphasized that unregistered documents can be used to establish the existence of a contract in specific performance suits. |
Practical Implications
While unregistered sale agreements are admissible as evidence, they do not transfer ownership of the property. Courts require additional evidence, such as part performance or possession, to grant specific performance. Parties entering into such agreements should ensure that they have supporting documentation and evidence to substantiate their claims in court.
Frequently Asked Questions
Q1: Can an unregistered sale agreement be used to claim ownership of property?
No, an unregistered sale agreement does not transfer ownership. It can only be used to establish the existence of a contract in a suit for specific performance.
Q2: What additional evidence is required to support a claim for specific performance?
Apart from the unregistered agreement, evidence such as part performance, possession, or payment receipts can strengthen the case.
Q3: Are there any risks in relying on an unregistered sale agreement?
Yes, without proper registration, proving the authenticity and terms of the agreement can be challenging in court.
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