Created byFuzzy Cloud

Supreme Court of India

MOHAMMADE YUSUF & ORS.versusRAJKUMAR & ORS.

Citation
2020 INSC 133
Decided
5 February 2020
Disposal
Appeal(s) allowed

Holding

A compromise decree that deals with the subject‑matter of the suit is exempt from the registration requirement under Section 17(2)(vi) of the Registration Act, 1908, and therefore may be admitted as evidence without registration.

Summary

The appellant filed a suit in 1984 for a 7‑biswa parcel of land and a compromise decree was passed on 4 October 1985 granting them title to that parcel. In a later suit filed in 1998, the respondents sought an injunction over the same land and, during trial, the appellant attempted to introduce the 1985 compromise decree as evidence. The trial court and the High Court held that the decree had to be registered under Section 17 of the Registration Act, 1908 and therefore could not be admitted. On appeal, the Supreme Court examined the interplay of Sections 17(1)(b) and 17(2)(vi), noting that the exemption in 17(2)(vi) applies to any court decree unless it concerns immovable property outside the suit’s subject‑matter. Since the decree dealt with the very property that was the subject of the suit, the exemption applied and registration was not required. Consequently, the decree was admissible, and the orders of the lower courts were set aside.

Issues considered

  • Whether a compromise decree relating to the subject‑matter of the suit requires registration under Section 17 of the Registration Act, 1908.
  • Whether such a decree can be admitted as evidence without registration.

Legislation cited

Subjects

Registration ActCompromise decreeRegistration requirementSection 17Admissibility of evidenceImmovable propertyCivil procedureAdverse possession

Judgment

                         [2020] 3 S.C.R. 649                               649


               MOHAMMADE YUSUF & ORS.                                      A
                              v.
                   RAJKUMAR & ORS.
                (Civil Appeal No. 800 of 2020)
                    FEBRUARY 05, 2020
                                                                           B
          [ASHOK BHUSHAN AND M. R. SHAH, JJ.]
       Registration Act, 1908 – s. 17 – Compromise decree – If
requires registration – Suit filed in 1984, by appellant’s father inter
alia for declaration in respect of a 7 biswa area of survey no. 203
which was attached in east with their land bearing survey No. 223
– They were in possession of suit land, which was recorded in the          C
names of defendant – Compromise decree dtd. 04.10.85 was passed
declaring their right on 7 biswa area and it was declared that
remaining land belonged to defendant – Suit filed in 1998 by
respondent nos.1 & 2 against the appellants for perpetual injunction
in respect of two areas bearing survey no. 203 – Respondent nos. 1         D
& 2 sold the said areas to respondent nos. 4-7 and they were
impleaded as plaintiffs – During evidence, one of the appellant
tried to exhibit the decree dtd. 04.10.85 – Plaintiff ’s objection to
the admissibility of decree was that decree being not registered
cannot be accepted in evidence – Civil Judge held that decree was
required to be registered, hence it was not admissible – High Court        E
dismissed appellant’s writ petition holding that decree was required
to be registered – Held: By virtue of sub-sec.(2)(vi) of s.17, any
decree or order of a Court does not require registration – In sub-
clause (vi) of sub-sec.(2), one category is excepted from sub-
clause(vi), i.e., a decree or order expressed to be made on a              F
compromise and comprising immovable property other than that
which is the subject -matter of the suit or proceeding – By conjointly
reading s. 17(1)(b) & s. 17(2)(vi), it is clear that a compromise decree
comprising immovable property other than which is the subject matter
of the suit or proceeding requires registration, although any decree
or order of a Court is exempted from registration by virtue of             G
s. 17(2)(vi) – Decree dated 04.10.85 was with regard to property,
which was subject matter of the suit, hence not covered by
exclusionary clause of s.17(2)(vi) and present case is covered by
the main exception u/s.17(2)(vi), i.e., “any decree or order of a
                                                                           H
                                  649
650            SUPREME COURT REPORTS                      [2020] 3 S.C.R.


A     Court” – Compromise decree dated 04.10.85 did not require
      registration – Order of the Civil Judge and the judgment of High
      Court is set aside – Compromise decree dtd. 04.10.85 be exhibited
      by trial court – Indian Stamp Act, 1899 – s. 2(14).
            Allowing the appeal, the Court
B            HELD: 1.1 Under Section 17(1)(b), non-testamentary
      instruments which purport or operate to create, declare, assign,
      limit or extinguish, whether in present or in future, any right,
      title or interest, whether vested or contingent, of the value of
      one hundred rupees and upwards, to or in immovable property
C     requires registration. The word “instrument” is not defined in
      Registration Act, but is defined in the Indian Stamp Act, 1899 by
      Section 2(14). A compromise decree passed by a Court would
      ordinarily be covered by Section 17(1)(b) but sub-section(2) of
      Section 17 provides for an exception for any decree or order of a
      Court except a decree or order expressed to be made on a
D     compromise and comprising immovable property other than that
      which is the subject-matter of the suit or proceeding. Thus, by
      virtue of sub-section (2)(vi) of Section 17 any decree or order of
      a Court does not require registration. In sub-clause (vi) of sub-
      section (2), one category is excepted from sub-clause (vi), i.e., a
E     decree or order expressed to be made on a compromise and
      comprising immovable property other than that which is the
      subject-matter of the suit or proceeding. Thus, by conjointly
      reading Section 17(1)(b) and Section 17(2)(vi), it is clear that a
      compromise decree comprising immovable property other than
      which is the subject matter of the suit or proceeding requires
F     registration, although any decree or order of a Court is exempted
      from registration by virtue of Section 17(2)(vi). A copy of the
      decree passed in Suit No. 250-A of 1984 was brought on record
      as Annexure P-2, which indicates that decree dated 04.10.1985
      was passed by the Court for the property, which was subject matter
G     of the suit. Thus, the exclusionary clause in Section 17(2)(vi) is
      not applicable and the compromise decree dated 04.10.1985 was
      not required to be registered on plain reading of Section 17(2)(vi).
      [Paras 5, 6][654 G-H; 655 A-E]
           1.2 In facts of the present case, the decree dated 04.10.1985
H     was with regard to property, which was subject matter of the suit,
    MOHAMMADE YUSUF & ORS. v. RAJKUMAR & ORS.                         651


hence not covered by exclusionary clause of Section 17(2)(vi)         A
and present case is covered by the main exception crafted in
Section 17(2)(vi), i.e., “any decree or order of a Court”. When
registration of an instrument as required by Section 17(1)(b) is
specifically excluded by Section 17(2)(vi) by providing that
nothing in clause (b) and (c) of sub-section (1) applies to any
                                                                      B
decree or order of the Court, the compromise decree dated
04.10.1985 did not require registration and learned Civil Judge
as well as the High Court erred in holding otherwise. The order
of the Civil Judge as well as the judgment of the High Court is
set aside. The compromise decree dated 04.10.1985 be exhibited
by the trial court. [Para 14][660 C-E]                                C
        Som Dev and Others v. Rati Ram and Another (2006)
        10 SCC 788 : [2006] 5 Suppl. SCR 778 – relied on.
        Bhoop Singh v. Ram Singh Major and Others (1995) 5
        SCC 709 : [1995] 3 Suppl. SCR 466 – held inapplicable.
                                                                      D
        Gurdwara Sahib v. Gram Panchayat Village Sirthala
        and Another (2014) 1 SCC 669; Ravinder Kaur Grewal
        and Others v. Manjit Kaur and Others (2019) 8 SCC
        729 – referred to.
                        Case Law Reference                            E
(2014) 1 SCC 669             referred to          Para 2.3
[1995] 3 Suppl. SCR 466 held inapplicable         Para 6
(2019) 8 SCC 729             referred to          Para 9
[2006] 5 Suppl. SCR 778 relied on                 Para 13             F
        CIVIL APPELLATE JURISDICTION: Civil Appeal No. 800 of
2020.
     From the Judgment and Order dated 13.02.2017 of the High Court
of Madhya Pradesh, Indore Bench in Writ Petition No. 2170 of 2015.
                                                                      G
     Amit Wadhwa, Amit K. Srivastava, Raunak Parekh, Sanjay
K. Hadala, Sanjay Yadav, Sunil K. Singh, Sanjeev Kumar, Gopi Chand,
Dr. Vinod Kumar Tewari, Ms. Taruna Ardhendumauli Prasad,
Ardhendumauli Kumar Prasad, Piyush Singh, Vaibhav Shrivastava,
Mohnish Nirwan, Advs. for the appearing parties.
                                                                      H
652             SUPREME COURT REPORTS                            [2020] 3 S.C.R.


A           The Judgment of the Court was delivered by
            ASHOK BHUSHAN, J.
             1. This appeal has been filed against the judgment of High Court
      of Madhya Pradesh at Indore Bench dated 13.02.2017 dismissing the
      writ petition of the appellant challenging the order of the trial court dated
B     07.01.2015 whereby the trial court has held that the compromise decree
      sought to be filed by the appellant is not admissible in evidence for want
      of registration.
            2. The brief facts of the case are: -

C           2.1 A Suit No. 250-A of 1984 was filed by one Habib Kha, the
                father of the appellant for declaration and injunction. The
                Suit was filed for 7 biswa area of survey No.203 situated at
                Village Kitvani, Kasba Mandsaur, which was attached in east
                with the land of plaintiff being survey No.223. The plaintiff
                was in possession of suit land, which was recorded in the
D               names of defendant. A compromise decree was passed in
                the suit dated 04.10.1985 declaring the right of plaintiff on 7
                biswa area and it was declared that remaining land belong to
                defendant.
            2.2 The appellants, who were son of Habib Kha claimed to be in
E               possession, continued to be in possession of the aforesaid
                area. A Suit No.90-A of 2006 was filed on 16.09.1998 by
                respondent Nos. 1 and 2 against the appellants for perpetual
                injunction in respect of two areas admeasuring 825 sq. ft.
                and 1650 sq. ft. bearing survey No.203. The respondent Nos.
F               1 and 2 sold the above said two areas to respondent Nos. 4 to
                7 and they were impleaded as plaintiffs in the above said suit.
                A written statement was filed by the appellants in Civil Suit
                No. 260A of 1998 pleading that respondents have forcefully
                took the possession of area admeasuring 1650 sq. ft. being
                the part of survey No. 203, which was in actual, peaceful
G               and uninterrupted possession of the appellant and their
                ancestral since 1951. Alongwith the written statement, a
                counter claim was filed by the appellant for recovery of
                possession of the area.
             2.3 During evidence of Mohammade Hafiz, one of the appellants,
H                he tried to exhibit the decree dated 04.10.1985 passed in Civil
    MOHAMMADE YUSUF & ORS. v. RAJKUMAR & ORS.                                  653
             [ASHOK BHUSHAN, J.]

           Suit No. 250A of 1984, which was objected by the plaintiff.         A
           Plaintiff’s objection to the admissibility of the decree was
           that decree being not registered cannot be accepted in
           evidence. Learned Civil Judge heard the parties and passed
           order dated 07.01.2015 on issue regarding admissibility of
           the above document. Civil Judge took the view that decree
                                                                               B
           dated 04.10.1985 is required to be registered as per provision
           of Section 17(1)(e) of the Registration Act, hence it is not
           admissible in evidence. A Writ Petition No. 2170 of 2015 was
           filed by the appellant challenging the order dated 07.01.2015.
           The High Court by the impugned judgment has dismissed the
           writ petition taking the view that decree was required to be        C
           registered. The High Court held that the very fact that the
           suit was based on the plea of adverse possession reflects
           that plaintiff of Suit No. 250-A of 1994 had no pre-existing
           title in the suit property. Relying on the judgment of this Court
           in Gurdwara Sahib Vs. Gram Panchayat Village Sirthala
                                                                               D
           and Another, (2014) 1 SCC 669, High Court held that it is
           settled that declaratory decree based on plea of adverse
           possession cannot be claimed and adverse possession can
           only be used as a shield by the defendant. Aggrieved with the
           judgment of High Court, this appeal has been filed.
      3. The only question to be considered in this appeal is as to whether    E
the above noted compromise decree dated 04.10.1985 was required to
be registered under Section 17 of the Registration Act, 1908 or not?
      4. Part III of the Registration Act contains a heading “of
Registrable Documents” in which Section 17 finds place, which contains
a heading “Documents of which registration is compulsory”. Section             F
17(1) deals with documents of which registration is compulsory. Section
17(2) provides that nothing in clauses (b) and (c) of sub-Section (1)
applies to various documents as enumerated therein. Sections 17(1)
and 17(2)(vi), which are relevant for the present case are as follows: -
      “17. Documents of which registration is compulsory.—(1)                  G
      The following documents shall be registered, if the property to
      which they relate is situate in a district in which, and if they have
      been executed on or after the date on which, Act No. XVI of
      1864, or the Indian Registration Act, 1866, or the Indian
      Registration Act, 1871, or the Indian Registration Act, 1877, or         H
      this Act came or comes into force, namely:—
654            SUPREME COURT REPORTS                            [2020] 3 S.C.R.


A           (a) instruments of gift of immovable property;
            (b) other non-testamentary instruments which purport or operate
                to create, declare, assign, limit or extinguish, whether in
                present or in future, any right, title or interest, whether vested
                or contingent, of the value of one hundred rupees and
B               upwards, to or in immovable property;
            (c) non-testamentary instruments which acknowledge the receipt
                or payment of any consideration on account of the creation,
                declaration, assignment, limitation or extinction of any such
                right, title or interest; and
C           (d) leases of immovable property from year to year, or for any
                term exceeding one year, or reserving a yearly rent;
            (e) non-testamentary instruments transferring or assigning any
                decree or order of a Court or any award when such decree
                or order or award purports or operates to create, declare,
D               assign, limit or extinguish, whether in present or in future,
                any right, title or interest, whether vested or contingent, of
                the value of one hundred rupees and upwards, to or in
                immovable property:
                          Provided that the State Government may, by order
E                 published in the Official Gazette, exempt from the operation
                  of this sub-section any lease executed in any district, or part
                  of a district, the terms granted by which do not exceed five
                  years and the annual rents reserved by which do not exceed
                  fifty rupees.
F           (2) Nothing in clauses (b) and (c) of sub-section (1) applies to—
                                XXXXXXXXXXXX
            (vi) any decree or order of a Court except a decree or order
            expressed to be made on a compromise and comprising immovable
            property other than that which is the subject-matter of the suit or
G           proceeding; or”
            5. Under Section 17(1)(b), non-testamentary instruments which
      purport or operate to create, declare, assign, limit or extinguish, whether
      in present or in future, any right, title or interest, whether vested or
      contingent, of the value of one hundred rupees and upwards, to or in
H
    MOHAMMADE YUSUF & ORS. v. RAJKUMAR & ORS.                                 655
             [ASHOK BHUSHAN, J.]

immovable property requires registration. The word “instrument” is not        A
defined in Registration Act, but is defined in the Indian Stamp Act, 1899
by Section 2(14).
       6. A compromise decree passed by a Court would ordinarily be
covered by Section 17(1)(b) but sub-section (2) of Section 17 provides
for an exception for any decree or order of a Court except a decree or        B
order expressed to be made on a compromise and comprising immovable
property other than that which is the subject-matter of the suit or
proceeding. Thus, by virtue of sub-section (2)(vi) of Section 17 any
decree or order of a Court does not require registration. In sub-clause(vi)
of sub-section (2), one category is excepted from sub-clause(vi), i.e., a
decree or order expressed to be made on a compromise and comprising           C
immovable property other than that which is the subject-matter of the
suit or proceeding. Thus, by conjointly reading Section 17(1)(b) and
Section 17(2)(vi), it is clear that a compromise decree comprising
immovable property other than which is the subject matter of the suit or
proceeding requires registration, although any decree or order of a Court     D
is exempted from registration by virtue of Section 17(2)(vi). A copy of
the decree passed in Suit No. 250-A of 1984 has been brought on record
as Annexure P-2, which indicates that decree dated 04.10.1985 was
passed by the Court for the property, which was subject matter of the
suit. Thus, the exclusionary clause in Section 17(2)(vi) is not applicable
and the compromise decree dated 04.10.1985 was not required to be             E
registered on plain reading of Section 17(2)(vi). The High Court referred
to judgment of this Court in Bhoop Singh Vs. Ram Singh Major and
Others, (1995) 5 SCC 709, in which case, the provision of Section
17(2)(vi) of Registration Act came for consideration. This Court in the
above case while considering clause (vi) laid down following in paragraphs    F
16, 17 and 18:-
      “16. We have to view the reach of clause (vi), which is an
      exception to sub-section (1), bearing all the aforesaid in mind. We
      would think that the exception engrafted is meant to cover that
      decree or order of a court, including a decree or order expressed       G
      to be made on a compromise, which declares the pre-existing
      right and does not by itself create new right, title or interest in
      praesenti in immovable property of the value of Rs 100 or upwards.
      Any other view would find the mischief of avoidance of registration,
      which requires payment of stamp duty, embedded in the decree
      or order.                                                               H
656             SUPREME COURT REPORTS                             [2020] 3 S.C.R.


A            17. It would, therefore, be the duty of the court to examine in
             each case whether the parties have pre-existing right to the
             immovable property, or whether under the order or decree of the
             court one party having right, title or interest therein agreed or
             suffered to extinguish the same and created right, title or interest
             in praesenti in immovable property of the value of Rs 100 or
B
             upwards in favour of other party for the first time, either by
             compromise or pretended consent. If latter be the position, the
             document is compulsorily registrable.
             18. The legal position qua clause (vi) can, on the basis of the
             aforesaid discussion, be summarised as below:
C
                (1) Compromise decree if bona fide, in the sense that the
                compromise is not a device to obviate payment of stamp duty
                and frustrate the law relating to registration, would not require
                registration. In a converse situation, it would require registration.
D               (2) If the compromise decree were to create for the first time
                right, title or interest in immovable property of the value of Rs
                100 or upwards in favour of any party to the suit the decree or
                order would require registration.
                (3) If the decree were not to attract any of the clauses of sub-
E               section (1) of Section 17, as was the position in the aforesaid
                Privy Council and this Court’s cases, it is apparent that the
                decree would not require registration.
                (4) If the decree were not to embody the terms of compromise,
                as was the position in Lahore case, benefit from the terms of
F               compromise cannot be derived, even if a suit were to be
                disposed of because of the compromise in question.
                (5) If the property dealt with by the decree be not the “subject-
                matter of the suit or proceeding”, clause (vi) of sub-section
                (2) would not operate, because of the amendment of this clause
                by Act 21 of 1929, which has its origin in the aforesaid decision
G
                of the Privy Council, according to which the original clause
                would have been attracted, even if it were to encompass
                property not litigated.”
             7. In the facts of that case, this Court held that the first suit cannot
      really be said to have been decreed on the basis of compromise, as the
H
    MOHAMMADE YUSUF & ORS. v. RAJKUMAR & ORS.                                   657
             [ASHOK BHUSHAN, J.]

suit was decreed “in view of the written statement filed by the defendant       A
admitting the claim of the plaintiff to be correct”. Further, the earlier
decree was held to be collusive. Two reasons for holding that the earlier
decree in the above said case required registration have been mentioned
in paragraph 19 of the judgment, which is to the following effect:-
      “19. Now, let us see whether on the strength of the decree passed         B
      in Suit No. 215 of 1973, the petitioner could sustain his case as put
      up in his written statement in the present suit, despite the decree
      not having been registered. According to us, it cannot for two
      reasons:
         (1) The decree having purported to create right or title in the        C
         plaintiff for the first time that is not being a declaration of pre-
         existing right, did require registration. It may also be pointed
         out that the first suit cannot really be said to have been decreed
         on the basis of compromise, as the suit was decreed “in view
         of the written statement filed by the defendant admitting the
         claim of the plaintiff to be correct”. Decreeing of suit in such       D
         a situation is covered by Order 12 Rule 6, and not by Order 23
         Rule 3, which deals with compromise of suit, whereas the
         former is on the subject of judgment on admissions.
         (2) A perusal of the impugned judgment shows that the first
         appellate court held the decree in question as ‘collusive’ as it       E
         was with a view to defeat the right of others who had bona
         fide claim over the property of Ganpat. Learned Judge of the
         High Court also took the same view.”
       8. Following the above judgment of Bhoop Singh (supra), the
High Court held that since the compromise decree dated 04.10.1985 did           F
not declare any pre-existing right of the plaintiff, hence it requires
registration. The High Court relied on the judgment of Gurdwara Sahib
Vs. Gram Panchayat Village Sirthala and Another (supra) and made
following observations in paragraphs 11, 12 and 13: -
      “11. In the present case, in the earlier suit CS No. 250-A/1984           G
      the petitioner had claimed declaration of title on the plea of adverse
      possession and the compromise decree was passed in the suit.
      The very fact that the suit was based upon the plea of adverse
      possession reflects that the petitioner had no pre-existing title in
      the suit property. Till the suit was decreed, the petitioner was a
                                                                                H
      mere encroacher, at the most denying the title of lawful owner.
658            SUPREME COURT REPORTS                            [2020] 3 S.C.R.


A           12. The Supreme Court in the matter of Gurudwara Sahib Vs.
            Gram Panchayat Village Sirthala reported in 2014 (3) MPLJ
            36 has settled that declaratory decree based on plea of adverse
            possession cannot be claimed and adverse possession can be used
            only as shield in defence by the defendant. It has been held that:-
B                         “7. In the Second Appeal, the relief of ownership by
                   adverse possession is again denied holding that such a suit
                   is not maintainable. There cannot be any quarrel to this
                   extent the judgments of the courts below are correct and
                   without any blemish. Even if the plaintiff is found to be in
                   adverse possession, it cannot seek a declaration to the effect
C                  that such adverse possession has matured into ownership.
                   Only if proceedings filed against the appellant and appellant
                   is arrayed as defendant that it can use this adverse
                   possession as a shield/defence.”
            13. The plea of the petitioner based upon Sec.27 of the Limitation
D           Act is found to be devoid of any merit since it relates to the
            extinction of the right of the lawful owner after expiry of the
            Limitation Act, but in view of the judgment of the supreme court
            in the matter of Gurudwara Sahib (supra), the petitioner cannot
            claim himself to be the owner automatically after the expiry of
E           the said limitation.”
            9. The judgment of Gurdwara Sahib Vs. Gram Panchayat Village
      Sirthala and Another (supra) has now been expressly overruled by a
      Three Judge Bench judgment in Ravinder Kaur Grewal and Others
      Vs. Manjit Kaur and Others, (2019) 8 SCC 729. This Court held in
F     the above case in paragraph 62 that once 12 years’ period of adverse
      possession is over, even owner’s right to eject him is lost and the
      possessory owner acquires right, title and interest possessed by the
      outgoing person/owner. In paragraph 62, following has been laid down:
            “62. We hold that a person in possession cannot be ousted by
G           another person except by due procedure of law and once 12 years’
            period of adverse possession is over, even owner’s right to eject
            him is lost and the possessory owner acquires right, title and interest
            possessed by the outgoing person/owner as the case may be
            against whom he has prescribed. In our opinion, consequence is
            that once the right, title or interest is acquired it can be used as a
H
    MOHAMMADE YUSUF & ORS. v. RAJKUMAR & ORS.                                 659
             [ASHOK BHUSHAN, J.]

      sword by the plaintiff as well as a shield by the defendant within      A
      ken of Article 65 of the Act and any person who has perfected
      title by way of adverse possession, can file a suit for restoration
      of possession in case of dispossession. In case of dispossession
      by another person by taking law in his hand a possessory suit can
      be maintained under Article 64, even before the ripening of title
                                                                              B
      by way of adverse possession. By perfection of title on
      extinguishment of the owner’s title, a person cannot be remediless.
      In case he has been dispossessed by the owner after having lost
      the right by adverse possession, he can be evicted by the plaintiff
      by taking the plea of adverse possession. Similarly, any other person
      who might have dispossessed the plaintiff having perfected title        C
      by way of adverse possession can also be evicted until and unless
      such other person has perfected title against such a plaintiff by
      adverse possession. Similarly, under other articles also in case of
      infringement of any of his rights, a plaintiff who has perfected the
      title by adverse possession, can sue and maintain a suit.”
                                                                              D
      10. In paragraph 61, this Court has expressly overruled the
Gurdwara Sahib Vs. Gram Panchayat Village Sirthala and Another
(supra).
       11. In view of the pronouncement of this Court by Three Judge
Bench judgment in Ravinder Kaur Grewal and Others Vs. Manjit                  E
Kaur and Others (supra), the very basis of the High Court for holding
that compromise deed dated 04.10.1985 requires registration is knocked
out. The present is not a case where there is any allegation that the
decree dated 04.10.1985 is a collusive decree. The decree dated
04.10.1985 was in favour of the plaintiff of 7 biswa land, survey No. 203
and for remaining land of survey No.203, it was held that it belonged to      F
defendants.
       12. In Bhoop Singh (supra), this Court held that the earlier decree
required registration for the reasons as mentioned in paragraph 19. The
reasons given in paragraph 19 of the above case has no application in
the facts of the present case.                                                G
      13. This Court in Som Dev and Others Vs. Rati Ram and
Another, (2006) 10 SCC 788 while explaining Section 17(2)(vi) and
Section 17(1)(b) and (c) held that all decree and orders of the Court
including compromise decree subject to the exception as referred that
                                                                              H
660             SUPREME COURT REPORTS                            [2020] 3 S.C.R.


A     the properties that are outside the subject matter of the suit do not require
      registration. In paragraph 18, this Court laid down following: -
            “18. ……………But with respect, it must be pointed out that a
            decree or order of a court does not require registration if it is not
            based on a compromise on the ground that clauses (b) and (c) of
B           Section 17 of the Registration Act are attracted. Even a decree
            on a compromise does not require registration if it does not take in
            property that is not the subject-matter of the
            suit…………………….”
             14. In facts of the present case, the decree dated 04.10.1985 was
C     with regard to property, which was subject matter of the suit, hence not
      covered by exclusionary clause of Section 17(2)(vi) and present case is
      covered by the main exception crafted in Section 17(2)(vi), i.e., “any
      decree or order of a Court”. When registration of an instrument as required
      by Section 17(1)(b) is specifically excluded by Section 17(2)(vi) by
      providing that nothing in clause (b) and (c) of sub-section (1) applies to
D     any decree or order of the Court, we are of the view that the compromise
      decree dated 04.10.1985 did not require registration and learned Civil
      Judge as well as the High Court erred in holding otherwise. We, thus, set
      aside the order of the Civil Judge dated 07.01.2015 as well as the judgment
      of the High Court dated 13.02.2017. The compromise decree dated
E     04.10.1985 is directed to be exhibited by the trial court. The appeal is
      allowed accordingly.


      Divya Pandey                                                   Appeal allowed.


F




G




H


Search Indian case law

Ask in plain English, not just keywords. 25,000 AI words free, no card.

Try "Registration Act"Sign in to search

For a digitally signed copy suitable for filing, refer to the court's own website. Only the court can issue one.