Registration Act 1908 - The Legal Chamber

Supreme Court: Registration Authorities Can’t Demand Mutation Proof Before Registering a Sale

28Jan

By The Legal ChamberNo Comments

Supreme Court

Supreme Court: Registration Authorities Can’t Demand Mutation Proof Before Registering a Sale

The Supreme Court struck down sub-rules (xvii) and (xviii) of Rule 19 of the Bihar Registration Rules, 2019, holding them ultra vires the Registration Act, 1908. The Court ruled that the rule-making power under Section 69 does not authorize registering authorities to demand proof of mutation or title as a precondition for document registration, deeming such a requirement arbitrary and beyond the scope of the Act. Facts Of The Case: The case originated from challenges to the 2019 amendments to the Bihar Registration Rules, 1989, specifically the introduction of sub-rules (xvii) and (xviii) to Rule 19. These new rules empowered registering authorities to refuse registration of a sale or gift deed if the document did not mention, and the seller did not produce proof of, a "jamabandi a...

Supreme Court Overrules Precedent on Power of Attorney Validity in Property Sales

The Supreme Court examined the validity of documents executed by a Power of Attorney (PoA) holder under the Registration Act, 1908. It held that a PoA holder remains an agent, not an "executant" under Section 32(a), and must comply with Sections 32(c), 33, 34, and 35 for authentication. The court disagreed with the earlier Rajni Tandon ruling, emphasizing that a PoA holder cannot bypass statutory scrutiny while executing or presenting documents for registration. The issue was referred to a larger bench for clarity. Facts Of The Case: The case revolves around the validity of an Irrevocable General Power of Attorney (GPA) dated 15.10.1990, allegedly executed by Ranveer Singh and his wife, Gyanu Bai, in favor of their tenant, G. Rajender Kumar. Using this GPA, Rajender Kumar executed three ...

Supreme Court : Sale Deeds Executed After Property Power of Attorney Revoked Are Invalid

The Supreme Court clarified that an unregistered agreement to sell or power of attorney does not confer title or interest in immovable property. The Court emphasized that property transfer requires a registered deed of conveyance. It also ruled that a plaint cannot be rejected entirely under Order VII Rule 11 CPC if even one distinct cause of action is triable. Facts Of The Case: Vinod Infra Developers Ltd. (appellant) claimed ownership of agricultural land and obtained a loan of Rs. 7.5 crores from Mahaveer Lunia (Respondent No. 1) in May 2014. The appellant's Board of Directors authorized their Managing Director and Respondent No. 1 to sell the property. Subsequently, an unregistered power of attorney and agreement to sell were executed in favor of Respondent No. 1 on May 24, 2014.In A...