Supreme Court Allows Unregistered Sale Agreement: Permits Unregistered Document as Proof of Oral Contract
The Supreme Court ruled that an unregistered and unstamped sale agreement (dated 01.01.2000) could be admitted as evidence under the proviso to Section 49 of the Registration Act, 1908, in a specific performance suit. The Court clarified that such documents are permissible to prove collateral transactions or oral agreements, even if inadmissible for transferring title. It overturned the High Court's rejection, emphasizing that admissibility for limited purposes does not require stamping or registration. The judgment reaffirmed the precedent in S. Kaladevi v. V.R. Somasundaram (2010) 5 SCC 401, allowing unregistered documents as evidence in suits for specific performance or collateral claims. No costs were awarded.
Facts Of The Case:
The dispute arose from an agreement to sell dated 01.01...