Unregistered Agreement To Sell Admissible In Evidence

The Registration Act, 1908 (Registration Act) plays an important role when it comes to dealing with and managing information related to land and immovable property. Section 17(1) of the Registration Act provides for mandatory registration of certain documents. This mandatory registration safeguards the interests of all parties involved in property transactions. It establishes a foundation of trust and reliability, as those dealing with the property can place full confidence in the registered documents. On the other hand, if such documents are not registered, then by virtue of Section 49 of the Registration Act, generally the documents in question cannot be submitted as evidence.

In a recent judgment of R. Hemlatha v. Kashthuri (Hemlatha Case), the Supreme Court of India has shed light on an important exception to the rule of mandatory registration. The Supreme Court has held that an unregistered agreement to sell can still be admitted as evidence where the suit is