A buys land for ₹ 2.50 Crore from B in Delhi. A and B executed the sale deed but didn't register it from the Sub-Registrar. After entering into the sale deed, it came into knowledge of A that some dispute was pending per

Consequences of non-registration of documents required to be registered compulsorily Section 49 of the Registration Act, 1908 provides that no document required by Section 17 or by any provision of the Transfer of Property Act, 1882 to be registered shall: (a) affect any immovable property comprised therein; or (b) confer any power to adopt; or (c) be received as evidence of any transaction affecting such property or conferring such power, unless it has been registered. Section 49 is mandatory, and a document which is required to be registered cannot be received in evidence as affecting immovable property. (Mulla, pages 223 to 228) An unregistered document that comes within Section 17 cannot be used in any legal proceeding to bring out indirectly the effect which it would have if registered. In the given situation, A buys land for ₹ 2.50 Crore from B in Delhi. A and B executed the sale deed but did not register it from the Sub-Registrar. After entering into the sale deed, it came into knowledge of A that some dispute was pending in the land. Now, A cannot knock the door of the court as the sale deed is not registered. This is because such a document is dealt with by Section 17 which contemplates mandatory registration. A also cannot give an excuse that he was unaware of the law because ignorance of the law is no excuse. However, after payment of the duty he may be allowed subject to the compliance of necessary provisions. Also as provided in Section 49 of the Registration Act, 1908, proviso, an unregistered document affecting immovable property and required by this Act or the Transfer of property Act, 1882 to be registered may be received as evidence of a contract in a suit for specific performance or as evidence of part performance of a contract for the purposes of Section 53A of the Transfer of Property Act, 1882 or as evidence of any collateral transaction not to be effective by registered instrument. All that the proviso to Section 49 permits is that in a suit for specific performance an unregistered document affecting immovable property may be given in evidence. The purpose is that the document which has not conveyed or passed title may still be used as evidence of the terms.