XYZ Pvt. Ltd. and ABC Pvt. Ltd. have entered into a contract of sale of plant and machinery. The Managing Director of the XYZ Pvt. Ltd. signed the contract at Jaipur and sent the same to the office of ABC Pvt. Ltd. in Mu

Section 17 of the Registration Act, 1908 provides the provisions relating to Documents of which registration is compulsory. According to section 17(1)(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 upwards, to or in immovable property are to be registered compulsorily. Further, the documents containing contracts to transfer for consideration, any immovable property for the purpose of section 53A of the Transfer of Property Act, 1882 relating to Doctrine of Part Performance shall be registered if they have been executed on or after the commencement of the Registration and Other Related laws (Amendment) Act, 2001 and if such documents are not registered on or after such commencement, then, they shall have no effect for the purposes of the said section 53A. In the present case, the contract involves the sale of plant and machinery, which may be treated as immovable property if permanently attached to the land, thereby qualifying as immovable property under the law. In this situation, the compulsory registration requirement would apply to this contract. Alternate Answer Section 17 of the Registration Act, 1908 provides the provisions relating to Documents of which registration is compulsory. According to section 17(1)(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 upwards, to or in immovable property are to be registered compulsorily. Further, the documents containing contracts to transfer for consideration, any immovable property for the purpose of section 53A of the Transfer of Property Act, 1882 relating to Doctrine of Part Performance shall be registered if they have been executed on or after the commencement of the Registration and Other Related laws (Amendment) Act, 2001 and if such documents are not registered on or after such commencement, then, they shall have no effect for the purposes of the said section 53A. However, in the present case, the contract involves the sale of plant and machinery, which may be treated as movable assets unless permanently attached to the land, thereby qualifying as immovable property under the law. In this situation, the compulsory registration requirement would not apply to this contract.