LEGAL LEARNING – SHRI GANPATI JURISTS
Legal Learning: Unregistered Agreement to Sell Can Be Admitted as Evidence in Specific Performance Suits
Key Takeaway:
An unregistered agreement to sell is admissible in court to prove the existence of a contract in a suit for specific performance, under the proviso to Section 49 of the Registration Act, 1908.
Key Points:
Purpose Matters:
The document can be used to show that a contract exists — not to claim ownership or assert a completed transfer of property.
Legal Provision:
The proviso to Section 49 allows:
Use of unregistered documents to prove a contract for specific performance.
Use as evidence of a collateral transaction that doesn’t require registration.
Judicial View:
Courts have clarified that when such a document is introduced solely to establish the formation of an agreement — not title — it is admissible, even if not registered.
Practical Insight:
Lawyers may rely on unregistered agreements in appropriate circumstances to seek enforcement of contractual obligations without breaching registration rules.
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