AIR 1980 ANDHRA PRADESH 290 ::(1980) 2 APLJ 103 ::(1980) 2 Andh LT 205 ::(1980) 2 APLJ 6

Andhra Pradesh High Court

Hon'ble Judge(s): B. P. Jeevan Reddy , J

Civil P.C. (5 of 1908) , O.41 R.5 App.G Form No.2— Security bond executed for stay of execution of decree pending appeal - Value of suit property exceeding Rs. 100 - Bond must be registered. Registration Act (16 of 1908) , S.17, S.49— Transfer of Property Act (4 of 1882) , S.4, S.59— AIR 1928 Bom 42; AIR 1934 Lah 138 (FB); AIR 1961 Madh Pra 2; AIR 1947 Nag 26; AIR 1974 Delhi 136; AIR 1975 Him Pra 25 (FB); AIR 1980 Orissa 44; AIR 1960 Punj 517, Dissented from. Where a security bond is executed for stay of execution of decree, pending appeal, in respect of suit property of value exceeding Rs. 100, the same is required to be registered, in view of the provisions of Ss. 17 and 49 of the Registration Act and Ss. 59 and 4 of the Transfer of Property Act. The security bonds or mortgages contemplated by O.41, R.5, Appendix "G", Form No. 2 are not exempted from the operation of the above provisions and are, therefore, governed by them. (Case law discussed).(Para 5) Public interest, viz., protection of third parties, also, requires that such documents are registered. Registration operates as a public notice. Unless the transaction is registered, the third parties may not be aware of it and may be defrauded by unscrupulous transferors of property. Ordinarily, a person purchasing a party would obtain a non-encumbrance certif....