AIR 2000 MADRAS 1 ::(1999) 3 Mad LJ 423 ::2000 (1) MadLW 143 ::1999 (2) RenCR 430

Madras High Court

Hon'ble Judge(s): K. P. Sivasubramaniam , J

(A) Transfer of Property Act (4 of 1882) , S.106— Lease - Purpose of - Relying on unregistered lease agreement to establish purpose for which property was leased out - Cannot be treated as "affecting" the property - It would only an attempt to establish a collateral purpose. Relying on the unregistered lease agreement to establish the purpose for which the property was leased out cannot be treated as "affecting" the property, but would only be an attempt to establish a collateral purpose. (Para 19) It cannot be said that a mere possibility of an adverse effect on a party to the litigation would be the testing factor to decide whether the purpose is collateral or not. Otherwise there can never be a collateral purpose which will not have some adverse effect on the party who opposes the reception of the document. The test would be whether the party relying on the unregistered document seeks to rely on its terms for "affecting such property or conferring such power" Section 49(c) of the Registration Act. For instance, an unregistered lease deed cannot be relied upon to enforce the terms of the agreement such as the period of tenancy, quantum of rent, mutual obligations under the agreement, whether the lessee has the right to sub-lease or to carry out the repairs to the building etc. In other words,....