If property is sold to 2 person by builder

augustin (Querist) 12 March 2013 This query is : Resolved
if builder sold the property to 2 person by way of registration then who has the right on the property,and the first registered buyer mortgage the same to the bank and bank took the possession of the said property ,can bank sell the property to recover its due under sarfaeisi act by private treaty and what r the right of the second person who brought the property from the builder can he make any claim on property

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prabhakar singh (Expert) 12 March 2013
If two sale deeds(or any document) are executed and registered for the same property,it is the document which was executed first shall be given effect to supposing that no registration was required
says section 47 of the Indian Registration Act.

From query it is not clear which of the two document was executed first and how and on what basis the author has used his phrase"and the first registered buyer mortgage the same to the bank and bank took the possession of the said property ," because to DECIDE FIRST BUYER NOT THE DATE AND TIME OF REGISTRATION BUT THE TIME AND DATE OF EXECUTION IS RELEVANT.

Hence if the author's said "first registered buyer's"deed was executed first then notwithstanding it's date of registration he was competent to mortgage it in favor of bank and the bank in it's turn it's right to invoke jurisdiction vested in it originally under SARFAESI Act,BUT NOT ON THE BASIS OF ANY PRIVATE TREATY UNLESS THE ORIGINAL LENDER IS ALSO VESTED WITH RIGHT TO INVOKE JURISDICTION under SARFAESI Act on its OWN . Becaause not every lender has right to proceed under this Act,then one who does not have such right can not enter into any treaty to confer such a jurisdiction is my view.

Now Coming to right of the buyer whose sale deed is subsequently registered,he shall have to prove that may be his deed was subsequently registered BUT IT WAS HIS DEED WHICH WAS EXECUTED FIRST.If he succeeds in proving it is he who would legally be first buyer in whose favor title stood passed leaving nothing with builder to execute one
more deed for same very property.

Hence if the deed registered subsequently bears an earlier date of the execution and shows earlier purchase of stamp duty then it is this subsequently registered deed that shall be given effect too.

If it is established so,then no right passed to buyer whose deed was registered first and he had no title or possession with him to mortgage and secure any loan.

prabhakar singh (Expert) 12 March 2013
For your ready reference section 47 of The Registration Act, 1908 is reproduced below:

"Section 47. Time from which registered document operates-
A registered document shall operate from the time from which it would have commenced to operate if no registration thereof had been required or made, and not from the time of its registration."

Raj Kumar Makkad (Expert) 12 March 2013
Nothing to add more in the given replies.

Sudhir Kumar, Advocate (Expert) 12 March 2013
second registry holder has no right. Should be lucky not being charged with connivance in cheating the first buyer.