Registration act, 1908 for certain partnership deeds
Chinmay Kamat
(Querist) 29 October 2012
This query is : Resolved
Hi,
In most states, registration of partnerships deeds is not compulsory because the partnership act does not mandate it (although it confers certain benefits once it is registered).
My question is, suppose the deed specifies that the partners bring into the firm as capital any immovable property valued over Rs 100, then does the deed need to be registered compulsorily UNDER THE REGISTRATION ACT, 1908. I AM NOT ASKING ABOUT REGISTRATION UNDER THE PARTNERSHIP ACT.
S 17(1)(b) makes it compulsory for any "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" to be compulsorily registered.
Please advice.
Devajyoti Barman
(Expert) 29 October 2012
Repeated query which is already replied with great details.
Chinmay Kamat
(Querist) 29 October 2012
I am sorry to say, but the query is still open, as I have not yet been given a yes or no answer.
Referring to S 69 of the Partnership Act does not help, because we have to read S 17(1)(b) of the registration act also.
S 69 only gives effect of non registration, doesn't say whether its mandatory or not. But section 17(1)(b) talks about mandatory registration.
So does a deed become compulsorily registrable if partners are bringing the land as capital.
This query has been originally posted in the business category, but it also pertains to this category. Hence I am reposting it here.
Thanks
Devajyoti Barman
(Expert) 29 October 2012
The reply is still same that registration is not compulsory merely because of capital is brought in the form of land.
Do not forget that non registration of partnership dos not affect the partners to exercise their rights inter se.
Chinmay Kamat
(Querist) 29 October 2012
Thanks a lot.
Now its clear.
This isn't about a new partnership. The question came to me wrt a very old unregistered dissolution deed.
Thanks
