Registration of partition deed of agriculture land
Nishant Agrawal
(Querist) 26 January 2014
This query is : Resolved
For one of my client when he wanted to offer one of his immovable property as collateral security in bank for loan purpose bank refused to accept the same, facts of the case are as follows:-
1. Property is a commercial property on diverted land which is registered one with proper stamp duty paid. (No issued with latest registered title deed in the name of the aforesaid borrower).
2. However seller of this property got right on the aforesaid property through a partition deed executed among their family members in 1997. At that time this was an agriculture land (Non diverted) and partition deed was presented to Tehsildar for mutation purposes. Tehsildar at that time after examining the facts of the case and verifying the partition deed executed muted the names in revenue records accordingly and partition done. However this partition deed was not got registered with sub registrar and same is unregistered (Executed on rs. 50 stamp paper). property is situated in MP.
Bank contented that since the aforesaid partition deed is a chain/link document to latest registered title deed which has not been registered and same was required to be registered compulsorily u/s 17(1)(b) of the IRA same is not enforceable and same can not be admitted as a valid evidence.
However our contention is that since this is a land which at the time of partition was assessed for agriculture, and partition was duly noted by tehsildar in land revenue records based on the application made by the partition holders at that time, process of section 178 of MP land revenue code 1959 were duly followed.
Now kindly please clarify that whether aforesaid partition can be regarded to fall under the exemption categories defined in section 17 (2) (VIII)where registration is not compulsory.
Question is - whether registration u/s 17(1)(b) of registration act of a partition deed of agriculture land where the same has been duly accepted by tehsildar and mutation also done in his records, is absolutely compulsory for making this admissible/enforceable.
ajay sethi
(Expert) 26 January 2014
partition deed of 1997 which involved distribution of property among family members was required to be properly stamped and registered . in your case document appears to be understamped as executed on Rs 50 stamp paper . nor is said document registered . such a unregistered document would be in admissible in evidence .
Nishant Agrawal
(Querist) 26 January 2014
But sir whether the law is same for agri and non agri land and also what abt exemption granted by section 17(2)(viii) of registration act.
Sri Vijayan.A
(Expert) 26 January 2014
This exemption applies to any instrument of partition made by a revenue-officer.
I hope you are telling about the Patta issued by Tahsildar.
A plain reading would show that the partition is compulsorily registrable and it is not acquiring any immunity against or exemption from registration.
However, it is a good case for argument; based on the continuous uninterrupted possession supported by the Patta, you can convince the bank authorities and can help your client.
Patta is an important document showing/ evidencing the title/ ownership of the land. It is issued by a Revenue dept officer not lower than a rank of Tahsildar, who is termed as Executive Magistrate.
After conducting a thorough field inquiry and based on the supportive partition deed alone, the Tahsildar might have issued the Patta.
As such, The Ownership is conferred on your client.
So, insist your client to try to convince the bank officials based on teh above contention.
Advancing a loan is at the discretion of the officials.
Rajendra K Goyal
(Expert) 27 January 2014
Bank can not be forced to accept any collateral till it is fully satisfied about the clearance of its title.
Contact the Bank whether no-objection from all the owners at present can solve the purpose.
T. Kalaiselvan, Advocate
(Expert) 27 January 2014
In addition to legal opinion by its panel legal adviser, the banks can reserve its right for granting loans on the basis of property offered before it as security. Therefore the banks are absolutely right to reject the unregistered partition deed by not considering it as a proper title deed.
Nishant Agrawal
(Querist) 28 January 2014
Lets not discuss on banking norms,Loan etc same was the context only provided by me. If you can give your opinion on following technical propositions of the aforesaid case specifically this will help me in framing my opinion broadly:-
For agriculture land if any partition has been made under section 178 of MP Land Revenue Code 1959 by Tehsildar (Family approached tehsildar under a family settlement and after duly following procedure tehsildar accepted and muted the names in land revenue records). Here we should forget about the unregistered partition deed which was executed for only memorandum purposes, not asked by Tehsildar.
If partition was done in aforesaid manner then same should fall under the category of exemption granted by section 17(2) (VIII) of registration act or not.
My client has duly got his title deed registered for the concerned property its the question of just seller's ownership which has come through aforesaid arrangement.
Also after verifying chain of title of last 30 years from Khasra/revenue records (There is only one mutation as aforesaid).
Sri Vijayan.A
(Expert) 28 January 2014
Dear Nishant Agrawal,
No doubt, you have done a lot of work, on the matter.
Based on the recital above, definitely I can say the present owner has absolute ownership, somewhere it has to be accepted.
Go ahead and try to do this argument in the bank and make them accept.
Definitely you will win the situation.
In addition, you may try the suggestion made by Sri.Rajendra Goyal.
Regards
Nishant Agrawal
(Querist) 29 January 2014
Got the point, Thank you very much to all the experts for sparing your valuable time.
