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Jayanti Devi (Student)     18 June 2025

Unregistered sale agreement

will an unregistered sale agreement between accepted as an admissible evidence in a money suit filed in civil court ?

any additional stamp duty or impounding charges to be levied if unregistered sale agreement is admitted as an evidence ?

does specific performance also requires agreement to be registered ?



 10 Replies

T. Kalaiselvan, Advocate (Advocate)     18 June 2025

The unregistered sale agreement may be considered as a receipt for the money received by the seller in a money recovery suit.

No stamp duty is required to be paid in this situation.

Jayanti Devi (Student)     18 June 2025

separate money receipt has been provided by the developer already but agreement needs to be produced in court because only agreement has cancellation and refund clause.. based on which petition for refund has been filed..

now, my question is whether specific performance of Indian contract act mandates a registered sale agreement as an admissible evidence in civil court.?

I think consumer court does not require registered sale agreement but not sure about civil courts

Real Soul.... (LEGAL)     18 June 2025

Sale agreement signed by parties even not registerd is  is confimred as evidance, binding  and enforceble under law .

Example - Invoices having terms of sale are binding and need not to be registered 

balas (Chartered)     18 June 2025

Hi,

Yes for specific performance of the contract.

Case law 

Satish Kumar v. Zarif Ahmad (2019 SC)

Hope this helps 

Regards 

Bala S FCA., LL.B.

 

T. Kalaiselvan, Advocate (Advocate)     18 June 2025

You said that you have filed a money recovery suit on the basis of cancellation of the sale agreement, if that is the case there is no question of seeking to execute the registered sale deed enforcing the unregistered sale agreement under specific performance of contract.

Your post from one to another contradicts your own statements, hence don't be confused or confuse the experts here by asking contridicting questions.  If you want to produce the sale agreement as documentary evidence in the money suit, there is no bar to rely upon the same as your side evidence.  

If you decide to file a suit for specific performance of contract then you may have tio withdraw this current money reovery suit filed by you and of course the suit for pecific performance of contracte on the basis of the unregistered sale agreement will be maintainable to the extent of return of the advance amount alone. 

The Supreme Court has ruled that an unregistered agreement to sell can be admitted as evidence to prove the existence of a contract in a suit for specific performance but it is not admitted in the judgment thqt the unregistered sale agreement is enforceable

This decision was based on the proviso to Section 49 of the Registration Act, 1908, however it essentially states that such documents, if not registered, cannot affect any immovable property comprised in the document or be received as evidence of any transaction affecting that property. 

In simpler terms, an unregistered document that requires registration is not legally valid to transfer ownership of immovable property, and it cannot be used as evidence to prove a transaction related to that property.

Your further contradicting questin is about approaching consumer commission to get your grievances redressed which is totally contrary to your primary question. 

Ascertain the facts and then come out with your actual problem and not with predetermined suggestions

Jayanti Devi (Student)     18 June 2025

no specific performance suit filed..

plain money suit has been filed and unregistered agreement has been supplied as an evidence for cancellation and refund clause..

I am just asking whether any stamp duty or other impounding fee be applicable apart from the court fee that has been paid for the money suit ?

Advocate Bhartesh goyal (advocate)     18 June 2025

Yes,in money recovery suit unregistered sale agreement can be submitted for collateral purpose and is admissible in evidence .

Jayanti Devi (Student)     18 June 2025

that I know but my question as whether any separate stamp duty or impounding would be required for not registerinng?

court fee has been paid already

T. Kalaiselvan, Advocate (Advocate)     18 June 2025

It is just a documentary evidence hence there is no need to pay stamp duty to the documentry evidence i.e., the unregistered sale agreement.

It is not an enforceable instrument hence the court fee already paid for the money suit will be sufficient.

Dr. J C Vashista (Advocate )     20 June 2025

No stamp duty is leviable on unregistered agreement to sell.

What is the opinion and advise of your professor / tutor / coach on the subject ?

If it is not a moot court topic and your personal case (which is not at all, in any case)  it is better to consult and engage a local prudent lawyer for appreciation of facts / documents, professional advise and necessary proceeding.


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