Supreme Court Clarifies Registration of Prohibited Properties Under Section 22A of the Registration Act

Introduction

Date of the Judgment: April 19, 2018

Citation: Not Available in the document

Judges: Kurian Joseph, Mohan M. Shantanagoudar, Navin Sinha

Can a registering authority refuse to register a property based on a list of prohibited properties? The Supreme Court of India addressed this question in a batch of appeals concerning Section 22A of the Registration Act, 1908. This section deals with the prohibition of registration of certain documents related to properties listed by the government. The core issue revolves around the procedures and guidelines that must be followed when applying these prohibitions and the rights of the parties involved.

The Supreme Court bench, comprising Justices Kurian Joseph, Mohan M. Shantanagoudar, and Navin Sinha, delivered the judgment. The court clarified the procedures for listing prohibited properties and the mechanisms for redressal available to aggrieved parties.

Case Background

The appellants in these cases were aggrieved because they were not allowed to register the transfer of their properties. The State of Andhra Pradesh, through its counsel, argued that the properties in question were listed under Section 22A(1)(a) to (d) of the Registration Act, 1908, as prohibited from registration. These lists were either published on the government website or through notifications as per Section 22A(1)(e) of the Act.

The appellants contended that people in rural areas may not have access to the website where these lists were published. The State countered that copies of these lists were also available with all Sub-Registrars across the state. The core issue was whether the refusal to register the properties was justified under the law.

Timeline

Course of Proceedings

The Full Bench of the Andhra Pradesh High Court had formulated two key questions:

1. What are the pre-requisites that are to be satisfied for applying any one or more of clauses (a) to (e) of Section 22-A(1) of the Registration Act to any document dealing with alienation or transfer by way of sale, agreement of sale, gift, exchange or lease etc. in respect of immovable property presented for registration?
2. Under what circumstances, the act of the Registering authority concerned (District Registrar or Sub-Registrar) in refusing from registration of the aforementioned document/s by applying any one or more of the prohibitory clauses (a) to (e) under Section 22-A(1) of the Registration Act can be said to be justified?

Legal Framework

The core of this case revolves around Section 22A of the Registration Act, 1908. This section empowers the government to prohibit the registration of certain documents related to immovable properties. The relevant parts of the section are:

Section 22A(1) of the Registration Act, 1908 states:

“(1) The State Government may, by notification, declare that the registration of any document or class of documents relating to immovable property shall be prohibited, where it is satisfied that such registration is against public policy or is detrimental to the interests of the State or is otherwise not in the public interest.”

The specific clauses (a) to (e) of Section 22A(1) were also discussed by the High Court, which are related to properties that are prohibited from registration due to various reasons, such as government ownership, endowment, or wakf properties.

Arguments

The arguments presented by both sides can be summarized as follows:

Appellants’ Submissions:

• The appellants argued that they were not permitted to register the transfer of their properties.
• They contended that people in rural areas may not have access to the website where the lists of prohibited properties were published.
• They sought clarification on the proper procedure for applying Section 22A of the Registration Act.

State’s Submissions:

• The State argued that the properties were listed under Section 22A(1)(a) to (d) of the Registration Act, 1908, as prohibited from registration.
• The State clarified that copies of the lists were available with all Sub-Registrars across the State.
• The State maintained that the registration was rightfully denied based on the existing lists and notifications.

The innovativeness of the arguments lies in the appellants highlighting the practical difficulties faced by rural populations in accessing online lists, while the State emphasized the availability of these lists through multiple channels.

Issues Framed by the Supreme Court

The Supreme Court did not explicitly frame issues in this judgment, but the core questions it addressed were based on the two questions formulated by the Full Bench of the Andhra Pradesh High Court:

1. What are the pre-requisites for applying clauses (a) to (e) of Section 22-A(1) of the Registration Act?
2. Under what circumstances is the refusal of registration justified under Section 22-A(1) of the Registration Act?

Treatment of the Issue by the Court

The following table demonstrates how the Court addressed the issues:

Authorities

The Supreme Court did not explicitly cite any specific cases or books in this judgment. However, it considered the following legal provisions:

• Section 22A of the Registration Act, 1908: This section deals with the prohibition of registration of certain documents.
• Section 22A(1)(a) to (d): Relates to properties prohibited from registration due to government ownership, endowment, or wakf properties.
• Section 22A(1)(e): Relates to properties notified in the official gazette.

The court’s consideration of these provisions was central to its decision, as it aimed to clarify the procedures for their application.

Judgment

How each submission made by the Parties was treated by the Court?

How each authority was viewed by the Court?

• Section 22A of the Registration Act, 1908: The Court upheld the validity of the section and clarified its application. It emphasized that the section should be applied following the guidelines set by the High Court, ensuring that the process is transparent and accessible.

What weighed in the mind of the Court?

The Supreme Court was primarily concerned with ensuring a balance between the State’s power to regulate property registration and the rights of individuals to transact with their properties. The court emphasized:

• Transparency and Accessibility: The court stressed that the lists of prohibited properties must be easily accessible, not just online but also through local Sub-Registrars.
• Due Process: The court highlighted the need for proper procedures when applying Section 22A, ensuring that authorities follow the guidelines strictly.
• Redressal Mechanisms: The court made it clear that individuals have avenues for redressal, including applying for deletion of their property from the list and approaching civil courts.

The court’s reasoning was driven by a need to ensure that the implementation of Section 22A does not lead to arbitrary denials of registration and that there are sufficient safeguards for the rights of property owners.

Sentiment Analysis of Reasons Given by the Supreme Court:

Fact:Law Ratio

The court’s decision was more heavily influenced by legal considerations (70%) than factual aspects (30%).

Logical Reasoning

The logical reasoning of the court can be summarized as follows:

Key Takeaways

• Accessibility of Information: Lists of prohibited properties must be available both online and with Sub-Registrars.
• Adherence to Guidelines: Authorities must strictly follow the guidelines when applying Section 22A of the Registration Act.
• Redressal Mechanisms: Individuals have the right to seek deletion of their property from the list and approach civil courts for relief.
• Provisional Registration: Registrations already permitted by the Supreme Court are provisional, subject to the outcome of the writ petitions in the High Court.
• No Further Transfers: No further transfers are allowed without express permission from the High Court.

The judgment ensures that the implementation of Section 22A is fair, transparent, and does not infringe on the rights of property owners. It also provides a clear path for individuals to seek redressal if they believe their properties have been wrongly listed.

Directions

The Supreme Court gave the following directions:

• The registrations already permitted by the Court are provisional and subject to the result of the writ petitions pending before the High Court.
• No further transfer of properties is allowed without express permission from the High Court.
• Similarly situated people can approach the High Court for similar interim orders regarding transfers.
• The High Court will consider the issue of applying the redressal mechanism under Section 22A(1)(e) to grievances related to Section 22A(1)(a) to (d).

Specific Amendments Analysis

There is no discussion of any specific amendments in the judgment.

Development of Law

The ratio decidendi of this case is that while Section 22A of the Registration Act, 1908, empowers the State to prohibit registration of certain documents, this power must be exercised transparently and with due process. The judgment reinforces the need for clear guidelines, accessibility of information, and effective redressal mechanisms to ensure that the rights of property owners are protected. There is no change in the previous position of law, but the judgment clarifies the procedure to be followed.

Conclusion

The Supreme Court’s judgment in Siri Nivasam Mutual Aided House Building Society Ltd. & Ors. vs. State of Andhra Pradesh & Ors. clarifies the procedures for applying Section 22A of the Registration Act, 1908. The court emphasized the need for transparency, accessibility, and due process in listing prohibited properties and denying registration. The judgment ensures that while the State has the power to regulate property registration, this power is not exercised arbitrarily and that individuals have adequate avenues for redressal. The matter has been remitted to the High Court for further consideration, with specific directions to protect the interests of all parties involved.

Category

Parent Category: Registration Act, 1908

Child Categories:

• Section 22A, Registration Act, 1908
• Property Registration
• Prohibited Properties
• Civil Law
• Land Law

FAQ

Q: What is Section 22A of the Registration Act, 1908?

A: Section 22A allows the government to prohibit the registration of certain documents related to immovable properties if it is against public policy or detrimental to the interests of the State.

Q: How do I know if my property is listed under Section 22A?

A: The lists of prohibited properties are available on the government website and with all Sub-Registrars across the state.

Q: What should I do if my property is listed under Section 22A?

A: You can apply for the deletion of your property from the list to the concerned authorities. You can also approach a civil court for relief.

Q: Can I still transfer my property if it is listed under Section 22A?

A: No further transfers are allowed without express permission from the High Court.

Q: What if I am in a rural area and don’t have access to the internet?

A: You can visit the nearest Sub-Registrar’s office, where copies of the lists are available.