Original parent document not necessary to transfer property

Original parent document not necessary to transfer property

23-10-2024
  1. In Oct 2024, The Madras High Court ruled that Sub Registrars cannot refuse to register a property transfer document just because the original parent document is missing or a police non-traceable certificate is not provided if the document is lost.
  2. This ruling is important for upholding property rights under Article 300A of the Indian Constitution.
  3. The right to own property is protected under Article 300A, which says that no one can be deprived of their property except by law.
  4. This right is considered stronger than fundamental rights, meaning property rights cannot be limited without reasonable compensation.
  5. The main law governing property transfers is the Transfer of Property Act of 1882.
  6. The principle of caveat emptor (let the buyer beware) means that buyers must check that the property is free from any debts or claims.
What was the case?
  1. This ruling came from a writ appeal by P. Pappu, whose request to register a release deed for transferring her rights over ancestral property to her brother.
  2. But It was denied by the Sub Registrar in Rasipuram, Namakkal district.
  3. Pappu had provided a certified copy of the parent document from the same Sub Registrar's office, which the court found sufficient for registration.

Court’s Findings on Registration Rules:

  1. The Division Bench, made up of Justices R. Subramanian and R. Sakthivel, said that the Registration Act of 1908 provides limited reasons for refusing registration (specifically Sections 22-A and 22-B added in 2022 for Tamil Nadu).
  2. These do not include the lack of the original parent document.
  3. They criticized Rule 55-A of the Tamil Nadu Registration Rules, which seems to allow Sub Registrars to deny registration without proper reasons.

Issues with Non-Traceable Certificates:

  1. The court said that Rule 55-A offers an option to submit a non-traceable certificate if the original document is lost; however, getting this certificate can be expensive and difficult for ordinary people.
  2. The judges said that the process to obtain a non-traceable certificate often involves high fees and complicated steps, leading some individuals to get certificates from neighboring states.
Court's Observations:
  1. The judges emphasized that a certified copy could be checked against the original records in the Sub Registrar's office, making the requirement for a non-traceable certificate unnecessary and a waste of time.
  2. They warned that forcing people to obtain non-traceable certificates for lost documents could lead to dishonest dealings in property transactions.

What is Right to Property under Article 300A?

  1. The Right to Property in India has changed significantly over the years due to social, economic, and political shifts.
  2. Initially, it was a fundamental right under Articles 31 and 19(1)(f) of the Constitution when it came into effect in 1950.
  3. After the 44th Amendment in 1978, Article 300A was added, changing the right to a constitutional right from the fundamental rights and removing the earlier provisions.
  4. Article 300A states, “No person shall be deprived of his property save by authority of law.”
  5. The government cannot take away a person’s property without a valid law.
  6. Legal Status: The Right to Property is now a constitutional right. This means it has legal protection, but individuals cannot go to the Supreme Court under Article 32 for issues related to it.
  7. Judicial Clarification: In the case of Jilubhai Nanbhai Khachar vs. State of Gujarat (1994), the Supreme Court confirmed that the right under Article 300A is not a fundamental right.

Can the Government Acquire Property Under Article 300A?

  1. Authority to Acquire: Yes, the government can acquire property, but it must follow legal procedures.
  2. Legal Framework: This process is governed by the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement Act, 2013.
  3. Supreme Court Interpretation: In Kolkata Municipal Corporation & Anr. vs. Bimal Kumar Shah & Ors. (2024), the Court emphasized the importance of following proper procedures when acquiring property.
Rights and Duties in Property Acquisition

When the government acquires property, it must respect several rights and responsibilities:

  1. Right to Notice: The state must inform people about the plan to acquire their property.
  2. Right to be Heard: People should be allowed to express their objections.
  3. Right to a Reasoned Decision: The state must explain its decision to acquire property.
  4. Duty for Public Purpose: The acquisition must benefit the public.
  5. Right to Fair Compensation: People should receive fair payment for their property.
  6. Efficient Process: The acquisition process should be handled quickly and clearly.
  7. Right of Conclusion: The state must finish the acquisition process properly.
Compensation for Property Acquired Under Article 300A
  1. LARR Act, 2013: This law sets out how compensation is handled, aiming for a fair and transparent process.
  2. Compensation Factors: Compensation is based on the market value of the property, the cost of any structures on it, and the impact on people’s livelihoods.
  3. Entitlements: The Act provides support for people affected by the acquisition, including help with relocation and resettlement.
Exceptions to the Right to Property
  1. The Right to Property is not absolute; there are exceptions.
  2. Eminent Domain: This allows the government to acquire property for public purposes, such as building roads or schools, but it must follow legal procedures and offer fair compensation.

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