Encumbrance certificate issued by registration department - non mention the previous court attachment - purchased by plaintiff liable to to get compensation - Civil Court has jurisdiction.
The Joint Sub-Registrar No.II, Villupuram & Others Versus Anna Matha Teacher's Training Institute, Rep. By its Correspondent, A. Jayachandran, Villupuram
Judges
THE HONOURABLE MR. JUSTICE S. NAGAMUTHU
Head Note
The Registration Act, 1908 - Section 51, Section 54, Chapter XI, Section 57, section 62, Section 78-A, Section 86 - Registration Rules, 1925 - Chapter XIX – Sale agreement - Encumbrance Certificate - order of attachment – claim of compensation – Respondent/Plaintiff entered into an agreement of sale and made an application seeking encumbrance certificate – appellant/1st defendant issued an encumbrance certificate covering a period of 13 years - As per said Encumbrance Certificate there was no encumbrance on property in question - Therefore, plaintiff purchased property and also entered into possession of property – Thereafter, plaintiff came to know that Principal Subordinate Judge, in execution proceedings had brought suit property for sale based on a promissory note against seller and her husband - attachment order was not duly entered in encumbrance certificate though same was entered in appropriate register maintained by 1st defendant - According to plaintiff, loss was caused to him on account of negligence on part of 1st defendant and , therefore, he is liable to pay compensation with interest – plaintiff filed petition which was allowed - appellants/defendants preferred appeal before Subordinate Judge which was dismissed - Hence instant petition
Issue is – Whether appellant is entitled to pay compensation when Section 86 of the Act, 1908 and whether courts below were right in holding that alleged loss said to have been caused to respondent is traceable to defective encumbrance certificate issued by 1st appellant
Court held - Since encumbrance details are very much available for public view in official website, instances of complaints of defective encumbrance certificates will be minimized - said statement made by Advocate General deserves appreciation - However, this court finds it difficult to be satisfied with above statement for simple reason that neither statute nor Rules, 1925 have been amended so as to make printouts from official website admissible as primary evidence in courts of law - provisions relating to issuance of encumbrance certificates on payment of necessary fee still holds good as per statute as well as rules - person who intend to enter into any transaction relating to immovable property would only rely on encumbrance certificate issued by department of registration under the Act, 1908 - Though steps taken by Government are in right direction, in order to enhance faith of people in department, the same should ensure furnishing of foolproof, flawless encumbrance certificates - If a document issued by Government department could not be believed fully, alas, people will be left only in lurch and result will be unwholesome – Therefore, decree and Judgment made by Principal Subordinate Judge, are set aside - appeal allowed.
Para 24, 26
Cases Referred:
S.P.Goel v. Collector of Stamps, Delhi,AIR 1996 SC 839].
Kasturilal Ralia Ram Jain v. State of U.P., AIR 1965, SC 1039;
Common Cause Society v. Union of India, (1999) 6 SCC 667;
N.Nagendra Rao v. State of Andhra Pradesh, AIR 1994 SC 2663;
Lucknow Development Authority v. M.K.Gupta, AIR 1994 SC 787;
Rajkot Municipality v. M.J.Nakuk, 1997 (9) SCC 552
R.Ravichandran v. The State of Tamil Nadu, 2002 – 2 – L.W. 590
Comparative Citations:
2015 (2) CTC 584, 2015 (2) LW 577
Issue is – Whether appellant is entitled to pay compensation when Section 86 of the Act, 1908 and whether courts below were right in holding that alleged loss said to have been caused to respondent is traceable to defective encumbrance certificate issued by 1st appellant
Court held - Since encumbrance details are very much available for public view in official website, instances of complaints of defective encumbrance certificates will be minimized - said statement made by Advocate General deserves appreciation - However, this court finds it difficult to be satisfied with above statement for simple reason that neither statute nor Rules, 1925 have been amended so as to make printouts from official website admissible as primary evidence in courts of law - provisions relating to issuance of encumbrance certificates on payment of necessary fee still holds good as per statute as well as rules - person who intend to enter into any transaction relating to immovable property would only rely on encumbrance certificate issued by department of registration under the Act, 1908 - Though steps taken by Government are in right direction, in order to enhance faith of people in department, the same should ensure furnishing of foolproof, flawless encumbrance certificates - If a document issued by Government department could not be believed fully, alas, people will be left only in lurch and result will be unwholesome – Therefore, decree and Judgment made by Principal Subordinate Judge, are set aside - appeal allowed.
Para 24, 26
Cases Referred:
S.P.Goel v. Collector of Stamps, Delhi,AIR 1996 SC 839].
Kasturilal Ralia Ram Jain v. State of U.P., AIR 1965, SC 1039;
Common Cause Society v. Union of India, (1999) 6 SCC 667;
N.Nagendra Rao v. State of Andhra Pradesh, AIR 1994 SC 2663;
Lucknow Development Authority v. M.K.Gupta, AIR 1994 SC 787;
Rajkot Municipality v. M.J.Nakuk, 1997 (9) SCC 552
R.Ravichandran v. The State of Tamil Nadu, 2002 – 2 – L.W. 590
Comparative Citations:
2015 (2) CTC 584, 2015 (2) LW 577
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