Rekapalle Ramchandra Rao vs Income-Tax Officer on 13 September, 1985
In Dharampal Gir v. Smt. Angoori Devi AIR 1981 All. 164, the Allahabad High Court did not accept the contention that the agreement amounts to a family settlement by which no interest in the property has been created in favour of anyone and this does not require registration under Section 17(6). As it was clearly stated that the defendant is the absolute owner, the terms of the agreement clearly create an interest in the property. In that case the defendant entered into an agreement not to alienate the property during her lifetime and it should go to the heirs after her death. On those facts, it was held that she is the absolute owner and the terms of the agreement create an interest in the disputed property in future in favour of the heirs and would clearly amount to transfer of property. In the absence of the document, being registered, the same would be inadmissible in evidence. The ratio laid down in the above cases squarely applies to the instant case.