also
observed that whether an unregistered sale deed can be considered
for collateral purpose, of possession of the suit schedule
properties, is an important issue ... relied upon by the
appellants herein for collateral purpose i.e., to establish possession
of the suit schedule land ?
7. The title to the suit
petitioner sought to mark unregistered simple sale deed,
dated 03.05.1991, for collateral purpose. But the Court below
rejected the document in question on the ground ... evidence under Section 49 of
the Indian Registration Act, 1908 for collateral purpose. The trial
Court committed error by rejecting the request of the petitioner
aspect that whether an unregistered document can be considered for any
collateral purpose. It was held that:
"Then the next question that falls ... consideration is whether these
can be used for any collateral purpose. The larger Bench of Andhra
Pradesh High Court in Chinnappa Reddy Gari Muthyala Reddy
document requires
compulsorily registration, still an unregistered document
could be marked for collateral purposes. A statutory
obligation is cast on the Court to impound ... impounded with
required stamp duty and penalty, they may be considered for
collateral purposes and the defendants are at liberty to cross-
examine the witness
mortgaged some of his properties to 3rd respondent -
Bank as collateral security on account of the loan taken by
the said company. The said properties ... personal
liability. The said properties mortgaged by the petitioner as
collateral security were already attached. The petitioner is
cooperating with the investigating agencies. The petitioner
held that unregistered document can
be admitted in evidence for any collateral transaction. The
document in question is 30 years old could be read ... admissible in
3
PSS, J.
CRP.NO. 1754 of 2021
evidence of collateral purpose to a limited extent showing
possession of plaintiffs
treated as a
nullity and can be questioned even in collateral
proceedings. Non-disclosure of relevant material
documents with a view to obtain advantage amounts ... vitiates the
solemn proceedings; such plea can be set up even in
collateral proceedings. The label on the petition is not
much material and this
Returns, false final statements of
account of his business, less value collateral securities or had shown high value
construction rates in conspiracy with ... Builders and Developers (A9).
The borrowers also offered short value securities as collateral security to secure
the said housing loans and submitted false asset
limitation. Ex.A.1 is a nominal document only executed
as collateral security to ensure that the loan is promptly
repaid, the plaintiffs have misused ... landlord
and tenant and such mortgage was only executed as a
collateral security to ensure vacation of leased premises by
mortgagee, as such oral evidence
Such unregistered document can however be used as an
evidence of collateral purpose as provided in the proviso
to Section 49 of the Registration ... 1265 of 2022
3. A collateral transaction must be independent of, or
divisible from, the transaction to effect which the law
required registration
