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'A' entered into an agreement with 'B' to sell immovable property of the former for consideration and…

Under section 17(1A) of the Registration Act, in force from 24 September 2001, a contract to transfer immovable property for consideration, signed for the purposes of…

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'A' entered into an agreement with 'B' to sell immovable property of the former for consideration and 'B' was put in possession of the property. Both parties had signed the agreement. The agreement had not been registered under the Indian Registration Act. In a suit between the parties, 'B' claimed the benefit of Section 53A of the Transfer of Property Act. Whether his claim is maintainable?

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Correct answer B

Under section 17(1A) of the Registration Act, in force from 24 September 2001, a contract to transfer immovable property for consideration, signed for the purposes of section 53A of the Transfer of Property Act, must be registered, and an unregistered one has no effect for those purposes. So B's claim fails: "No, it is not maintainable since the agreement was not registered". Section 53A does not require a completed sale deed, so this choice gives the wrong reason.

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