A deed for assignment transfers certain rights or interest over the property to the transferee and is mainly used as a lease agreement. S. 17 of the Registration Act, 1902 mandates registration of leases of immovable property and S. 49 of the act lays down that no document required to be registered under S. 17 shall be received as evidence of any transaction affecting such property or conferring such power, unless it has been registered.
The same has been re-iterated by the courts of India. For instance in Manorath Das v. Ambica Kanta Bose the application for execution was presented by a person who claimed to be the transferee of the decree under an unregistered deed of assignment. The Court held that the deed was inoperative till it was registered in accordance with law. The deed was subsequently registered and fresh application for execution made.
However, a document required by law to be registered, if unregistered, may be admitted as evidence of collateral facts, or for any collateral purpose, that is for any purpose other than that of creating, declaring, assigning, limiting or extinguishing a right to immovable property (Rana Vidya Bhushan Singh v. Ratiram). Hence, if the civil suit in question is regarding any issue other than the above mentioned ones then the unregistered deed may be held admissible, otherwise registration becomes a pre requisite for admissability as evidence.
With regards to the above answer, though unregistered lease agreement is inadmissible as evidence, except for any collateral purpose, it may be used by the leasee (holding possession of the property) to defend his possession under S. 53-A of the Transfer of Property Act.
Book a phone consultation with a top-rated lawyer on Lawfarm.