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A sells a plot to B by an oral agreement followed by delivery of possession but no written sale deed is executed. With reference to the Registration Act, 1908, what is the correct position?
Answer & Solution
Correct answer: B.
1. The introduction to Lesson 15 expressly states that "Registration is of a document and not of a transaction".
2. Where no document is created, the Registration Act has no field of operation; the validity of the transaction is then governed by substantive law such as the Transfer of Property Act, 1882.
3. Section 17(1)(a) applies only to "instruments of gift of immovable property"; an oral sale produces no instrument.
4. (A) and (D) misstate the scheme of the Act.
_Source: ICSI CS Executive Paper 1 (Jurisprudence, Interpretation & General Laws) — Lesson 15: Registration Act, 1908, pp. 375-388._
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