The Madurai Bench of the Madras High Court has set aside the Tamil Nadu government’s amendment to the Registration Act that introduced Section 34-C, following petitions filed by individuals including a Kodaikanal resident and a federation of real estate associations.
The court held that Section 34-C was essentially a reworked version of earlier provisions that had already been struck down by courts. It observed that the amendment attempted to reintroduce rules previously declared unconstitutional by the High Court and the Supreme Court.
Citing violation of the doctrine of separation of powers and key provisions linked to property transfer law, the Bench said the changes were beyond the State’s legislative competence and unconstitutional. It also noted that the amendment imposed unreasonable restrictions on a person’s right to deal with their property, a right recognised under the Constitution and as a human right.
While noting that registration of documents such as sale agreements has been made mandatory, the court issued recommendations to curb fraud. It said accurate disclosure of past and present encumbrances would protect innocent buyers and help them exercise due care under Section 55 of the Transfer of Property Act.
The Bench further directed that people intending to transact should be ensured information on current or prior encumbrances. It recommended that the Inspector General of Registration publish a detailed encumbrance list survey-number and door-number wise, begin the work immediately across all sub-registrar offices, and ensure all survey-number details are entered and verified for accuracy in the encumbrance register.
