Compromise decree requires registration if it deals with property that is not the subject-matter of the suit under Section 17(2)(vi) of Registration Act, 1908.

The Apex Court in the matter of Mohd Yusuf & Ors. vs. Rajkumar & Ors. (Civil Appeal No. 800/2020) decided on 05.02.2020, pronounced the above-mentioned reasoning.

Facts:
The appeal was filed against the judgment of High Court of Madhya Pradesh wherein the High Court dismissed the writ petition of the appellant challenging the order of the trial court. The trial court had held that the compromise decree sought to be filed by the appellant (originally Defendant in trail court) was not admissible in evidence for want of registration.

Issue:
Whether the compromise decree was required to be registered under Section 17 of the Registration Act, 1908 or not?

Ratio:
The Apex Court after observing the relevant sections of Registration Act, 1908, held that a compromise decree passed by a Court would ordinarily be covered by Section 17(1)(b) but sub-section (2) of Section 17 provides for an exception for any decree or order of a Court except a decree or order expressed to be made on a compromise and comprising immovable property other than that which is the subject-matter of the suit or proceeding. By virtue of sub-clause (vi) of sub-section (2) of Section 17 of Registration Act, 1908 any decree or order of a Court does not require registration. A co-joint reading of Section 17(1)(b) and Section 17(2)(vi), provides that any decree or order of a Court is exempted from registration.
The Apex Court also referred to the precedence of Som Dev and Others Vs. Rati Ram, [(2006) 10 SCC 788] where it was held that all decree and orders of the Court including compromise decree subject to the exception.
Applying the above-mentioned reasoning in the instant case the Apex Court held that the decree in question was covered under the main exception crafted in Section 17(2)(vi), i.e., “any decree or order of a Court” and did not require registration. In conclusion, the Apex Court set aside the order of the Trial Court as well as of the High Court.