The Uttarakhand High Court has dismissed a petition filed by Shishya Society, Atak Farm, which sought registration of a gift deed for 300 square metres of land located in Selakui, Dehradun. The court held that a gift is a recognised mode of property transfer and cannot be excluded from the land-transfer restrictions applicable to societies and institutional bodies under the Uttarakhand Zamindari Abolition and Land Reforms Act, 1950.
Background of the Case
Justice Pankaj Purohit delivered the judgment on April 30, addressing the society's plea for registration of the deed and a declaration that restrictions under Section 154 of the Act do not apply to gift transactions. The case originated from a gift deed dated July 17, 2018, executed by Inter Mission Industrial Development Association in favour of the petitioner society.
Procedural Delays and Arguments
Case records revealed that the deed was presented before the sub-registrar in Vikas Nagar, registration fees were deposited, and a receipt was issued. However, the society claimed that the document was neither returned nor acted upon conclusively for over two years, despite complaints and Right to Information (RTI) applications. The society argued that Section 154 primarily restricts sale transactions and does not apply to gratuitous transfers such as gifts. It further contended that even if the provision applies, authorities must follow the statutory procedure instead of withholding the document indefinitely.
The state government opposed the plea, maintaining that Section 154 covers all forms of transfer, including gifts. It argued that prior sanction was mandatory because the land was being transferred to a society for non-agricultural purposes.
Court's Interpretation and Ruling
The High Court accepted the state's interpretation. Referring to Sections 5 and 122 of the Transfer of Property Act, the court held that a gift is plainly a transfer of property. It also noted that Section 154(1) expressly uses the words "sale or gift," making it clear that both forms of transfer fall under the restriction. The court held that the exemption allowing purchase of up to 250 square metres without permission applies only to individuals for residential purposes and not to societies. Since the society had not obtained prior sanction from the state government, the transaction could not be sustained in law.
Direction to Sub-Registrar
While refusing to issue a mandamus for registration, the court directed the sub-registrar to act under Section 154(5) within 15 days by referring the matter to the Collector of Dehradun for determination in accordance with law. The court also faulted the sub-registrar for keeping the document pending for more than two years without registering it, formally refusing it, or referring it to the competent authority.
