DINA JI V. DADDI (1990) 1 SCC 1 : AIR 1990 SC 1153

DINA JI V. DADDI (1990) 1 SCC 1 : AIR 1990 SC 1153

FACTS

The appellant filed a suit for injunction and possession based on a registered sale deed dated April 28, 1966, executed by Smt. Yashoda Bai in his favor. The deed included immovable property like agricultural lands and houses.
Smt. Yashoda Bai initially had limited ownership of the property, which she inherited from her husband. With the passage of time and the enactment of the Hindu Succession Act, she became the absolute owner.
On April 28, 1963, she adopted respondent Nain Singh as her son through a document claimed to be the Deed of Adoption. This document wasn't registered but was admitted in evidence by the trial court.
The adoption document included a covenant stating that after adoption, the adopted son would be entitled to the entire property, and Smt. Yashoda Bai would have no right to alienate any part of it.
Trial Court ruled the deed is unregistered therefore, inadmissible.
The High Court ruled that Smt. Yashoda Bai relinquished her rights in the property through the adoption deed, thereby depriving herself of the right to transfer the property to the appellant. Second appeal was also rejected.
Present appeal beforeSC is against the HC judgment.
The appellant argued that while the document could be admitted as evidence of adoption, the part relinquishing rights would be invalid under Section 17(1)(b) of the Indian Registration Act if not registered.

ISSUE

Whether the covenant in the adoption deed, relinquishing Smt. Yashoda Bai's rights in the property and conferring them on the adopted son, is legally valid and enforceable.

RULE

Section 17(1)(b) of the Registration Act clearly provides that such a document where any right in movable property is either assigned or extinguished will require registration.

HELD

Section 12 of the Hindu Adoptions and Maintenance Act deals with the effects of adoption.
Proviso (c) of Section 12 states that the adopted child cannot divest any person of any estate that vested in him or her before the adoption.
Section 13 of the Hindu Adoptions and Maintenance Act grants adoptive parents the right to dispose of their properties, subject to any contrary agreement.
The High Court failed to consider the requirement of registration u/s 17(1)(b) of the Act for the part of the deed dealing with relinquishment of rights, leading to an incorrect decision.
The appeal was allowed, and the judgments of the High Court and the lower appellate court were set aside.
The trial court's decision was restored, as the adoption deed's clause relinquishing rights couldn't be admitted in evidence due to lack of registration.