Usually, under the provisions of Section 49 of the Registration Act, an unregistered document relating to an immovable property cannot be taken in evidence and cannot affect any right relating to that property.
However, there is an exception in the Proviso to Section 49 where an unregistered document is allowed to be taken in evidence in a suit for specific performance.
So, to that extent, the agreement on the stamp paper is valid, and you may have to file a suit for specific performance under the provisions of the Specific Relief Act. Consult a local lawyer for more details.
It is not clear whether the part payment of ₹ 9 lakh was made in cash or by cheque / demand-draft or online transfer. If such part payment was made in cash, then it is hoped that you would have shown this payment in your accounts and in Income Tax Returns, if required to be done. Otherwise, there could be tax complications.
There are also certain restrictions on the receipt of cash payment beyond a limit. In particular, since 1 April 2017, a payment of more than ₹ 2 lakh in cash is prohibited under Section 269-ST of the Income Tax Act.
Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.
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