Compromise Decree Comprising of Immovable Property Other Than That Which is subject matter of Suit or Proceeding – Requires Registration

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. Thus, by virtue of sub-section 2(vi) of Section 17 any decree or order of a court does not require registration. In sub-clause (vi) of sub-section 2, one category is excepted from sub-clause (vi), 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. Thus, by conjointly reading Section 17(1)(b) and Section 17(2)(vi), it is clear that a compromise decree comprising immovable property other than which is the subject matter, of the suit or proceeding requires registration, although any decree or order of a court is exempted from registration by virtue of Section 17(2)(vi). Mohd. Yusuf v. Rajkumar, (2020) 10 SCC 264.

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