All NotesCivil LawLaw of Registration

Law of Registration

REG 056 Registration and Notarisation

Registration and Notarisation Distinguished: The Notaries Act, 1952, What a Notarised Document Proves, and Why a Notarised Sale Deed Transfers Nothing

A notary verifies; a registering officer records. That single sentence answers most of the questions in this area, and it explains the mistake that makes the subject worth a note of its own: the belief that a document can be "notarised instead of registered", which is how a good many people in India have parted with money for a piece of paper that transfers nothing. Notarisation is not a cheaper or faster registration. It is a different act, under a different statute, producing a different result. Where the law requires registration, nothing but registration will do.

The two acts compared, and the single provision under which a notary enters the Registration Act

1. What a Notary Is and What He Does

Sections 3 and 8, Notaries Act, 1952, in substance

3. Appointment of notaries. The Central Government, for the whole or any part of India, and any State Government, for the whole or any part of the State, may appoint as notaries any legal practitioners or other persons who possess such qualifications as may be prescribed.

8(1). Functions of notaries. A notary may do all or any of the following acts by virtue of his office, namely: (a) verify, authenticate, certify or attest the execution of any instrument; (b) present any promissory note, hundi or bill of exchange for acceptance or payment, or demand better security; (c) note or protest the dishonour by non acceptance or non payment of any promissory note, hundi or bill of exchange, or protest for better security or for non acceptance, and prepare acts of honour; (d) note and draw up ship's protest, boat's protest or protest relating to demurrage and other commercial matters; (e) administer oath to, or take affidavit from, any person; (f) prepare, attest or authenticate any instrument intended to take effect in any country or place outside India in such form and language as may conform to the law of that place; (g) translate, and verify the translation of, any document from one language into another; (h) act as a Commissioner to record evidence in any civil or criminal trial if so directed by any court or authority; (i) act as an arbitrator, mediator or conciliator, if so required.

Section 13 makes it an offence for a person not appointed as a notary to practise as such or to use the designation.

  • A notary keeps a register of his own acts, under the rules made under the Act, and affixes his seal and signature. That register is his record, not a public register of the instrument.
  • His function under clause (a) is to verify, authenticate, certify or attest the execution. He satisfies himself that the person before him is who he says he is and that he signed, and he certifies it.
  • He does not copy the document into any public book, and nobody can search for it afterwards.
  • He makes no enquiry into title, consideration or legality, and neither does a registering officer; but the registering officer at least puts the document on a searchable public record, and the notary does not.

2. The Two Acts Compared

Notarisation

Registration

The statute

Notaries Act, 1952

Registration Act, 1908

The officer

A notary appointed under Section 3, ordinarily a practising advocate

A Registrar or Sub Registrar appointed under Sections 6 and 7

What he does

Verifies, authenticates, certifies or attests the execution; administers oaths; notes protests

Receives the document on presentation, enquires into execution and identity, endorses, certifies and copies it into the register

The record produced

An entry in the notary's own register, and a seal and signature on the document

A copy in Book 1 under Section 51, with entries in the indexes under Sections 55 and 56

Public access

None. There is no public search

Books 1 and 2 and the indexes are open to inspection, and copies are given, Section 57

Notice to the world

None. A search discloses nothing

Constructive notice from the date of registration, Explanation I to Section 3 of the Transfer of Property Act

Does it satisfy Section 17?

No

Yes; that is what Section 17 requires

Stamp duty

Payable in the ordinary way; notarisation neither imposes nor excuses it

Payable in the ordinary way; the officer must impound an understamped instrument under Section 33 of the Stamp Act

Cost and time

Small and immediate

Ad valorem duty and a fee, and an appointment

3. Why a Notarised Sale Deed Transfers Nothing

The reasoning is short and admits of no exception. Section 54 of the Transfer of Property Act, 1882 provides that a sale of tangible immovable property of the value of one hundred rupees and upwards can be made only by a registered instrument. Section 17(1)(b) of the Registration Act requires such an instrument to be registered. Section 49 provides that a document required to be registered shall not affect the property or be received as evidence of the transaction unless it has been registered. A notary's seal satisfies none of these provisions, because notarisation is not registration.

1. The ownership does not pass. The vendor remains the owner, whatever the notarised document recites and whatever the purchaser paid.

2. The document is not evidence of the sale. Section 49(c) shuts it out.

3. The purchaser cannot deal with the property as owner. He cannot sell it, cannot mortgage it as owner, and cannot sue a third party as owner.

4. No mutation follows. The revenue office will not correct the record on a notarised paper, because mutation follows a registered deed.

5. A later purchaser takes free of it. There is nothing on the register for him to find, so he cannot be fixed with constructive notice, and if he registers first he takes priority under Sections 48 and 50.

6. What the purchaser does have is a contractual claim. The notarised document may be read under the proviso to Section 49 as evidence of a contract in a suit for specific performance, and may support a plea of part performance under Section 53A if its conditions are met and Section 17(1A) does not defeat it. Those are real rights, but they are rights against the vendor and not rights in the land.

⚠ Notarisation on stamp paper is not a substitute either

The common arrangement is a document typed on stamp paper of a small denomination, signed by both parties, and notarised. Each element of it is doing something other than what the parties believe. The stamp paper discharges a duty obligation only to the extent of its value, so the document is in fact understamped and inadmissible for any purpose under Section 35 of the Indian Stamp Act, 1899 until the deficit and penalty are paid. The notary's seal certifies execution and nothing more. And the absence of registration means the transfer never happened. The purchaser is left with a contractual claim that must be enforced within three years under Article 54 of the Limitation Act, 1963, and that is frequently discovered long after the period has run.

4. What Notarisation Is Actually Good For

The document

Is notarisation enough?

Why

An affidavit

Yes

The notary administers the oath under Section 8(1)(e); no registration is contemplated

A declaration or undertaking

Yes, unless it deals with immovable property within Section 17

It creates no right in immovable property

A translation

Yes

Section 8(1)(g) authorises the notary to translate and verify the translation

Protest of a bill of exchange

Yes

Sections 8(1)(b) to (d) are the notary's classic commercial functions

An agreement to sell

Usually, but it is not registration

It creates no interest in the property; but Section 17(1A) applies where Section 53A is relied on

A rent agreement for eleven months at a monthly rent

Yes

It falls in the second paragraph of Section 107 and needs no registration at all

A sale deed

No

Section 54 and Section 17(1)(b) require a registered instrument

A gift deed

No

Section 123 requires a registered and attested instrument

A mortgage above Rs. 100

No

Section 59 requires a registered and attested instrument

A lease exceeding one year

No

Section 107 and Section 17(1)(d) require registration

A will

Not required; registration is itself optional

Sections 17(2)(b) and 18(e); what matters is execution and attestation under Section 63 of the Succession Act

The pattern is consistent. Notarisation is enough where nothing needs to be registered, and is never enough where something does. It adds a layer of evidence of execution to a document that the law does not require to be registered, and that is its proper use.

5. The One Place a Notary Enters the Registration Act

Section 33(1)(c), Registration Act, 1908

33(1). For the purposes of section 32, the following powers of attorney shall alone be recognised: (c) if the principal at the time aforesaid does not reside in India, a power of attorney executed before and authenticated by a Notary Public, or any Court, Judge, Magistrate, Indian Consul or Vice Consul, or representative of the Central Government.

1. This is the only provision of the Registration Act that mentions a notary, and it is about authentication, not registration.

2. It operates where the principal does not reside in India. A power executed abroad and authenticated by a Notary Public there is recognised for the purposes of Section 32(c), so that the agent may present a document for registration in India.

3. Where the principal resides in India, the power must be executed before and authenticated by the Registrar or Sub Registrar within whose district he resides, under Section 33(1)(a). A notary will not do in that case.

4. Section 84 of the Bharatiya Sakshya Adhiniyam, 2023, corresponding to Section 85 of the Indian Evidence Act, 1872, provides that the Court shall presume that every document purporting to be a power of attorney, and to have been executed before and authenticated by a Notary Public or any of the officers named, was so executed and authenticated.

5. The presumption is as to execution and authentication only. It does not presume that the contents are true, that the principal had capacity, or that the authority extends to the act done.

6. The Diplomatic and Consular Officers (Oaths and Fees) Act, 1948 separately empowers Indian diplomatic and consular officers abroad to do notarial acts, and a power authenticated by such an officer falls within Section 33(1)(c).

6. Notarisation, Attestation and Authentication

Attestation

Notarisation

Authentication under Section 33

The source

Section 3 of the Transfer of Property Act, with Sections 123 and 59, and Section 63 of the Succession Act

Section 8(1)(a) of the Notaries Act, 1952

Section 33 of the Registration Act, read with Section 32(c)

Who performs it

Two or more private witnesses

A notary appointed under Section 3

The Registrar or Sub Registrar, or a Magistrate, Notary, Court, Judge, Indian Consul or Vice Consul, or representative of the Central Government, according to where the principal resides

What it certifies

That the witness saw the execution, or received a personal acknowledgment

That the execution was verified before the notary

That the power of attorney was executed before the officer

Which documents

Gift, mortgage and will

Any instrument the parties bring

A power of attorney, and only for the purposes of Section 32

Effect if missing

The instrument is bad, where the law requires attestation

None, unless some other law requires notarisation

The agent cannot present the document, and registration on his presentation is open to attack

7. Why the Confusion Arises

  • Both produce a stamped and sealed paper, and to a layman the notary's seal looks like the sort of thing an official does to a document.
  • Both involve a person in a professional office. A notary is ordinarily a practising advocate, and the setting resembles a public office.
  • Notarisation is immediate and cheap, and registration is neither. Ad valorem duty on a conveyance is a substantial sum, and the incentive to avoid it is exactly what produces the notarised "sale deed".
  • Some documents genuinely need nothing more. An affidavit, a translation, an eleven month rent agreement and a declaration are complete when notarised, which makes it seem as though notarisation completes documents generally.
  • The vocabulary overlaps. The Notaries Act uses the word "attest" in Section 8(1)(a), and the Registration Act uses "authenticate" in Section 33, and neither word bears its ordinary meaning in the other statute.

8. The Position Stated Shortly

1. A notary is appointed under Section 3 of the Notaries Act, 1952, and his functions are listed in Section 8: verifying and attesting execution, administering oaths and taking affidavits, noting and protesting bills, translating, and the rest.

2. A registering officer receives a document on presentation, enquires into execution and identity, endorses and certifies it, and copies it into a public register.

3. A notary keeps his own register; nothing goes on a public record and no search will disclose the document.

4. Notarisation gives no constructive notice; registration does, from the date of registration.

5. A notarised sale deed of immovable property transfers nothing, because Section 54 of the Transfer of Property Act and Section 17(1)(b) require a registered instrument and Section 49 shuts the document out.

6. What the purchaser retains is a contractual claim, admissible under the proviso to Section 49 and enforceable within three years under Article 54 of the Limitation Act, 1963.

7. Notarisation is enough only where nothing needs to be registered: affidavits, declarations, translations, protests, and short leases within the second paragraph of Section 107.

8. The only place a notary appears in the Registration Act is Section 33(1)(c), where a power of attorney executed abroad by a principal not residing in India may be authenticated by a Notary Public.

9. Section 84 of the Bharatiya Sakshya Adhiniyam, 2023 presumes that such a power was executed and authenticated as it purports to have been, and nothing beyond that.

10. Attestation, notarisation and authentication are three different acts, under three different statutes, and none of them is registration.