Samiullah vs The State of Bihar & Ors.

Held: : Impugned sub-rules are ultra vires the rule making power u/s.69 of the Act – As the said sub-rules tilt the balance and empower the registering authorities to produce collateral evidence of title to the property as a pre-condition for registration, such a measure, through subordinate legislation, is against the purpose and object of the Act – Requirement under the impugned sub-rules is arbitrary as the process of mutation and its certification is uncertain and virtually unavailable in near future, as the Bihar Mutation Act, 2011 and the Bihar Special Survey and Settlement Act, 2011 are said to be nowhere near implementation – Intention of the State to synchronize the registrable document with real time land holding is appreciated, there is a big missing link given that the process of mutation and the process of survey and settlement are nowhere near completion – Under these circumstances and considering the nascent stage at which the empirical data is translated as mutation into the relevant records and the fact that for this purpose survey and settlement are to be conducted, interlinking and restraining registration till the jamabandi or holding allotment is effected would be illegal, as it has a direct impact on the right and freedom to purchase and sell property – Requirement of rules, regulations or even law that impedes or restrains easy and effective transfer of property will be illegal as it has the direct effect of ‘depriving of property’ to that extent, and such delays, caused due to unreasonable and arbitrary restrictions, impinge the right to hold and dispose of property – Thus, the prescription of mentioning and production of jamabandi allotment or holding allotment as a pre-condition for registration of a legally presented document under impugned sub-rules 19 (xvii) and

(xviii) is arbitrary and illegal and as such, liable to be set aside – Judgment and order passed by the High Court set aside and the Notification introducing r.19 (xvii) and (xviii) quashed – Registration Act, 1908 – s.69(1)(a)(aa). [Paras 2, 25, 29, 38] Bihar Registration Rules, 2008 – r.19 (xvii) and (xviii) – Distinction between the sub-rules (i) to (xvi) and the subrules

(xvii) and (xviii) of r.19 of the 2008 Rules – Explained. [Paras 9-13]

Registration Act, 1908 – s.69 – Scope of rule-making power u/s.69 – Sourcing the rule-making power under other provisions of the Registration Act – Stated. [Paras 14-25] Transfer of Property Act, 1882 – Registration Act, 1908 – Stamp Act, 1899 – Dichotomy between registration and title – Existing legal structure – Problems relating to the legal structure – Explained. [Paras 30-33]

Property laws – Dichotomy between registration and ownership – Inefficiencies and vulnerabilities in recording the real-estate transactions – Measures adopted by the Government: Held: To modernize these transactions, the government adopted certain measures-Digital India Land Records Modernization Programme (DILRMP); National Generic Document Registration System (NGDRS) – However, if the original record is inaccurate, incomplete or subject to dispute, the digital version will simply perpetuate the flaw – Process of digitization does not by itself resolve the underlining title disputes or correct inaccuracies – Adoption of Blockchain technology would ensure immutability, transparency and traceability, thereby minimizing fraud and unauthorized alterations – Blockchain technology offers an alternative paradigm by encoding land titles, ownership histories, encumbrances, and by recording transfers on a Distributed Ledger in an immutable and time stamped form – Blockchain design could integrate cadastral maps, survey data, and revenue records into single verifiable framework, which, while maintaining a transparent audit trail, is accessible to multiple departments and the public – Registration of deeds being a concurrent list subject, Government of India must take lead in constituting a body, with the participation of the States, to examine the issue in light of the technological advancement for integrating the property registration regime with conclusive titling – Process may involve restructuring and reviewing the existing laws-Transfer of Property Act, 1882, Registration Act, 1908, Stamp Act, 1899, Evidence Act, 1872, Information Technology Act, 2000, Data Protection Act, 2023 and may require introduction of new laws for incorporating Blockchain technology – This will necessarily require establishing regulatory framework which institutionalizes processes with integrity and efficiency – Thus, Law Commission to examine the issue, consult the Union, the States and all other stakeholders as well as experts in the field of information and technology, and prepare report on the issue. [Paras 34-37]