Has the High Court clarified that sale deeds executed on forged life certificates must be quashed and removed from the register under the Registration Act?

Madurai Bench upholds purposive interpretation of the life-certificate Circular, distinguishes the narrow view in M/s. Arihabt Foundations & Housing Ltd., and holds that registering officers must verify the principal’s signature under Sections 32–35; binding on registration authorities and persuasive in future property disputes.

 

Summary

Category Data
Case Name WP(MD)/8998/2025 of Jayanth Rhenius Vs The District Registrar
CNR HCMD010393182025
Decision Date 19-08-2025
Disposal Nature ALLOWED
Judgment Author Honourable Mrs Justice S. Srimathy
Court Madras High Court
Bench Madurai Bench
Overrules / Affirms Distinguishes M/s. Arihabt Foundations & Housing Ltd. v. State of Tamil Nadu (21.02.2025)
Type of Law Registration Act, 1908 / Writ under Article 226
Questions of Law
  • Can a sale deed executed by an agent under a forged life certificate be set aside?
  • Is the registering officer obliged to verify the signature in the life certificate?
  • How should the life-certificate Circular be interpreted?
Ratio Decidendi

The Court held that a life certificate unsigned by the principal—proved forged by forensic report—vitiates the sale deed as fraud “vitiates everything.” A purposive interpretation of the Registration Department’s Circular requires the principal’s signature on the life certificate to protect against fraud. Registering officers, under Sections 32–35, must compare the life-certificate signature with the power-of-attorney and may not register deeds based on clearly forged certificates. Sale deeds executed on that basis must be quashed and entries removed.

Judgments Relied Upon
  • Order in W.P. 4780, 4782 & 4784 of 2025 (M/s. Arihabt Foundations & Housing Ltd. v. State of Tamil Nadu and others)
  • Order in Ozone Homes Primate Ltd.
Logic / Jurisprudence / Authorities Relied Upon by the Court
  • “Fraud vitiates everything.”
  • Purposive interpretation of the life-certificate Circular to protect principals.
  • Mandatory duties under Sections 32–35 of the Registration Act to examine authorizations and signatures.
Facts as Summarised by the Court

Petitioner granted a general power of attorney in 2010 to the 3rd respondent. That agent registered two sale deeds in 2024 by submitting a forged life certificate. A forensic report in anticipatory-bail proceedings confirmed the forgery. The sub-Registrar had failed to verify the signature and registered the deeds. The High Court quashed the two sale deeds and directed removal of entries.

Practical Impact

Category Impact
Overrules The narrow interpretation in M/s. Arihabt Foundations & Housing Ltd. (21.02.2025) is distinguished.
Distinguishes The approach in Ozone Homes Primate Ltd. is distinguished for failing to require signature verification of life certificates.

What’s New / What Lawyers Should Note

  • A forged or unsigned life certificate—even if the principal is alive—vitiates the sale deed as fraud.
  • Registering officers must compare the life-certificate signature with the power-of-attorney and may not register deeds on the face of forgery.
  • A purposive interpretation of the Registration Department’s Circular safeguards the principal’s interest against agent-fraud.
  • Sale deeds executed by agents on forged life certificates are liable to be quashed and entries removed under Article 226.

Summary of Legal Reasoning

  1. The life certificate submitted to register the 2024 sale deeds was proved forged by forensic analysis; fraud vitiates everything.
  2. The Registration Department’s Circular mandating a life certificate aims to confirm the principal’s continued existence and proscribe fraud; its purposive interpretation mandates the principal’s signature.
  3. Earlier High Court orders (e.g., Arihabt Foundations) adopting a narrow scope are distinguished: the Circular must protect against misuse by agents.
  4. Under Sections 32–35 of the Registration Act, registering officers have a primary duty to examine authorizations and verify signatures on life certificates against the power-of-attorney.
  5. Sale deeds based on forgery must be set aside; the High Court quashed the deeds and ordered removal of entries from the register and encumbrance certificates.

Arguments by the Parties

Petitioner (Jayanth Rhenius)

  • The 3rd respondent executed sale deeds using a forged life certificate that lacked the principal’s signature.
  • The sub-Registrar failed to verify the life-certificate signature or notice of cancellation of the power of attorney.
  • Sale deeds based on forgery must be declared void and quashed.

Respondents 1 & 2 (District Registrar & Sub-Registrar)

  • The documents appeared complete and were presented by a competent agent under a subsisting power of attorney.
  • Registering officers have no authority to conduct forensic verification absent apparent irregularity.
  • Once registered, deeds cannot be cancelled by the registering authority; only courts may set them aside after proof.

Respondent 3 (Agent / 3rd Respondent)

  • He is a formal party with no personal gain; disputes over life certificates pertain to third parties (Dhanapal, Ezhancheziyan).
  • Earlier sales (2018) without principal’s signature were undisputed, suggesting petitioner’s collusion.
  • Criminal investigation should cover all transactions; the writ petition is premature.

Factual Background

Jayanth Rhenius granted a general power of attorney to Respondent 3 in November 2010. The agent executed sale deeds in April and December 2018 and July 2024 without obtaining the principal’s signature on mandatory life certificates. A forensic report, obtained during anticipatory-bail proceedings, confirmed the 2024 life-certificate signature was forged. The petitioner revoked the power of attorney, lodged an FIR, and challenged registration of the 2024 sale deeds by writ petition under Article 226.

Statutory Analysis

  • Sections 32–35, Registration Act, 1908: impose duties on registering officers to examine documents, verify that they are executed by competent persons, and inspect authorizations.
  • Registration Department Circular on life certificates: requires production of a life certificate signed by the principal to ensure the agent’s power remains subsisting.
  • The Court adopts a purposive construction of the Circular to prevent agent fraud, rejecting any interpretation that permits registration without signature verification.

Alert Indicators

  • 🚨 Breaking Precedent – Narrows and rejects the narrow view in Arihabt Foundations by imposing mandatory signature verification on life certificates.
  • ✔ Precedent Followed – Affirms that “fraud vitiates everything” as a universal maxim affecting property registrations.

Leave a Reply

Your email address will not be published. Required fields are marked *

Recent Comments

No comments to show.