SANJANA ENTERPRISES Vs. GINNI STEELS

JUDGEMENT

(1.) THE respondent filed O. S. No. 57 of 2001 in the Court of I Additional chief Judge, City Civil Court, Secunderabad against the petitioners for recovery of about rs. 10,00,000/- on the strength of a khata, said to be existing between the parties. The trial of the suit commenced. During the course of his evidence, the respondent intended to rely upon a document dated 16. 8. 2001, through which the petitioners are said to have acknowledged the debt and provided for the arrangement to claim the same, in the event of default. The petitioners raised an objection as to the admissibility of the document. The objection was sustained. Thereupon, the respondent filed C. R. P. No. 3215 of 2007 before this Court. The c. R. P. was allowed on 21. 9. 2007 and the trial Court was directed to pass a reasoned order. It is in this context, that the trial court passed an order, dated 7. 3. 2008 after hearing both the parties. The learned Judge took the view that the document is more of an acknowledgment, than of any other character and accordingly, it is admissible in evidence. The same is challenged in this civil revision petition.

(2.) LEARNED Counsel for the petitioner submits that there is a clear recital in the document to the effect that in case the petitioners commit default, it shall be open to the respondent to sell the property and to adjust the sale proceeds and in that view of the matter, it was liable to be registered. According to him, the document cannot be received in evidence, since it was not registered.

(3.) LEARNED Counsel for the respondent on the other hand submits that the document does not fit into any category of transfers provided for under the Transfer of Property act and as such, it is not liable to be registered. He contends that the object of the document is to acknowledge the existing debt and to indicate the measures for clearance thereof.