A document to be registered, if not registered, is not admissible as evidence under Section 49 of the Registration Act. However, this unregistered document may be used as evidence of a secondary purpose, as provided for in section 49 of the Registration Act. A secondary transaction must be independent or divisible from the transaction that the law requires for registration. A guarantee transaction must be a transaction that should not be carried out by a registered document, i.e. a transaction that creates a right, title or interest in real estate worth one hundred rupees or more. If a document is inadmissible because of the lack of registration, none of its conditions can be admitted as evidence and the use of a document to prove an important clause would not be used as a secondary object. A document to be registered, if not registered, may be admitted as proof of a contract in a legal action for a given benefit. “11. The main provision of Section 49 provides that any document that must be registered if it is not registered will not affect any property contained in it and that this document will not be considered evidence of a transaction relating to that property. Proviso would, however, demonstrate that an unregord document, which relates to real estate and is required to register under the 1908 Act or the Transfer of Ownership Act of 1882, may be received as proof of the contract in a lawsuit for a specified benefit or as evidence of a guarantee that should not be made with the registered deed. Provided that an unregistered sale benefit of a property worth 100/plus can be admitted as proof of a contract in a legal action for the practical performance of the contract. Such an unreged deed of sale may also be admitted as evidence of a guarantee that should not be carried out through a registered document.
Where an unregant deed of sale is not proposed as evidence of a completed sale, but as evidence of an oral sale agreement, the deed may be considered as evidence that it will only be received as evidence of a verbal sale agreement, in accordance with Section 49 of the 1908 Act.