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Lawyersclubindia Article - Sale of Immovable Property - Latest Judgment

The Supreme Court ruled that the transfer of immovable property must be done through a registered deed of conveyance, and cannot be validly transferred by a general power of attorney, sale agreement, or will. The court clarified that municipal authorities should not accept mutations based solely on these documents, though existing mutations should not be disturbed. Only a registered deed of conveyance will lawfully transfer title to immovable property under the Registration Act and Transfer of Property Act.

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Manu J Plamootil
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153 views3 pages

Lawyersclubindia Article - Sale of Immovable Property - Latest Judgment

The Supreme Court ruled that the transfer of immovable property must be done through a registered deed of conveyance, and cannot be validly transferred by a general power of attorney, sale agreement, or will. The court clarified that municipal authorities should not accept mutations based solely on these documents, though existing mutations should not be disturbed. Only a registered deed of conveyance will lawfully transfer title to immovable property under the Registration Act and Transfer of Property Act.

Uploaded by

Manu J Plamootil
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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10/5/2015

LawyersclubindiaArticle:SaleofImmovableProperty:LatestJudgment

SaleofImmovableProperty:LatestJudgment
SaleofImmovableProperty:LatestJudgment

IamreferringthelatestjudgmentofSupremeCourtontheburningissueoftransferofpropertybyway
ofGeneralPowerofAttorney(GPA)/Saleagreement(SA)orSalecontract/WILL.

ThisjudgmentispassedbyHonbleJusticeR.V.Raveendran,JusticeA.K.Patnaik&H.L.Ghokhle,in
SpecialleavePetitionofSurajLamp&IndustriesVs.StateofHaryana,decidedon11thOctober2011.

ThisJudgmentisveryusefultolearnthebasicsoftransferofpropertyandcreateawarenessamong
massesinsimplelanguage.

Cruxofthefindingareasfollows:

1)TransferofpropertybywayofSaleAgreement/GeneralPowerofAttorney/WILLdoesnotconvey
anytitlenorcreateanyinterestinanimmovableproperty.Thesedocumentdoesnotconveyandlawful
title.

2)Immovablepropertycanbelegallyandlawfullytransferred/conveyedonlybyaregistereddeedof
conveyance.

3)SuchrecordslikeGPA/SaleAgreements/WilldoesnotfromanybasisforMutationinthemunicipal
recordsandauthoritiesshouldtakeacautionbeforemutationuponsuchdocuments.

4)TransferofpropertybywayofWILLwouldalsonotgivemuchscopetopurchaseruntilthesameis
notprovedinaccordanceofsettledprocedureoflawandgetaproperendorsementofthecourt.The
registrationofWilldoesnotalterthesituationaswell.

5)Courthasmadeitclearthatifanydevelopmentauthorityormunicipalauthorityhasacceptedthese
documentformutationpurposethansameshouldnotbedisturbedduetothisdecision.
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10/5/2015

LawyersclubindiaArticle:SaleofImmovableProperty:LatestJudgment

6)Courthasclarifiedthatbonafidetransactionshouldalsonotbedisturbed.

RelevantLegalProvisionsinrespectofregistrationofpropertydocument:

1)RegistrationAct,1908byAmendmentAct48of2001hasmadetheprovisionthatdocuments
containingcontractoftransferforconsideration(Saleagreement)relatingtoanyimmovableproperty
shouldberegistered.

2)Section32(3)ofRegistrationAct,,1908hasspecificprovisionthataPOAforsaleofimmovable
propertyshouldalsoberegisteredwithregistrarorsubregistrarofrelevantjurisdiction.

3)Section54oftheTransferofPropertyAct,1882definesthatanypropertyofmorethan100Rupees
valuecanbetransferbyaRegistereddeedonly.

4)Section53AofTransferofPropertyAct,1882speaksaboutthepartperformanceoftheawritten
contractwheresellerhashandedoverthepossessionofpropertytobuyerbutthedeedisnotregistered
thenthepossessionholdercanenjoythelimitedrightsofthepropertybutthethissectionreadwithlatest
amendmentofRegistrationActundersection17(i(A))whichsaysthatdocumentcontainingcontractsto
transferforconsideration,anyimmovablepropertyforthepurposeofSection53AofTransferof
PropertyActshallberegisteredotherwisesuchdocumentifexecutedafter2001shallhavenoeffectfor
thepurposeofpartperformancesecuredundersection53AofTPact.

5)Section27ofIndianStampActlaysdowntheobligationtopayeligiblestampdutyontheconveyance
deed.Article23ofStampActlaysdownthesaleacknowledgingdeliveryofthepossessionorpowerof
attorneyauthorizetosellanyimmovablepropertyarechargedwithsaledutyasleviableonconveyances.

BenefitsofRegistration:

Registrationofadocumentgivesnoticetotheworldthatsuchadocumenthasbeenexecuted.
Registrationprovidessafetyandsecuritytotransactionsrelatingtoimmovableproperty,evenifthe
documentsislostordestroyed.
Itgivesthepublicexposuretoapropertytransaction.
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LawyersclubindiaArticle:SaleofImmovableProperty:LatestJudgment

Givesinformationtoaboutthepropertytopeopledealingwiththat.
Makesthepropertytitlesearcheasier.

(OtherCasesofreference:NarandasKarsondaV.S.A.KamtamAndAnr.(1977)3SCC247.
RambaranProsadV.RamMohitHazar(1967)1SCR293.)

By:
AmbrishTiwari
MBA,LLB.

Source:

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