LI Network
Published on: November 24, 2023 at 01:53 IST
The Supreme Court has recently affirmed that the title of immovable property cannot be transferred through an Agreement to Sell or a General Power of Attorney, whether registered or not.
Justices Vikram Nath and Rajesh Bindal clarified that, under the Registration Act, 1908, an unregistered Agreement to Sell or an unregistered General Power of Attorney does not confer any right, making it legally unenforceable in a court of law.
The court emphasized that even if these documents were registered, it wouldn’t imply that the holder acquired title to the property but might enable them to seek specific performance in appropriate legal proceedings.
The judgment reinforces the principles laid down in the 2011 case of Suraj Lamps & Industries Pvt. Ltd. vs. State of Haryana and Anr., which held that title transfer cannot occur through unregistered documents.
The court rejected arguments suggesting that the Suraj Lamps judgment applies prospectively, clarifying that it approves the existing provisions of the Registration Act and the Transfer of Property Act.
The case involved a suit for possession and mesne profits based on a Power of Attorney, an Agreement to Sell, an affidavit, and a will executed in favor of the respondent. The appellant contested the suit, claiming ownership of the property received as a gift. The Supreme Court allowed the appeal, noting that the respondent couldn’t maintain the suit based on unregistered documents, emphasizing that the respondent should have pursued a suit as an attorney for the true owner or landlord rather than relying on the unenforceable documents.
Case Title: SHAKEEL AHMED V. SYED AKHLAQ HUSSAIN, CIVIL APPEAL NO. 1598 OF 2023
