Supreme Court Invalidates Property Title Based on GPA, Agreement to Sell, and Will
The Supreme Court of India clarifies property transfer laws, emphasizing the necessity of a registered sale deed for valid ownership.
New Delhi, September 1, 2025 - In a significant decision, the Supreme Court of India has ruled that an Agreement to Sell, General Power of Attorney, Receipt, and even a registered Will cannot confer a valid title to immovable property unless accompanied by a registered sale deed. This ruling came in the case of Ramesh Chand (D) v. Suresh Chand.
The appellants, legal representatives of the deceased Ramesh Chand, challenged the decision of the Delhi High Court which had upheld the decree of possession in favor of the plaintiff, Suresh Chand, based on an Agreement to Sell, GPA, and a Will allegedly executed by their father, Kundan Lal. The Supreme Court, comprising Justices Aravind Kumar and Sandeep Mehta, set aside the lower court's judgment, reinforcing the legal principle that a registered sale deed is paramount for transferring ownership of immovable property.
Key Points from the Judgment:
1. Transfer of Property Act, 1882: The court reiterated that as per Sections 53A and 54 of the Act, only a registered sale deed can confer valid title to immovable property. An Agreement to Sell does not create any interest or charge on the property, merely providing a right to seek specific performance.
2. General Power of Attorney: The judgment clarified that a GPA is merely an instrument of agency and cannot constitute a transfer of ownership or title. It does not change the character of the property unless coupled with a registered deed.
3. Will and Succession: The court emphasized that a Will requires strict proof, including the examination of attesting witnesses, to be considered valid. Mere registration does not validate a Will, especially under suspicious circumstances.
4. Doctrine of Part Performance: The court ruled that Section 53A of the TP Act, which allows a transferee to protect their possession against a transferor, is not applicable if the transferee is not in possession of the property.
5. Protection of Bona Fide Purchasers: The rights of bona fide purchasers of portions of the property must be protected proportionately, ensuring that legal heirs' succession rights are upheld in the absence of a valid conveyance.
Impact on Property Transactions:
This judgment serves as a crucial reminder for individuals engaging in property transactions to ensure all legal formalities are meticulously followed. The emphasis on a registered sale deed highlights the importance of adhering to statutory requirements to avoid disputes over property ownership.
Legal Community Reaction:
Legal experts have hailed the judgment as a reaffirmation of property laws, emphasizing the clarity it brings to property transactions. The ruling is expected to guide future cases involving property transfer disputes, reinforcing the necessity for compliance with statutory provisions.
Case Background:
The dispute arose when Suresh Chand claimed ownership of the property based on documents allegedly executed by his father, Kundan Lal. However, the absence of a registered sale deed led to the legal challenge, culminating in this pivotal Supreme Court decision.
This ruling significantly impacts property transactions in India, ensuring that property rights are secured through proper legal channels, thereby reducing the potential for fraudulent claims and disputes.
Ramesh Chand (D) v. Suresh Chand, (SC) : Law Finder Doc id # 2771618
