Upload
manu-j-plamootil
View
212
Download
0
Embed Size (px)
DESCRIPTION
TP
Citation preview
10/5/2015 Lawyersclubindia Article : Sale of Immovable Property : Latest Judgment
http://www.lawyersclubindia.com/articles/print_this_page.asp?article_id=4105 1/3
Sale of Immovable Property : Latest Judgment
Sale of Immovable Property : Latest Judgment
I am referring the latest judgment of Supreme Court on the burning issue of transfer of property by wayof General Power of Attorney (GPA) / Sale agreement (SA) or Sale contract/ WILL.
This judgment is passed by Hon’ble Justice R.V. Raveendran , Justice A.K. Patnaik & H.L.Ghokhle, inSpecial leave Petition of Suraj Lamp & Industries Vs. State of Haryana, decided on 11th October 2011.
This Judgment is very useful to learn the basics of transfer of property and create awareness amongmasses in simple language.
Crux of the finding are as follows :
1) Transfer of property by way of Sale Agreement / General Power of Attorney/ WILL does not conveyany title nor create any interest in an immovable property. These document does not convey and lawfultitle.
2) Immovable property can be legally and lawfully transferred / conveyed only by a registered deed ofconveyance.
3) Such records like GPA/Sale Agreements/Will does not from any basis for Mutation in the municipalrecords and authorities should take a caution before mutation upon such documents.
4) Transfer of property by way of WILL would also not give much scope to purchaser until the same isnot proved in accordance of settled procedure of law and get a proper endorsement of the court. Theregistration of Will does not alter the situation as well.
5) Court has made it clear that if any development authority or municipal authority has accepted thesedocument for mutation purpose than same should not be disturbed due to this decision.
10/5/2015 Lawyersclubindia Article : Sale of Immovable Property : Latest Judgment
http://www.lawyersclubindia.com/articles/print_this_page.asp?article_id=4105 2/3
6) Court has clarified that bonafide transaction should also not be disturbed.
Relevant Legal Provisions in respect of registration of property document :
1) Registration Act, 1908 by Amendment Act 48 of 2001 has made the provision that documentscontaining contract of transfer for consideration (Sale agreement) relating to any immovable propertyshould be registered.
2) Section 32 (3) of Registration Act,, 1908 has specific provision that a POA for sale of immovableproperty should also be registered with registrar or sub registrar of relevant jurisdiction.
3) Section 54 of the Transfer of Property Act, 1882 defines that any property of more than 100 Rupeesvalue can be transfer by a Registered deed only.
4) Section 53 A of Transfer of Property Act, 1882 speaks about the part performance of the a writtencontract where seller has handed over the possession of property to buyer but the deed is not registeredthen the possession holder can enjoy the limited rights of the property but the this section read with latestamendment of Registration Act under section 17 (i(A)) which says that document containing contracts totransfer for consideration , any immovable property for the purpose of Section 53 A of Transfer ofProperty Act shall be registered otherwise such document if executed after 2001 shall have no effect forthe purpose of part performance secured under section 53 A of TP act.
5) Section 27 of Indian Stamp Act lays down the obligation to pay eligible stamp duty on the conveyancedeed. Article 23 of Stamp Act lays down the sale acknowledging delivery of the possession or power ofattorney authorize to sell any immovable property are charged with sale duty as leviable on conveyances.
Benefits of Registration :
Registration of a document gives notice to the world that such a document has been executed.
Registration provides safety and security to transactions relating to immovable property, even if thedocuments is lost or destroyed.
It gives the public exposure to a property transaction.
10/5/2015 Lawyersclubindia Article : Sale of Immovable Property : Latest Judgment
http://www.lawyersclubindia.com/articles/print_this_page.asp?article_id=4105 3/3
Gives information to about the property to people dealing with that.
Makes the property title search easier.
(Other Cases of reference : Narandas Karsonda V. S.A. Kamtam And Anr. (1977) 3 SCC 247.Rambaran Prosad V. Ram Mohit Hazar (1967)1 SCR 293. )
By:
Ambrish Tiwari
MBA, LLB.
Source :