Sc ruling regarding propery sale not anymore by general power attorney[gpa]...
Baranidharan S
(Querist) 17 October 2011
This query is : Resolved
Dear,
I have clarification regarding the Supreme Court ruling for Property sale only through proper registration deed & not by General Power of attorney[GPA].
Do the above ruling applies to future Property sale only or also for any sale that took on earlier days ?
If it applicable for those sale that happened in past? Does it mean that property sale is void now?
Request your expert view regarding the above.
Regards,
Sailesh Kumar Shah
(Expert) 17 October 2011
Extract of Relevant part of judgement, as asked:-
"A person may enter into a development agreement with a land developer or builder for developing the land either by forming plots or by constructing apartment buildings and in that behalf execute an agreement of sale and grant a Power of Attorney empowering the developer to execute agreements of sale or conveyances in regard to individual plots of land or undivided shares in the land relating to apartments in favour of prospective purchasers. In several States, the execution of such development agreements and powers of attorney are already regulated by law and subjected to specific stamp duty. Our observations regarding ‘SA/GPA/WILL transactions’ are not intended to apply to such bonafide/genuine transactions."
Devajyoti Barman
(Expert) 17 October 2011
If you refer the particular decision you are relying upon then it would be helpful to go through the judgement itself and make the necessary comments.
Ravikant Soni
(Expert) 17 October 2011
its Suraj Lamp & Industries Pvt. Ltd. v. State of Haryana & Anr.
ajay sethi
(Expert) 17 October 2011
the judgement is propspective only and does not afafect transactions done prior to judgement pronounced by supreme court .
property sales are not void . if your relatives have given you power of attorney still transactions can be done through power of attorney .
R.Ramachandran
(Expert) 17 October 2011
The decision of the Supreme Court is very clear:
1. In those cases where the DDA or other Developmental Authorities or the Municipal or Revenue Authorities have already accepted the 'SA/GPA/WILL' transactions and effected mutation, THE SAME WILL NOT BE DISTURBED.
2. In those cases where possession of the property has also been given to the holder SA/GPA/WILL, in those cases, the SA/GPA/WILL holder can obtain 'specific performance' of the transaction based on such 'SA/GPA/WILL' to get their title complete.
3. In case no possession of the property has been given, but a person is only holding a SA/GPA/WILL, then that person can get the 'CONVEYANCE DEED' executed and Registered to get their title complete.
4. Supreme Court has made it very clear that by this decision, they have only drawn attention to and reiterated the well-settled legal position that 'SA/GPA/WILL' transactions are not 'transfer' or 'sales' and that such transactions cannot be treated as completed transfers or conveyances.
5. In view of the above, there is nothing 'prospective' or 'retrospective'.
6. The title in the case of those persons mentioned at situation (1) above is complete and they need not do anything further.
7. Those mentioned in situation (2) and (3) above have to take action as stated in the said paragraphs. If they fail to do, their title WILL NOT BE complete.
Baranidharan S
(Querist) 17 October 2011
Dear,
Thank you all for your prompt reply.
From the replies, i infer that "previous deal" happened through GPA won't be affected because of this ruling.
But this is still raises million dollar doubts/question because if we refer today's MINT MONEY" paper Pg No:15 under the topic "Did you know" they had mentioned the "impact of this ruling". From the impact inferred that it would affect the deals done in the past.
I had attached the paper extraction for your reference.
Regards,
P.S:
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And one thing i like to share you all is i am commoner,so there are possibilities that question doesn't make any sense to reply. So apologies for any annoying questions & request you all to clarify.
Raj Kumar Makkad
(Expert) 17 October 2011
The aforementioned judgment was posted me in LCI in judiciary section. You can visit thereon and can download entire judgment.
prabhakar singh
(Expert) 18 October 2011
judgement has not declared any thing new.
Sailesh Kumar Shah
(Expert) 18 October 2011
author : Baranidharan S
there is no attachement?
Baranidharan S
(Querist) 18 October 2011
Dear,
FYI!,
Attached the MINT Money paper cutting(82115_229461_x.pdf) about the analysis & impact of SC ruling (for the GPA)
Regards,
R.Ramachandran
(Expert) 18 October 2011
The Article in MINT does not say anything differently than what I had stated above.
