Please give your views on this artcle.
Querist :
Anonymous
(Querist) 05 January 2012
This query is : Resolved
Dear EXPERTS ,
I have found this article in our L C I site. Please confirm me the views of this contributer, particularly in regards to WILL.
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Sale of Immovable Property : Latest Judgment
By : ambrish on 28 October 2011 Print this
PROCHATCALL
Sale of Immovable Property : Latest Judgment
I am referring the latest judgment of Supreme Court on the burning issue of transfer of property by way of 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, in Special 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 among masses 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 convey any title nor create any interest in an immovable property. These document does not convey and lawful title.
2) Immovable property can be legally and lawfully transferred / conveyed only by a registered deed of conveyance.
3) Such records like GPA/Sale Agreements/Will does not from any basis for Mutation in the municipal records 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 is not proved in accordance of settled procedure of law and get a proper endorsement of the court. The registration 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 these document for mutation purpose than same should not be disturbed due to this decision.
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 documents containing contract of transfer for consideration (Sale agreement) relating to any immovable property should be registered.
2) Section 32 (3) of Registration Act,, 1908 has specific provision that a POA for sale of immovable property 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 Rupees value 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 written contract where seller has handed over the possession of property to buyer but the deed is not registered then the possession holder can enjoy the limited rights of the property but the this section read with latest amendment of Registration Act under section 17 (i(A)) which says that document containing contracts to transfer for consideration , any immovable property for the purpose of Section 53 A of Transfer of Property Act shall be registered otherwise such document if executed after 2001 shall have no effect for the 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 conveyance deed. Article 23 of Stamp Act lays down the sale acknowledging delivery of the possession or power of attorney 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 the documents is lost or destroyed.
- It gives the public exposure to a property transaction.
- 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.
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Thanking YOU ALL.
Raj Kumar Makkad
(Expert) 05 January 2012
what confirmation do you require?
This is judgment delivered by Hon'ble Apex Court and is self explanatory. If you have any specific query over the judgment then let us know so that it may be got resolved accordingly.
prabhakar singh
(Expert) 05 January 2012
Thank you very much for raising awareness of general people.A nice effort but it has been dealt with and referred to at least 5 times since then answering various queries in this section.
Devajyoti Barman
(Expert) 05 January 2012
The authors seems to have no bounds to joy after seeing this judgement.
Querist :
Anonymous
(Querist) 06 January 2012
Dear Raj kumar makkad ji,
"1) Transfer of property by way of Sale Agreement / General Power of Attorney/ WILL does not convey any title nor create any interest in an immovable property. These document does not convey and lawful title."
--- does this mean the property flown through WILL , will not have any value untill it ( THE PROPERTY that had come to a person! ) is registered?
Thanking YOU ALL once again.
prabhakar singh
(Expert) 06 January 2012
The citation does not affect testamentary rights of will.
