Possession & no title deed
Querist :
Anonymous
(Querist) 15 March 2025
This query is : Resolved
Two parties entered into an agreement for sale & purchase. From the day one, the vendors gave exclusive possession of the land to the buyers. The latter fulfilled their obligation of paying the consideration 100% as specified, by cheques. Registration was promised within 6 months from the date of the final payment. But the vendors walked away from doing it. The buyers however, did not take any action and 40 yers have passed now! Possession does not mean title. Is there any remedy left for them anywhere under any law in India? Thank you.
kavksatyanarayana
(Expert) 15 March 2025
For 40 years keeping silent, is this believable? Buyers and sellers are there? is the land still agriculture or non agriculture?
T. Kalaiselvan, Advocate
(Expert) 15 March 2025
Seems to be a query related to academic interest.
However as rightly observed, possession will not confer title to the buyer.
The buyer can file a suit for specific performance of contract and get the sale deed executed through court if the vendor refuses.
Querist :
Anonymous
(Querist) 16 March 2025
Thank you. This reply is for both of you. This is a real case, with an academic interest as well. Yes, over 40 years, it is true. It's not agricultural land. The three vendors have passed away leaving all their LRs behind.
Literally no one was out there to take care of these things for the style of working set up this organization had at that time.
Now, to Shri Kalaiselvan. One conclusion reached was to file a suit for declaration of ownership. But how can the 'buyer' ignore the applicable provisions of the Specific Performance Act and the Limitation Act? How they will save this person from bypassing the 3 years time bar?
A claim of adverse possession may be another option. But the problem is, in such a scenario, the facts of an agreement signed and payments fulfilled cannot exist. Then the nature of the cause of action shifts.
T. Kalaiselvan, Advocate
(Expert) 16 March 2025
Since the full sale consideration amount has been paid and the possession had been handed over to the purchaser by the vendor, the final step of executing the registered sale deed alone remains to be completed, hence it will not be barred by the limitation of three yeas.
A perusal of the agreement to sell, executed between the parties tends to show that there is no time fixed or prescribed for execution of formal sale deed. Had the time been fixed within which period the sale deed was to be executed, only then the period of limitation would run from the date on which it was to be executed.
The Supreme Court in case ofGunwantbhai Mulchand Shah &Ors vs Anton Elis Farel &Ors, AIR 2006 SC 1556 has held as follows:-
We may straightaway say that the manner in which the question of limitation has been dealt with by the courts below is highly unsatisfactory. It was rightly noticed that the suit was governed by Article 54 of the Limitation Act, 1963. Then, the enquiry should have been, first, whether any time was fixed for performance in the agreement for sale, and if it was so fixed, to hold that a suit filed beyond three years of the date was barred by limitation unless any case of extension was pleaded and established. But in a case where no time for performance was fixed, the court had to find the date on which the plaintiff had notice that the performance was refused and on finding that date, to see whether the suit was filed within three years thereof. We have explained the position in the recent decision in R.K. Parvatharaj Gupta Vs. K.C. Jayadeva Reddy [2006 (2) SCALE 156]. In the case on hand, there is no dispute that no date for performance is fixed in the agreement and if so, the suit could be held to be barred by limitation only on a finding that the plaintiffs had notice that the defendants were refusing performance of the agreement. In a case of that nature normally, the question of limitation could be decided only after taking evidence and recording a finding as to the date on which the plaintiff had such notice.
Thus even now the parties claiming title by possession can issue a legal notice to the vendor demanding the execution of registered sale deed, when the vendor refuses to perform his part of contract then the limitation of three years starts from the date of refusal to file the suit for specific performance of contract.
Please reveal your identity while posting the query, even it would be of academic interest instead of remaining anonymous.
P. Venu
(Expert) 21 March 2025
Is the property assessed to land revenue? if so, who is paying the Land Tax?
Querist :
Anonymous
(Querist) 27 March 2025
Dear kalaiselvan
Really sorry for being late. I really appreciate the time and energy you have put in answering my query. Thank you for your thoughtful replies.
In the original Sale & Purcahse Agreement, there is a clause fixing the time for registration to 6 months from the date of the last instalment of the agreed sale price. So, the limitaion time began to run from the end of the 6 months, for a suit for specific performance. This was never followed up. Nevertheless, that was not the only starting pint of self molestation. Better we avoid discussing it in this Forum. Will be in touch if I ever need your help. Thank you.
Querist :
Anonymous
(Querist) 27 March 2025
Dear Venu
Thank you for your genuine interest in this matter. Good question. Yes, the land has been assessed to land revenue but not sure at the moment, who is paying the taxes.
