R. V. Raveendran and J. M. Panchal, JJ.
Suraj Lamp & Industries (P) Ltd. Thru. DIR - Petitioner
Versus
State of Haryana & Anr. - Respondents
SPECIAL LEAVE PETITION (C) NO........................OF 2009
CC NO. 5804 of 2009
Decided on : May 15,2009.
(b) Property laws – Power of Attorney sales – SA/GPA/WILL transactions – Remedies – Some States making effort to curb and control – Subjecting agreements of sale involving delivery of possession and irrevocable powers of attorney for consideration, to the same stamp duty as deeds of conveyance or by making such documents compulsorily registrable – Steps either inadequate or poorly implemented – Notices issued to union of India and few States for their views and suggestions – Matter adjourned. (Para 14)
Facts of the case:
The petitioner, a company, claims that one Ramnath and his family members sold two and half acres of land in Wazirabad village, Gurgoan to them by means of an agreement of sale, General Power of Attorney (GPA) and a will in the year 1991 for a consideration of Rs.716,695/-.
The petitioner verbally agreed to sell a part of the said property measuring one acre to one Dharamvir Yadav for Rs.60 lakhs in December 1996. It is stated that the said Dharamvir Yadav, and his son Mohit Yadav (an ex MLA and Minister), instead of proceeding with the transaction with the petitioner, directly got in touch with Ramanath and his family members and in 1997 got a GPA in favour of Dharamvir Yadav in regard to the entire two and half acres executed and registered and illegally cancelled the earlier GPA in favour of petitioner.
When confronted, Dharamvir Yadav in the year 1999 apologized and issued a cheque for Rs.10 lakhs towards part payment and agreed to pay the balance of Rs.50 lakhs shortly but that the said cheque was dishonoured necessitating a complaint under section 138 of the Negotiable Instrument Act, being filed against Dharamvir Yadav which is pending in a criminal court at Patiala House, New Delhi.
In the year 2001, petitioner lodged a criminal complaint against Ramanath and members of his family who executed the sale agreement/ GPA/will in favour of the petitioner and another complaint against Dharambir Yadav and his son in the District Court, Gurgoan, for offences punishable under sections 406, 420, 467, 468, 471 and 120B of IPC. The petitioner claims that in December 2005 it lodged an FIR in respect of offences under Sec. 406,467,468,471 and 120B of IPC against all of them.
In response to RTI application of the petitioner the SHO/IO gave contradictory and misleading versions about the status of the investigation and about the seizure and custody of the agreement and power of attorney from the accused. On appeal the Chief Information Commissioner, Haryana, merely directed that Police should re-investigate the FIR as per the order of the court and the Department should give a specific proper reply about the status of the documents, to the appellant by 25.1.2008.
Petitioner therefore filed a writ petition challenging the order of the Chief Information Commissioner and seeking initiation of proceedings under section 20 of the RTI Act and imposition of penalty. The said writ petition was disposed of by the High Court by the impugned order holding that section 20 was directory and not mandatory.
Finding of the Court:
Menace of SA/GPA/WILL transactions is required to be addressed and handled urgently.
Result:
Notices issued, matter adjourned.
Section 49 of the Registration Act, as described in the document, provides that no document which is required to be registered under section 17 shall affect any immovable property or serve as evidence of any transaction affecting such property unless it has been registered. Registration of a document serves as notice to the public that the document has been executed, thereby ensuring safety, security, and transparency in transactions related to immovable property. It helps prevent fraud and forgery, offers public exposure of the transaction, and provides essential information regarding rights, titles, and interests in the property. Registration also ensures that parties dealing with the property can rely confidently on the records maintained, which record all relevant transactions affecting the property’s title and obligations (!) (!) .
ORDER
R.V. Raveendran J.
Delay condoned. Issue notice. Petitioner to file copies of correspondence with State Information Commissioner as also its title deeds to the disputed property. As this case is a typical example of an irregular process spreading across the country, we propose to refer to some aspects of the case at this preliminary stage itself.
2. The petitioner, a company incorporated under the Companies Act, claims that one Ramnath and his family members sold two and half acres of land in Wazirabad village, Gurgoan to them by means of an agreement of sale, General Power of Attorney (for short `GPA) and a will in the year 1991 for a consideration of Rs.716,695/-. It is further alleged that the petitioner verbally agreed to sell a part of the said property measuring one acre to one Dharamvir Yadav for Rs.60 lakhs in December 1996. It is stated that the said Dharamvir Yadav, and his son Mohit Yadav (an ex MLA and Minister), instead of proceeding with the transaction with the petitioner, directly got in touch with Ramanath and his family members and in 1997 got a GPA in favour of Dharamvir Yadav in regard to the entire two and half acres executed and registered and illegally cancelled the earlier GPA in favour of petitioner. The petitioner claims that when its Director, S.K. Chandak, confronted Dharamvir Yadav in the year 1999 this behalf, the said Yadav apologized and issued a cheque for Rs.10 lakhs towards part payment and agreed to pay the balance of Rs.50 lakhs shortly but that the said cheque was dishonoured necessitating a complaint under section 138 of the Negotiable Instrument Act, being filed against Dharamvir Yadav which is pending in a criminal court at Patiala House, New Delhi. It is further alleged that in the year 2001, petitioner lodged a criminal complaint against Ramanath and members of his family who executed the sale agreement/ GPA/will in favour of the petitioner and another complaint against Dharambir Yadav and his son in the District Court, Gurgoan, for offences punishable under sections 406, 420, 467, 468, 471 and 120B of IPC. The petitioner claims that in December 2005 it lodged an FIR in respect of offences under Sec. 406,467,468,471 and 120B of IPC against all of them.
3. The petitioner claims that as no action was taken on its FIR by the Station House Officer/Investigation Officer (`SHO/IO for short), petitioner filed an application under Right to Information Act, 2004 (`RTI Act for short) seeking the status, in response to which the SHO/IO gave contradictory and misleading versions about the status of the investigation and about the seizure and custody of the agreement and power of attorney from the accused. An appeal filed by the petitioner was disposed of by the Chief Information Commissioner, Haryana, by an order dated 27.12.2007 merely directing that Police should re-investigate the FIR as per the order of the court and the Department should give a specific proper reply about the status of the documents, to the appellant by 25.1.2008. According to the petitioner, the Commissioner ought to have initiated action against the police for giving false and misleading information under section 20 of the RTI Act. Petitioner therefore filed a writ petition challenging the order of the Chief Information Commissioner and seeking initiation of proceedings under section 20 of the RTI Act and imposition of penalty. The said writ petition was disposed of by the High Court by the impugned order holding that section 20 was directory and not mandatory. This SLP seeks leave to file an appeal against the said order.
4. We are of the view that matter involves an issue whose seriousness is underestimated. The issue to be addressed is avoidance of execution and registration of deeds of conveyance as the mode of transfer of freehold immovable property by increasing tendency to adopt `Power of Attorney Sales, that is execution of sale agreement/ general power of attorney/will (for short `SA-GPA-Will transactions) instea
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