SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2026 Supreme(Del) 489

IN THE HIGH COURT OF DELHI AT NEW DELHI
NEENA BANSAL KRISHNA, J.
Kailash Chand, S/o. Shri Tejpal Singh - Appellant
Versus
Shri Adesh Kumar Barua, S/o. Late Sh. K.L. Barua - Respondent
RFA 246 of 2022, CM APPL. 25908 of 2022 & 16255 of 2026
Decided On : 03-06-2026

Advocates Appeared:
For the Appellant : Mr. Kaushal Kishore Lal Gautam, Ms. Vaishali Nariyala, Mr. Rajbeer Singh, Mr. Sumit and Ms. Siddhi Shaiwal.
For the Respondent: Mr. Amit Nahata.

An unregistered agreement to sell does not create an interest in the property or grant possessory rights. A tenant remains a tenant until a formal, registered sale deed is executed, and a landlord-tenant relationship admitted in pleadings is sufficient grounds for a summary decree of possession.

Headnote:(A) Code of Civil Procedure, 1908 - Order 12 Rule 6 - Decree of possession - Court is empowered to pass a judgment based on admissions in pleadings regarding the landlord-tenant relationship and service of notice - Such criteria are satisfied when lease expiry and receipt of statutory notice are evidenced. (Paras 43, 44)

(B) Transfer of Property Act, 1882 - Sections 53A and 54 - Contract for sale - Does not create an interest in or charge on the property - A mere agreement to sell does not transfer title or grant rights to hold possession if the document is not registered - Buyer inducted as a tenant remains in that capacity until an actual conveyance deed is executed. (Paras 35, 37, 42)

(C) Registration Act, 1908 - Section 17(1A) - Mandatory requirement for registration of instruments intended to transfer immovable property - Non-registration deprives the party of the shield of possessory protection under statutory law. (Paras 38, 39)

Facts of the case:
The owner of a residential property filed a civil suit for possession and recovery against an occupant initially inducted as a tenant. The occupant contended that a subsequent unregistered agreement to sell, entered into with the owner, terminated the tenancy and transformed the nature of possession. The trial court decreed the suit for possession, relying on the admitted relationship of landlord-tenant and the lack of a registered title document in favour of the occupant.

Findings of Court:
The court observed that the relationship of landlord-tenant was substantiated by the lease agreements and expressly acknowledged in the subsequent agreement to sell. The court further held that without a registered sale deed, the occupant could not claim a superior possessory right, and the agreement to sell served only as a contract to obtain a future deed, not as a transfer of interest.

Issues: Whether an occupant can resist a claim for possession based on an unregistered agreement to sell after the expiry of the underlying lease agreement, and whether the trial court correctly exercised its discretion to decree the suit under the provisions governing summary judgment on admissions.

Ratio Decidendi: An agreement for sale creates only an enforceable right in personam and does not create an interest in the property itself. Unless a sale deed is formally registered, the prior status of the occupant as a tenant continues to govern, and the absence of registration precludes the invocation of possessory protection. Admissions regarding the existence of a landlord-tenant relationship satisfy the requirements for granting a decree of possession under civil procedure rules.

Result: Appeal dismissed.

Table of Content
1. initial landlord-tenant relationship establishment (Para 1 , 2 , 3 , 4 , 5)
2. defense claims regarding possession and agreement to sell (Para 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18)
3. grounds for appeal against summary judgment (Para 19 , 20 , 21 , 22 , 23 , 24)
4. persistence of tenancy during pending sale agreements (Para 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32 , 33)
5. legal sufficiency of unregistered agreement to sell under section 53a (Para 34 , 35 , 36 , 37 , 38 , 39 , 40 , 41 , 42 , 43)
6. finality of summary eviction decree (Para 44 , 45 , 46)

JUDGMENT :

NEENA BANSAL KRISHNA, J.

1. Regular First Appeal under Section 96 read with Section 151 of the Code of Civil Procedure, 1908 (hereinafter referred to as ‘CPC’), has been filed on behalf of the Appellants, against Judgment dated 07.05.2022, whereby the Suit of the Plaintiff/Respondent for decree of Possession against the Defendants/Appellants, was decreed under Order XII Rule 6 CPC.

2. The Plaintiff/Respondent had filed Civil Suit No.125/2018 for Possession/Ejectment, Recovery of Rent, Mesne Profit and Damages.

3. The facts, in brief, are that Plaintiff stated himself to be the owner/landlord of the Property bearing No. J-64/G-1, (Ground Floor), Right Hand Side, Gali No. 4, Laxmi Nagar, Delhi-110092 (hereinafter referred to as ‘the Suit Property’), consisting of three bedrooms, one drawing-cum dining room, kitchen, toilet/bathroom vide registered partition Deed dated 01.01.2010. The Defendant, Mr. Kailash Chand was inducted as a tenant in the Suit Property vide registered Lease Deed dated 15.04.2010 for a period of 11 months w.e.f. 11.04.2010, at a monthly rent of Rs.12,000/- per month. The Lease Deed was executed between the Defendant and the Attorney of the Plaintiff.

4. The Defendant was claimed to be a chronic defaulter in payment of rent and failed to pay rent since 10.04.2011, despite repeated requests. The Plaintiff thus, issued a Legal Notice since the Defendant neither vacated the premises on expiry of the Lease Deed nor paid the rent w.e.f. 01.04.2011.

5. Thereafter, a Suit for Possession, Arrears of Rent and Damages, was filed by the Plaintiff.

6. The Defendant/Appellant, Mr. Kailash Chand in his Written Statement, took the preliminary objection that the Plaintiff had entered into an Agreement to Sell dated 03.08.2011 with Mr. Tejpal Singh, father of the Defendant and thereafter, had received rent regularly from Mr. Tejpal Singh as agreed under the Agreement, which is evident from the Legal Notices issued by the Plaintiff to the defendant No.2 Tejpal, father of the Defendant no.1, Kailash Chand, claiming balance payment under the Agreement to Sell dated 03.08.2011 wherein the Plaintiff has not made a whisper about the balance rent. The Suit has been filed only to pressurise the Defendant and his mother, to extort more money.

7. The Suit was bad for non-joinder of the proper parties. The cause of action arose on 10.04.2011, while the Suit had been filed in the year 2018 and was liable to be dismissed. No cause of action was disclosed in the Plaint as the Plaintiff had already entered into an Agreement to Sell with Mr. Tejpal Singh, father of the Defendant.

8. On merits, the averments made in the Plaint, were denied. It was admitted that the Defendant, Kailash Chand was the tenant of the Plaintiff till 03.08.2011 when the Plaintiff entered into an Agreement to Sell with Tejpal Singh, father of the Defendant. The sale consideration was agreed as Rs.35,00,000/-, though the Plaintiff failed to execute the Sale Deed in favour of Mr. Tejpal Singh.

9. Due to some financial crunch, Mr. Tejpal Singh failed to make the payment in time and the execution of the Sale Deed was extended by the Plaintiff from time to time, under the threat of forfeiture of earnest money. The Plaintiff against the total sale consideration of Rs.35,00,000/-, received Rs.40,00,000/- from Mr. Tejpal Singh though, on one pretext or the other, he kept avoiding the execution

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

AI

SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top