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2019 Supreme(P&H) 2227

IN THE HIGH COURT FOR THE STATES OF PUNJAB AND HARYANA AT CHANDIGARH
Raj Mohan Singh, J.
Komal Singh - Appellant
Versus
Sudha Rani - Respondent
RSA No. 4077 of 2019 (O&M)
Decided On : 02-09-2019

Advocates Appeared:
Mr. Sanjiv Kumar Aggarwal, Advocate, for the Appellant

An unregistered agreement to sell does not confer title or enforceable rights under Section 53-A of the Transfer of Property Act.

Headnote:

Agreement to Sell - Property Possession - The court dismissed the appeal in a suit for possession and injunction, ruling that an unregistered agreement to sell does not confer title and cannot be enforced under Section 53-A of the Transfer of Property Act. The possession by the defendant based on the unregistered agreement was not recognized, and the plaintiff's ownership was upheld.

Fact of the Case:

Plaintiff filed a suit for possession and injunction, claiming ownership of the property and alleging illegal possession and construction by the defendants. Defendant claimed possession based on an unregistered agreement to sell with another party.

Finding of the Court:

The court found that the unregistered agreement to sell did not confer title or enforceable rights under Section 53-A of the Transfer of Property Act. The defendants failed to prove their possession rights based on the unregistered agreement.

Issues: Dispute over possession and construction of the property, validity of the unregistered agreement to sell, and enforcement of possession rights.

Ratio Decidendi: An unregistered agreement to sell does not confer title or enforceable rights under Section 53-A of the Transfer of Property Act. Possession based on such an agreement cannot be recognized without registration.

Final Decision: The appeal was dismissed, upholding the plaintiff's ownership and denying the defendants' possession rights based on the unregistered agreement to sell.

JUDGMENT

Raj Mohan Singh. J. - Defendant is in Regular Second Appeal against the concurrent judgments and decrees passed by the Courts below in a suit for possession with consequential relief of injunction.

2. Plaintiff Smt. Sudha Rani filed a suit for possession on the basis of title of the property marked by letters 'ABCD' and 'CDEF' in the site plan attached with the plaint. Permanent injunction was also sought restraining the defendants No.1 to 2 and 4 from raising further construction and from alienating the suit property.

3. Plaintiff pleaded that the suit land was purchased from Ved Ram vide registered sale deed dated 11.04.1994 and she was put in possession of the suit property on 21.04.1994 by the aforesaid Ved Ram. Taking undue benefit of her absence, defendant No.1 illegally took possession of the plot in question i.e. marked by letters 'ABCD' in the site plan and also raised illegal construction. Defendant No.2 occupied the portion marked by letters 'CDFE' as shown in the site plan in an illegal manner. Plaintiff came to know about illegal construction by defendants No.1 and 2 on 10.09.2007.

4. Defendant No.1 took the stand that the plaintiff had entered into an agreement to sell of the plot in question with defendant No.4 Komal Singh on 16.06.2003. The aforesaid Komal Singh installed defendant No.1 as his tenant. The agreement to sell dated 16.06.2003 with Komal Singh was never converted into any enforcement of bilateral obligation.

5. Learned counsel for the appellant by referring to para no.6-A of the plaint submitted that defendant No.1 submitted his written statement on 23.10.2007 and put preliminary objection no.6 and alleged that plaintiff had entered into agreement to sell with defendant No.4 on 16.06.2003 and defendant No.1 was installed as tenant by defendant No.4. In the event of proving any alleged agreement to sell, then the alleged agreement to sell was cancelled and rescinded due to lapse of time and non-payment of remaining amount of consideration.

6. I have considered the submissions made by learned counsel for the appellant.

7. In view of amended para no.6-A of the plaint, the same did not advance the case of the appellant inasmuch as that cancellation/recession of agreement to sell was on account of non-adherence to the terms and conditions of the agreement to sell. Non-compliance of agreement to sell had entailed in cancellation of the same. The possessory title in favour of defendant No.4/appellant would not crystallize any right in favour of defendant No.1 on the basis of tenancy.

8. Evidently, the agreement to sell was not registered. Any such agreement to sell would not confer any title in favour of defendant No.4/appellant. Any such tenancy created by a person having no title would also go along with his right to be in possession.

9. In view of law laid down by the Hon'ble Apex Court in Avinash Kumar Chauhan vs. Vijay Krishna Mishra, (2009) 1 Civil Court Cases 735 (SC) the agreement to sell does not create any title as the same was not registered. Any full payment agreement to sell coupled with delivery of possession does not advance any such right under Section 53-A of the Transfer of Property Act (for short 'the Act') in favour of the vendee for want of registration of agreement to sell. The ownership of the plaintiff was not disputed by the defendants, rather the defendants set up a case of agreement to sell executed by the plaintiff in favour of defendant No.4 on 16.06.2003 for a consideration of Rs. 3,40,000/- and defendant No.4 was put in possession.

10. Since no suit for specific performance was filed as the agreement to sell was never enforced. Plea under Section 53-A of the Act is not attracted for want of registration of agreement to sell. The defendants failed to discharge their onus. The agreement to sell-cum-receipt dated 16.06.2003 (Mark 'A') has evidenced that it was written on a plain paper. Even as per contents of receipt, it was agreed between the parties that the buyer i.e

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