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2026 Supreme(All) 94

HIGH COURT OF JUDICATURE AT ALLAHABAD
Sandeep Jain, J.
Irfan Quraishi - Appellant
Versus
U.P. State Industrial Development Authority Limited And Another – Respondents
First Appeal No. - 934 of 2025
Decided On : 06-02-2026

Advocates Appeared:
For the Appellant : Ashish Kumar Singh, Rahul Pandey
For the Respondent: Rahul Kumar Jadaun, Vibhu Rai

An oral agreement for the sale of immovable property is unenforceable without a written and registered agreement under the Registration Act and Specific Relief Act.

Headnote:(A) Code of Civil Procedure, 1908 - Section 96 and Order VII Rule 11 - Specific Relief Act - Sections 38 and 41 - Appeal against dismissal of suit based on oral agreement for sale of immovable property - Court held that absence of written agreement renders claim unenforceable; application for rejection upheld as suit barred by law. (Paras 1, 12, 36)

(B) Agreements related to immovable property - Requirement for registration - Court emphasized that an agreement to sell immovable property must be in writing and registered to be enforceable under Sections 17 and 49 of the Registration Act, 1908. (Paras 22-24)

Facts of the case:
The plaintiff filed a suit for injunction and the enforcement of an alleged oral agreement for sale of property with the deceased's father, asserting possession after making partial payments. The father passed away, leaving a legal heir who denied the claim. (Paras 4-6)

Findings of Court:
The trial court confirmed that the plaintiff's claim based on an oral agreement lacked legal enforceability due to the requirement of a written document and insufficient court fees. (Paras 12, 36)

Issues: The main issues involved the validity of the oral agreement, whether the suit was maintainable without a written agreement, and the issue of court fees. (Paras 12, 36)

Ratio Decidendi: The court concluded that an oral agreement for sale of immovable property is unenforceable under law without a written document, and any claim made based on such agreement must comply with the requirements of law regarding registration and court fees. (Paras 22-24, 36)

Result: Appeal dismissed.

Table of Content
1. factual background of the case. (Para 1 , 2 , 3 , 4)
2. defendant's arguments against the plaintiff's suit. (Para 5 , 6 , 7 , 8 , 9 , 10 , 11)
3. court's observations on the enforceability of oral agreements. (Para 12 , 13 , 21 , 22 , 23 , 25)
4. final order and dismissal of appeal. (Para 14 , 37)
5. legal principles regarding unregistered agreements. (Para 24 , 28 , 29)

JUDGMENT :

Sandeep Jain, J.

1. The instant appeal has been filed by the plaintiff under Section 96 C.P.C. against the impugned order dated 23.07.2025 passed by the Judge Small Causes, Bulandshahr in O.S. No.1054 of 2022 (Old No.790 of 2022) Irfan Quraishi Vs. U.P. State Industrial Development Authority Limited & others, whereby the application of the defendant No.2 Smt. Aparna Bajpai under Order VII Rule 11 CPC has been allowed and consequently, the plaintiff's suit has been dismissed on the ground of being barred by law, want of cause of action as well as, due to the insufficient court fees paid.

2. The factual matrix is that the plaintiff–appellant filed a suit, being O.S. No. 1054 of 2022, with the averments that father of defendant no.2, Late Chandradutt Bajpai, was the owner in possession, and proprietor of M/S CDS Chemicals, situated at C-4, Industrial Area (Jokhabad), Sikandrabad, District Bulandshahr. It was further averred that an oral agreement was entered into between the plaintiff and the father of defendant no.2 for the sale of the aforesaid plot for a consideration of Rs.70 lacs. Out of the said consideration, a sum of Rs.29 lacs was paid through three demand drafts and a further sum of Rs.6 lacs was paid in cash on 10.07.2008. It was also averred that since then, the plaintiff was in possession of the disputed plot.

3. It was further averred that the plaintiff repeatedly requested the father of defendant no.2 to execute the sale deed in respect of the disputed plot; however, he continued to defer the same on one pretext or the other. Subsequently, the father of defendant no.2 died due to Covid-19 in the year 2021, leaving behind defendant no.2 as his legal heir.

4. It was further averred that thereafter, the plaintiff remained in contact with defendant no.2 and requested her to execute the sale deed in respect of the disputed plot, however, defendant no.2 continued to assure the plaintiff that she would execute the sale deed in his favour after completing due formalities; however, when she ultimately refused to execute the sale deed, the plaintiff was compelled to file the present suit seeking the following reliefs:-

(a) that by decree of permanent injunction granted in favour of the plaintiff against the defendant no.2, the defendant No.2 be restrained from dispossessing him, interfering in the peaceful possession of the plaintiff or in any other manner whatsoever.

(b) that by decree of mandatory injunction granted in favour of the plaintiff against the defendant no.2, the defendant No.2 be directed to complete the necessary formalities in the office of defendant no.1, for transferring the disputed plot No. C-4, Industrial Area (Jokhabad), Sikandrabad, District Bulandshahr by receiving the balance sale consideration from the plaintiff.

(c) any other relief which in the facts and circumstances of the case, the Court may deem appropriate to grant in favour of the plaintiff.

5. During the pendency of the suit, defendant no.2 Smt. Aparna Bajpai moved an application 72-C2 under Order VII Rule 11 CPC on the ground that no oral or written agreement in respect of the disputed property was ever entered into between her father and the plaintiff. It was further averred that the plaintiff has instituted the suit on the basis of photocopies of the alleged demand drafts, which was not legally maintainable. It was also averred that the date of alleged agreement and duration during which it was to be performed, was not disclosed by the plaintiff.

6. It was further averred that the suit should have been filed for the relief of specific performance of a cont

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