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2026 Supreme(Online)(Chh) 14873

IN THE HIGH COURT OF CHHATTISGARH AT BILASPUR
Rakesh Mohan Pandey, J
Ramjanak – Appellant
Versus
Mohd.Kasim – Respondent
SA No. 647 of 2003



Advocates:
For Appellants: Sushil Dueby, Aman Upadhyay
For Respondents: Hamida Siddiqui, Topilal Bareth

An unregistered sale deed for immovable property exceeding Rs. 100 does not confer title; possession under it is permissive and cannot ripen into adverse possession without proof of hostile animus and statutory period.

Headnote:(A) Registration Act, 1908 - Section 17(1)(b) and Section 49 - Transfer of Property Act, 1882 - Section 54 - An unregistered sale deed for immovable property of value exceeding Rs. 100 is inadmissible to prove title but may be received for collateral purpose only if the collateral transaction is independent of the required registration. (Paras 24-27)

(B) Adverse Possession - Essentials - A person claiming adverse possession must prove actual, exclusive, uninterrupted, peaceful and open possession for more than 12 years with hostile animus, and must plead and prove the date of commencement and the date of knowledge to the true owner. Possession referable to a lawful title (such as under an invalid sale deed) is permissive and not adverse. (Paras 15-23)

(C) Registered Sale Deed - Presumption - A registered sale deed carries a formidable presumption of validity and genuineness; the burden to rebut by pleading and proving fraud or sham transaction lies heavily on the challenger. (Paras 28-29)

(D) Adverse Possession and Title Based on Invalid Deed - The plea of adverse possession is inconsistent with a claim based on an unregistered sale deed; such possession is permissive and cannot ripen into title. (Para 18) (E) Service of Summons - Not pressed in this appeal; appeal confined to substantial questions of law 1 and 2. (Para 3)

Facts of the case:
The plaintiffs sued for declaration of title and permanent injunction over suit property, claiming title through an unregistered sale deed dated 15.4.1964 (Ex. P/1) from Mohd. Rafique for Rs. 150 and a sewing machine, and pleaded adverse possession. Defendants No. 1-3 later executed a registered sale deed in favor of defendants No. 6-7 (appellants). The trial court decreed the suit; the first appeal by defendants No. 6-7 was dismissed. Hence, this second appeal.

Findings of Court:
The Court held that the unregistered sale deed (Ex. P/1) did not confer title because it required registration under Section 17(1)(b) and was inadmissible under Section 49, and could not be used to prove a valid transaction. The plaintiffs failed to establish the essential ingredients of adverse possession, including the date from which possession became adverse and knowledge to the true owner. Their possession under the invalid deed was permissive, not hostile. Therefore, the suit was dismissed and the decrees of the lower courts were set aside.

Issues: 1. Whether an unregistered sale deed confers title; 2. Whether the courts below applied the correct test for adverse possession; 3. Whether the lower appellate court erred in not inquiring into validity of summons (not pressed).

Ratio Decidendi: An unregistered sale deed for immovable property exceeding Rs. 100 cannot transfer title; the transferee's possession under such deed is permissive and does not become adverse without clear proof of hostile animus and the statutory period. A registered sale deed enjoys a presumption of validity that cannot be rebutted without cogent evidence of fraud or sham.

Result: Second appeal allowed; suit dismissed; judgments and decrees of the trial court and first appellate court set aside.

Table of Content
1. second appeal admitted on substantial questions of law. (Para 1 , 2)
2. substantial question of law no. 3 not pressed. (Para 3)
3. facts and pleadings of the parties. (Para 4 , 5 , 6)
4. arguments of counsel for appellants and respondents. (Para 7 , 8)
5. evidence regarding possession and sale deed. (Para 9 , 10 , 11 , 12 , 13)
6. adverse possession requirements and failure to prove. (Para 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23)
7. unregistered sale deed invalid; collateral purpose limited. (Para 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31)
8. appeal allowed; suit dismissed. (Para 32 , 33 , 34)

1) This second appeal has been preferred by the appellants/ defendants No. 6 and 7 under Section 100 of CPC against the judgment and decree passed by the learned IInd Additional District Judge, Ambikapur, District Sarguja in First Civil Appeal No. 37-A/2002 dated 1.9.2003, whereby the appeal preferred by the defendants No. 6 and 7 was dismissed and the judgment and decree passed by the Civil Judge, Class-I, Ramanujganj in Civil Suit No. 41-A/2000 dated 22.3.2002 were affirmed.

2) This second appeal was admitted for hearing vide order dated 23.12.2004 on following substantial questions of law :-

1. Whether the Courts below committed and error of law in holding that the document (Ex. P/1) an unregistered sale-deed confers any title upon plaintiff?

2. Whether the correct test in relation to perfection of title by way of adverse possession has not been applied by the Courts below and the finding is perverse on the face of record ?

3. Whether the lower appellate Court was obliged under the law to make an enquiry in relation to valid service of summons upon defendant No. 6 & 7 in the present facts and circumstances of the case.

3) The learned Counsel appearing for the appellants does not want to press substantial question of law no. 3. The prayer is accordingly allowed. This appeal is confined to substantial question of law no. 1 and 2 only.

4) The plaintiffs namely Mohd. Kasim and Mohd. Yasin instituted a civil suit claiming therein relief of declaration of title and permanent injunction over the suit property described in Schedule-A appended to the plaint inter-alia on the ground that suit property was sold by one Mohd. Rafique, who was the father of defendants No. 1 and 2 and husband of defendant No. 3 through un-registered sale-deed dated 15.4.1964 (Ex. P/1) and possession was handed over to plaintiffs and defendant No. 5, namely, Mohd. Hasim. They pleaded that defendants No. 1 to 3 executed a registered sale-deed of the suit property in favor of defendants No. 6 and 7 namely Ramjanak and Manikchand on 19.9.2000. They further pleaded that sale-deed dated 19.9.2000 does not contain signature of defendant No. 2 and same is forged one. They further pleaded that suit property was sold to them through un-registered sale-deed dated 15.4.1964 in consideration of Rs. 150/- and a sewing machine on stamp paper of 10 paise and since then, the plaintiffs are in possession. Plaintiffs also pleaded that revenue record has already been rectified pursuant to sale-deed dated 15.4.1964 and they have raised construction of a house over it. Plaintiffs took plea of adverse possession making statement that they are in continuous and hostile possession over the suit property since date of purchase and this fact was within the knowledge of defendants No. 1 to 3 and thus they have perfected their right over the suit property. Plaintiffs alleged the subsequent mutation of suit property in favor of defendants No. 1 to 3 and they sought for reliefs of declaration and permanent injunction against defendants No. 1 to 3, 4, 6 and 7.

5) Defendants No. 1 to 4 filed written statement and denied the plaint averments. They alleged un-registered sale-deed dated 15.4.1964 and pleaded that sale-deed dated 19.9.2000 was executed pursuant to power-of-attorney given by Shammad Ali. They further pleaded that pursuant to said sale-deed, possession h

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