An unregistered Agreement to Sale does not transfer legal title or interest in immovable property and cannot prevail over a valid mortgage created in favor of a bank under the SARFAESI Act, which has an overriding effect over general property laws.

JUDGMENT : 13 May, 2026

THE APPELLATE TRIBUNAL: Admission

1. Instant appeal has been preferred against the order dated 7.4.2026 passed by the Learned DRT-I, Kolkata in S.A. 112 of 2026 (Smt. Priti Mitra -vs- Punjab National Bank) whereby I.A. 654 of 2026 is dismissed against Respondent Bank.

2. At the ‘Admission’ stage, Learned Counsel for Respondent has put in appearance and the appeal is heard on merits at the ‘Admission’ stage and is being disposed of finally.

3. An S.A., under Section 17 of the SARFAESI Act, 2002 (hereinafter referred to as the ‘Act’), is filed by the Appellant against the Bank challenging the Securitization action initiated by the Bank and also the order passed under Section 14 of the Act by the Chief Judicial Magistrate, Hooghly dated 13 January, 2026.

4. Undisputedly, Appellant claims himself to be in possession over the secured asset, i.e., Flat No. 4 on the 2"4 Floor of the three storied Apartment, situated at Mouza Kapasdanga under Hooghly, Chinsurah Municipality, on the basis of an unregistered Agreement of Sale wherein entire consideration was paid to the Vendor, Sibnath Dutta. Possession was delivered to the Appellant on 20* April, 2014 and Sale Deed was executed on 21.01.2019.

5. Bank opposed the prayer on the ground that the mortgage was created by Aruna Dutta in favour of the Bank on 11.7.2014 by deposit of Title Deed No. 06957 dated 03.9.2013 covering Flat No. 4, in the 1st Floor of building at Premises No. 189/15, named “Sristi Apartment” at Mahendra Mitra Lane, Barowari, Hooghly - 712 103, Mouza Kapasdanga, Ward No. 10 under Hooghly Chinsurah Municipality, District Hooghly, West Bengal under R.S. Dag No. 02088, L.R. Dag No. 4509, R.S. Khatian No. 420, L.R. Khatian No. 4066 registered with the office of DSR, Hooghly recorded in Book No. I Volume No. 19, Pages 4667 to 4682 for the year 2013. No right could be claimed on the basis of an unregistered Agreement of sale. Sale Deed was executed and registered after creation of the mortgage in favour of the Bank.

6. A notice, under Section 13 (2) of the Act was issued by the Bank to M/s. Dutta Construction, Proprietor Sibnath Dutta, on 15.6.2021. Agreement to Sale was executed by Sibnath Dutta in favour of the Appellant. Sibnath Dutta executed a Gift Deed in favour of his wife Aruna Dutta on 34 September, 2013.

7. Learned Counsel for Appellant vehemently argued that the Appellant is seeking protection on the basis of his possessory title. Appellant came into possession on the basis of the agreement to sale. Subsequently, Sale Deed was also executed in favour of the Appellant. Learned Counsel has placed reliance upon a judgment of the Hon’ble Apex Court in Nanjegowda & Another -vs- Gangamma & Others [(2011) 13 SCC 232] which was a case arising out of a claim for title on the basis of an agreement to sale.

Hon’ble Supreme Court, while considering the principles of Section 53A of the Transfer of Property Act in paragraph 9 held that:

"9. From a plain reading of the aforesaid provision, it is evident that a party can take shelter behind this provision only when the following conditions are fulfilled. They are:

(i) The contract should have been in writing signed by or on behalf of the transferor;

(ii) The transferee should have got possession of the immovable property covered by the contract;

(iii) The transferee should have done some act in furtherance of the contract; and

(iv) The transferee has