Are Oral Transactions Valid in India? A Comprehensive Legal Guide

2023 0 Supreme(Mad) 1823

The learned Trial Judge has discussed the oral and documentary evidence available on record in great detail and has rightly come to the conclusion that alleged agreement of sale dated 30.08.2006 cannot be termed as a genuine sale transaction. ... The plaintiff also contended that there is no question of willingness and readiness coming into play at al1 since the transaction was nothing but a loan transaction, that too only for a sum of Rs.15,00,000/-. ... The receipt of said sum of Rs.15,00,000/- is admitted by the defen....

The Court had to -consider in that case the scope of section 92 of the Evidence Ordinance and held that the defendants were precluded by that section from leading oral evidence to change the character of the transaction. ... same transaction, show its true nature for his own relief, and insist on its apparent character to prejudice his adversary. ... in those cases would permit the defendant to show that the consideration was not Rs. 2,000 as mentioned in the deed and only Rs. 10 but not to show that the consideration had no pecun....

The District Judge held that the defendants were precluded by section 92 of the Evidence Ordinance from leading such oral evidence to change the character of the transaction. ... On the contrary all parties are agreed that the document is valid, and the only question for determination is the effect of the document. Further, I am of opinion that the present action is not an action to obtain any decree or order " relating thereto". ... I think oral proof is restricted to cases where it is sought to prove that the document ....

2012 Supreme(Online)(Chh) 106

Respondent No.1 has failed to prove the fact that transaction is sale, but by adducing documentary and oral evidence the present appellants have discharged their burden. The appellants have succeeded in proving the fact that transaction was not sale, but for security of loan. ... Oral evidence can always be led to show that a transaction under a particular document or set of documents is sham or fictitious or nominal, not intended to be acted upon. ... 19. ... In the present case, the appellants have....

Pritt that as the whole transaction of 1930, namely, the conveyance and the trust, was required by law to be reduced to the form of a document no evidence of the transaction apart from the document could be given under the terms of section 91 of the Evidence Ordinance. ... In an action by M for a declaration of trust and consequential relief-   Held, that oral evidence was admissible to establish the trust. ... The suit was tried by the District Judge of Colombo who held that oral evidence of the trust set out in ....

He accordingly decided in that case that oral evidence was not admissible to prove that a deed which purported to be a transfer for valuable consideration was a deed of donation. ... It was in the light of the evidence of the notary that the learned Judge analysed the transaction and reached the conclusion to which I have referred. ... It follows that the deed in question must be treated as a valid deed of sale by Venjo to the plaintiff for a consideration of Rs. 3,000, and as this sum has admittedly not been paid by the plaintif....

It thus appears that the law of Ceylon in the generality of cases refuses to recognise a transaction relating to immovable property unless the terms of the transaction have been embodied in a notarially attested document. ... R. 486] it was held that: " where a person transferred a land to another by a notarial deed, purporting on the face of it to sell the land, it is not open to the transferor to prove by oral evidence that the transaction was in reality a mortgage and that the transferee agreed to reconvey the....

2024 0 Supreme(Mad) 465

In such circumstances, in my considered opinion, the first proviso to Section 92 would squarely apply and the defendants are entitled to lead oral evidence to contradict Ex.A1, sale agreement and establish that the transaction was not a sale transaction and it was only a loan transaction. ... The Courts below have elaborately discussed the oral and documentary evidence adduced by the parties and found that the plaintiff had not examined the attesting witnesses to Ex.A1 and held that Ex.A1 was not proved....

In my view it is the Roman Dutch Law that would apply to the transaction engulfed in the document P3. Would the said transaction amount to an enforceable contract? Under the Roman Dutch Law there should be justa causa for a contract to be valid. ... Law - What is a Banking transaction? ... Although the Respondent had transacted with the Appellant Bank, does the said transaction become a banking transaction merely because the Appellant was a Bank. What is a Banking transa....

  (5) The plaint does not disclose a trust valid in law in favour of Nagamma or the plaintiffs inasmuch as the alleged trust has not been declared in a notarially attested instrument of trust. ... In an action by M for a declaration of trust and consequential relief-   Held, that oral evidence was admissible to establish the trust. ... In this connection according to Ragunathan he told the first, second, third and fourth defendants about the transaction between the first co-plaintiff and the first, second and third defendants collap....

2021 0 Supreme(Mad) 818

Considering Section 10 of the Contract Act, 1872 and the proviso thereto, no attention has been drawn to any law applicable in the State concerned at the relevant time, which requires an agreement of sale to be made in writing or in the presence of witnesses or to be registered. Therefore, even an oral agreement to sell is valid. In India, an agreement of sale signed by the vendor alone and delivered to the purchaser, and accepted by the purchaser, has always been considered to be a valid contract. If so, a written agreement signed by one of the parties, if it evidences suc....

2019 0 Supreme(Mad) 132

Therefore, even an oral agreement to sell is valid. If so, a written agreement signed by one of the parties, if it evidences such an oral agreement will also be valid. Our attention has not been drawn to any law applicable in Bihar at the relevant time, which requires an agreement of sale to be made in writing or in the presence of witnesses or to be registered.

2018 0 Supreme(Sikk) 46

Our attention has not been drawn to any law applicable in Bihar at the relevant time, which requires an agreement of sale to be made in writing or in the presence of witnesses or to be registered. If so, a written agreement signed by one of the parties, if it evidences such an oral agreement will also be valid.” Therefore, even an oral agreement to sell is valid.

2015 0 Supreme(All) 1492

If so, a written agreement signed by one of the parties, if it evidences such an oral agreement will also be valid. Therefore, even an oral agreement to sell is valid. Our attention has not been drawn to any law applicable in Bihar at the relevant time, which requires an agreement of sale to be made in writing or in the presence of witnesses or to be registered. In any agreement of sale, the terms are always negotiated and thereafter reduced in the form of an agreement of sale and signed by both parties or the vendor alone (unless it is by a series of offers and counter-off....

2015 0 Supreme(All) 1239

Therefore, even an oral agreement to sell is valid. Our attention has not been drawn to any law applicable in Bihar at the relevant time, which requires an agreement of sale to be made in writing or in the presence of witnesses or to be registered. In any agreement of sale, the terms are always negotiated and thereafter reduced in the form of an agreement of sale and signed by both parties or the vendor alone (unless it is by a series of offers and counter-offers by letters or other modes of recognized communication)." If so, a written agreement signed by one of the parties....