Supreme Court holds unregistered sale agreements don’t confer title, even if later document is registered.
UNREGISTERED SALE AGREEMENT CAN’T CONFER TITLE
Case in NewsOriginal sale agreement unregistered, registration of later document won’t confer title: Supreme Court. |
Case Overview
Case Name: MAHNOOR FATIMA IMRAN & ORS. vs. M/S VISWESWARA INFRASTRUCTURE PVT. LTD & ORS .
The Supreme Court, in a significant verdict held that a Unregistered Agreement for sale cannot confer ownership rights even if a subsequent document related to it is registered . The case was heard by a bench of Justice Sudhanshu Dhulia and Justice K Vinod Chandran where the respondents claimed protection from dispossession based on a 1982 unregistered sale agreement . The agreement was allegedly validated in 2006 by the Assistant Registrar, without a fresh transaction .
Key Aspects
The Court scrutinized the facts and rejected the claim based on an outdated and unregistered sale agreement .
- Original sale agreement from 1982 was never registered under the Registration Act .
- Respondent claimed title based on this unregistered document .
- In 2006, the agreement was revalidated by the Assistant Registrar without a fresh sale .
- High Court had earlier granted protection to respondent from dispossession .
- Apex Court found this protection legally unsustainable .
Legal Insights
The case involved critical interpretation of registration requirements under law .
- Section 23, Registration Act : Document must be registered within four months of execution .
- Section 34 : Allows condonation of delay up to four more months with fine .
- Court ruled registration post-delay without new transaction is invalid .
- Unregistered Agreement can’t serve as basis for legal title .
Court’s Verdict
The Supreme Court held that the Unregistered Agreement of 1982, even if validated in 2006 cannot confer ownership or title . It overruled the High Court decision reiterating the necessity of proper registration within the statutory period .
Source- Supreme Court of India
Read also – Legal Glossary- Verdict
