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New Delhi, September 1, 2025 – In a major ruling, the Supreme Court once again confirmed a key principle of Indian property law; namely, that ownership of property cannot, however, be transferred without a registered sale deed.
This ruling came in the case of Ramesh Chand (D) through LRs vs. Suresh Chand & Anr. In this matter, the Court examined several documents; however, it found that an Agreement to Sell, a General Power of Attorney (GPA), an affidavit, a receipt, or even a registered Will were still not enough to prove ownership rights.
Background
In this dispute, Suresh Chand (plaintiff/respondent) said he bought a property from his father in 1996. He presented several documents to support his claim: an Agreement to Sell, GPA, affidavit, receipt, and a registered Will.
His brother, Ramesh Chand (defendant/appellant) disagreed. He argued that the property had been orally gifted to him in 1973, and since then, he had been living there.
The trial court and the Delhi High Court sided with Suresh. However, the Supreme Court stepped in to check if these documents could legally prove ownership.
Key Findings of the Supreme Court
1. Agreement to Sell Does Not Transfer Ownership
The Court explained that under Section 54 of the Transfer of Property Act, 1882, a sale means the transfer of ownership in return for a price. But for it to be valid, it must be done through a registered sale deed.
An Agreement to Sell is only a promise of a future sale. It does not, by itself, give ownership rights.
Justice Aravind Kumar noted:
“This document does not confer a valid title. At best, it allows the plaintiff to seek specific performance. It does not create ownership or charge on the property.”
2. GPA Is Not a Sale
The Court also said that a General Power of Attorney is just an agency tool. It allows someone to act on another’s behalf, but it does not transfer ownership. Even if it authorizes a sale, it does not replace a sale deed.
The Court stated:
“A power of attorney is not a sale. It cannot turn into a conveyance deed.”
3. Registered Will with Suspicious Circumstances
Although the Will shown by Suresh was registered, the Court found problems. The father had four children, yet the Will gave the property only to one son without explanation.
Therefore, the Court ruled that a registered Will alone cannot remove doubts when the circumstances are suspicious.
4. Section 53A Not Applicable
Suresh also tried to use Section 53A (doctrine of part performance) to defend his case. But the Court pointed out that he was not in possession of the property when he filed the case. Hence, this section did not apply.
5. Final Decision
Finally, the Supreme Court set aside the lower court rulings and dismissed Suresh’s claim. Ownership returned to the legal heirs. At the same time, the Court protected some third-party buyers who had purchased portions from Ramesh earlier.
Why This Ruling Matters
Legal Clarity
This verdict confirms once again: only a registered sale deed transfers ownership. It closes the door on misuse of GPA or Agreements to Sell.
Buyer Protection
By rejecting GPA and Agreements as proof of title, the Court protects people from fraud and illegal deals. This is crucial in real estate, where such misuse is common.
Due Diligence
For buyers, the lesson is simple: always demand a registered sale deed and do a proper title search. Depending on GPA or informal documents is unsafe and risky.
Quick Summary
| Document Type | Ownership Rights? | Court’s View |
|---|---|---|
| Registered Sale Deed | ✅ Yes | Only valid way to transfer property title |
| Agreement to Sell | ❌ No | Just a right to demand a sale deed |
| General Power of Attorney | ❌ No | Only an agency document, not a sale |
| Registered Will | ⚠️ Maybe | Invalid if suspicious, needs clear proof |
| Section 53A (Possession) | ❌ Not here | Works only if possession is shown |
Final Thoughts
In conclusion, the September 1, 2025 Supreme Court ruling once again makes it abundantly clear that, ultimately, registered sale deeds remain the only reliable way to secure property ownership in India.
Agreements, GPAs, affidavits, receipts—even Wills—cannot, therefore, replace a sale deed. For buyers, this serves as a strong reminder to verify ownership through legal registration and, moreover, to avoid risky shortcuts.
Consequently, this judgment not only protects homebuyers but also strengthens trust in India’s property system by reaffirming registered documentation as the bedrock of property rights and transactional integrity.
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