The Supreme Court has ruled that neither a power of attorney nor an agreement for sale and much less an affidavit can confer any valid ownership title of an immovable property unless the same is sold through a sale deed and duly registered under the Transfer of Property Act.

A bench of Justice Aravind Kumar and Justice Sandeep Mehta passed the verdict while allowing an appeal filed by one Ramesh Chand challenging the concurrent findings of the Delhi High Court and the District Court which took a contrary view and had earlier ruled in favour of his brother Suresh Chand.

In this case, there was an immovable property dispute between Ramesh Chand and Suresh Chand, both sons of late Kundan Lal.

Dispute arose after Suresh Chand claimed that the family property was sold to him by his father through a valid “agreement for sale”, “general power of attorney” and also an “affidavit”.

Ramesh Chand challenged the claim of the property being sold to Suresh Chand but his plea was rejected by both the District Court and the High Court, aggrieved by which he had filed the present
appeal.

Allowing his appeal, the Apex court interpreted the provisions of the Transfer
of Property Act, 188, the Indian Succession Act 1925 that only a registered a sale deed confers ownership of a property and not other options like contract for sale, agreement for sale, or a general power of attorney.

“Perusal of above said provisions lays down a specific mode of execution of sale deed with respect to immovable property for concluding the sale of a property.

“In the sale for an immovable property the value of which exceeds ₹100, the three requirements of law are that the transfer of property of sale must take place through a validly executed sale deed, i.e., it must be in writing, properly attested and registered.

“Unless the sale deed is in writing, attested and registered, the transaction cannot be construed as sale, or in other words, the property will not be transferred,” Justice Aravind Kumar, who authored the judgment, said.