An agreement to sell might promise ownership — but without a proper legal follow-through, it’s just that: a promise. The Supreme Court has once again underlined that such agreements, no matter how detailed or dated, don’t pass the test for property rights unless backed by a suit for specific performance.
The ruling came in the case Vinod Infra Developers Ltd. vs Mahaveer Lunia & Others, where the top court took issue with an attempt to claim property rights based solely on an unregistered agreement and a revoked Power of Attorney. Justices JB Pardiwala and R Mahadevan, who delivered the judgment, made it unambiguous: no registered sale deed, no ownership.
The dispute arose after Respondent No.1, without pursuing a suit for specific performance, executed sale deeds in his own name in 2022 — despite the revocation of his PoA — and even managed to get the property mutated in official records. The appellant challenged this, seeking title, possession, and an injunction. However, their case was tossed by the High Court at the threshold under Order VII Rule 11 CPC, prompting an appeal to the Supreme Court.
Correcting the course, the top court pointed out that under Section 54 of the Transfer of Property Act, 1882, an agreement to sell is not a conveyance. Citing landmark decisions like Suraj Lamp & Industries v. State of Haryana and Cosmos Co-operative Bank Ltd. v. Central Bank of India, the bench reiterated that even possession plus paperwork won’t suffice without formal registration. Title doesn’t pass through intentions or private arrangements — only through a registered deed.
The judgment also leaned on the recent ruling in M.S. Ananthamurthy v. J. Manjula, emphasizing again that rights over immovable property can’t be conjured from an unregistered agreement. Ownership must be legally stamped and registered — not inferred.
In a legal landscape often littered with informal deals and oral understandings, the Supreme Court’s message couldn’t be clearer: if you want the keys, you better have the deed — and the suit to back it.
