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        1920 (8) TMI 1 - HC - Indian Laws

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        Registered sale deed governs title to immovable property; prior unregistered transfer does not bar possession or limitation claim. Title to tangible immovable property of the requisite value passes only by a registered sale deed; an earlier unregistered conveyance does not defeat the ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                              Registered sale deed governs title to immovable property; prior unregistered transfer does not bar possession or limitation claim.

                              Title to tangible immovable property of the requisite value passes only by a registered sale deed; an earlier unregistered conveyance does not defeat the plaintiff's right to possession against a transferee. The suit for possession was therefore maintainable because no legally effective title had passed before registration. On limitation, the courts found that the plaintiff had no prior notice of the transfer and sued within three years from acquiring knowledge when possession was sought to be delivered, so the claim was within time. The decree for possession with mesne profits was upheld and the appeal failed.




                              Issues: (i) whether the plaintiff could maintain a suit for possession against a transferee under an earlier but unregistered sale deed, and (ii) whether the suit was barred by limitation.

                              Issue (i): whether the plaintiff could maintain a suit for possession against a transferee under an earlier but unregistered sale deed.

                              Analysis: A sale of tangible immovable property of the requisite value can operate only by a registered instrument. Title does not pass until registration, and although registration makes the document operative from the date of execution, the transferee acquires no legally effective title against the plaintiff before registration is completed. The plaintiff's right to possession, therefore, was not defeated by the defendant's prior but unregistered purchase when the plaintiff instituted the suit.

                              Conclusion: The suit for possession was maintainable, and the finding was against the appellant.

                              Issue (ii): whether the suit was barred by limitation.

                              Analysis: Both courts found that the plaintiff had no notice of the transfer when the suit was filed and became aware of it only when delivery of possession was sought. The suit was instituted within three years from that date, and was therefore within time.

                              Conclusion: The suit was not barred by limitation, and the finding was against the appellant.

                              Final Conclusion: The decree for possession with mesne profits was upheld and the appeal failed in full.

                              Ratio Decidendi: Title to tangible immovable property of the requisite value passes only on registration of the sale deed, and a suit for possession based on an earlier right is not defeated by an earlier execution of an unregistered conveyance; limitation runs from the plaintiff's knowledge where the courts find absence of prior notice.


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                              ActsIncome Tax
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