Impact of Property sale/ purchase through GPA, Agreement to sale, WILL etc. (Subsequent to Apex court judgement in the matter of Suraj Lamps & Industries Pvt Ltd. v. State of Haryana and another (Special Leave Petition (C) No.13917 of 2009-Decided on 11-10-2011)
- Importantly, Hon’ble Supreme Court of India has declared that there cannot be transfer of title by GPA/SA/WILLs transactions.
- Therefore, only registered sale deed /conveyance is a valid mode of transfer of title in immovable property. {To clarify the above, circular was also issued by the Inspector General of Registration, Delhi dated 27/4/2012}.
- In this regard relevant portion from judgement is as below:
“16. We therefore reiterate that immovable property can be legally and lawfully transferred/conveyed only by a registered deed of conveyance. Transactions of the nature of `GPA sales’ or `SA/GPA/WILL transfers’ do not convey title and do not amount to transfer, nor can they be recognized or valid mode of transfer of immoveable property. The courts will not treat such transactions as completed or concluded transfers or as conveyances as they neither convey title nor create any interest in an immovable property. They cannot be recognized as deeds of title, except to the limited extent of section 53A of the TP Act. Such transactions cannot be relied upon or made the basis for mutations in Municipal or Revenue Records. What is stated above will apply not only to deeds of conveyance in regard to freehold property but also to transfer of leasehold property. A lease can be validly transferred only under a registered Assignment of Lease. It is time that an It is time that an end is put to the pernicious practice of SA/GPA/WILL transactions known as GPA sales.”
- What will be the fate of GPA/Agreement to sell/Will or SPA registered before the date of Supreme Court order i.e.11.10.2011? Answer: The GPA/Agreement to sell/ Will or SPA registered before the order of the Hon’ble Supreme Court of India i.e. 11.10.2011 are not affected. The person who have entered into such transactions may regularize the transaction by obtaining deeds of conveyance.
- Now everybody wants to know, how can a person having GPA registered before the date of the SC order, further sell/transfer the property? Answer : Please note , further transfer of immovable property shall be permissible only through a registered sale deed.
