“In case of sale, no doubt, under the Stamp Act the sale deed has to be stamped as per the market value of the property, but not as per the consideration fixed for the sale. Section 54 of Transfer of Property Act enacts that sale of immoveable property can be made only by a registered instrument and an agreement of sale does not create any interest or charge on its subject matter.” Whether it is stamp duty on sale consideration or market value of the property?Īndhra Pradesh High Court in Kavitha Goud vs. According to Transfer of Property Act, an agreement of sale, whether with possession or without possession, is not a conveyance. “Any contract of sale (agreement to sell) which is not a registered deed of conveyance (deed of sale) would fall short of the requirements of Sections 54 and 55 of Transfer of Property Act and will not confer any title nor transfer any interest in an immovable property (except to the limited right granted under Section 53A of Transfer of Property Act). In the aforementioned case of Suraj Lamp & Industries, it was further held that. In the absence of a duly stamped and registered sale deed, no right, title or interest in an immoveable property can be transferred. Thus, is a well settled law that a transfer of immoveable property by way of sale can only be by a deed of conveyance, i.e. Such a right to protect possession against the proposed vendor cannot be pressed in service against a third party.” It has nothing to do with the ownership of the proposed transferor who remains full owner of the property till it is legally conveyed by executing a registered sale deed in favour of the transferee. It disentitles the transferor from disturbing the possession of the proposed transferee who is put in possession in pursuance to such an agreement. “Protection provided under Section 53A of the Act to the proposed transferee is a shield only against the transferor. Narayan Bapuji Dhotra, Supreme Court held that. The Apex Court in Narandas case noted that- “ The personal obligation created by a contract of sale is described in Section 40 of the Transfer of Property Act as an obligation arising out of contract and annexed to the ownership of property, but not amounting to an interest or easement therein.” Similarly in Rambhau Namdeo Gajre v. Ram Mohit Hazra observed that as per Section 54 of the Transfer of Property Act, a contract of sale or agreement of sale does not, by itself, creates any interest in or charge on the property to be transferred. , Supreme Court, with reference to its earlier judgments in Narandas Karsondas v.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |