Property lawGPASupreme Court of India

Suraj Lamp and Industries Pvt Ltd v State of Haryana

(2012) 1 Supreme Court Cases 65620121 min read
The case in brief30-second read
Facts
Widespread practice in Delhi/NCR of "selling" properties through GPA + Agreement to Sell to evade stamp duty. Buyers paid full price, took possession, but no registered sale deed executed.
Issue
Whether transfer of immoveable property can be validly effected through a General Power of Attorney combined with an Agreement to Sell, without a registered sale deed.
Held
Properties can only be lawfully transferred by registered sale deeds under S.54 TPA. No combination of GPA, agreement to sell, affidavit, or will can substitute for a sale deed. Directed authorities to ensure compliance and not accept GPA-based transactions as proof of title.
Principle
Transfer of immoveable property only by registered sale deed; GPA transactions do not convey title
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Facts

  • Widespread practice in Delhi/NCR of "selling" properties through GPA + Agreement to Sell to evade stamp duty
  • Buyers paid full price, took possession, but no registered sale deed executed
  • Supreme Court took cognisance of the practice and its harmful effects

Issue

  1. Whether transfer of immoveable property can be validly effected through a General Power of Attorney combined with an Agreement to Sell, without a registered sale deed.

Held

  • Properties can only be lawfully transferred by registered sale deeds under S.54 TPA. No combination of GPA, agreement to sell, affidavit, or will can substitute for a sale deed. Directed authorities to ensure compliance and not accept GPA-based transactions as proof of title.

Ratio decidendi

S.54 TPA is the ONLY mode for conveying immoveable property valued above Rs. 100. A GPA authorises the agent to act; it does not itself transfer ownership. The buyer under a GPA transaction has only a contractual right (to seek specific performance), not ownership.

Exam use

How to use it in an answer

Deploy in any question on mode of sale (S.54), validity of GPA transactions, or distinction between agreement to sell and completed sale. Key line: "Immoveable property can be lawfully transferred only by a registered deed of conveyance."

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Citation

Suraj Lamp and Industries Pvt Ltd v State of Haryana (2012) 1 Supreme Court Cases 656

Reported: (2012) 1 Supreme Court Cases 656. This is an educational summary, not the judgment itself. Cite the reported version in professional or academic work.