Suraj Lamp and Industries Pvt Ltd v State of Haryana
Rule established
Transfer of immoveable property only by registered sale deed; GPA transactions do not convey title
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
- 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.
How to use it in an exam
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."
Source
Source: (2012) 1 Supreme Court Cases 656
This is an educational summary, not the judgment itself. Cite the reported version in professional or academic work.