In the given scanerio, the main legal issue is that X Sold 2 guntas of land to Y in 1975 even though the land belongs to someone else. As per section 7b of Transfer of Property Act 1882, only a person who has lawful ownership over the property can transfer it. If X is not the owner of the land, he has no legal authority to sell it and the sale deed executed in favour of Y does not become the title. According to the well-known legal principle “nemo dat quod non habet” (no one can transfer a better title than he himself possesses), Y could not obtain ownership from X and consequently could not pass valid ownership to any third party.
Further claim of third part that Y executed a GPA for 20 guntas does not automatically gives the ownership rights. As per the supreme court judgment in the matter of Suraj Lamp & Industries Pvt Ltd v. State of Haryana it was held that a General Power of Attorney does not transfer ownership of immovable property, and ownership can only be transferred through a properly executed registered sale deed. Therefore, the third party who sold sites based on GPA cannot legally claim ownership of the entire property merely on that basis.
Another aspect C, the son of X, was a minor at the time of the 1975 sale deed and was represented by his father. Under section 8 of the Hindu Minority and Guradianship Act, 1956 a guardian cannot transfer a minor’s immovable property without permission from the court. If such permission was not obtained, the transaction may be voidable, and the minor (after attaining majority) has the right to challenge it.
The proper legal remedy in this situation is to file a civil suit in the competent court seeking (i) declaration of ownership over the entire 20 guntas, (ii) cancellation of the 1975 sale deed and any subsequent transactions including GPA, and (iii) permanent injunction restraining the third party and other purchasers from interfering with the property under the provisions of the Specific Relief Act, 1963.he court decree declaring the deed invalid can then be registered in the Sub-Registrar’s office and used to correct revenue records. If fraud or misrepresentation is involved in the GPA transactions, a criminal complaint for cheating and forgery may also be filed under relevant provisions of the Indian Penal Code. In essence, the dispute must be resolved through a declaratory and cancellation suit before the civil court, as a registered sale deed cannot simply be cancelled privately without a court order.
