Hi All ,
I have gone through supreme court verdict dated on 12th oct 2011 , judgement is not clear . below is the more details on my property
1) Land owner XYZ has given SPA to grand father ABC
2) the SPA is registred at sub register officece " special power of attorney for adminting execution " in 2009 -10
1) I have executed sale deed as co-excutant in respect ti falt in favour of the purchasers as vendor and recieved the consideration in full . where as I am an co-executant of sale deeds along with annexures for the proerty situated at ( address of property mentioned)
2) I am the co-executant since I am the absolute owner of the said property in the capacity of vendor for said sales deeds
3) sale deed required to lodged for registration in the office of subregister begur bangalore district
4) I am unable to appear the sub-register for admintting execution of the said deeds ( i e) presentation of deeds relation to the said property
5) I am therefore desirous of apponting my grand father Mr. ABC age about 74 years staying at banaglore ( house address given) , as my attorney to attend the office of sub-register to admin the execution of said conveyance on my behalf and which the attorney has agreed to do
Bleow is supermet court judgment conclusion , I bit confused . I need your feed back that above mentioned SPA details and along with below menttioned Judgement copy , can I go for purchase over SPA . please help
.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
end is put to the pernicious practice of SA/GPA/WILL transactions known
as GPA sales.
17. It has been submitted that making declaration that GPA sales and
SA/GPA/WILL transfers are not legally valid modes of transfer is likely to
create hardship to a large number of persons who have entered into such
transactions and they should be given sufficient time to regularize the
transactions by obtaining deeds of conveyance. It is also submitted that this
decision should be made applicable prospectively to avoid hardship.
18. We have merely drawn attention to and reiterated the well-settled
legal position that SA/GPA/WILL transactions are not ‘transfers’ or ‘sales’
and that such transactions cannot be treated as completed transfers or
conveyances. They can continue to be treated as existing agreement of sale.
Nothing prevents affected parties from getting registered Deeds of
Conveyance to complete their title. The said ‘SA/GPA/WILL transactions’
may also be used to obtain specific performance or to defend possession
under section 53A of TP Act. If they are entered before this day, they may
be relied upon to apply for regularization of allotments/leases by
Development Authorities. We make it clear that if the documents relating to
‘SA/GPA/WILL transactions’ has been accepted acted upon by DDA or
other developmental authorities or by the Municipal or revenue authorities to
effect mutation, they need not be disturbed, merely on account of this
decision.
19. We make it clear that our observations are not intended to in any way
affect the validity of sale agreements and powers of attorney executed in
genuine transactions. For example, a person may give a power of attorney to
his spouse, son, daughter, brother, sister or a relative to manage his affairs or
to execute a deed of conveyance. A person may enter into a development
agreement with a land developer or builder for developing the land either by
forming plots or by constructing apartment buildings and in that behalf
execute an agreement of sale and grant a Power of Attorney empowering the
developer to execute agreements of sale or conveyances in regard to
individual plots of land or undivided shares in the land relating to apartments
in favour of prospective purchasers. In several States, the execution of such
development agreements and powers of attorney are already regulated by
law and subjected to specific stamp duty. Our observations regarding
‘SA/GPA/WILL transactions’ are not intended to apply to such
bonafide/genuine transactions.
