Summary
| Category | Data |
|---|---|
| Court | Supreme Court of India |
| Case Number | C.A. No.-013835-013835 – 2025 |
| Diary Number | 344/2018 |
| Judge Name | HON’BLE MR. JUSTICE K.V. VISWANATHAN |
| Bench |
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| Precedent Value | Binding on all courts |
| Overrules / Affirms |
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| Type of Law | Statutory interpretation; property law; registration law |
| Questions of Law | Whether a deed assigning a decree for specific performance of an agreement of sale of immovable property must be registered under Section 17(1)(e) of the Registration Act, 1908? |
| Ratio Decidendi | A decree for specific performance is a preliminary decree that does not of itself create or transfer any right, title or interest in immovable property; title passes only upon execution and registration of the sale deed. Section 17(1)(e) mandates registration only where the decree “purports or operates to create, declare, assign, limit or extinguish … any right, title or interest” in immovable property. Since a specific-performance decree confers merely a right to execute a sale, it does not trigger compulsory registration. The Executing Court’s reliance on the Andhra Pradesh decision in K. Bhaskaram was incorrect and is overruled. |
| Judgments Relied Upon |
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| Logic / Jurisprudence / Authorities Relied Upon by the Court |
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| Facts as Summarised by the Court |
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Practical Impact
| Category | Impact |
|---|---|
| Binding On | All subordinate courts |
| Persuasive For | High Courts |
| Overrules | K. Bhaskaram & Anr. v. Mohammad Moulana & Ors. (AIR 2005 AP 524) |
| Distinguishes | None additional beyond overturning K. Bhaskaram |
| Follows |
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What’s New / What Lawyers Should Note
- A decree for specific performance does not create any right, title or interest in immovable property; title vests only on execution and registration of the sale deed.
- Section 17(1)(e) of the Registration Act applies only if the decree itself “purports or operates to create, declare, assign, limit or extinguish” property rights.
- Assignment of SP decrees under Order 21 Rule 16 CPC is permitted without registration and subject only to notice requirements.
- Overrules Andhra Pradesh High Court’s decision in K. Bhaskaram; aligns with Allahabad and Bombay High Court precedents.
- Lawyers can rely on this Supreme Court ruling to resist objections to quash challenges based on non-registration of decree assignments.
Summary of Legal Reasoning
- Nature of SP decree: A specific-performance decree is a preliminary decree declaring contractual rights; it does not pass title or create any interest (Babu Lal, Kartik Chandra Pal).
- Transfer of Property Act: Sections 54–55 require immovable property transfers by registered conveyance; an agreement or decree does not by itself transfer title or charge.
- Specific Relief Act: Sections 15 and 28 confirm that the contract remains alive post-decree and title vests only on execution of the sale deed within time.
- Registration Act analysis: Section 17(1)(e) mandates registration only where the decree itself creates or assigns property rights; SP decrees confer only a right to execute a sale.
- Execution procedure: Order 21 Rule 16 CPC allows decree-assignments to be executed without registration, with notice to transferor and judgment-debtor.
- Conclusion: Assignment deed need not be registered; the Andhra Pradesh ruling in K. Bhaskaram is overruled; Supreme Court’s decision is binding.
Arguments by the Parties
Petitioner (Heirs of judgment-debtor)
- Assignment of SP decree creates an interest in immovable property and must be registered under Section 17(1)(e).
- Decree “assigns” rights valued over ₹100, triggering compulsory registration.
- Without registration, assignees could avoid stamp duties by repeated assignments.
Respondent No. 1 (Assignee of decree)
- SP decree confers only a right to obtain a sale; it does not transfer title or interest in property.
- Contract between parties survives post-decree; execution and registration of sale deed remain essential.
- Reliance on Amol (Bombay High Court) holding that assignment of SP decrees is not registrable.
Factual Background
A suit for specific performance of a sale agreement resulted in an ex parte decree dated 13.09.1993. The decree-holder’s predecessor assigned the decree to the respondent by an unregistered deed dated 17.07.1995. The assignee filed Execution Petition No.150/2004, leading the Executing Court to direct a sale deed on 13.03.2008. The legal heirs of the judgment-debtor filed E.A. No.180/2009 under Section 47 CPC to set aside execution, contending the assignment deed was unenforceable for non-registration. The High Court in revision held no registration was required.
Statutory Analysis
Registration Act, 1908 – Section 17(1)(e): Mandates registration of non-testamentary assignments of decrees “when such decree … purports or operates to create, declare, assign, limit or extinguish … any right, title or interest” in immovable property valued ≥₹100. An SP decree does none of these.
Transfer of Property Act, 1882 – Sections 54–55: Sale of immovable property of value ≥₹100 only by registered instrument; a contract to sell (or decree) does not create any interest.
Specific Relief Act, 1963 – Sections 15, 28: A decree for specific performance enforces the contract but does not extinguish it; title vests only on execution of the sale or lease deed.
CPC Order 21 Rule 16: An assignee of a decree may execute it “in the same manner” as the decree-holder, subject only to notice to the transferor and judgment-debtor.
Alert Indicators
- 🚨 Breaking Precedent – Overrules the Andhra Pradesh High Court decision in K. Bhaskaram & Anr. v. Mohammad Moulana & Ors.
- ✔ Precedent Followed – Affirms Mumtaz Ahmad & Anr. v. Sri Ram & Ors. and Amol & Ors. v. Deorao & Ors.