Benefit of Section 53A of Transfer of Property Act 1882 available only on appropriately stamped and registered instruments

Under Section 53-A of the Transfer of Property Act, the benefit of an agreement to sell in the nature of part performance could not be given unless the agreement to sell was stamped for the value of 90% of the sale consideration of the property and was also registered before the Sub-Registrar. It was further held that an unregistered documents being the agreement to sell, Power of Attorney etc. do not confer title w.e.f. 24.09.2001, when Section 53-A of the Transfer of Property 1882 by Act 48 of 2001 was amended.

This was sold held in the matter before the Hon’ble High Court of Delhi in the case titled Rekha Gupta Vs. Ashok Kumar & Anr. (RFA No. 279/2018), decided on 25^th March, 2018.

Challenge

The challenge before the Hon’ble High Court of Delhi was that whether the trial court was right while rejecting the plaint of the plaintiff/ appellant under Order VII Rule 11 Code of Civil Procedure by holding that unregistered documents do not confer title of the suit property because the same have been executed on after the amendment of Registration Act.

Held

The Hon’ble High Court of Delhi by dismissing the appeal of the Appellant/ Plaintiff held that in view of the judgment of Supreme Court in the case of Suraj Lamp Industries Pvt. Vs. State of Haryana (2012) 1 SCC 656, the documents relied upon by the Appellant/ Plaintiff can not be looked into as the same being unregistered documents have been executed on 20.07.2013 and such unregistered documents cannot be looked into.

The Hon’ble Court further relied upon Section 53-A of Transfer of Property Act 1882 and held that no benefit can be claimed upon/ from any unregistered and unstamped document (Agreement to Sell/ Power of Attorney etc) executed after the amendment dated 24.09.2001 by Act 48 of 2001.