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Civil Property & InheritanceSupreme Court of India

Ramesh Chand (D) Thr. LRs. vs Suresh Chand and Anr.

Not available · 2025 INSC 1059Decided 1 Sept 2025
Not available
Justice Aravind Kumar · Justice Sandeep Mehta

Background

Two brothers, Ramesh Chand (defendant) and Suresh Chand (plaintiff), disputed ownership of a Delhi property that belonged to their father, Kundan Lal. Suresh Chand claimed he acquired the property from his father through a General Power of Attorney, Agreement to Sell, Affidavit, Receipt, and a registered Will, all dated 16.05.1996, and sued for possession, treating Ramesh Chand as a mere licensee/trespasser. Ramesh Chand contended the property had been orally transferred to him in 1973, that he had lived there continuously since, and that he had since sold half the property to a third party. The trial court and, eventually, the Delhi High Court ruled in favour of the plaintiff.

Decision Breakdown

The Supreme Court held that none of the documents relied upon by the plaintiff (Agreement to Sell, GPA, Affidavit/Receipt, or even the registered Will) conferred valid title, because under Section 54 of the Transfer of Property Act, ownership of immovable property worth more than Rs. 100 can only pass through a registered sale deed. An Agreement to Sell and a GPA merely create rights to seek performance or authorize an agent to act; they don't transfer ownership. The Will was also not legally proved: Section 63 of the Succession Act and Section 68 of the Evidence Act require at least one attesting witness to be examined, which was never done, and the Court found the Will "surrounded by suspicious circumstances" since it excluded three of Kundan Lal's four children without explanation. The plaintiff also could not invoke Section 53A (part-performance) since he was not in possession of the property. The Court allowed the appeal and dismissed the plaintiff's suit, while protecting the bona fide purchaser's (second defendant's) rights to the extent of the appellant's share.

Lesson Learnt

Documents like an Agreement to Sell, a General Power of Attorney, or an Affidavit/Receipt, even when notarized or registered, do not by themselves transfer ownership of immovable property; only a duly registered sale deed does. A Will, similarly, must be formally proved in court through an attesting witness, not simply relied upon because it was registered.

Ramesh Chand (D) Thr. LRs. vs Suresh Chand and Anr. – Legal Case Shots | LegalAware