#Property_law #saledeed #possession
#probate #Transfer_of_Property_Act #Letter_of_Administration #Registered_Will #Unregistered_Will #powerofattorney
Though Section 54 says that once the sale document is registered and the same can not be invalidated for non-payment of consideration amount.
But there is a specific provision in law i.e. Section 55, sub-section 4(b) of the Transfer of Property Act, 1882.
It says the amount of consideration, which is unpaid, would become a charge on the property being conveyed.
So, if the possession is not given at the time of execution of sale deed then the seller can withheld the possession till the unpaid consideration amount is paid.
One more thing I would like to say, when it is Sale agreement of immovable property, the Transfer of Property Act would prevail over those of the Contract Act in case of any conflict or inconsistency between the two.
I would like to discuss two cases propounding 2 opposite proposition of law but both are correct on the given facts and circumstances.
Kaliaperumal vs. Rajagopal & Anr. 2009 (4) SCC 193, where the Supreme Court propounded the following principles:
1. The payment of the entire price is not a prerequisite for completing the sale and passing of title. Section 54 of the Transfer of Property Act, 1882, defines sale as a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised.2. If the intention of the parties was for the title to pass upon execution and registration, it would do so even if the full sale price or part thereof is not paid.
3. For non-payment, the vendor's remedy is limited to suing for the balance price.
4. Yes, the vendor is entitled to a charge upon the property for the unpaid part of the sale price under Section 55(4)(b) of the Act.5. Although ownership and title typically pass to the purchaser on the registration of the sale deed, this is not an absolute rule. The true test of the passing of property is the intention of the parties.
6. The registration is prima facie evidence of an intention to transfer the property, it is not conclusive if payment of consideration is a condition precedent for the property's transfer.
7. The determination of whether the parties intended the transfer of ownership to occur solely through the execution and registration of the deed or only after the receipt of the entire consideration depends on their intention, primarily gathered from the sale deed's recitals.
8. If the recitals are insufficient or ambiguous, surrounding circumstances and parties' conduct can be considered, subject to the limitations in Section 92 of the Evidence Act, 1872.9. In cases where possession and title deeds are not delivered to the purchaser either on the date of sale or thereafter, it may indicate that the title was intended to pass only after the payment of the full price.
10. The recital in the sale deed about the purchaser being entitled to hold, possess, and enjoy the properties from the date of sale may not be conclusive, especially when possession is not actually delivered.6. When a sale deed categorically states that on receiving the total consideration, the property is conveyed, and possession is delivered, the clear intention is that title and possession would pass only upon the payment of the entire sale consideration. If the vendor proves non-receipt of the entire sale consideration, the title in the property would not pass to the purchaser.
Recently in Kewal Krishan v. Rajesh Kumar {Civil Appeal Nos. 6989-6992 Of 2021(Arising out of SLP (C) Nos. 2033-2036 of 2016)}(2021 SCC OnLine SC 1097), Justice Oka of SC wrote the judgment and held that payment of price is an essential part of a sale and that Sale Deed executed without payment of consideration would not have any legal effect.
1 мар 2024
