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Supreme Court: sale deed valid even without full payment
The Supreme Court has ruled that a registered sale deed remains valid even if the full purchase price has not been paid at the time of execution. A bench of Justices J…
The Story in Brief
The Supreme Court has ruled that a registered sale deed remains valid even if the full purchase price has not been paid at the time of execution. A bench of Justices J B Pardiwala and K Vinod Chandran held that ownership transfers upon execution and registration if the parties intended to transfer the property, and non-payment of the balance does not make the deed void. The seller's only remedy is to file a suit for recovery of the unpaid amount.
The August 7 judgment overturned a Bombay High Court order that had cancelled two sale deeds from 1975. The deeds recorded part payment of Rs 2,500 out of Rs 7,000 per property, with the buyer retaining the balance to clear the seller's debts. The High Court had declared the deeds inoperative, but the Supreme Court restored the trial court's finding that the sale was complete. Section 54 of the Transfer of Property Act applied squarely, the court said.
The Indian Opinion
This ruling cuts through the exaggerated notion that a registered sale deed is somehow provisional until every rupee changes hands. Some litigants try to renege on a deal by arguing that incomplete payment makes the document a nullity. The court has rightly shut that door: a contract is a contract, and unpaid dues are a debt, not grounds to undo a completed transfer. The real test now is whether lower courts will consistently apply this principle or continue entertaining suits for cancellation that should be suits for recovery.
Source: deccanherald.com
This story was synthesised by AI from the source linked above.
