Supreme Court Validates Decades- Old Property Sale in Landmark Judgement
Supreme Court Validates Decades- Old Property Sale in Landmark Judgement
“Law is the king of kings, nothing is mightier than
law, by whose aid, even the weak may prevail
over the strong.”
– Justice Vikram Nath
The Hon’ble Supreme Court of India in a recent judgment has Upheld the validity of a decade old property sale, providing much needed clarity on the legal standing of sale deeds delayed in registration. In the case of Kaushik Premkumar Mishra & Anr. vs. Kanji Ravaria @ Kanji & Anr., involved a dispute over a piece of land purchased by the appellants in December 1985. Even though the Sale Deed had been executed at that time, inadequate stamp duty caused registration to be postponed until June 2011. A legal dispute over ownership arose during this time when the respondent sold the same land to a different party in December 2010. The Supreme Court ruled that the date of execution, not registration, determines the validity of the sale deed, thereby affirming the appellants’ ownership from 1985.
The judgement quoted:
“35. The doctrine of bona fide purchaser for value applies in situations where the seller appears to have some semblance of legitimate ownership rights. However, this principle does not protect a subsequent purchaser if the vendor had already transferred those rights through a prior sale deed. In a case where the vendor deceitfully executes a second sale deed 26 years after the initial transfer, without disclosing the earlier transaction and without any ongoing litigation regarding the property, the subsequent purchaser cannot claim the benefits of a bona fide purchaser. Essentially, if the vendor’s rights were already severed by the first sale, any later sale deed made without transparency and in bad faith is invalid. The subsequent purchaser, even if unaware of the prior sale, cannot be considered bona fide because the vendor no longer had the legal right to sell the property. Thus, the protection afforded by the bona fide purchaser doctrine is nullified by the vendor’s deceitful conduct and the pre-existing transfer of rights.”
Conclusion
This ensures that the original purchaser’s rights are upheld and prevents unjust enrichment through fraudulent transactions. It also underscores the importance of protecting individuals from fraudulent practices. This case serves as a significant precedent in property law, particularly in dealing with issues of delayed registration and double sales.
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