WHETHER UNREGISTERED POWER OF ATTORNEY AND AGREEMENT TO SELL CREATE VALID TITLE TO IMMOVABLE PROPERTY?

 VINOD INFRA DEVELOPERS LIMITED VS MAHAVEER LURIA & OTHERS –IN SUPREME COURT –

WHETHER UNREGISTERED POWER OF ATTORNEY

 AND AGREEMENT TO SELL CREATE VALID TITLE

 TO IMMOVABLE PROPERTY?

WHAT HAPPENS WHEN SUCH DOCUMENTS ARE

 REVOKED BEFORE EXECUTING SALE DEEDS?

In VINOD INFRA DEVELOPERS LIMITED VS MAHAVEER LURIA & OTHERS, the Supreme Court 𝗵𝗮𝘀 𝗙𝗜𝗥𝗠𝗟𝗬 𝗿𝗲𝗶𝗻𝗳𝗼𝗿𝗰𝗲𝗱 𝘁𝗵𝗮𝘁:

·       Unregistered agreements to sell CANNOT transfer title - even with possession

·       Revoked power of attorney renders subsequent sale deeds VOID

·       Revenue mutations based on invalid documents carry NO legal weight

·       Plaint cannot be rejected if ANY independent cause of action survives

VINOD INFRA DEVELOPERS LIMITED borrowed ₹7.5 crores, executed unregistered power of attorney & agreement to sell as security. When they revoked these documents in 2022, the lender (MAHAVEER LURIA & OTHERS ) still executed registered sale deeds.

Supreme Court held: "Unregistered documents cannot confer title. Revoked authority cannot validate subsequent transfers."

It is to be noted that the Supreme Court of India has consistently held that an unregistered General Power of Attorney (GPA) and Agreement to sell do not confer valid title or ownership rights over immovable property.

This principle was reaffirmed earlier by Supreme Court in the case of SHAKEEL AHMED V. SYED AKHLAQ HUSSAIN, where the Court emphasized that such documents are insufficient to transfer property rights.

GPA (GENERAL POWER OF ATTORNEY)

The Supreme Court has earlier clarified that a GPA (General Power of Attorney) is not an instrument of transfer and cannot create or transfer ownership rights in property.

AGREEMENTS TO SELL

The Supreme Court earlier reiterated that such agreements to sell, whether registered or unregistered, do not confer title or ownership rights.

REGISTRATION REQUIREMENT:

Under Sections 17 and 49 of the Registration Act, 1908, documents that  transfer or create an interest in immovable property must be registered to be legally enforceable. Unregistered documents like a GPA or Agreement to Sell cannot confer any right or title in immovable property.

Supreme Court has held in the following cases that unregistered documents like a GPA or Agreement to Sell cannot confer any right or title in immovable property

• S. Kaladevi v. V.R. Somasundaram (2010) 5 SCC 401

 • Suraj Lamp & Industries (P) Ltd. v. State of Haryana (2012) 1 SCC 656

 • Central Bank of India v. Prabha Jain, 2025 INSC 95

 • Cosmos Co. Operative Bank Ltd v. Central Bank of India, 2025 SCC OnLine SC 352

POINTS TO PONDER

In light of the Supreme Court's above rulings, it is clear that an unregistered GPA and Agreement to Sell do not create valid title to immovable property. To establish ownership, a registered Sale Deed is required.

Always advise your clients that only registered sale deeds create valid title. Unregistered documents are mere contracts requiring specific performance suits.

R V SECKAR FCS.LLB

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