The Hon’ble Supreme Court in three significant decisions has once again clarified the Legal validity of property transfers through GPA, Agreement to Sell, Affidavit, Receipt, and Will. These rulings reaffirm the principles laid down in Suraj Lamp & Industries Pvt. Ltd. v. State of Haryana, and provide clarity on possession, title, limitation, and agency law.
Brief summary of All three landmark judgments of Hon’ble Supreme Court of India are given below:
1. Shakeel Ahmed v. Syed Akhlaq Hussain (2023 INSC 1016)
Core Issue:
Whether possession and mesne profits can be claimed based solely on unregistered documents — Agreement to Sell, GPA, Affidavit, Will — when the defendant was in possession.
Key Takeaways
- Unregistered ATS + GPA + Affidavit cannot confer ownership.
- Even registered ATS does not transfer title; at best, it enables a suit for specific performance.
- Will takes effect only after death of testator; if the owner is alive, Will has no relevance.
- High Court incorrectly upheld possession on the basis that the plaintiff was acting as an attorney; Supreme Court rejected this.
- Suit dismissed: plaintiff failed to show any legal title or landlord-tenant/licensor-licensee relationship.
Legal Principles Reaffirmed
- Sections 17 & 49, Registration Act → unregistered documents don’t create enforceable rights.
- Section 54, Transfer of Property Act → sale only through registered instrument.
- Suraj Lamp applies fully; not merely prospective.
2. Ramesh Chand (D) through LRs v. Suresh Chand & Anr. (2025 INSC 1059)
Core Issue:
Whether GPA/ATS/Receipt/Affidavit + a Will executed by father in favour of one son confers valid title against the other brother, who claims an oral gift.
Key Takeaways
- No title passes through GPA, ATS, Affidavit, or Receipt.
- A Will must be proved in accordance with Section 68, Evidence Act and Section 63, Succession Act.
- Defendant’s plea of oral gift also failed due to lack of proof.
- The plaintiff could not prove valid transfer, as no sale deed existed.
- Sale deeds executed by father’s successors later were held valid.
Observations on Evidence
- Plaintiff failed to prove attesting witnesses for Will.
- No possession delivered under ATS; hence Section 53A TPA (part performance) not applicable.
- Property above ₹100 cannot be transferred without a registered sale deed.
Result
- Trial Court and High Court decrees upheld; GPA-based buyer did not acquire ownership.
3. M.S. Ananthamurthy & Anr. v. J. Manjula & Ors. (2025 INSC 273)
Core Issue:
Whether a GPA “coupled with interest” + Agreement to Sell amounts to an irrevocable authority under Section 202 Contract Act, allowing the attorney to sell even after the principal’s death.
Key Takeaways
- Agency terminates on death of principal (Section 201, Contract Act).
- To invoke Section 202 (“agency coupled with interest”), the interest must be:
- expressly mentioned,
- in the subject-matter of agency,
- independent of the authority,
- and not merely a purchaser’s interest under ATS.
- GPA + ATS executed on same day ≠ automatic “interest-coupled” agency.
- Holder executed sale after owner’s death → invalid sale deed.
- Later registered sales to third parties were valid and created legal title.
- Suit for injunction is maintainable when plaintiff is in settled possession.
What SC Clarified
- GPA is not a conveyance.
- Only a registered sale deed transfers ownership.
- Possession + later transactions through registered deeds prevail over unproven GPA claims.
Consolidated Principles for Quick Reference
1. No Transfer of Title Through GPA/ATS
- GPA, ATS, Affidavit, Receipt, Will (during life) → do not transfer ownership.
2. Only Registered Sale Deed = Valid Transfer
- As per Section 54 TPA and Sections 17 & 49 Registration Act.
3. Will Operates Only After Death
- Cannot be basis of ownership during lifetime of testator.
4. GPA Terminates on Death
- Except when Section 202 applies — requires real, demonstrable interest.
5. ATS Does Not Create Proprietary Interest
- Only creates a right to seek specific performance.
6. Suraj Lamp Doctrine Reaffirmed
- “GPA Sales” = not conveyances; no title passes.
7. Possession Matters in Injunction Suits
- Person in settled, lawful possession gets protection.
Conclusion
These judgments collectively emphasize that:
🔹 Property rights in India flow only through valid registered instruments.
🔹 GPA/ATS-based transactions cannot substitute a sale deed.
🔹 Agency ends with the principal; only “interest-coupled” agencies survive death.
🔹 Courts will protect possession but not illegal claims of title.
