In a recent decision, the Supreme Court of India ruled that a court order assigning a specific performance agreement for the sale of property does not need to be registered. This decision came from the case between Rajeswari and Shanmugam, with the judgment delivered by Justice K.V. Viswanathan.
Rajeswari and others, who are the legal heirs of someone who lost a case by default in 1993, were involved in this case. Shanmugam, the other party, claimed to have been given this court order. The main question was whether this transfer needed to be officially recorded under the Registration Act, 1908.
Initial Rulings: Shanmugam filed to carry out the sale based on the court order. Rajeswari and others argued that because the transfer wasn't officially recorded, it couldn't be enforced. At first, the lower court agreed with them.
High Court's Take: The High Court disagreed, saying that the transfer only gave the right to the benefits from the court order and didn't need to be officially recorded.
Rajeswari's View: They argued that since the court order involved property, it should be officially recorded. They were concerned that without this, the order could be transferred many times without paying fees.
Shanmugam's View: Shanmugam argued that the order didn't transfer any property rights, only the right to legally enforce the sale. So, official recording wasn't needed.
Justice Viswanathan explained that a court order for specific performance doesn't give any immediate rights in the property. It only lets the person with the order enforce the sale legally. The Court stressed:
"A decree for specific performance does not create any right, title, or interest in the immovable property until a sale deed is executed."
The Supreme Court supported the High Court's decision, confirming that the transfer of the court order didn't need to be officially recorded. This decision makes it easier to carry out such transfers without going through the formal registration process, as long as they don't create immediate property rights.
The Supreme Court decided that transferring a court order related to property does not need to be officially recorded, simplifying the process for those with such orders.
