No Transfer of Title in the Absence of Explicit Document

In a recent ruling in Beena & Ors. v. Charan Das (2024 INSC 680), the Hon’ble Supreme Court’s divisional bench reaffirmed that title cannot be transferred without a properly executed document, and more importantly, without a registered instrument conveying the title of the disputed property.

The issue primarily arose from an eviction suit filed by the appellant, i.e., the landlord, to evict the tenant from the suit property, however, both parties entered into a settlement that upon the payment of Rs. 12,500/- only, the eviction suit would be dismissed. The amount was duly paid by the tenant, who later claimed that the ownership of the suit property lay with them.

The Hon’ble Supreme Court dismissed the claim, emphasizing that there was no mention in the settlement that paying the stipulated amount would naturally transfer the ownership of the suit property. The Hon’ble Court further added that a mere settlement between the landlord and the tenant pertaining to eviction would not amount to a transfer of ownership until and unless a document existed transferring the title of the suit premises. The consent order passed by the rent controller based on which the tenant sought to claim ownership could not in any way provide or confer a right of ownership.

The position in the instant case is in line with the Hon’ble Supreme Court’s judgment in Suraj Lamp & Industries Pvt. Ltd vs. State of Haryana & Ors. [183 (2011) DLT 1 (SC)], where it was held that a property cannot be transferred on the basis of an agreement of sale or a general power of attorney, i.e., there cannot be a transfer of title without a registered sale deed. These judgments outline the necessity of having an official registered document in case of transfer of immovable property and a mere settlement would not be enough to do so.