JANAK DULARI DEVI & ANR. versus KAPILDEO RAI & ANR.

JANAK DULARI DEVI & ANR. versus KAPILDEO RAI & ANR.

When parties intend that title transfers only upon full payment of consideration, and both possession and the registration receipt are retained pending such payment (as per 'ta khubzul badlain' in Bihar), execution and registration of a sale deed do not, by themselves, pass title; without such payment and delivery, the vendor retains title and can lawfully repudiate the sale. Hence, where no consideration was paid by the appellants and possession was not delivered, and the sale was repudiated before payment, no title passed to the appellants, and the subsequent sale was valid.

Parties
Appellant: Janak Dulari Devi; Respondent: Kapildeo Rai
Jurisdiction
India
Judgment Date
15 April 2011
Procedural Posture
Civil Appeal / Supreme Court Appeal Against High Court Decision in Second Appeal
Outcome
Appeal dismissed.
Legal Topics
Transfer of Property, Sale of Immovable Property, Specific Performance, Passing of Title, Registration of Sale Deed, Practice in Bihar ('ta Khubzul Badlain')
Property Law Transfer of Property Sale of Immovable Property Specific Performance Passing of Title Registration of Sale Deed Practice in Bihar ('ta Khubzul Badlain')

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 1 Authorities cited 10 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Janak Dulari Devi

Appellant

Kapildeo Rai

Respondent

Procedural Posture

Civil Appeal / Supreme Court Appeal Against High Court Decision in Second Appeal

Legal Issues

  1. 1 Whether title to immovable property passes to the purchaser upon execution and registration of the sale deed when consideration is not paid according to the intention of the parties, particularly with regard to the practice of 'ta khubzul badlain' in Bihar.
  2. 2 Whether the purchaser is entitled to specific performance and delivery of registration receipt and possession when consideration remains unpaid.

Ratio Decidendi

When parties intend that title transfers only upon full payment of consideration, and both possession and the registration receipt are retained pending such payment (as per 'ta khubzul badlain' in Bihar), execution and registration of a sale deed do not, by themselves, pass title; without such payment and delivery, the vendor retains title and can lawfully repudiate the sale. Hence, where no consideration was paid by the appellants and possession was not delivered, and the sale was repudiated before payment, no title passed to the appellants, and the subsequent sale was valid.

Court Disposition

Appeal dismissed.

Orders

  • No title passed to the appellants through the deed in their favour as consideration was not paid; after lawful repudiation by the vendor, appellants not entitled to performance.
  • Subsequent sale in favour of first respondent is valid.