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SURAJ LAMP & INDUSTRIES PVT. LTD. v. STATE OF HARYANA —

Citation: (2012) 1 SCC 656

Court: Supreme Court of India

Date: 11 October 2011

Background:

In many parts of India, property transfers were commonly carried out through Agreement to Sell, General Power of Attorney (GPA), and Will instead of registered sale deeds. These transactions were often used to avoid stamp duty and registration charges. The Supreme Court examined whether such GPA sales legally transfer ownership.

Core Legal Issues:

Court’s Reasoning:

A General Power of Attorney only authorizes a person to act on behalf of the principal and does not transfer ownership.
An Agreement to Sell does not create any interest in immovable property under Section 54 of the Transfer of Property Act.
An Agreement to Sell does not create any interest in immovable property under Section 54 of the Transfer of Property Act.
Ownership in immovable property can be transferred only through a duly stamped and registered sale deed.

Final Holding:

The Supreme Court held that SA/GPA/Will transactions do not convey title nor create any interest in immovable property. Such transactions cannot be treated as completed sales.