Suraj Lamp and Industries Pvt. Ltd. v. State of Haryana

Facts

• Large-scale practice existed across India (particularly Delhi, Haryana, UP) of transferring immovable property through GPA + Agreement to Sell + Affidavit/Will
• The practice was used to evade stamp duty and registration charges
• The question arose whether such transfers conferred valid title on the "purchaser"

Issue

1. Whether immovable property can be legally transferred through a General Power of Attorney combined with an Agreement to Sell, without executing and registering a sale deed.

Held

• Immovable property can be legally transferred only by a registered deed of conveyance (S.54 TPA)
• GPA is not an instrument of transfer; it is only an authorization to act on behalf of the principal
• An agreement to sell creates no interest in property (S.54 para 2)
• Transactions through GPA + ATS do not convey title; they are only personal arrangements between parties
• Directed all state governments to stop recognizing GPA sales as valid transfers

Ratio Decidendi

S.54 TPA mandates that sale of tangible immovable property of value Rs.100 or more can be made only by a registered instrument. A GPA is not a conveyance; it merely authorizes the agent to act. An agreement to sell is not a sale; it creates no interest. No combination of these documents can substitute for the statutory requirement of a registered sale deed.