Vidhyadhar v. Manikrao

Facts

• The seller delivered possession of immovable property (valued above Rs.100) to the buyer
• Full consideration was paid
• However, no registered sale deed was executed
• The buyer claimed to be the owner based on possession and payment

Issue

1. Whether delivery of possession coupled with full payment of price constitutes a valid sale of immovable property valued above Rs.100 in the absence of a registered sale deed.

Held

• No. S.54 mandates that a sale of tangible immovable property of value Rs.100 or more can be made only by a registered instrument. Delivery of possession and payment of price, however complete, do not constitute a sale in the absence of a registered deed. The buyer acquires no title.

Ratio Decidendi

S.54 is mandatory: "such transfer, in the case of tangible immovable property of the value of one hundred rupees and upwards... can be made only by a registered instrument." The word "only" leaves no room for alternative modes. Possession and payment may give rise to equitable rights (S.53A), but not legal title.