Name of the Case: Vinod Infra Developers Ltd. v. Mahaveer Lunia & Ors.
Citation: 2025 INSC 772
Bench: Hon’ble Justices J.B. Pardiwala and R. Mahadevan
Date: 23.05.2025
In this major judgment, the Hon’ble Supreme Court reaffirmed that no one can claim the ownership of an immovable property and further, execute sale deeds merely on the basis of an unregistered agreement to sell, or power of attorney in their favor, that was later revoked, particularly in the absence of a suit for specific performance. The present case arose from a dispute wherein the appellant company challenged the sale deeds executed by the main respondent in favor of other respondents, despite the fact that both, the agreement to sell and the power of attorney executed in favor of the first respondent, were unregistered and originally created as security for a loan. The Hon’ble High Court, allowed the Civil Revision Petition filed by Respondent Nos. 1 to 4, rejecting the plaint under Order VII Rule 11 Civil Procedure Code 1908, declaring it devoid of cause of action.
The Hon’ble Supreme Court however, set aside the Hon’ble High Court’s decision, restoring the plaint and highlighting that issues related to title and misuse of revoked authority must be adjudicated through a full civil trial. The Hon’ble Supreme Court further emphasises the error by the Hon’ble High Court in rejecting the plaint in full, without appreciating that the reliefs claimed flowed from multiple and distinct causes of action, and not just one that was allegedly void. The Apex Court relied on legal precedents, holding that an unregistered agreement, even if coupled with possession, conveys no title. This decision strengthens the jurisprudence that statutory formalities in property transactions are not mere technicalities, but essential safeguards against unlawful claims to ownership1.
