This document discusses the issue of "GPA Sales" or "SA/GPA/WILL transfers" in India, which involve the sale of property through execution of agreements of sale, general powers of attorney, and wills, rather than registered deeds of conveyance. The court notes that these types of transactions are used to avoid prohibitions on transfers, avoid payment of stamp duty and registration fees, invest unaccounted money, and avoid capital gains tax. While amendments have been made to address lost revenue, these transactions still generate black money and enable criminal networks. The court approves of Haryana reducing stamp duties on registered conveyances to encourage legal transfers and reduce black money.
The document discusses the process of forfeiting shares when shareholders do not pay amounts owed for shares. Key points:
- A company can cancel shares if shareholders do not pay amounts owed, as long as the articles of association allow it.
- The company must give 14 days' notice to the shareholder to pay outstanding amounts plus interest before forfeiting shares.
- After forfeiture, the shareholder's name is removed from the member register and they cease to be a company member. Forfeited shares become the company's property.
The document discusses tenancy exempt from registration (TXR) under Section 213(1) of the National Land Code. TXR refers to a letting of land for a period not exceeding 3 years that is not required to be registered. The document outlines different types of TXR and how a tenant can protect their interest in a TXR by endorsing it on the land title register before the landlord transfers the land. Failure to endorse means the tenant's interest is not binding on future owners.
Liquidation process under the Insolvency and Bankruptcy Code, 2016Alok Saksena
The document discusses the liquidation process under the Insolvency and Bankruptcy Code of India. It explains that a liquidation order will be passed if the corporate insolvency resolution process fails or the approved resolution plan is not implemented. Upon a liquidation order, the company enters liquidation, all employees are terminated except where the business is continued, and legal proceedings against the company are barred. The liquidator is appointed to manage the seven step liquidation process, which includes verifying claims, selling assets, and distributing the proceeds in a specified order to settle debts and dissolve the company within two years.
This document discusses rules and procedures related to dividends, accounts, audits, and related topics for companies. It outlines the key rules for declaring and paying dividends, maintaining proper accounts and books, appointing qualified auditors, and the duties and liabilities of auditors in examining a company's financial affairs and reporting to shareholders.
Detailed Presentation on Fraud in Contract
Made By:
Edited By: Ayush Patria, Sangam University, Bhilwara
Follow us on Instagram: @law_laboratory
Website: www.lawlaboratory.com
Business and industrial law part 1 - contract act complete chapter 1 completeAbdulRafayIftikhar
This document defines contracts and their essential elements. It provides definitions of a contract from a layman and legal perspective. The essential elements of a valid contract are discussed as a valid agreement between competent parties based on consensus and free consent, along with lawful consideration and object. Contracts are classified by their validity, formation, and performance. Valid contracts are enforceable while void contracts are not. Express contracts involve written or spoken terms, and implied contracts are based on conduct. [/SUMMARY]
Get your quality homework help now and stand out.Our professional writers are committed to excellence. We have trained the best scholars in different fields of study.Contact us now at http://www.premiumessays.net/ and place your order at affordable price done within set deadlines.We always have someone online ready to answer all your queries and take your requests.
RPGT is a tax on gains made from the disposal of real property in Malaysia. It is levied on the difference between the disposal price and the acquisition price of the property. The tax rate is a fixed 5% for disposals made within 5 years of purchase, with no tax for disposals after 5 years. Exemptions are available for individuals' primary residences and for certain transactions like transfers between spouses. RPGT is administered by the Inland Revenue Board and applies to both residents and non-residents of Malaysia.
The document discusses the process of forfeiting shares when shareholders do not pay amounts owed for shares. Key points:
- A company can cancel shares if shareholders do not pay amounts owed, as long as the articles of association allow it.
- The company must give 14 days' notice to the shareholder to pay outstanding amounts plus interest before forfeiting shares.
- After forfeiture, the shareholder's name is removed from the member register and they cease to be a company member. Forfeited shares become the company's property.
The document discusses tenancy exempt from registration (TXR) under Section 213(1) of the National Land Code. TXR refers to a letting of land for a period not exceeding 3 years that is not required to be registered. The document outlines different types of TXR and how a tenant can protect their interest in a TXR by endorsing it on the land title register before the landlord transfers the land. Failure to endorse means the tenant's interest is not binding on future owners.
Liquidation process under the Insolvency and Bankruptcy Code, 2016Alok Saksena
The document discusses the liquidation process under the Insolvency and Bankruptcy Code of India. It explains that a liquidation order will be passed if the corporate insolvency resolution process fails or the approved resolution plan is not implemented. Upon a liquidation order, the company enters liquidation, all employees are terminated except where the business is continued, and legal proceedings against the company are barred. The liquidator is appointed to manage the seven step liquidation process, which includes verifying claims, selling assets, and distributing the proceeds in a specified order to settle debts and dissolve the company within two years.
This document discusses rules and procedures related to dividends, accounts, audits, and related topics for companies. It outlines the key rules for declaring and paying dividends, maintaining proper accounts and books, appointing qualified auditors, and the duties and liabilities of auditors in examining a company's financial affairs and reporting to shareholders.
Detailed Presentation on Fraud in Contract
Made By:
Edited By: Ayush Patria, Sangam University, Bhilwara
Follow us on Instagram: @law_laboratory
Website: www.lawlaboratory.com
Business and industrial law part 1 - contract act complete chapter 1 completeAbdulRafayIftikhar
This document defines contracts and their essential elements. It provides definitions of a contract from a layman and legal perspective. The essential elements of a valid contract are discussed as a valid agreement between competent parties based on consensus and free consent, along with lawful consideration and object. Contracts are classified by their validity, formation, and performance. Valid contracts are enforceable while void contracts are not. Express contracts involve written or spoken terms, and implied contracts are based on conduct. [/SUMMARY]
Get your quality homework help now and stand out.Our professional writers are committed to excellence. We have trained the best scholars in different fields of study.Contact us now at http://www.premiumessays.net/ and place your order at affordable price done within set deadlines.We always have someone online ready to answer all your queries and take your requests.
RPGT is a tax on gains made from the disposal of real property in Malaysia. It is levied on the difference between the disposal price and the acquisition price of the property. The tax rate is a fixed 5% for disposals made within 5 years of purchase, with no tax for disposals after 5 years. Exemptions are available for individuals' primary residences and for certain transactions like transfers between spouses. RPGT is administered by the Inland Revenue Board and applies to both residents and non-residents of Malaysia.
Business law- Winding up of company ppt-Dr. Kokila Saxenakokilasaxena
The document discusses the winding up process of a company in India. It explains that winding up is the process by which a company ends its operations and distributes any remaining assets to creditors and shareholders. There are three types of winding up - compulsory, voluntary, and voluntary under court supervision. The document provides details on the grounds and procedures for each type of winding up.
Legal incidents of Sale & agreement to sellANUJ CHAUDHARY
This document summarizes key concepts and case laws related to contracts of sale and agreements to sell under the Sale of Goods Act 1930 in India. It defines sale and agreement to sell, outlines the essential elements of a contract of sale, and compares the differences between a sale and agreement to sell. The document also summarizes several case laws that discuss whether a breach of condition occurred and if the buyer was entitled to reject goods. These cases examined issues around descriptions, warranties, implied conditions of merchantability and fitness for purpose.
This document discusses an application by Lee Pharma to the Indian patent office for a compulsory license on AstraZeneca's patented anti-diabetic drug saxagliptin. The controller rejected the application on the grounds that Lee Pharma did not adequately demonstrate that the patented invention was not meeting the reasonable requirements of the public, was not available at a reasonably affordable price, or was not being worked in India's territory.
This document discusses the important conditions and clauses found in marine insurance policies. It explains that there are generally three main types of clauses: hull clauses, cargo clauses, and freight clauses. Hull clauses cover losses related to vessels, cargo clauses define the scope of cargo insurance, and freight clauses cover losses of freight revenue. Some key clauses discussed include assignment clauses, "at and from" clauses, deviation clauses, sue and labor clauses, and various other clauses relating to specific risks or terms of the policy.
This document summarizes the legal aspects of directors under the Companies Act 2013 in India. It discusses the minimum and maximum number of directors allowed, restrictions on directorships, appointment and removal of directors, powers and duties of directors, and requirements for women directors. It also summarizes a Supreme Court case regarding the removal of directors by the central government for involvement in fraudulent activities or not fulfilling their obligations. The court upheld the central government's power to remove directors if they form a valid opinion that circumstances exist suggesting fraudulent behavior or default by the director.
This Power point presentation contains the procedure needs to be complied by the Company while Company is proposing to issue shares to its existing share holders on Right Issue Basis
1) The document summarizes the key aspects of the Negotiable Instruments Act 1881, including definitions of negotiable instruments such as promissory notes, bills of exchange, and cheques.
2) It outlines the essential characteristics and elements of different types of negotiable instruments, parties involved, and legal presumptions.
3) The key concepts covered include negotiation, endorsement, accommodation bills, discharge of parties, and liabilities of parties to negotiable instruments.
The document discusses shareholders agreements and related party transactions under the Companies Act 2013. It defines key terms like shareholder, shares and share capital. It outlines the main purposes of shareholders agreements which are to protect investments, establish fair relationships and govern company operations. It describes important clauses in shareholders agreements like management, non-compete, rights of first refusal and drag-along/tag-along rights. It discusses the act's provisions around free transferability of securities and enforceability of shareholders agreements. Finally, it defines related parties and covered transactions requiring board approval under the act to avoid non-compliance penalties.
The SARFAESI Act allows banks to auction residential and commercial property to recover loans from borrowers who have defaulted on repayments. It aims to help banks reduce non-performing assets. Banks can seize collateral like land for secured loans without court intervention. The Act provides three methods for asset recovery - securitization, asset reconstruction, and enforcement of security interests. It established regulations for securitization companies and allows borrowers to appeal repossession decisions in Debt Recovery Tribunals.
- Ties Only Limited has experienced strong sales growth in its first two quarters, increasing from $420,000 to $680,000. However, its gross profit margin declined from 52% to 50%.
- While the company reported losses over $188,000, many of the costs it incurred like website development and launch marketing are one-time startup costs that will not continue in the future.
- The decline in gross profit margin is a potential concern that needs investigation, but overall the financial performance is not as bad as it initially appears given that the company is still in its early startup phase.
Section 8 of the Evidence Act 1950 provides that evidence of motive, preparation, and previous or subsequent conduct is relevant in legal proceedings. Motive refers to the reason for doing something, while intention refers to consciously shaping conduct to cause a certain event. Evidence of motive is admissible but absence of motive does not prove innocence. Motive cannot be proven through hearsay evidence. Evidence of other crimes can also be relevant to show motive. The document discusses these principles and provides examples of how Malaysian courts have interpreted and applied Section 8 in past cases.
This document discusses conditions and warranties in contracts for the sale of goods. It defines a condition as a fundamental term of the contract, the breach of which allows the buyer to reject the goods and claim damages. A warranty is a collateral term, the breach of which only allows damages but not rejection. The document outlines the differences between conditions and warranties. It also discusses implied conditions and warranties imposed by law, such as title, description, fitness for purpose, and merchantability. The document provides examples to illustrate these legal concepts.
Rescission for breach allows an innocent party to terminate a contract when the other party is in fundamental breach. It restores the parties to their pre-contract positions. A party exercises this option by clearly communicating their decision to rescind within a reasonable time of the breach. Once rescinded, neither party needs to fulfill outstanding obligations, and benefits received under the contract must be restored. The rescission option is only available for valid contracts and when the breach goes to the core of the agreement. Malaysian courts have upheld this right while also placing restrictions like requiring unambiguous notice of the decision to rescind.
The document summarizes key aspects of initiating a corporate insolvency resolution process (CIRP) by a financial creditor under the Insolvency and Bankruptcy Code, 2016 (IBC). It discusses how a financial creditor can file an application for CIRP with the Adjudicating Authority when a default occurs. It outlines the information and documents that must be provided along with the application. It also describes how the Authority will ascertain if a default has occurred and either admit or reject the application within 14 days, and the implications of each decision. Finally, it briefly mentions Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 regarding the required form and accompanying
The document discusses the Banking Regulation Act of 1949 and provides a project report on the Act submitted by a student. The report includes an introduction to the Act, definitions, important provisions, forms of business allowed, functions and powers of the Reserve Bank of India, and chapters on licensing, reforms, and conclusions. The student completed the project to gain practical knowledge of banking tools and regulations in India.
The document provides an overview of key concepts in Indian contract law under the Indian Contract Act of 1872. It defines a contract as an agreement that is legally enforceable. It outlines the essential elements for a valid contract such as offer, acceptance, consideration, capacity of parties, lawful object and intention to create a legal relationship. It also discusses classification of contracts based on validity, nature and execution. Key terms like offer, acceptance, consideration and their essentials are defined. Exceptions to the general rule of consideration and the concept of a stranger to contract are also summarized.
The document discusses the Negotiable Instruments Act of 1881 in India. It defines key terms like negotiable instruments, promissory notes, bills of exchange, and cheques. It outlines the essential characteristics of negotiable instruments like property, title, rights, and presumptions. It also summarizes the key elements and differences between promissory notes, bills of exchange, inland/foreign bills, time/demand bills, trade/accommodation bills, and cheques as defined by the Act.
Corporate Fraud is a major problem i.e. increasing both in its frequency and severity. The growing number of frauds undermines the integrity of financial reports, contributes to substantial economic losses, and eroded investors’ confidence regarding the usefulness and reliability of financial statements. Our country has witnessed several corporate frauds till now.
To address these shortcomings and effectively deal with corporate fraud, the Companies Act, 2013 was enacted with certain new provisions and modified old provisions to deal with fraud. The provisions relating to Fraud are in force w.e.f. 12th September, 2013 and Fraud Reporting provisions are brought in force w.e.f. 1st April, 2014 under the Companies Act, 2013.
Third party proceeding & summary judgementASMAH CHE WAN
Third party proceedings allow a defendant in a lawsuit to add additional parties that may be wholly or partly liable for the claim. A defendant can initiate third party proceedings if they claim contribution, indemnity, or require determination of an issue regarding the subject matter of the claim. A third party served with notice will be bound by the judgment if they do not enter an appearance or defend the claim.
Summary judgment allows a plaintiff to obtain a judgment without a full trial if the defendant's defense has no merit or raises no triable issues. To obtain summary judgment, the plaintiff must show the defendant has entered an appearance, been served with the statement of claim, and submit an affidavit verifying the claim and stating there is no defense
Business law- Winding up of company ppt-Dr. Kokila Saxenakokilasaxena
The document discusses the winding up process of a company in India. It explains that winding up is the process by which a company ends its operations and distributes any remaining assets to creditors and shareholders. There are three types of winding up - compulsory, voluntary, and voluntary under court supervision. The document provides details on the grounds and procedures for each type of winding up.
Legal incidents of Sale & agreement to sellANUJ CHAUDHARY
This document summarizes key concepts and case laws related to contracts of sale and agreements to sell under the Sale of Goods Act 1930 in India. It defines sale and agreement to sell, outlines the essential elements of a contract of sale, and compares the differences between a sale and agreement to sell. The document also summarizes several case laws that discuss whether a breach of condition occurred and if the buyer was entitled to reject goods. These cases examined issues around descriptions, warranties, implied conditions of merchantability and fitness for purpose.
This document discusses an application by Lee Pharma to the Indian patent office for a compulsory license on AstraZeneca's patented anti-diabetic drug saxagliptin. The controller rejected the application on the grounds that Lee Pharma did not adequately demonstrate that the patented invention was not meeting the reasonable requirements of the public, was not available at a reasonably affordable price, or was not being worked in India's territory.
This document discusses the important conditions and clauses found in marine insurance policies. It explains that there are generally three main types of clauses: hull clauses, cargo clauses, and freight clauses. Hull clauses cover losses related to vessels, cargo clauses define the scope of cargo insurance, and freight clauses cover losses of freight revenue. Some key clauses discussed include assignment clauses, "at and from" clauses, deviation clauses, sue and labor clauses, and various other clauses relating to specific risks or terms of the policy.
This document summarizes the legal aspects of directors under the Companies Act 2013 in India. It discusses the minimum and maximum number of directors allowed, restrictions on directorships, appointment and removal of directors, powers and duties of directors, and requirements for women directors. It also summarizes a Supreme Court case regarding the removal of directors by the central government for involvement in fraudulent activities or not fulfilling their obligations. The court upheld the central government's power to remove directors if they form a valid opinion that circumstances exist suggesting fraudulent behavior or default by the director.
This Power point presentation contains the procedure needs to be complied by the Company while Company is proposing to issue shares to its existing share holders on Right Issue Basis
1) The document summarizes the key aspects of the Negotiable Instruments Act 1881, including definitions of negotiable instruments such as promissory notes, bills of exchange, and cheques.
2) It outlines the essential characteristics and elements of different types of negotiable instruments, parties involved, and legal presumptions.
3) The key concepts covered include negotiation, endorsement, accommodation bills, discharge of parties, and liabilities of parties to negotiable instruments.
The document discusses shareholders agreements and related party transactions under the Companies Act 2013. It defines key terms like shareholder, shares and share capital. It outlines the main purposes of shareholders agreements which are to protect investments, establish fair relationships and govern company operations. It describes important clauses in shareholders agreements like management, non-compete, rights of first refusal and drag-along/tag-along rights. It discusses the act's provisions around free transferability of securities and enforceability of shareholders agreements. Finally, it defines related parties and covered transactions requiring board approval under the act to avoid non-compliance penalties.
The SARFAESI Act allows banks to auction residential and commercial property to recover loans from borrowers who have defaulted on repayments. It aims to help banks reduce non-performing assets. Banks can seize collateral like land for secured loans without court intervention. The Act provides three methods for asset recovery - securitization, asset reconstruction, and enforcement of security interests. It established regulations for securitization companies and allows borrowers to appeal repossession decisions in Debt Recovery Tribunals.
- Ties Only Limited has experienced strong sales growth in its first two quarters, increasing from $420,000 to $680,000. However, its gross profit margin declined from 52% to 50%.
- While the company reported losses over $188,000, many of the costs it incurred like website development and launch marketing are one-time startup costs that will not continue in the future.
- The decline in gross profit margin is a potential concern that needs investigation, but overall the financial performance is not as bad as it initially appears given that the company is still in its early startup phase.
Section 8 of the Evidence Act 1950 provides that evidence of motive, preparation, and previous or subsequent conduct is relevant in legal proceedings. Motive refers to the reason for doing something, while intention refers to consciously shaping conduct to cause a certain event. Evidence of motive is admissible but absence of motive does not prove innocence. Motive cannot be proven through hearsay evidence. Evidence of other crimes can also be relevant to show motive. The document discusses these principles and provides examples of how Malaysian courts have interpreted and applied Section 8 in past cases.
This document discusses conditions and warranties in contracts for the sale of goods. It defines a condition as a fundamental term of the contract, the breach of which allows the buyer to reject the goods and claim damages. A warranty is a collateral term, the breach of which only allows damages but not rejection. The document outlines the differences between conditions and warranties. It also discusses implied conditions and warranties imposed by law, such as title, description, fitness for purpose, and merchantability. The document provides examples to illustrate these legal concepts.
Rescission for breach allows an innocent party to terminate a contract when the other party is in fundamental breach. It restores the parties to their pre-contract positions. A party exercises this option by clearly communicating their decision to rescind within a reasonable time of the breach. Once rescinded, neither party needs to fulfill outstanding obligations, and benefits received under the contract must be restored. The rescission option is only available for valid contracts and when the breach goes to the core of the agreement. Malaysian courts have upheld this right while also placing restrictions like requiring unambiguous notice of the decision to rescind.
The document summarizes key aspects of initiating a corporate insolvency resolution process (CIRP) by a financial creditor under the Insolvency and Bankruptcy Code, 2016 (IBC). It discusses how a financial creditor can file an application for CIRP with the Adjudicating Authority when a default occurs. It outlines the information and documents that must be provided along with the application. It also describes how the Authority will ascertain if a default has occurred and either admit or reject the application within 14 days, and the implications of each decision. Finally, it briefly mentions Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 regarding the required form and accompanying
The document discusses the Banking Regulation Act of 1949 and provides a project report on the Act submitted by a student. The report includes an introduction to the Act, definitions, important provisions, forms of business allowed, functions and powers of the Reserve Bank of India, and chapters on licensing, reforms, and conclusions. The student completed the project to gain practical knowledge of banking tools and regulations in India.
The document provides an overview of key concepts in Indian contract law under the Indian Contract Act of 1872. It defines a contract as an agreement that is legally enforceable. It outlines the essential elements for a valid contract such as offer, acceptance, consideration, capacity of parties, lawful object and intention to create a legal relationship. It also discusses classification of contracts based on validity, nature and execution. Key terms like offer, acceptance, consideration and their essentials are defined. Exceptions to the general rule of consideration and the concept of a stranger to contract are also summarized.
The document discusses the Negotiable Instruments Act of 1881 in India. It defines key terms like negotiable instruments, promissory notes, bills of exchange, and cheques. It outlines the essential characteristics of negotiable instruments like property, title, rights, and presumptions. It also summarizes the key elements and differences between promissory notes, bills of exchange, inland/foreign bills, time/demand bills, trade/accommodation bills, and cheques as defined by the Act.
Corporate Fraud is a major problem i.e. increasing both in its frequency and severity. The growing number of frauds undermines the integrity of financial reports, contributes to substantial economic losses, and eroded investors’ confidence regarding the usefulness and reliability of financial statements. Our country has witnessed several corporate frauds till now.
To address these shortcomings and effectively deal with corporate fraud, the Companies Act, 2013 was enacted with certain new provisions and modified old provisions to deal with fraud. The provisions relating to Fraud are in force w.e.f. 12th September, 2013 and Fraud Reporting provisions are brought in force w.e.f. 1st April, 2014 under the Companies Act, 2013.
Third party proceeding & summary judgementASMAH CHE WAN
Third party proceedings allow a defendant in a lawsuit to add additional parties that may be wholly or partly liable for the claim. A defendant can initiate third party proceedings if they claim contribution, indemnity, or require determination of an issue regarding the subject matter of the claim. A third party served with notice will be bound by the judgment if they do not enter an appearance or defend the claim.
Summary judgment allows a plaintiff to obtain a judgment without a full trial if the defendant's defense has no merit or raises no triable issues. To obtain summary judgment, the plaintiff must show the defendant has entered an appearance, been served with the statement of claim, and submit an affidavit verifying the claim and stating there is no defense
We recognize the amazing potential for business in Cameroon... However, American businesses and AmCham members encounter difficulties doing business in Cameroon. According to UN statistics, the United States is the leading investor in Cameroon in terms of dollars invested but enforcing contracts and corruption deters potential investors and impedes development.
InBIA Slides - Legal Issues for AcceleratorRoger Royse
This document discusses several key legal issues for accelerators. It covers the differences between leases and licenses, regulatory compliance considerations, types of funding structures like equity, debt, and SAFE instruments. It also discusses security laws and regulations around pooled investment vehicles and the Investment Company Act. Finally, it addresses crowdfunding rules under the JOBS Act, general solicitation exemptions, and broker-dealer registration requirements.
This document provides information and standard terms for a Contract of Purchase and Sale for real estate. It begins with copyright information for the form.
Section 1 provides 3 sentences on recommended procedures for completing the sale to ensure the seller receives funds on the agreed upon completion date. It advises the buyer to pay funds and sign documents at least 2 days before completion, and the seller to return signed documents by the morning before completion.
Section 2 notes the real estate brokerage must hold deposits from the transaction as a stakeholder according to the Real Estate Services Act, and cannot release the funds without written agreement from both parties.
The document discusses various concepts related to security for debts in India, including creation, perfection, and enforcement of security interests such as mortgages and hypothecations. It defines security as a charge over property belonging to a debtor to benefit a creditor. There are various types of security like contractual security (mortgage, hypothecation, charge), security by operation of law, and possessory vs. non-possessory security. The key steps in creating a valid security interest are documentation, stamp duty, registration, and perfection by registering the charge under applicable laws. Enforcement of security can be through court processes or out of court based on the type of security created and contractual terms.
The document discusses various important aspects of purchasing property in India, including:
1) Caveat emptor, or "let the buyer beware", is the golden principle when buying property and buyers must take all precautions before purchasing.
2) When buying property, buyers are often more concerned with price, location, and investment potential than investigating the seller's title and ownership of the property.
3) Tracing the title of a property for at least 30 years is important to verify that the seller has a clear and valid title that is free of encumbrances.
Sections 81 and 82 of Trusts Act, 1882, as adapted by Bangladesh, give legislative recognition to the practice of benami transactions and but it is barred in the Land Reform Ordinance, 1982, Section 5 (1) of which states that no person shall purchase any immovable property for his own benefit in the name of any other person/persons. But Bangladesh has two unique laws.
This document authorizes a realtor to show an unlisted property to prospective buyers. It does not create an agency relationship between the realtor and property owner. The owner agrees to pay the realtor a commission if the owner enters into a contract to sell the property to the prospective buyers by a specified date. The document outlines the realtor's duties to the buyers, such as presenting all offers and disclosing defects, as well as limitations on agency relationships.
The document discusses different types of listing agreements that can be used between real estate brokers and property owners. It provides details on open listings, net listings, exclusive agency listings, and exclusive right to sell listings. The most commonly used type is the exclusive right to sell listing, as it guarantees the listing broker will receive a commission no matter who sells the property. The document also outlines the typical steps and components involved in completing a listing agreement and presentation for a property.
Benami Transactions (Prohibition) Act, 1988 has been amended and renamed as Prohibition
of Benami Property Transactions Act, 1988 (PBPT Act). Benami Act mainly focuses on finding
real names behind nameless real estate transactions. The amended act clearly defines the benami
transactions
This document discusses legal and commercial mortgages under Omani law. It explains that a legal mortgage involves creating a charge over immovable property like land or buildings, while a commercial mortgage creates a charge over movable assets. The document outlines the processes for creating, perfecting by registration, and enforcing these types of mortgages. It also addresses issues like registering multiple mortgages on the same asset and the priority of mortgage charges.
The document discusses legal and commercial mortgages under Omani law. It explains that a legal mortgage involves creating a charge over immovable property, which is perfected by registration with the Ministry of Housing. A commercial mortgage creates a charge over movable assets and is perfected by registration with the Ministry of Commerce and Industries. The document outlines the requirements for creating, registering, and enforcing both types of mortgages. It also addresses taking multiple mortgage charges over a single asset and the priority of such charges.
Ehsan Kabir Solicitor is telling about, how to make a will in the United Kingdom? Ehsan Kabir works effortlessly and tirelessly around the clock to anyone with a legal inquiry.
As well as assisting individual clients, Ehsan Kabir regularly liaises and consults businesses by providing consultancy, assistance, and advisory services. Contact Ehsan Kabir today regarding any legal concerns you are facing. Ehsan Kabir works effortlessly and tirelessly around the clock to anyone with a legal inquiry. To maintain the high standards of client care Mr. Kabir provides out of hours services as well as Skype consultations and meetings with clients who may be based abroad.
The document discusses ownership and title to goods under hire purchase agreements. It explains that while the owner retains title, possession may be transferred to another party like a customer under a hire agreement. Ownership can also be transferred to an innocent third party purchaser in some situations under the Hire Purchase Act 1964. The Act provides exceptions to the legal principle of "nemo dat quod non habet" which means one cannot transfer better title than one has. It outlines factors to consider in determining whether an innocent third party has obtained title, such as whether they are a private purchaser, acted in good faith and without notice of the original agreement.
How to Prepare Closing Documents in a Residential Real Estate TransactionKaren Alridge
The document outlines the steps to prepare closing documents in a residential real estate transaction, including: 1) interviewing clients and gathering necessary information; 2) preparing closing documents as early as possible; 3) being aware of which documents are usually prepared by the seller's and buyer's solicitors; 4) reviewing documents from the other party in a timely manner and informing them of any required changes well in advance of closing; 5) sending documents to the other party early; and 6) determining who will prepare the deed of land if documents will be electronically registered.
The document discusses various legal concepts related to property law and easements in India. It begins by defining an onerous gift as a gift subject to conditions imposed on the recipient. It then provides definitions for legal terms like charge, notice, ostensible owner, dominant and servient heritage. It also distinguishes between sale and contract of sale. The status of unborn children under property law is discussed, noting that an unborn child can own property and is considered a legal person for certain purposes like inheritance.
This document discusses legal and commercial mortgages under Omani law. It explains that a legal mortgage involves creating a charge over immovable property like land or buildings, while a commercial mortgage creates a charge over movable assets. The document outlines the processes for creating, perfecting by registration, and enforcing these types of mortgages if the borrower defaults. It also addresses registering multiple mortgage charges over the same asset and the priority rules between mortgage charges.
Al Alawi Co Notes - Taking Pefecting Enforcing Security - Mortgages - 07 0...
Sc judgement-on-gpa
1. Reportable
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
SPECIAL LEAVE PETITION (C) NO.13917 OF 2009
Suraj Lamp & Industries Pvt. Ltd. …..Petitioner
Vs.
State of Haryana & Anr. ….Respondents
JUDGMENT
R. V. Raveendran J.
By an earlier order dated 15.5.2009 [reported in Suraj Lamp &
Industries Pvt.Ltd. vs. State of Haryana & Anr. - 2009 (7) SCC 363], we
had referred to the ill - effects of what is known as General Power of
Attorney Sales (for short ‘GPA Sales’) or Sale Agreement/General Power of
Attorney/Will transfers (for short ‘SA/GPA/WILL’ transfers). Both the
descriptions are misnomers as there cannot be a sale by execution of a power
of attorney nor can there be a transfer by execution of an agreement of sale
and a power of attorney and will. As noticed in the earlier order, these kinds
of transactions were evolved to avoid prohibitions/conditions regarding
certain transfers, to avoid payment of stamp duty and registration charges on
2. 2
deeds of conveyance, to avoid payment of capital gains on transfers, to
invest unaccounted money (‘black money’) and to avoid payment of
‘unearned increases’ due to Development Authorities on transfer.
2. The modus operandi in such SA/GPA/WILL transactions is for the
vendor or person claiming to be the owner to receive the agreed
consideration, deliver possession of the property to the purchaser and
execute the following documents or variations thereof:
(a) An Agreement of sale by the vendor in favour of the
purchaser confirming the terms of sale, delivery of possession
and payment of full consideration and undertaking to execute
any document as and when required in future.
Or
An agreement of sale agreeing to sell the property, with a
separate affidavit confirming receipt of full price and delivery
of possession and undertaking to execute sale deed whenever
required.
(b) An Irrevocable General Power of Attorney by the vendor in
favour of the purchaser or his nominee authorizing him to
manage, deal with and dispose of the property without
reference to the vendor.
Or
A General Power of Attorney by the vendor in favour of the
purchaser or his nominee authorizing the attorney holder to sell
or transfer the property and a Special Power of Attorney to
manage the property.
(c) A will bequeathing the property to the purchaser (as a
safeguard against the consequences of death of the vendor
before transfer is effected).
3. 3
These transactions are not to be confused or equated with genuine
transactions where the owner of a property grants a power of Attorney in
favour of a family member or friend to manage or sell his property, as he is
not able to manage the property or execute the sale, personally. These are
transactions, where a purchaser pays the full price, but instead of getting a
deed of conveyance gets a SA/GPA/WILL as a mode of transfer, either at
the instance of the vendor or at his own instance.
Ill-Effects of SA/GPA/WILL transactions
3. The earlier order dated 15.5.2009, noted the ill-effects of such
SA/GPA/WILL transactions (that is generation of black money, growth of
land mafia and criminalization of civil disputes) as under:
“Recourse to `SA/GPA/WILL' transactions is taken in regard to freehold
properties, even when there is no bar or prohibition regarding transfer or
conveyance of such property, by the following categories of persons:
(a) Vendors with imperfect title who cannot or do not want to execute
registered deeds of conveyance.
(b) Purchasers who want to invest undisclosed wealth/income in
immovable properties without any public record of the
transactions. The process enables them to hold any number of
properties without disclosing them as assets held.
(c) Purchasers who want to avoid the payment of stamp duty and
registration charges either deliberately or on wrong advice. Persons
4. 4
who deal in real estate resort to these methods to avoid multiple
stamp duties/registration fees so as to increase their profit margin.
Whatever be the intention, the consequences are disturbing and far
reaching, adversely affecting the economy, civil society and law and
order. Firstly, it enables large scale evasion of income tax, wealth tax,
stamp duty and registration fees thereby denying the benefit of such
revenue to the government and the public. Secondly, such transactions
enable persons with undisclosed wealth/income to invest their black
money and also earn profit/income, thereby encouraging circulation of
black money and corruption.
This kind of transactions has disastrous collateral effects also. For
example, when the market value increases, many vendors (who effected
power of attorney sales without registration) are tempted to resell the
property taking advantage of the fact that there is no registered instrument
or record in any public office thereby cheating the purchaser. When the
purchaser under such `power of attorney sales' comes to know about the
vendors action, he invariably tries to take the help of musclemen to `sort
out' the issue and protect his rights. On the other hand, real estate mafia
many a time purchase properties which are already subject to power of
attorney sale and then threaten the previous `Power of Attorney Sale'
purchasers from asserting their rights. Either way, such power of attorney
sales indirectly lead to growth of real estate mafia and criminalization of
real estate transactions.”
It also makes title verification and certification of title, which is an integral
part of orderly conduct of transactions relating to immovable property,
difficult, if not impossible, giving nightmares to bonafide purchasers
wanting to own a property with an assurance of good and marketable title.
5. 5
4. This Court had therefore requested the learned Solicitor General to
give suggestions on behalf of Union of India. This Court also directed notice
to States of Delhi, Haryana, Punjab, Uttar Pradesh to give their views on the
matter. The four states have responded and confirmed that SA/GPA/WILL
transfers required to be discouraged as they lead to loss of revenue (stamp
duty) and increase in litigations due to defective title. They also referred to
some measures taken in that behalf. The measures differ from State to State.
In general, the measures are: (i) to amend Registration Act, 1908 by
Amendment Act 48 of 2001 with effect from 24.9.2001 requiring documents
containing contract to transfer for consideration (agreements of sale etc.)
relating to any immoveable property for the purpose of section 53A of the
Act, shall be registered; and (ii) to amend the stamp laws subjecting
agreements of sale with delivery of possession and/or irrevocable powers of
attorney in favour of non-family members authorizing sale, to the same
stamp duty as deed of conveyance. These measures, no doubt, to some
extent plugged the loss of revenue by way of stamp duty on account of
parties having recourse to SA/GPA/WILL transactions, instead of executing
deeds of conveyance. But the other ill-effects continued. Further such
transaction which was only prevalent in Delhi and the surrounding areas
have started spreading to other States also. Those with ulterior motives
6. 6
either to indulge in black money transactions or land mafia continue to
favour such transactions. There are also efforts to thwart the amended
provisions by not referring to delivery of possession in the agreement of sale
and giving a separate possession receipt or an affidavit confirming delivery
of possession and thereby avoiding the registration and stamp duty. The
amendments to stamp and registration laws do not address the larger issue of
generation of black money and operation of land mafia. The four States and
the Union of India are however unanimous that SA/GPA/WILL transactions
should be curbed and expressed their willingness to take remedial steps.
5. The State of Haryana has however taken a further positive step by
reducing the stamp duty on deeds of conveyance from 12.5% to 5%. A high
rate of stamp duty acts as a damper for execution of deeds of conveyance for
full value, and encourages SA/GPA/WILL transfers. When parties resort to
SA/GPA/WILL transfers, the adverse effect is not only loss of revenue
(stamp duty and registration charges) but the greater danger of generation of
‘black’ money. Reducing the stamp duty on conveyance to realistic levels
will encourage public to disclose the maximum sale value and have the sale
deeds registered. Though the reduction of the stamp duty, may result in an
immediate reduction in the revenue by way of stamp duty, in the long run it
7. 7
will be advantageous for two reasons: (i) parties will be encouraged to
execute registered deeds of conveyance/sale deeds without any under
valuation, instead of entering into SA/GPA/WILL transactions; and (ii) more
and more sale transactions will be done by way of duly registered sale deeds,
disclosing the entire sale consideration thereby reducing the generation of
black money to a large extent. When high stamp duty is prevalent, there is a
tendency to undervalue documents, even where sale deeds are executed.
When properties are undervalued, a large part of the sale price changes hand
by way of cash thereby generating ‘black’ money. Even when the state
governments take action to prevent undervaluation, it only results in the
recovery of deficit stamp duty and registration charges with reference to the
market value, but the actual sale consideration remains unaltered. If a
property worth `5 millions is sold for `2 millions, the Undervaluation Rules
may enable the state government to initiate proceedings so as to ensure that
the deficit stamp duty and registration charges are recovered in respect of the
difference of `3 millions. But the sale price remains `2 millions and the black
money of `3 millions generated by the undervalued sale transaction, remains
undisturbed.
8. 8
6. In this background, we will examine the validity and legality of
SA/GPA/WILL transactions. We have heard learned Mr. Gopal
Subramanian, Amicus Curiae and noted the views of the Government of
NCT of Delhi, Government of Haryana, Government of Punjab and
Government of Uttar Pradesh who have filed their submissions in the form
of affidavits.
Relevant Legal Provisions
7. Section 5 of the Transfer of Property Act, 1882 (‘TP Act’ for short)
defines ‘transfer of property’ as under:
“5. Transfer of Property defined : In the following sections “transfer of
property” means an act by which a living person conveys property, in
present or in future, to one or more other living persons, or to himself [or
to himself] and one or more other living persons; and "to transfer
property" is to perform such act.” xxx xxx
Section 54 of the TP Act defines ‘sales’ thus:
"Sale" is a transfer of ownership in exchange for a price paid or promised
or part-paid and part-promised.
Sale how made. Such transfer, in the case of tangible immoveable
property of the value of one hundred rupees and upwards, or in the case of
a reversion or other intangible thing, can be made only by a registered
instrument.
In the case of tangible immoveable property of a value less than one
hundred rupees, such transfer may be made either by a registered
instrument or by delivery of the property.
9. 9
Delivery of tangible immoveable property takes place when the seller
places the buyer, or such person as he directs, in possession of the
property.
Contract for sale.-A contract for the sale of immovable property is a
contract that a sale of such property shall take place on terms settled
between the parties.
It does not, of itself, create any interest in or charge on such property.”
Section 53A of the TP Act defines ‘part performance’ thus :
“Part Performance. – Where any person contracts to transfer for
consideration any immoveable property by writing signed by him or on his
behalf from which the terms necessary to constitute the transfer can be
ascertained with reasonable certainty,
and the transferee has, in part performance of the contract, taken
possession of the property or any part thereof, or the transferee, being
already in possession, continues in possession in part performance of the
contract and has done some act in furtherance of the contract,
and the transferee has performed or is willing to perform his part of the
contract,
then, notwithstanding that where there is an instrument of transfer, that the
transfer has not been completed in the manner prescribed therefor by the
law for the time being in force, the transferor or any person claiming under
him shall be debarred from enforcing against the transferee and persons
claiming under him any right in respect of the property of which the
transferee has taken or continued in possession, other than a right
expressly provided by the terms of the contract :
Provided that nothing in this section shall affect the rights of a transferee
for consideration who has no notice of the contract or of the part
performance thereof.”
8. We may next refer to the relevant provisions of the Indian Stamp Act,
1999 (Note : Stamp Laws may vary from state to state, though generally the
10. 10
provisions may be similar). Section 27 of the Indian Stamp Act, 1899 casts
upon the party, liable to pay stamp duty, an obligation to set forth in the
instrument all facts and circumstances which affect the chargeability of duty
on that instrument. Article 23 prescribes stamp duty on ‘Conveyance’. In
many States appropriate amendments have been made whereby agreements
of sale acknowledging delivery of possession or power of Attorney
authorizes the attorney to ‘sell any immovable property are charged with the
same duty as leviable on conveyance.
9. Section 17 of the Registration Act, 1908 which makes a deed of
conveyance compulsorily registrable. We extract below the relevant portions
of section 17.
“Section 17 - Documents of which registration is compulsory- (1) The
following documents shall be registered, namely:--
xxxxx
(b) other non-testamentary instruments which purport or operate to create,
declare, assign, limit or extinguish, whether in present or in future, any
right, title or interest, whether vested or contingent, of the value of one
hundred rupees and upwards, to or in immovable property.
xxxxx
(1A) The documents containing contracts to transfer for consideration, any
immovable property for the purpose of section 53A of the Transfer of
Property Act, 1882 (4 of 1882) shall be registered if they have been
executed on or after the commencement of the Registration and Other
Related laws (Amendment) Act, 2001 and if such documents are not
registered on or after such commencement, then, they shall have no effect
for the purposes of the said section 53A.
11. 11
Advantages of Registration
10. In the earlier order dated 15.5.2009, the objects and benefits of
registration were explained and we extract them for ready reference :
“The Registration Act, 1908, was enacted with the intention of providing
orderliness, discipline and public notice in regard to transactions relating
to immovable property and protection from fraud and forgery of
documents of transfer. This is achieved by requiring compulsory
registration of certain types of documents and providing for consequences
of non-registration.
Section 17 of the Registration Act clearly provides that any document
(other than testamentary instruments) which purports or operates to create,
declare, assign, limit or extinguish whether in present or in future "any
right, title or interest" whether vested or contingent of the value of Rs. 100
and upwards to or in immovable property.
Section 49 of the said Act provides that no document required by
Section 17 to be registered shall, affect any immovable property
comprised therein or received as evidence of any transaction affected such
property, unless it has been registered. Registration of a document gives
notice to the world that such a document has been executed.
Registration provides safety and security to transactions relating to
immovable property, even if the document is lost or destroyed. It gives
publicity and public exposure to documents thereby preventing forgeries
and frauds in regard to transactions and execution of documents.
Registration provides information to people who may deal with a property,
as to the nature and extent of the rights which persons may have, affecting
that property. In other words, it enables people to find out whether any
particular property with which they are concerned, has been subjected to
any legal obligation or liability and who is or are the person/s presently
having right, title, and interest in the property. It gives solemnity of form
and perpetuate documents which are of legal importance or relevance by
recording them, where people may see the record and enquire and
ascertain what the particulars are and as far as land is concerned what
obligations exist with regard to them. It ensures that every person dealing
with immovable property can rely with confidence upon the statements
contained in the registers (maintained under the said Act) as a full and
complete account of all transactions by which the title to the property may
be affected and secure extracts/copies duly certified.”
12. 12
Registration of documents makes the process of verification and certification
of title easier and simpler. It reduces disputes and litigations to a large
extent.
Scope of an Agreement of sale
11. Section 54 of TP Act makes it clear that a contract of sale, that is, an
agreement of sale does not, of itself, create any interest in or charge on such
property. This Court in Narandas Karsondas v. S.A. Kamtam and Anr.
(1977) 3 SCC 247, observed:
A contract of sale does not of itself create any interest in, or charge on, the
property. This is expressly declared in Section 54 of the Transfer of
Property Act. See Rambaran Prosad v. Ram Mohit Hazra [1967]1 SCR
293. The fiduciary character of the personal obligation created by a
contract for sale is recognised in Section 3 of the Specific Relief Act,
1963, and in Section 91 of the Trusts Act. The personal obligation created
by a contract of sale is described in Section 40 of the Transfer of Property
Act as an obligation arising out of contract and annexed to the ownership
of property, but not amounting to an interest or easement therein.”
In India, the word ‘transfer’ is defined with reference to the word
‘convey’. The word ‘conveys’ in section 5 of Transfer of Property Act is
used in the wider sense of conveying ownership… …that only on
execution of conveyance ownership passes from one party to another….”
In Rambhau Namdeo Gajre v. Narayan Bapuji Dhotra [2004 (8) SCC 614]
this Court held:
“Protection provided under Section 53A of the Act to the proposed
transferee is a shield only against the transferor. It disentitles the transferor
from disturbing the possession of the proposed transferee who is put in
possession in pursuance to such an agreement. It has nothing to do with
the ownership of the proposed transferor who remains full owner of the
13. 13
property till it is legally conveyed by executing a registered sale deed in
favour of the transferee. Such a right to protect possession against the
proposed vendor cannot be pressed in service against a third party.”
It is thus clear that a transfer of immoveable property by way of sale can
only be by a deed of conveyance (sale deed). In the absence of a deed of
conveyance (duly stamped and registered as required by law), no right, title
or interest in an immoveable property can be transferred.
12. Any contract of sale (agreement to sell) which is not a registered deed
of conveyance (deed of sale) would fall short of the requirements of sections
54 and 55 of TP Act and will not confer any title nor transfer any interest in
an immovable property (except to the limited right granted under section
53A of TP Act). According to TP Act, an agreement of sale, whether with
possession or without possession, is not a conveyance. Section 54 of TP Act
enacts that sale of immoveable property can be made only by a registered
instrument and an agreement of sale does not create any interest or charge on
its subject matter.
Scope of Power of Attorney
13. A power of attorney is not an instrument of transfer in regard to any
right, title or interest in an immovable property. The power of attorney is
14. 14
creation of an agency whereby the grantor authorizes the grantee to do the
acts specified therein, on behalf of grantor, which when executed will be
binding on the grantor as if done by him (see section 1A and section 2 of the
Powers of Attorney Act, 1882). It is revocable or terminable at any time
unless it is made irrevocable in a manner known to law. Even an irrevocable
attorney does not have the effect of transferring title to the grantee. In State
of Rajasthan vs. Basant Nehata – 2005 (12) SCC 77, this Court held :
“A grant of power of attorney is essentially governed by Chapter X of the
Contract Act. By reason of a deed of power of attorney, an agent is
formally appointed to act for the principal in one transaction or a series of
transactions or to manage the affairs of the principal generally conferring
necessary authority upon another person. A deed of power of attorney is
executed by the principal in favour of the agent. The agent derives a right
to use his name and all acts, deeds and things done by him and subject to
the limitations contained in the said deed, the same shall be read as if
done by the donor. A power of attorney is, as is well known, a document
of convenience.
Execution of a power of attorney in terms of the provisions of the Contract
Act as also the Powers-of-Attorney Act is valid. A power of attorney, we
have noticed hereinbefore, is executed by the donor so as to enable the
donee to act on his behalf. Except in cases where power of attorney is
coupled with interest, it is revocable. The donee in exercise of his power
under such power of attorney only acts in place of the donor subject of
course to the powers granted to him by reason thereof. He cannot use the
power of attorney for his own benefit. He acts in a fiduciary capacity. Any
act of infidelity or breach of trust is a matter between the donor and the
donee.”
An attorney holder may however execute a deed of conveyance in exercise
of the power granted under the power of attorney and convey title on behalf
of the grantor.
15. 15
Scope of Will
14. A will is the testament of the testator. It is a posthumous disposition of
the estate of the testator directing distribution of his estate upon his death. It
is not a transfer inter vivos. The two essential characteristics of a will are
that it is intended to come into effect only after the death of the testator and
is revocable at any time during the life time of the testator. It is said that so
long as the testator is alive, a will is not be worth the paper on which it is
written, as the testator can at any time revoke it. If the testator, who is not
married, marries after making the will, by operation of law, the will stands
revoked. (see sections 69 and 70 of Indian Succession Act, 1925).
Registration of a will does not make it any more effective.
Conclusion
15. Therefore, a SA/GPA/WILL transaction does not convey any title nor
create any interest in an immovable property. The observations by the Delhi
High Court, in Asha M. Jain v. Canara Bank – 94 (2001) DLT 841, that the
“concept of power of attorney sales have been recognized as a mode of
transaction” when dealing with transactions by way of SA/GPA/WILL are
unwarranted and not justified, unintendedly misleading the general public
16. 16
into thinking that SA/GPA/WILL transactions are some kind of a recognized
or accepted mode of transfer and that it can be a valid substitute for a sale
deed. Such decisions to the extent they recognize or accept SA/GPA/WILL
transactions as concluded transfers, as contrasted from an agreement to
transfer, are not good law.
16. We therefore reiterate that immovable property can be legally and
lawfully transferred/conveyed only by a registered deed of conveyance.
Transactions of the nature of ‘GPA sales’ or ‘SA/GPA/WILL transfers’ do
not convey title and do not amount to transfer, nor can they be recognized or
valid mode of transfer of immoveable property. The courts will not treat
such transactions as completed or concluded transfers or as conveyances as
they neither convey title nor create any interest in an immovable property.
They cannot be recognized as deeds of title, except to the limited extent of
section 53A of the TP Act. Such transactions cannot be relied upon or made
the basis for mutations in Municipal or Revenue Records. What is stated
above will apply not only to deeds of conveyance in regard to freehold
property but also to transfer of leasehold property. A lease can be validly
transferred only under a registered Assignment of Lease. It is time that an
17. 17
end is put to the pernicious practice of SA/GPA/WILL transactions known
as GPA sales.
17. It has been submitted that making declaration that GPA sales and
SA/GPA/WILL transfers are not legally valid modes of transfer is likely to
create hardship to a large number of persons who have entered into such
transactions and they should be given sufficient time to regularize the
transactions by obtaining deeds of conveyance. It is also submitted that this
decision should be made applicable prospectively to avoid hardship.
18. We have merely drawn attention to and reiterated the well-settled
legal position that SA/GPA/WILL transactions are not ‘transfers’ or ‘sales’
and that such transactions cannot be treated as completed transfers or
conveyances. They can continue to be treated as existing agreement of sale.
Nothing prevents affected parties from getting registered Deeds of
Conveyance to complete their title. The said ‘SA/GPA/WILL transactions’
may also be used to obtain specific performance or to defend possession
under section 53A of TP Act. If they are entered before this day, they may
be relied upon to apply for regularization of allotments/leases by
Development Authorities. We make it clear that if the documents relating to
18. 18
‘SA/GPA/WILL transactions’ has been accepted acted upon by DDA or
other developmental authorities or by the Municipal or revenue authorities to
effect mutation, they need not be disturbed, merely on account of this
decision.
19. We make it clear that our observations are not intended to in any way
affect the validity of sale agreements and powers of attorney executed in
genuine transactions. For example, a person may give a power of attorney to
his spouse, son, daughter, brother, sister or a relative to manage his affairs or
to execute a deed of conveyance. A person may enter into a development
agreement with a land developer or builder for developing the land either by
forming plots or by constructing apartment buildings and in that behalf
execute an agreement of sale and grant a Power of Attorney empowering the
developer to execute agreements of sale or conveyances in regard to
individual plots of land or undivided shares in the land relating to apartments
in favour of prospective purchasers. In several States, the execution of such
development agreements and powers of attorney are already regulated by
law and subjected to specific stamp duty. Our observations regarding
‘SA/GPA/WILL transactions’ are not intended to apply to such
bonafide/genuine transactions.
19. 19
20. We place on record our appreciation for the assistance rendered by
Mr. Gopal Subramaniun, Senior Counsel, initially as Solicitor General and
later as Amicus Curiae.
21. As the issue relating to validity of SA/GPA/WILL has been dealt with
by this order, what remains is the consideration of the special leave petition
on its merits. List the special leave petition for final disposal.
……………………………J
(R. V. Raveendran)
……………………………J
(A. K. Patnaik)
……………………………J
(H. L. Gokhale)
New Delhi;
October 11, 2011.