unregistered sale deed; adverse possession; Transfer of Property Act; Registration Act; title claim; permissive possession; Chhattisgarh High Court; second appeal; property law
 29 Apr, 2026
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Ramjanak and Another Vs. Mohd.Kasim (Dead Through Lrs) and Others

  Chhattisgarh High Court SA No. 647 of 2003
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Case Background

As per case facts, the plaintiffs instituted a civil suit claiming title and permanent injunction over property, alleging it was sold to them via an unregistered sale-deed and they held ...

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Document Text Version

1

2026:CGHC:19765

NAFR

HIGH COURT OF CHHATTISGARH AT BILASPUR

SA No. 647 of 2003

1 - Ramjanak S/o Devdhari Aged About 38 Years Caste Harijan

(Chamar) Occupation Agriculture, R/o Village Sarna, Tahsil

Wadrafnagar Distt. Surguja Chhattisgarh

2 - Manikchand S/o Devdhari Aged About 27 Years Caste Harijan

(Chamar) Occupation Agriculture, R/o Village Sarna, Tahsil

Wadrafnagar Distt. Surguja Chhattisgarh

... Appellants

versus

1 - Mohd.Kasim (Dead Through Lrs) As Per Hon'ble Court Order Dated

30-11-2018 And 14-01-2025

1.1 - Sunnat Nisha (Died And Deleted) As Per Court Order Dated 25-11-

2025.

1.2 - Mohd. Zaharuddin (Died And Deleted) As Per Court Order Dated

25.11.2025, Through Lrs-

1.2.1 - Jumratan Nisha W/o Late Mohammad Zaharuddin Aged About

58 Years R/o Village Sarna, P.S. Raghunathpur, Distt. Balrampur

Ramanujganj, Chhattisgarh.

1.2.2 - Jakki-Ullah S/o Late Mohammad Zaharuddin Aged About 40

Years R/o Village Sarna, P.S. Raghunathpur, Distt. Balrampur

Ramanujganj, Chhattisgarh.

1.2.3 - Navi-Ullah S/o Late Mohammad Zaharuddin Aged About 37

Years R/o Village Sarna, P.S. Raghunathpur, Distt. Balrampur

Ramanujganj, Chhattisgarh.

2

1.2.4 - Nasim-Ullah S/o Late Mohammad Zaharuddin Aged About 31

Years R/o Village Sarna, P.S. Raghunathpur, Distt. Balrampur

Ramanujganj, Chhattisgarh.

1.2.5 - Tarikun Nisha D/o Late Mohammad Zaharuddin Aged About 34

Years R/o Village Sarna, P.S. Raghunathpur, Distt. Balrampur

Ramanujganj, Chhattisgarh.

1.3 - Smt. Hadisun D/o Late Mohd Kasim Aged About 47 Years R/o

Village Bhawar, P.S. Babhani, Distt - Sonbhadra Uttar Pradesh

1.4 - Smt. Tarikun D/o Late Mohd Kasim Aged About 45 Years R/o

Village - Asnahar, P.S. Babhani, Distt. Sonbhadra Uttar Pradesh

1.5 - Smt. Rashida Khatoon D/o Late Mohd Kasim Aged About 43 Years

R/o Village Sarna, P.S. Raghunathpur, Distt. Balrampur-Ramanujganj

Chhattisgarh

2 - Mohd Yasin S/o Late Abdul Mazid Aged About 53 Years Muslim,

Occupation Agriculture, R/o Village Sarna, Tahsil Wadrafnagar, Paul,

District Surguja Chhattisgarh

3 - Mohd. Ali S/o Late Mohd. Raffique Aged About 27 Years Caste

Muslim, Agriculturist And R/o Village Asanhar, P.S. Babhani, Tahsil

Dudhi, Distt. Sonbhadra Uttar Pradesh

4 - Mohd Sameed Ali S/o Late Mohd Raffique Aged About 24 Years

Caste Muslim, Agriculturist And R/o Village Asanhar, P.S. Babhani,

Tahsil Dudhi, Distt. Sonbhadra Uttar Pradesh

5 - Smt. Vaisran Wd/o Late Mohd. Raffique Aged About 60 Years

Agriculturist And R/o Village Asanhar, P.S. Babhani, Tahsil Dudhi, Distt.

Sonbhadra Uttar Pradesh

6 - Mohd. Zamruddin S/o Usman Aged About 23 Years R/o Village

Ashahhar, P.S. Babhani, Tahsil Dudhi, Distt. Sonbhadra Uttar Pradesh

7 - Mohd. Hasim (Dead Through Lrs) As Per Hon'ble Court Order Dated

30-11-2018 And 14-01-2025

7.1 - Gulbahar S/o Late Mohd. Hasim Aged About 60 Years R/o Village

Sarna, P.S. Raghunathpur, Distt. - Balrampur-Ramanujganj

3

Chhattisgarh

7.2 - Gulzar S/o Late Mohd. Hasim Aged About 43 Years R/o Village

Sarna, P.S. Raghunathpur, Distt. - Balrampur-Ramanujganj

Chhattisgarh

7.3 - Smt. Sonafun D/o Late Mohd. Hasim, W/o Munna Aged About 56

Years R/o Village Sarna, P.S. Raghunathpur, Distt. - Balrampur-

Ramanujganj Chhattisgarh

7.4 - Smt. Zamirun (Died) Through Lrs As Per Honble Court Order

Dated 28-01-2026

7.4.1 - Mohammad Hasnain S/o Islam Aged About 65 Years R/o Village

Barwatola, Ward And Post Duddhi, Sonbhadra, District : Sonbhadra,

Uttar Pradesh

7.4.2 - Mohammad Nasim S/o Hasnain Aged About 25 Years R/o Village

Barwatola, Ward And Post Duddhi, Sonbhadra, District : Sonbhadra,

Uttar Pradesh

7.4.3 - C. Sakina Bano D/o Hasnain Aged About 25 Years R/o Village

Barwatola, Ward And Post Duddhi, Sonbhadra, District : Sonbhadra,

Uttar Pradesh

7.5 - Smt. Sitare D/o Late Mohd. Hasim, W/o Munna Aged About 46

Years R/o Village Sarna, P.S. Raghunathpur, Distt. - Balrampur-

Ramanujganj Chhattisgarh

8 - The State Of Chhattisgarh Through District Collector, Ambikapur,

Distt. Surguja Chhattisgarh

... Respondents

Date of Hearing : 27.3.2026

Date of Pronouncement : 29.4.2026

For Appellants :Mr. Sushil Dueby, Advocate along with

Mr. Aman Upadhyay, Advocte

For Respondents No.1 & 2:Ms. Hamida Siddiqui, Advocate

For State/Respondent No. 8:Mr. Topilal Bareth, Panel Lawyer

Hon’ble Shri Justice Rakesh Mohan Pandey

CAV Judgment

4

1)This second appeal has been preferred by the appellants/

defendants No. 6 and 7 under Section 100 of CPC against the

judgment and decree passed by the learned IInd Additional

District Judge, Ambikapur, District Sarguja in First Civil Appeal No.

37-A/2002 dated 1.9.2003, whereby the appeal preferred by the

defendants No. 6 and 7 was dismissed and the judgment and

decree passed by the Civil Judge, Class-I, Ramanujganj in Civil

Suit No. 41-A/2000 dated 22.3.2002 were affirmed.

2)This second appeal was admitted for hearing vide order dated

23.12.2004 on following substantial questions of law :-

1. Whether the Courts below committed and error

of law in holding that the document (Ex. P/1) an

unregistered sale-deed confers any title upon

plaintiff?

2. Whether the correct test in relation to perfection

of title by way of adverse possession has not been

applied by the Courts below and the finding is

perverse on the face of record ?

3. Whether the lower appellate Court was obliged

under the law to make an enquiry in relation to valid

service of summons upon defendant No. 6 & 7 in

the present facts and circumstances of the case.

3)The learned Counsel appearing for the appellants does not want

to press substantial question of law no. 3. The prayer is

accordingly allowed. This appeal is confined to substantial

question of law no. 1 and 2 only.

4)The plaintiffs namely Mohd. Kasim and Mohd. Yasin instituted a

5

civil suit claiming therein relief of declaration of title and

permanent injunction over the suit property described in

Schedule-A appended to the plaint inter-alia on the ground that

suit property was sold by one Mohd. Rafique, who was the father

of defendants No. 1 and 2 and husband of defendant No. 3

through un-registered sale-deed dated 15.4.1964 (Ex. P/1) and

possession was handed over to plaintiffs and defendant No. 5,

namely, Mohd. Hasim. They pleaded that defendants No. 1 to 3

executed a registered sale-deed of the suit property in favor of

defendants No. 6 and 7 namely Ramjanak and Manikchand on

19.9.2000. They further pleaded that sale-deed dated 19.9.2000

does not contain signature of defendant No. 2 and same is forged

one. They further pleaded that suit property was sold to them

through un-registered sale-deed dated 15.4.1964 in consideration

of Rs. 150/- and a sewing machine on stamp paper of 10 paise

and since then, the plaintiffs are in possession. Plaintiffs also

pleaded that revenue record has already been rectified pursuant

to sale-deed dated 15.4.1964 and they have raised construction of

a house over it. Plaintiffs took plea of adverse possession making

statement that they are in continuous and hostile possession over

the suit property since date of purchase and this fact was within

the knowledge of defendants No. 1 to 3 and thus they have

perfected their right over the suit property. Plaintiffs alleged the

subsequent mutation of suit property in favor of defendants No. 1

to 3 and they sought for reliefs of declaration and permanent

6

injunction against defendants No. 1 to 3, 4, 6 and 7.

5)Defendants No. 1 to 4 filed written statement and denied the plaint

averments. They alleged un-registered sale-deed dated 15.4.1964

and pleaded that sale-deed dated 19.9.2000 was executed

pursuant to power-of-attorney given by Shammad Ali. They further

pleaded that pursuant to said sale-deed, possession has already

been handed over to defendants No. 6 and 7. They also pleaded

that suit property was purchased by Mohd. Rafique in the year

1961 in sale consideration of Rs. 200/- and his name was entered

in revenue record vide order dated 27.8.1961. They stated that

Mohd. Rafique remained in possession of suit property during his

lifetime, and after his death names of his children and wife i.e.

defendants No. 1 to 3 were entered in revenue record.

6)Defendants No. 6 and 7 (appellants herein) were proceeded ex-

parte. Learned trial court framed issues and decreed the suit vide

judgment and decree dated 22.3.2002. Defendants No. 6 and 7

challenged the judgment passed by learned trial court by filing

regular appeal, which was dismissed vide judgment and decree

dated 1.9.2003.

7)Mr. Sushil Dubey, learned counsel appearing for the defendants

No. 6 and 7 submits that learned courts below committed error of

law in holding that un-registered sale-deed dated 15.4.1964

confers title upon plaintiffs. He further submits that when sale

consideration exceeds Rs.100/-, the document requires

7

mandatory registration under Section 17 of the Registration Act,

1908 [hereinafter to be referred as ‘Registration Act ’] and due to

its non-registration, sale-deed dated 15.4.1964 is inadmissible in

evidence. He contends that learned courts below fell in error while

holding that the plaintiffs have perfected their title by way of

adverse possession, whereas the essential requirements to

establish adverse possession have not been satisfied. He further

contends that plaintiffs were in possession of suit property

pursuant to an un-registered sale-deed, thus their possession was

at most permissive. He submits that possession of suit property

was handed over to defendants No. 6 and 7 immediately after

execution of sale-deed dated 19.9.2000. He has placed reliance

on the judgments rendered by the Hon’ble Supreme Court in the

matters of Karnataka Board of Waqf Versus Government of

India and Others

1

and Ram Nagina Rai and Others Versus Deo

Kumar Rai (deceased) by Lrs and Another

2

. He has also placed

reliance on the judgment rendered by co-ordinate in the matter of

Phul Bai (dead) through Lrs Versus Samaru Ram Sahu and

Others

3

. He prays to allow this second appeal.

8)On the other hand, Ms. Hamida Siddiqui, learned counsel

appearing for the plaintiffs/ respondents No. 1 and 2 submits that

according to the proviso appended to Section 49 of Registration

Act, an un-registered document can be admitted in evidence for

1. 2004 SCC OnLine SC 505

2. (2019) 13 SCC 324

3. (2020) SCC OnLine Chh 1195

8

collateral purpose and contents of such document can be proved

by leading evidence. She further submits that an unregistered

document affecting the immovable property and required by

Registration Act to be registered may be received as evidence.

With regard to adverse possession, she submits that plaintiffs

have categorically pleaded in the plaint that they remained in

possession of suit property since the date of execution of sale-

deed dated 15.4.1964 and plaintiff-witnesses, namely, Mohd.

Kasim (PW/1), Udaychand Pandey (PW/2) and Shobhnath (PW/3)

have proved possession of the plaintiffs over suit property and

execution of sale-deed dated 15.4.1964. She contends that as

plaintiffs remained in continuous possession for more than 12

years, they perfected their right and learned courts below rightly

granted decree of title and permanent injunction in their favor. She

has placed reliance on the judgments rendered by the Hon’ble

Supreme Court in the matters of Vidhyadhar Versus Manikrao

and Others

4

, Muruganandam Versus Muniyandi (Died)

Through Lrs.

5

, R. Hemalatha Versus Kashthuri

6

and M/s K.B.

Saha and Sons Pvt. Ltd. Versus M/s Development Consultant

Ltd

7

.

9)I have heard learned counsel for the parties and perused the

record with utmost circumspection.

4. AIR 1999 SC 1441

5. 2025 SCC OnLine SC 1067

6. 2023 SCC OnLine SC 381

7. (2008) 8 SCC 564

9

10)Plaintiffs have claimed right over suit property by virtue of an un-

registered sale-deed (Ex. P/1) dated 15.4.1964. This document

would show that suit property was sold by Mohd. Rafique S/o

Abdul Majid for sale consideration of Rs. 150/- in presence of

witnesses namely Kartik, Ramnarayan Yadav and Sheshman.

This document was executed on a stamp paper of 10 paise.

Mohd. Hasim made a complaint (Ex. P/2) to Sarpanch, Gram

Panchayat Sarna, who issued a certificate (Ex. P/3) certifying the

continuous possession of Mohd. Hasim from year 1964 till 2000.

11)Mohd. Kasim (PW/1) deposed that he remained in possession of

the suit property since date of purchase and he developed it

investing Rs. 20,000/-. He admitted that Mohd. Rafique was his

elder brother. In para-16, he admitted that witnesses to the sale-

deed have died and the value of sale-deed is more than Rs. 100/-

and it was executed on a stamp paper of 10 paise. In para-20, he

admitted that suit property was purchased by Lt. Mohd. Rafique

from one Anjani Kumar in sale consideration of Rs. 200/- and

thereafter his name was entered in revenue record.

12)Udaychand Pandey (PW/2) deposed that suit property was

purchased by the plaintiffs for sale consideration of Rs. 200/- in

cash and a sewing machine. He stated that plaintiffs have

constructed a house over the suit property and they are in

possession of the same. In cross-examination, this witness

admitted that unregistered sale-deed was executed in his

10

presence and sale consideration was paid to Mohd. Rafique.

13)Shobhnath (PW/3) deposed that plaintiffs are in possession of suit

property since last 35 years and it was purchased for sale

consideration of Rs. 150 and a sewing machine. This witness

described the boundaries of suit property and in para-12, he

admitted that suit property was purchased by Mohd. Rafique from

Anjani Kumar. Defendants failed to examine any witness.

14)The points for determination before this Court are as under :-

(1) Possession of plaintiffs over the suit property

and plea of adverse possession

(2) The unregistered sale-deed executed in favor of

plaintiffs dated 15.4.1964 and its validity.

(3)Proviso appended to Section 49 of Registration

Act.

Discussion on the plea of adverse possession

15)Doctrine of adverse possession states that when a person holds

the property owned by another individual for an uninterrupted

period of more than 12 years, he would become the lawful owner

of the land. The essentials to prove adverse possession are –

(i) immovable property – a property in dispute must

be immovable in nature.

(ii)actual and exclusive possession – a person

claiming it must have its actual possession i.e. his

physical presence to claim adverse possession is

mandatory.

(iii)uninterrupted possession – possession by a

person must be uninterrupted and continuous.

11

(iv)possession for a definite period – possession may

be continuous and that too, for definite period i.e.

12 years.

The burden to prove adverse possession lies upon the

person who is claiming such defence. To prove adverse

possession, a person would need to prove (i) date from which the

property was under his possession, from which 12 years are going

to be calculated ; (ii) such person is also required to prove the

date from which the adverse possession of the property came to

knowledge of the owner and the date from which the possession

of property came to knowledge of immediate predecessors ; (iii)

he is required to prove that possession of the property was

peaceful and (iv) person making claim needs to prove beyond

doubt that the property owner despite having knowledge of

possession did not take any action against the possessor.

16)In the present case, plaintiffs in para-4 pleaded that suit property

was sold by Mohd. Rafique through un-registered sale-deed dated

15.4.1964 and possession was handed over. In para-7, again it is

pleaded that after execution of deed dated 15.4.1964, physical

possession was handed over and they are in possession since

then. In para-12, it is pleaded that since the date of execution of

deed, they are in continuous possession of the suit property and

thus they have perfected their right.

17)Plaintiffs failed to establish the date from which the property was

under their peaceful possession from which the period of 12 years

12

started. There is no plea with regard to the date from which

adverse possession of the property came into knowledge of the

owner. Hon’ble Supreme Court in the matter of Brijesh Kumar

and Another Versus Shardabai (Dead) through LRs and

Others

8

held that to constitute adverse possession there must be

assertion of a hostile possession in denial of title of the true owner

and onus would be on the person claiming adverse possession to

prove the nature of his possession. Relevant paragraph 13 reads

as under :-

13. Adverse possession is hostile possession by

assertion of a hostile title in denial of the title of

the true owner as held in M.Venkatesh (supra).

The respondent had failed to establish peaceful,

open and continuous possession demonstrating

a wrongful ouster of the rightful owner. It thus

involved question of facts and law. The onus lay

on the respondent to establish when and how he

came into possession, the nature of his

possession. the factum of possession known

and hostile to the other parties. continuous

possession over 12 years which was open and

undisturbed. The respondent was seeking to

deny the rights of the true owner. The onus

therefore lay upon the respondent to establish

possession as a fact coupled with that it was

open. hostile and continuous to the knowledge

of the true owner. The respondent-plaintiff failed

to discharge the onus. Reference may also be

made to Chatti Konati Rao & Ors. vs. Palle

Venkata Subba Rao. (2010) 14 SCC 316, on

adverse possession observing as follows:

"15. Animus possidendi as is well

known is a requisite ingredient of adverse

possession. Mere possession does not

ripen into possessory title until the

possessor holds the property adverse to

the title of the true owner for the said

purpose. The person who claims adverse

8. (2019) 9 SCC 369

13

possession is required to establish the

date on which he came in possession,

nature of possession, the factum of

possession, knowledge to the true owner,

duration of possession and that

possession was open and undisturbed. A

person pleading adverse possession has

no equities in his favour as he is trying to

defeat the rights of the true owner and,

hence, it is for him to clearly plead and

establish all facts necessary to establish

adverse possession. The courts always

take unkind view towards statutes of

limitation overriding property rights. The

plea of adverse possession is not a pure

question of law but a blended one of fact

and law."

18)In the matter of Amrendra Pratap Singh v. Tej Bahadur

Prajapati and Others

9

, Hon’ble Supreme Court held that if a

person despite not having right of possession does so and

continues in possession perfects the title over land beyond period

of 12 years in such a circumstance the original owner looses title.

It was further held that it is essential requirement to establish the

fact that person who is claiming adverse possession had no right

to hold the possession of land.

But in the present case plaintiffs have claimed right over the

property on the basis of un-registered sale deed and at the same

time they have taken plea of adverse possession, thus claim of

the plaintiffs over the suit property is contradictory and self

destructive.

19)At this juncture, the principles laid down by the Hon’ble Supreme

Court in the matter of Achal Reddy Versus Ramakrishna

9. (2004) 10 SCC 65

14

Reddiar and others

10

are to be seen wherein the transaction of

July 10, 1946 between one Dasu Reddi and Varada Reddi was

executed only with regard to an agreement for sale and based

upon it Varada Reddi came in possession thereof. In that factual

scenario, it was held that the purchaser who got into possession

under an executory contract of sale in a permissible character

cannot be heard to contend that his possession was adverse.

Relevant paragraphs 9 and 10 read as under :-

“9. ………………...In the case of an agreement

of sale the party who obtains possession,

acknowledges title of the vendor even though

the agreement of sale may be invalid. It is an

acknowledgement and recognition of the title of

the vendor which excludes the theory of

adverse possession. The well-settled rule of

law is that if person is in actual possession and

has a right to possession under a title involving

a due recognition of the owner's title his

possession will not be regard- ed as adverse in

law, even though he claims under another title

having regard to the well recognised policy of

law that possession is never considered

adverse if it is referable to a lawful title. The

purchaser who got toto possession under an

executory contract of sale in a permissible

character cannot be heard to contend that his

possession was adverse. In the conception of

adverse possession there is an essential and

basic difference between a case in which the

other party is put in possession of property by

an outright transfer, both parties stipulating for

a total divestiture of all the rights of the

transferor in the property, and in case in which,

there is a mere executory agreement of trans-

fer both parties contemplating a deed of

transfer to be executed at a later point of time.

In the latter case the principle of estoppel

applies estopping the transferee from

contending that his possession, while the

10. (1990) 4 SCC 706

15

contract remained executory in stage, was in

his own right and adversely against the

transferor. Adverse possession implies that it

commenced in wrong and is maintained

against right. When the commencement and

continuance of possession is legal and proper,

referable to a contract, it cannot be adverse. ”

“10. In the case of an executory contract of sale

where the transferee is put in possession of the

property in pursuance of the agreement of sale

and where the parties contemplate the

execution of a regular registered sale deed the

animus of the purchaser throughout is that he

is in possession of the property belonging to

the vendor and that the former's title has to be

perfected by a duly executed registered deed

of sale under which the vendor has to pass on

and convey his title. The purchaser's

possession in such cases is of a derivative

character and in clear recognition of and in

acknowledgement of the title of the

vendor”…………….. “On the other hand in the

case of an executory contract the possession

of the transferee until the date of registration of

the conveyance is permissive or derivative and

in law is deemed to be on behalf of the owner

himself……………...”

20)Likewise, in the matter of Ram Nagina Rai (supra), Hon’ble

Supreme Court held that adverse possession means a hostile

assertion i.e. a possession which is expressly or impliedly in

denial of the title of the true owner and the person who bases his

title on adverse possession must show, by clear and unequivocal

evidence, that the possession was hostile to the real owner and it

amounted to the denial of his title to the property claimed. It was

also observed that where the possession can be referred to a

lawful title, it would not be considered to be adverse. Relevant

paragraphs 8, 9 and 17 read as under :-

16

"8. ……………………. Adverse possession means

a hostile assertion i.e. a possession which

is ..........Adverse possession expressly or

impliedly in denial of the title of the true owner.

The person who bases his title on adverse

possession must show, by clear and

unequivocal evidence, that the possession was

hostile to the real owner and it amounted to the

denial of his title to the property claimed. In

deciding whether the acts alleged by the

person constitute adverse possession, regard

must be given to the animus of the person

doing such acts, which must be ascertained

from the facts and circumstances of each case.

It is needless to observe that where the

possession can be referred to a lawful title, it

would not be considered to be adverse, the

reason being that the person whose

possession can be drawn to a lawful title, will

not be permitted to show that his possession

was hostile to another's title. Simply put, one

who holds possession on behalf of another,

does not by mere denial of the other's title,

make his possession adverse so as to give

himself the benefit of the statute of limitation."

9. ……………….All through, as is evident from

the material evidence on record and their

contentions, the defendants have tried to show

that they have been in continuous possession

of the property for more than 60 years. But

there is no iota of evidence to show as to when

the defendants' possession in fact became

adverse to the interest of the plaintiff. Except

for the change of Khatian sometime in the year

1970 by the defendants and the payment of

taxes for being in possession of property, no

material is produced by the defendants to show

whether the possession was really hostile to

the actual owner…………..

17.Applying the test of nec vi, nec clam, nec

precario i.e."without force, without secrecy,

without permission" as an established test for

finding adverse possession, we find that the

defendants have not proved their possession to

be adverse to that of the real owner inasmuch

as they entered into possession as licensees to

begin with and there is nothing on record to

17

show as to when the permissive possession

became adverse to the interest of the real

owner. "Animus possidendi" is one of the

ingredients of adverse possession, and unless

the person possessing the property has the

requisite hostile animus, the period of

prescription does not commence.

21)In the matter of Roop Singh (Dead) Through Lrs. Versus Ram

Singh (Dead) Through Lrs.

11

, Hon’ble Supreme Court held that

defendant entered into the possession of the premises as a tenant

and his possession was permissive and there was no pleading or

proof as to when it became adverse and hostile. Relevant

paragraphs 7 and 9 read as under :-

7. .......…………... Further, the fact-finding courts

after appreciating the evidence held that the

defendant entered into the possession of the

premises as a batai, that is to say, as a tenant

and his possession was permissive and there

was no pleading or proof as to when it became

adverse and hostile. ……….. If the defendant

got the possession of suit land as a lessee or

under a batai agreement then from the

permissive possession it is for him to establish

by cogent and convincing evidence to show

hostile animus and possession adverse to the

knowledge of the real owner. Mere possession

for a long time does not result in converting

permissive possession into adverse

possession. ……………..

9. ………………..It is also to be stated that the

pleas of adverse possession and retaining the

possession by operation of Section 53-A of the

Transfer of Property Act are inconsistent with

each other. Once it is admitted by implication

that the plaintiff came into possession of the

land lawfully under the agreement and

continued to remain in possession till the date

11. (2000) 3 SCC 708

18

of the suit, the plea of adverse possession

would not be available to the defendant unless

it has been asserted and pointed out hostile

animus of retaining possession as an owner

after getting in possession of the land."

22)Yet, in the matter of Karnataka Board of Waqf (supra), it has

been held by Hon’ble Supreme Court that an owner would be

deemed to be in possession of a property so long as there is no

intrusion and non-use of the property by the owner even for a long

time won’t affect his title. It was further held that a party claiming

adverse possession must prove that his possession is “nec vi, nec

clam, nec precario” that is peaceful, open and continuous.

Relevant paragraph 11 reads as under :-

11. In the eye of the law, an owner would be

deemed to be in possession of a property so

long as there is no intrusion. Non-use of the

property by the owner even for a long time won't

affect his title. But the position will be altered

when another person takes possession of the

property and asserts a right over it. Adverse

possession is a hostile possession by clearly

asserting hostile title in denial of the title of the

true owner. It is a well-settled principle that a

party claiming adverse possession must prove

that his possession is "nec vi, nec clam, nec

precario", that is, peaceful, open and

continuous. The possession must be adequate

in continuity, in publicity and in extent to show

that their possession is adverse to the true

owner. It must start with a wrongful disposition

of the rightful owner and be actual, visible,

exclusive, hostile and continued over the

statutory period. (See S.M. Karim v. Bibi Sakina

AIR 1964 SC 1254, Parsinni v Sukhi (1993) 4

SCC 375 and D.N.Venkatarayappa v. State of

Karnataka (1997) 7 SCC 567.) Physical fact of

exclusive possession and the animus

possidendi to hold as owner in exclusion to the

actual owner are the most important factors that

19

are to be accounted in cases of this nature.

Plea of adverse possession is not a pure

question of law but a blended one of fact and

law. Therefore, a person who claims adverse

possession should show: (a) on what date he

came into possession, (b) what was the nature

of his possession, (c) whether the factum of

possession was known to the other party, (d)

how long his possession has continued, and (e)

his possession was open and undisturbed. A

person pleading adverse possession has no

equities in his favour. Since he is trying to

defeat the rights of the true owner, it is for him

to clearly plead and establish all facts

necessary to establish his adverse possession.

[Mahesh Chand Sharma (Dr.) v. Raj Kumari

Sharma, (1996) 8 SCC 128].

23)In the instant case, plaintiffs have set up their interest upon the

alleged transaction dated 15.4.1964 and adverse possession but

right, title and interest of plaintiffs in absence of execution of a

registered deed of sale cannot be held to be extinguished in view

of the provisions prescribed under Section 54 of Transfer of

Property Act, 1954 [hereinafter to be referred as ‘TP Act’] read

with Section 17 of Registration Act. In such circumstances, the

possession of the plaintiffs at the most could be held to be of

permissive in nature and cannot be held to be ripen by way of

adverse possession.

Discussion on validity of un-registered sale-deed and the proviso

appended to Section 49 of Registration Act.

24)Section 17 of the Registration Act deals with documents of which

registration is compulsory. Section 17 (1) (b) states that other non-

testamentary instruments which purport or operate to create,

20

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 and upwards, or in immovable property

requires registration. Section 17 (1) (b) is reproduced herein

below :-

“17. Documents of which registration is

compulsory.-(1) The following documents shall

be registered, if the property to which they relate

is situate in a district in which, and if they have

been executed on or after the date on which, Act

No. XVI of 1864, or the Indian Registration Act,

1866, or the Indian Registration Act, 1871, or the

Indian Registration Act, 1877, or this Act came or

comes into force, namely:-

(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” ”

25)A contract of sale of immovable property is a contract that a sale

of such property shall place on terms settled between the parties.

While a sale is a transfer of ownership, a contract for sale is

merely a document creating a right to obtain another document,

namely a registered sale deed to complete the transaction of sale

of an immovable property. Section 54 in its definition of sale does

not include an agreement of sale and neither confers any

proprietary rights in favor of the transferee nor by itself create any

interest or charge in the property. In the instant case, there was

transfer of immovable property exceeding Rs. 100/- through

unregistered document therefore in view of the above quoted

21

provisions, execution of registered instrument to sale was

mandatory. Hon’ble Supreme Court in the matter of Ramesh

Chand (D) Thr. Lrs. Versus Suraj Chand and Another

12

while

dealing with similar issue held as under :-

13. The TP Act envisages five different modes for

transferring a property but for the purpose of the

present appeal we are only concerned with one

of the modes i.e., by way of "Sale" and the same

is dealt under section 54 of the TP Act which

defines "sale" and a "contract for sale" as follows:

"54. 'Sale' defined.– '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 immovable 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 immovable 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.

Delivery of tangible immovable 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."

12. 2025 SCC OnLine SC 1879

22

14. Perusal of above said provisions lays down a

specific mode of execution of sale deed with

respect to immovable property for concluding the

sale of a property. In sale for an immovable

property the value of which exceeds Rs. 100/-,

the three requirements of law are that the transfer

of property of sale must take place through a

validly executed sale deed, i.e., it must be in

writing, properly attested and registered. Unless

the sale deed is in writing, attested and

registered, the transaction cannot be construed

as sale, or in other words, the property will not be

transferred.

15. There is a difference between a sale deed and an

agreement for sale, or a contract for sale. A

contract for sale of immovable property is a

contract that a sale of such property shall take

place on terms settled between the parties. While

a sale is a transfer of ownership; a contract for

sale is merely a document creating a right to

obtain another document, namely a registered

sale deed to complete the transaction of sale of

an immovable property Section 54 in its definition

of sale does not include an agreement of sale

and neither confers any proprietary rights in

favour of the transferee nor by itself create any

interest or charge in the property. If after entering

into a contract for sale of property, the seller

without any reasonable excuse avoids executing

a sale deed, the buyer can proceed to file a suit

for specific performance of the contract.

16. The scope of an agreement for sale has been

highlighted by this court in the case of Suraj

Lamp and Industries Private Limited (2) through

Director v. State of Haryana, wherein this Court

observed that:

"16. Section 54 of the 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.

23

This Court in Narandas Karsondas v. S.A.

Kamtam, [(1977) 3 SCC 247] observed:

"32. 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 Ram Baran

Prasad v. Ram Mohit Hazra, [AIR

1967 SC 744]). 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.

33. In India, the word 'transfer' is

defined with reference to the word

'convey'.... The word 'conveys' in

Section 5 of the Transfer of Property

Act is used in the wider sense of

conveying ownership.

***

37. ... that only on execution of

conveyance, ownership passes from

one party to another...."

17. In Rambhau Namdeo Gajre v. Narayan

Bapuji Dhotra, [(2004) 8 SCC 614] this

Court held:

"10. Protection provided under Section

53-A of the Act to the proposed

transferee is a shield only against the

transferor. It disentitles the transferor

24

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 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 into service against a third

party."

18. It is thus clear that a transfer of

immovable 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 immovable

property can be transferred.

19. 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 the TP Act and will not

confer any title nor transfer any

interest in an immovable property

(except to the limited right granted

under Section 53-A of the TP Act).

According to the TP Act, an

agreement of sale, whether with

possession or without possession, is

not a conveyance. Section 54 of the

TP Act enacts that sale of immovable

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."

17. In the instant matter, undisputedly plaintiff claims

that there is only an agreement to sell, and there

25

is no sale deed executed in his favour by the

father. As per the settled position of law, this

document does not confer a valid title on the

plaintiff as it is not a deed of conveyance as per

Section 54 of the TP Act. At best, it only enables

the plaintiff to seek for specific performance for

the execution of a sale deed and does not create

an interest or charge on the suit property.

26)In M/s K.B. Saha (supra), R. Hemalatha (supra) and

Muruganandam (supra), Hon’ble Supreme Court has dealt with

Section 49 of Registration Act and consistently held that an un-

registered document affecting immovable property may be

received in evidence in a suit for specific performance and proviso

also enables the said document to be received in evidence of a

collateral transaction. In M/s K.B. Saha (supra), Hon’ble Supreme

Court has also culled out certain principles while dealing with the

scope of Section 49 of Registration Act, which are :-

1.A document required to be registered, if un-

registered is not admissible in evidence under

Section 49 of Registration Act.

2.Such un-registered document can however be

used as evidence for collateral purpose as

provided in proviso to Section 49.

3.A collateral transaction must be independent of, or

divisible from, the transaction to effect which the

law required registeration.

4.A collateral transaction must be a transaction not

itself required to be effected by a registered

document, that is, a transaction creating, etc. any

right, title or interest in immovable property of the

value of one hundred rupees and upwards.

26

5.If a document is inadmissible in evidence for want

of registration, none of its terms can be admitted in

evidence and that to use a document for the

purpose of proving an important clause would bot

be using it as a collateral purpose.

Same proposition of law has been enunciated by the

Hon’ble Supreme Court in the matter of S. Kaladevi Versus

V.R. Somasundaram

13

.

27)However, in present case it is not in dispute that sale-deed dated

15.4.1964 is an un-registered document which requires to be

registered. Such document could not be used as evidence for

collateral purpose. The collateral transaction was not an

independent act, rather the transaction was required to be

effected by registered document, therefore it was not admissible

in evidence to prove a valid transaction between the parties.

28) It is a settled position of law that a registered sale-deed carries a

formidable presumption of validity and genuineness. Registration

is not a mere procedural formality but a solemn act that imparts

high degree of sanctity to the document. A person alleging that

sale-deed is a sham must satisfy a rigorous standard of pleading

by making clear, cogent, convincing averments and provide

material particulars within their pleadings and evidence.

29)The Hon’ble Supreme Court in the matter of Hemalatha (D) by

Lrs. vs. Tukaram (D) by Lrs. and Ors.

14

, held that there must be

13. (2010) 5 SCC 401

14. 2026 LiveLaw (SC) 79

27

clear pleadings and convincing averments to establish the factum

of a sham transaction. It is also held that the mere usage of

words like fraud is not sufficient. Relevant paragraphs 31, 34 & 35

read as under :-

“31. It is a settled position of law that a registered

Sale Deed carries with it a formidable

presumption of validity and genuineness.

Registration is not a mere procedural formality

but a solemn act that imparts high degree of

sanctity to the document. Consequently, a Court

must not lightly or casually declare a registered

instrument as a “sham”. Adopting the principles

enunciated in Prem Singh and Ors. vs. Birbal and

Ors., (2006) 5 SCC 353 1, Jamila Begum (Dead)

Through Lrs. vs. Shami Mohd. (Dead) Through

Lrs. and Anr., (2019) 2 SCC 727 2, and Rattan

Singh and Ors. v. Nirmal Gill & Ors., (2021) 15

SCC 300 3, this Court “27. There is a

presumption that a registered document is validly

executed. A registered document, therefore,

prima facie would be valid in law. The onus of

proof, thus, would be on a person who leads

evidence to rebut the presumption. In the instant

case, Respondent 1 has not been able to rebut

the said presumption……” “16. Sale deed dated

21-12-1970 in favour of Jamila Begum is a

registered document and the registration of the

sale deed reinforces valid execution of the sale

deed. A registered document carries with it a

presumption that it was validly executed. It is for

the party challenging the genuineness of the

transaction to show that the transaction is not

valid in law..….” “ 33. To appreciate the findings

arrived at by the courts below, we must first see

on whom the onus of proof lies. The record

reveals that the disputed documents are

registered. We are, therefore, guided by the

settled legal principle that a document is

presumed to be genuine if the same is

registered……” reiterates that the burden of proof

to displace this presumption rests heavily upon

the challenger. Such a challenge can only be

sustained if the party provides material

particulars and cogent evidence to demonstrate

28

that the Deed was never intended to operate as a

bona fide transfer of title.

34. The person alleging that a registered Deed is a

sham must satisfy a rigorous standard of

pleading by making clear, cogent, convincing

averments and provide material particulars in his

pleadings and evidence. This Court is of the view

that the test akin to a test under Order VI Rule 4

CPC is applicable to such a pleading and clever

drafting creating illusion of cause of action would

not be permitted and a clear right to sue would

have to be shown in the plaint.]

35. As pointed out by this Court in I.T.C. Limited vs.

Debts Recovery Appellate Tribunal and Ors.,

(1998) 2 SCC 70, the ritual of repeating a word

like ‘fraud’ or creation of an illusion in the plaint

can certainly be unraveled and exposed by the

Court at the nascent stage of litigation without

waiting for a full trial. Mere suspicion or nebulous

averments without material particulars would not

be sufficient to dislodge the presumption under

Sections 91 and 92 of the Indian Evidence Act,

1872.”

30)In the matter of Vidhyadhar (supra), it is held that where a party

to the suit does not appear in the witness-box to state their case

on oath or refuses to be cross-examined, a presumption can be

drawn that the case set up by him is not correct. Relevant

paragraph 17 reads as under :-

17. Where a party to the suit does not appear into

the witness box and states his own case on

oath and does not offer himself to be cross

examined by the other side, a presumption

would arise that the case set up by him is not

correct as has been held in a series of

decisions passed by various High Courts and

the Privy Council beginning from the decision

in Sardar Gurbakhsh Singh v. Gurdial Singh

and Anr. This was followed by the Lahore High

Court in Kirpa Singh v. Ajaipal Singh and Ors.

and the Bombay High Court in Martand

Pandharinath Chaudhari v. Radhabai

29

Krishnarao Deshmukh . The Madhya Pradesh

High Court in Gulla Kharagjit Carpenter v.

Narsingh Nandkishore Rawat also followed the

Privy Council decision in Sardar Gurbakhsh

Singh's case (supra). The Allahabad High

Court in Arjun Singh v. Virender Nath and Anr.

held that if a party abstains from entering the

witness box, it would give rise to an inference

adverse against him. Similarly, a Division

Bench of the Punjab & Haryana High Court in

Bhagwan Dass v. Bhishan Chand and Ors. ,

drew a presumption under Section 114 of the

Evidence Act against a party who did not enter

into the witness box.

31)In the present case, defendants No. 6 and 7 (appellants herein)

were proceeded ex-parte and ex-parte judgment and decree was

passed against them. They did not file written statement but at the

same time, plaintiffs were under obligation to prove their case.

Plaintiffs themselves pleaded that a registered sale-deed was

executed by defendants No. 1 to 3 in favor of defendants No. 6

and 7. They alleged it to be a forged document but they failed to

challenge the said sale-deed. The suit property was recorded in

the names of defendants No. 1 to 3 in revenue record after death

of Mohd. Rafique and they had right to execute a valid sale-deed

in favor of defendants No. 6 and 7. In absence of challenge to the

said sale-deed, it cannot be held that the said document is forged

one and not binding upon defendants No. 1 to 3.

32)In view of the discussion made herein-above, it can be safely

concluded that plaintiffs have not proved the essentials required to

establish adverse possession and at most, their possession can

be held to be permissive. It is also held that the sale-deed dated

30

15.4.1964 is an un-registered document which requires to be

registered and it was not admissible in evidence to prove a valid

transaction between the parties. Thus, the substantial question of

law No. 1 and 2 are answered in affirmative in favor of appellants /

defendants No. 6 and 7. The suit filed by the plaintiffs is dismissed

and the judgment and decree passed by the learned Trial Court

and learned First Appellate Court are hereby set aside.

33)In result, this second appeal is allowed.

34)A decree be drawn accordingly.

Sd/-

(Rakesh Mohan Pandey)

JUDGE

A j i n k y a

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