Land sold for less than Rs 100 need not be registered

NT Correspondent

Bengaluru: The High Court of Karnataka has held that the sale agreement of land sold for less than Rs 100 need not be registered. It is enough if the possession is delivered. The agreement is from 1963 and the dispute was between the heirs of the original landowner and buyer.

The HC in its judgement in the case pointed out that there were two modes of transfer of sale; by registered instrument and delivery of possession. “The first overlaps the second, for a transfer may in all cases be made by a registered instrument. It is only in the case of tangible immovable property of a value less than Rs.100, that Section 54 of the Transfer of Property Act allows the simpler alternative of delivery of possession.”

The appeal in the HC was filed by one Gangappa Huligeppa from Yeganur village Raichur. It was against Lingareddy Hampanna of the same village. The matter came up before Justice Sachin Shankar Magadum in the Kalaburagi bench of the HC.

Gangappa claimed that the property in dispute belonged to his maternal grandfather Ganganna. He alleged that Lingareddy had concocted a fictitious document to claim the property. However, Lingareddy claimed that his father had purchased the land for Rs 95 from Ganganna on November 14, 1963. His father then left the property through a will in 1973.

Since the value of the property was less than Rs 100 it was not registered. It was also revealed that he was in possession of the said property and cultivating it. The lower court had ruled that the transfer of property had taken place and ruled in favour of Lingareddy.

Gangappa challenged this in the High Court. “In the present case on hand, there is a transfer of property and its value is found to be less than Rs 100, the transfer is afforded by delivery of possession accompanied by an unregistered document,” the HC noted in its judgement dated October 10.

The HC concluded that the sale of the property was proper and legal. “The transaction is from the year 1963. Therefore, it has to be presumed that the vendor has transferred the title and the same is authenticated by delivery of possession.

There is evidence dehors the unregistered sale deed which is amply sufficient in my opinion to support the conclusion. Therefore, I am of the view that if there is an alienation of immovable property, whose value is less than Rs.100 and possession is given, then a transfer takes place under Section 54 of the TP Act,” the HC said.