Supreme Court Answers Complex Legal Issues Related to Real-estate/Property Transactions

Supreme Court Answers Complex Legal Issues Related to Real-estate/Property Transactions in India

In a recent Judgment Hon'ble Supreme Court has held that registration of a document recording purchase of immovable property does not confer guaranteed title of ownership, instead it only serves as a public record of the transaction having presumptive evidentiary value, but it is never a conclusive proof of ownership. The legal framework for purchase and sale of immovable properties suffer from several systemic deficiencies that undermine reliability, transparency and efficiency.

It was pointed out that the Registration Act, 1908 mandates the registration of documents, not titles, and this distinction forms the cornerstone of our country’s presumptive titling system. 

Sub-rules (xvii) and (xviii) which were introduced by way of amendments to Rule 19 of the Bihar Registration Rules, 2008, empowered registering authorities to refuse registration of documents, if proof of mutation of the property under sale in favour of the vendor is not produced along with the registering document. There sub-rules are ultra vires the rule making power under Section 69 of the Registration Act.  Section 69(1)(j) of the Registration Act, 1908 also does not legitimize making of the impugned sub-rules, as it only enables making of rules for “generally regulating the proceedings of registrars and subregistrars”.

As the said sub-rules tilt the balance and empower the registering authorities to produce collateral evidence of title to the property as a pre-condition for registration, such a measure, through subordinate legislation, is also against the purpose and object of the Act.

Reference : Samiullah v. The State of Bihar [2025] GCtR 1650 (SC)