Agreement of Sale and GPA Can Support Title Relief

The High Court of Karnataka at Bengaluru allowed a regular first appeal arising from a property dispute over title and possession. The plaintiff had sued for injunction and later sought declaration of title, relying on a registered sale deed dated 19.04.2003 and earlier documents said to have been executed in favour of her predecessor, Zahrunnissa, including an agreement of sale, a general power of attorney and an affidavit.

The defence case was that the plaintiff was a stranger to the property, that defendant No.2 was the absolute owner under a registered sale deed dated 13.03.1986, and that the documents relied on by the plaintiff were false and fabricated. The trial court had granted only a limited injunction and refused declaration.

Justice P Sree Sudha examined the rival claims, including the effect of the earlier agreement, the GPA, the payment of consideration, delivery of possession, and the later sale deed set up by the defendants. The court noted that the first defendant had executed the agreement in 1985 after receiving the entire sale consideration, handed over possession, and later executed the GPA in 1989. On that basis, the court held that the defendants’ contention that the 1986 sale deed defeated the plaintiffs’ rights could not be accepted.

The court also dealt with the objection on limitation. Although the suit had initially been filed for injunction and the declaration relief was added later by amendment in 2008, the amendment had been allowed on 28.08.2008 and was never challenged. The court therefore rejected the limitation objection.

On the relief, the appeal was allowed and the plaintiffs were held entitled to declaration of title and interest in the suit property. The court further observed that, in view of the prospective nature of the law referred to in SLP (C) No.13917/2009 dated 11.10.2011, the parties were at liberty to obtain a registered deed of conveyance to complete title.

Practical takeaway: In this case, the court treated the earlier agreement, GPA, consideration and possession as sufficient to support declaratory relief, despite the later sale deed set up by the defendants.