Indian Property Law - The Legal Chamber

Landmark Judgment: Supreme Court Orders Eviction of Bidder Who Failed to Pay for 3 Decades

16Aug

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Supreme Court

Landmark Judgment: Supreme Court Orders Eviction of Bidder Who Failed to Pay for 3 Decades

The Supreme Court upheld the Tamil Nadu Housing Board's cancellation of allotment due to the respondent's chronic default in payment over decades. The Court emphasized that public property must be managed transparently and in the public interest, rejecting the respondent's claims. It ruled that prolonged non-payment justified eviction, denying further indulgence and ordering possession to be surrendered within four months. The judgment reinforced that contractual obligations must be honored and that courts cannot indefinitely protect defaulters at the cost of public welfare. Facts Of The Case: In 1986, the Tamil Nadu Housing Board auctioned a prime commercial plot in Chennai, with S. Ganesan emerging as the highest bidder at ₹4,78,921. Despite the Board's acceptance of his bid, Gan...

Supreme Court Overrules Precedent on Power of Attorney Validity in Property Sales

The Supreme Court examined the validity of documents executed by a Power of Attorney (PoA) holder under the Registration Act, 1908. It held that a PoA holder remains an agent, not an "executant" under Section 32(a), and must comply with Sections 32(c), 33, 34, and 35 for authentication. The court disagreed with the earlier Rajni Tandon ruling, emphasizing that a PoA holder cannot bypass statutory scrutiny while executing or presenting documents for registration. The issue was referred to a larger bench for clarity. Facts Of The Case: The case revolves around the validity of an Irrevocable General Power of Attorney (GPA) dated 15.10.1990, allegedly executed by Ranveer Singh and his wife, Gyanu Bai, in favor of their tenant, G. Rajender Kumar. Using this GPA, Rajender Kumar executed three ...

Supreme Court Upholds Specific Performance: Land Sale Agreement Enforced After 24 Years

The Supreme Court upheld the decree for specific performance of a 2001 land sale agreement, ruling that the plaintiffs proved readiness and willingness under the Specific Relief Act, 1963. It nullified subsequent fraudulent sales under Section 52 of the Transfer of Property Act (lis pendens) and affirmed the court’s power to grant possession under Section 22 despite omitted pleadings. The judgment emphasized that mere price escalation cannot deny equitable relief and imposed an additional ₹25 lakh payment to balance interests. Collusive transactions were declared void, reinforcing protections against pendente lite transfers. Facts Of The Case: In 2001, Krishan Gopal (appellant) agreed to sell 9 acres of agricultural land in Punjab to Gurmeet Kaur and her two sons for ₹10 lakh under an Ag...