Real estate_Transfer of allotment after BBA but before conveyance/sale_ permissible

 

Supreme Court of India in  DLF Universal Ltd. & ANR. Vs Director, T. & C. Planning Haryana & Ors.

With Civil Appeal No. 551 Of 2003

 

 

18.  Whether the owner/colonizer in law after obtaining full payments from the allotters is prohibited from transferring the plots to the nominees of the allottees? Whether the allottees' right to nominate another person as purchaser of the property can be denied by the colonizer?

 

19.  The prevailing practice of permitting transfer of plots before registration of conveyance deed to the allottee is not contrary to the provisions of the Act or the Rules. *The only justification sought to be given by the respondent in this regard is that the State would like a separate set of stamp duty paid to it in respect of each transaction, even though there is no conveyance deed executed as yet in respect of the land in question.* This argument is wholly devoid of any merit. Section 17 (1)(b) of the Registration Act requires that where the Conveyance Deed has been prepared for effecting the transfer of a plot or other immovable property, such deed should be registered within a period of 4 months after its execution.  *It does not, however, contain any provision whatsoever requiring that a Conveyance Deed should be executed within any period of time after the execution of sale agreement between the buyer and the seller. Nor there is any provision whatsoever in the Stamp Act or Registration Act imposing any restriction on the assignment or transfer of rights under a sale/purchase agreement by the purchaser to a third party, before the execution of any conveyance deed in respect of any immovable property.*  The parties in the agreement had agreed for the substitution of the name of allottees at the sole discretion of the owner. The conveyance deed executed by the owner is the one which is executed either in favour of the allottee or his nominee as the case may be on which a proper stamp duty and registration fee is required to be paid. In any event the Director has no power under the Act or the Rules to issue any such directional together prohibiting such nomination of another person thereby substituting the allottee

 

Source: https://www.advocatekhoj.com/library/judgments/index.php?go=2010/november/67.php