Person X,Y and Z are the joint owners of the Land, D is the Developer & E is the person working with D. A Plot was sold to person F by person D (developer) & E (person working with D) in August 2011 by a registered sale deed, person D got GPA (Notary) from Person X, and person E got GPA (Notary) from person D. Now in Aug 2024 person X,Y,Z has put a board saying that this land belongs to them. Have following questions. 1.Is the transaction valid? (Supreme court passed order on GPA in Oct 2011 & transaction happened before that. 2.If the transaction is not valid what are the consequences to the houses that are built (built 6 years ago) and do the Vacant sites? 3. What are your other suggestions on this.
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Earlier to supreme court judgement, there was no insistence on registration of GPA and also the ruling is not having retrospective effect, hence it can be considered as legally valid.
The sale through unregistered GPA happened before the supreme court ruling came into force, hence the sale deed by a registered document is valid.
Transaction is valid as in those days notarised POA was valid
2) file declaratory suit that you are absolute owners of the land
3) from facts stated by you it appears that Y and Z have not executed any POA .
Sale on the basis of mere GPA is valid which occurred before the said 2011 Suraj Lamp supreme court decision..
Show GPA
Dear Client,
In view of the fact that the sale transaction in your case was effected on 19 August, 2011 i.e., even before judgment passed by SC, we would rather raise a presumption favouring validity of sales transactions provided such GPAS were still valid and duly executed as at this point. The land could theoretically be reclaimed by the original owners if it is determined that such a transaction was invalid. For the houses that are already constructed on this land, if it turns out no legal transaction has taken place then those who built their homes will have to choose between eviction (if they cannot negotiate with the rightful owners) or negotiation. And then, the Government could also revoke sale of those and constructions on these would be as good as squatters in a forest. The parties should perform a comprehensive legal due diligence of the GPAs and check their legality before establishing that as providing any tittle interest. The best idea is to handle the difference of opinion in a friendly way but if that cannot be done, then maybe we have to look on taking it into court where it will bring an absolute judgment about who owns what.
- The Supreme Court in the case of Suraj Lamp & Industries Pvt. Ltd. Vs State Of Haryana held , that sale transactions carried in the name of general power of attorney will have no legal sanctity and immovable property can be sold or transferred only through registered deeds.
- However, Those who had already bought property through GPA before its judgment could use the documents to apply for regularization of allotments and leases by development authorities."
"Nothing prevents affected parties from getting registered deeds of conveyance to complete their title. The said transactions may also be used to obtain specific performance or to defend possession under section 53A of TP (Transfer of Property) Act,"
1. If the the person D was having A registered GPA dated before the Judgement , from the D to execute sale documents in favor of purchaser then the transaction is valid .
2. Transaction is valid as GPA was given before the passing of the judgement
