Kaushik Premkumar Mishra vs. Kanji Ravaria @ Kanji [July 19, 2024]
Case Background
The dispute was over a piece of land in Maharashtra measuring around 3.40 hectares.
In 1985, Kanji Ravaria (the vendor) executed a sale deed in favor of Kaushik Premkumar Mishra and his minor brother. Since the buyers were minors, the sale was intended to be in their favor for legal protection.
However, due to stamp duty issues, this sale deed could not be registered immediately and faced a delay of 26 years, finally getting registered in 2011.
Meanwhile, in 2010, Kanji Ravaria sold the same land to another buyer (Respondent No. 1), claiming to be a bona fide purchaser without knowledge of the previous sale.
Following this, the original buyers (the Mishra brothers) filed a civil suit seeking:
Declaration of ownership of the land.
Permanent injunction preventing the vendor and the later purchaser from interfering with their rights.
Trial Court: Dismissed the suit, declaring the sale deed in favor of minors void due to delayed registration.
First Appellate Court: Reversed the trial court, upholding the sale deed in favor of the Mishra brothers.
High Court: Restored the trial court’s judgment, siding with the subsequent purchaser.
Supreme Court: The matter reached the Supreme Court for final adjudication.
Key Legal Issues
Can minors acquire property through a sale deed?
Does delayed registration of a sale deed invalidate it?
Does a subsequent purchaser have rights as a bona fide purchaser when an earlier sale deed exists?
Supreme Court Findings
Validity of Sale Deed in Favor of Minors:
The Court clarified that a sale deed executed in favor of minors is valid and not void.
Minors can legally acquire property, and Section 11 of the Indian Contract Act does not prevent minors from being beneficiaries of a valid transaction.
Delayed Registration:
Delay in registration due to procedural issues like stamp duty deficiencies does not invalidate the sale deed.
The date of execution of the sale deed matters, and once executed, the vendor’s rights over the property are divested immediately.
Registration, even if delayed, relates back to the date of execution and gives legal recognition to the transaction.
Rights of Subsequent Purchaser (Bona Fide Purchaser):
A subsequent buyer cannot claim to be a bona fide purchaser if the property has already been sold by the vendor.
The Court held that the later purchaser could not acquire any title because the vendor had already transferred his rights.
The remedy for the subsequent buyer lies against the vendor only, not the original buyers.
Conduct of the Vendor:
The vendor (Kanji Ravaria) was found to have acted in bad faith by selling the same property twice.
To deter such deceitful practices, the Court imposed exemplary costs of ₹10 lakhs on the vendor and the later purchaser.
Supreme Court’s Decision
The appeal by the Mishra brothers was allowed.
The original sale deed in favor of minors was upheld.
The subsequent sale deed to the later purchaser was declared invalid.
The Court emphasized:
Minors can legally acquire property.
Delayed registration does not harm their rights.
A bona fide purchaser cannot claim protection if the property was already sold.
Exemplary costs may be imposed on parties acting fraudulently in property transactions.
Significance of the Case
Confirms the legal protection of minors in property transactions.
Clarifies that delayed registration does not defeat a valid sale deed.
Strengthens the doctrine of bona fide purchaser, showing that it cannot protect a purchaser when the vendor has already transferred property.
Sends a message against fraudulent sale practices in property law.
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