Execution of a sale agreement does not transfer title, the ownership can only be acquired by a registered deed of conveyance [Read the SC Order]

A bench of Justice Banerjee and Justice Shah in the case titled as DURGAWATI DEVI vs UNION OF INDIA on 04.10.2019 has held that execution of a sale agreement does not transfer ownership/title and that ownership can only be acquired by a registered deed of conveyance.

Pursuant to an advertisement issued, the petitioner applied for dealership of Liquified Petroleum Gas (LPG) in District Gonda. The Brochure on selection, inter alia, provided that the applicant should own a plot of land of adequate size at the advertised location, for construction of godown for storage of 5000 kg of LPG in cylinders, or ready LPG cylinder storage godown of 5000 kg capacity.

Clause 6H (iii) explains ‘own’ to mean having clear ownership title of the property in the name of the applicant, or in the name of family members of the ‘Family Unit’ of the applicant as defined in multiple dealership/distributorship norms, or land belonging to parents and grandparents (both maternal and paternal) of the applicant, as on the last date for submission of applications as specified in the advertisement or corrigendum (if any) in case of ownership/co-ownership) by family members.

Supreme Court observed "Admittedly, as on the last date for submission of applications in terms of the advertisement referred to above, the petitioner did not own land as required. The petitioner only had an agreement for sale in her favour. It is well-settled that execution of a sale agreement does not transfer ownership/title. Ownership can only be acquired by a registered deed of conveyance. The petitioner was not eligible as on the last date for submission of applications".

However, counsel appearing on behalf of the petitioner strenuously contended that a deed of conveyance has since been executed and the petitioner is now the owner of the land.

The Supreme Court then observed and held as under:

"However, it is not disputed that as on the relevant date, that is the last date for submission of applications, the petitioner was not the owner of the land.

The High Court cannot, and rightly did not, in exercise of power under Article 226 of the Constitution of India, relax the terms and conditions of a tender notice.

Such relaxation would be patently discriminatory, for it would then be open for other applicants ineligible on the last date for submission of applications to contend that, they could have acquired eligibility subsequently. 

In our view, the High Court rightly dismissed the Writ Petition, challenging the rejection of the candidature of the petitioner as devoid of merit.

The impugned judgment and order does not call for interference. Accordingly, the special leave petition is dismissed".

Read the Order here:

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