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Supreme Court Of India

(From : 2002 (1) Mad LJ 335)

Hon'ble Judge(s): R. V. Raveendran, J. M. Panchal , JJ

Transfer of Property Act (4 of 1882) , S.54— Sale-deed - Execution and registration of - Not sufficient to prove passing of title and ownership in favour of purchaser - Intention of parties must be ascertained. Normally, ownership and title to the property will pass to the purchaser on registration of the sale deed with effect from the date of execution of the sale deed. But this is not an invariable rule, as the true test of passing of property is the intention of parties. Though registration is prima facie proof of an intention to transfer the property, it is not proof of operative transfer if payment of consideration (price) is a condition precedent for passing of the property. The answer to the question whether the parties intended that transfer of the ownership should be @page-SC2123 merely by execution and registration of the deed or whether they intended the transfer of the property to take place, only after receipt of the entire consideration, would depend on the intention of the parties. Such intention is primarily to be gathered and determined from the recitals of the sale deed. When the recitals are insufficient or ambiguous the surrounding circumstances and conduct of parties can be looked into for ascertaining the intention, subject to the limitations placed by Section 92 of Evidence Act.(Para 8) ....