Assignment Of Decree For Specific Performance Of Agreement To Sell Doesn't Require Registration : Supreme Court

The Supreme Court on Wednesday (November 19) held that a decree for specific performance of an agreement to sell can be validly assigned without registration, emphasising that such decrees do not themselves create any proprietary interest that would trigger the requirement of compulsory registration.

“when the decree itself which is for specific performance does not create or purport to create any right, title or interest in any immovable property, the question of registering an instrument assigning such a decree cannot arise.”, observed a bench of Justices JB Pardiwala and KV Viswanathan while addressing a question “should a deed assigning a decree for specific performance of an agreement of sale of immovable property, be registered under the provisions of the Registration Act, 1908.”

The dispute arose from a 1993 ex parte decree for specific performance. The decree-holder assigned the decree in 1995 to the respondent, Shanmugam, through an unregistered deed.

When the Respondent-assignee sought execution, the legal heirs of the judgment-debtor/Appellants objected, arguing that the assignment was invalid as it was not registered. The executing court agreed to the objection and rejected the execution petition.

The High Court reversed the executing court's decision, prompting the judgment debtor to appeal to the Supreme Court.

Affirming the High Court's decision, the judgment authored by Justice Viswanathan observed that the assignment of such a decree does not trigger Section 17(1)(e) of the Registration Act as the decree for specific performance does not create any right, title, or interest in the immovable property, and it merely allows the decree-holder to seek enforcement of the agreement to sell through execution.

Relying on Suraj Lamps V. State of Haryana (2012) 1 SCC 656, the Court reiterated that the registration of sale deed is mandated because it transfers the title and interest in the property, and no registration is required for assignment deed assigning the specific performance decree because it doesn't transfer the title but only grants a right to seek enforcement of the agreement to sell.

Accordingly, the appeal was dismissed.

Cause Title: Rajeswari & Ors. Versus Shanmugam & Anr.

Citation : 2025 LiveLaw (SC) 1122

Click here to download judgment

Appearance:

For Petitioner(s) : Mr. Jayanth Muth Raj, Sr. Adv. Mrs. Malavika Jayanth, AOR Ms. Isha Singh, Adv.

For Respondent(s) : Mr. G. Balaji, AOR Ms. Arzu Paul, Adv. Mr. Neeleshwar Pavani, Adv.