The Supreme Court of India has ruled that a deed assigning a decree for specific performance of an agreement of sale of immovable property is not compulsorily registrable under the provisions of the Registration Act, 1908. The Court held that such a decree, and consequently its assignment, does not create or transfer any right, title, or interest in the immovable property.
Core Issue
The central question before the Court was whether a deed assigning a decree for specific performance of an agreement of sale of immovable property, valued at more than ₹100, must be registered under Section 17(1)(e) of the Registration Act, 1908.
Key Findings and Rationale
1. Nature of Specific Performance Decree
- A contract for sale of immovable property does not, of itself, create any interest in or charge on such property.
- The Court affirmed that neither an agreement of sale nor a decree passed on its basis for specific performance gives any right or title to the decree-holder.
- Right and title pass to the decree-holder only upon the execution of the sale deed by the judgment-debtor or the Court and its subsequent registration.
- The decree for specific performance merely recognizes a claim capable of being specifically enforced and does not elevate the decree-holder’s status to that of the owner.
2. Applicability of Registration Act
- Section 17(1)(e) of the Registration Act mandates registration for instruments assigning a decree when such decree purports or operates to create, declare, assign, limit, or extinguish any right, title, or interest… to or in immovable property.
- Since the original decree for specific performance itself does not create or purport to create any right, title, or interest in the immovable property, an instrument merely assigning such a decree does not require mandatory registration under Section 17(1)(e).
- The Court expressly overruled the contrary view held by the Andhra Pradesh High Court in K. Bhaskaram and another vs. Mohammad Moulana (died) and others.
3. Assignment Permitted by Law
- The assignment of the decree is permissible, and the assignee can execute the decree under Order 21 Rule 16 of the Code of Civil Procedure, 1908.
- The argument that non-registration would allow parties to avoid registration charges by assigning the decree multiple times was dismissed, as no right will accrue in the immovable property until the decree is executed and the sale deed is registered.
Conclusion
The Supreme Court upheld the High Court’s decision, dismissing the appeal filed by the legal heirs of the judgment-debtor. The Court ruled that the assignment deed (Exhibit B1) in question did not require registration
Case Name : Rajeswari & Ors. v. Shanmugam & Anr.
Date of Decision: November 19, 2025