Narandas Karsondas v S.A. Kamtam (1977)

Transfer of Property · Sale & Lease

Facts.

A mortgaged property was put up for sale; before the sale was completed by a registered conveyance, the mortgagor sought to redeem. The dispute turned on the point at which a contract of sale ripens into ownership and cuts off the mortgagor’s rights.

Issue.

Does a contract for sale (or an incomplete sale) pass title, or does ownership pass only on the execution and registration of the sale deed?

Held.

The Supreme Court held that a contract for sale creates no interest in the property (s.54); ownership passes only when the sale is completed by a registered conveyance. Until then the intending buyer has no title, and the mortgagor’s equity of redemption continues.

Why it matters.

It nails down the sale versus contract-for-sale distinction that Unit IV’s first topic turns on — an agreement to sell is only a right to sue for a conveyance; title moves solely on registration.

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