Supreme Court rules that assignment of a decree for specific performance of sale agreement does not require registration under Registration Act, as such decree doesn't create any right, title or interest in immovable property - only right to obtain sale deed through court process.
Does an assignment of a decree for specific performance of a sale agreement require registration under the Registration Act, 1908?
No, registration is not required for assignment of specific performance decrees.
The Supreme Court has clarified that when a decree itself 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.
The court upheld the High Court judgment setting aside the Executing Court's decision that had denied execution based on non-registration of assignment deed.
Original Agreement: Sale agreement dated 01.03.1988 for property transaction between parties
Specific Performance Decree: Ex-parte decree passed on 13.09.1993 in O.S. No.100/1989 for specific performance of sale agreement
Assignment Deed: Original decree holder assigns decree to first respondent through assignment deed dated 17.07.1995 for ₹20,000
Execution Petition: First respondent files E.P. No.150/2004 seeking execution of decree and recognition of assignment
Sale Deed Execution: Executing Court orders execution of sale deed in favour of first respondent on 13.03.2008
Legal Challenge: Appellants file E.A. No.180/2009 under Section 47 CPC challenging assignment for non-registration
Executing Court Decision: Allows application, holds assignment deed invalid for want of registration
Revision Allowed: High Court sets aside Executing Court decision, holds assignment doesn't require registration
Supreme Court Finality: Upholds High Court judgment, provides comprehensive legal reasoning on registration requirements
| Situation | Your Rights | Immediate Action |
|---|---|---|
| Executing Court refuses assignment for non-registration | Illegal refusal - assignment doesn't require registration after Supreme Court judgment | Quote Rajeswari vs Shanmuqam judgment, file revision petition if necessary |
| Judgment-debtor objects to assignment | Right to be heard under Order 21 Rule 16 CPC proviso | Court must hear objections but cannot reject for registration issues |
| Original decree-holder challenges assignment | Assignment valid if proper consideration and written document | Prove valid assignment through assignment deed and consideration proof |
| Registration authorities demand registration | No legal requirement for registration of assignment deed | Explain Supreme Court ruling that such assignment doesn't require registration |
Equitable remedy where court orders parties to perform contractual obligations as agreed, rather than awarding damages for breach.
Transfer of rights under a court decree to another person, allowing the assignee to execute the decree in their own name.
Process of enforcing or implementing a court decree through legal procedures to give practical effect to the court's decision.
Civil Procedure Code provision governing application for execution by transferee of decree, requiring notice to transferor and judgment-debtor.
"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."
"What is assigned under Exhibit B1, in the present case, are the rights and interest arising out of the said decree. There is no dispute that such decrees could be assigned and in fact there could not have been any. Order 21 Rule 16 of the CPC permits the assignee of a decree to execute it in the same manner and subject to the same conditions as if the applications were made by such decree-holder."
This landmark judgment clarifies that assignment of specific performance decrees doesn't require registration, as such decrees don't create property rights but only recognize the right to obtain specific performance through court process. It protects the assignability of decrees while maintaining the distinction between decree rights and property ownership.
This content is for informational purposes only and does not constitute legal advice. Consult a qualified legal professional for specific legal guidance. The information provided is based on judicial interpretation and may be subject to changes in law.
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This analysis decodes a complex property law judgment to help citizens understand their rights in assigning specific performance decrees and protection against unnecessary registration requirements.