Our Partner, Sourav Bhagat, shares his views on the recent ruling of Hon’ble Supreme Court in the case of Ghanshyam v Yogendra Rathi

By Sourav Bhagat, on June 12, 2023

POSTED IN Real Estate,

Our Partner, Sourav Bhagat, shares his views on the recent ruling of Hon’ble Supreme Court in the case of Ghanshyam v Yogendra Rathi.
In this case the Hon’ble Supreme Court, held that although an Agreement to Sell does not transfer ownership rights in an immovable property, if the prospective buyer fulfils his obligations under the contract and obtains possession of the property lawfully, they are considered to have obtained possessory title, which is liable to be protected under Section 53A of the Transfer of Property Act, 1882 and cannot be invaded by the transferrer or any other person claiming under him.

This interpretation by the Hon’ble Supreme Court provides some protection to prospective buyers who have fulfilled their part of the obligation under the agreement and taken possession of the property lawfully. It acknowledges that the buyer’s possessory rights should be respected, even if the transfer of ownership has not yet taken place. This ruling can be seen as a step towards safeguarding the interests of buyers in real estate.