This appeal arose from a long-standing property dispute relating to Plot No. 8, Friends Colony, New Delhi, initially allotted to late Shri Sohan Singh under a 1952 Agreement to Sell. Because Sohan Singh failed to raise construction within the stipulated three-year timeframe and explicitly requested the housing society via a 1954 letter to transfer the plot to his nephew (Defendant No. 1), the society executed a registered sale deed in favor of Defendant No. 1 in 1960. Decades later, the legal heirs of Sohan Singh (the Plaintiffs) filed a suit for possession without seeking a declaration or cancellation of the sale deed. Both the trial court and the Delhi High Court dismissed the suit.
The Supreme Court dismissed the appeal, holding that an agreement to sell does not confer ownership without a registered sale deed. The Court ruled that the suit was barred by limitation under Articles 54, 59, and 64 of the Limitation Act, that Sohan Singh’s conduct constituted clear acquiescence and abandonment of his rights, and that the plaintiffs could not claim the protection of part-performance under Section 53A of the Transfer of Property Act.
- Nature of Agreement to Sell and Title:
- An agreement to sell does not transfer title or create any interest or charge over immovable property under Section 54 of the Transfer of Property Act.
- Ownership rights could only crystallize upon the execution of a registered sale deed, which was never done in favor of Sohan Singh.
- Bar of Limitation:
- A suit for possession simpliciter filed in 1975 was hopelessly barred by limitation.
- If treated as a suit for specific performance (Article 54) or cancellation of the sale deed (Article 59), limitation expired years after the 1960 sale deed or the 1963 knowledge of refusal.
- Under Article 64, the period to claim possession based on prior possession expired within 12 years of dispossession, which occurred when Defendant No. 1 took over the plot in 1954.
- Maintainability of Suit for Possession:
- A suit for possession simpliciter is not maintainable where there is a serious, concrete dispute casting a cloud over the plaintiff’s title, necessitating a substantive prayer for declaration and cancellation of a registered instrument.
- Doctrine of Estoppel and Acquiescence:
- Sohan Singh’s letter dated October 4, 1954, expressing inability to construct and requesting the transfer of the plot to Defendant No. 1, amounted to direct acquiescence and a conscious abandonment of his contractual obligations.
- Under Section 115 of the Evidence Act, the plaintiffs were estopped from denying the truth of that representation after Defendant No. 1 altered his position by financing and constructing the building.
- Inapplicability of Section 53A (Part-Performance):
- The plaintiffs could not invoke Section 53A of the Transfer of Property Act because Sohan Singh failed to perform the mandatory condition of constructing within three years and voluntarily abandoned the contract.




