Case Law Details
Kewal Krishan Vs Rajesh Kumar And Ors. Etc. (Supreme Court)
Payment of price is an essential part of a sale, thus sale deed executed without payment of price is void: Supreme Court
In Kewal Krishan v. Rajesh Kumar & Ors. Etc. [Civil Appeal Nos. 6989-6992 of 2021 arising out of S.L.P. (C) Nos. 2033-2036 of 2016 dated November 22, 2021] Hon’ble Supreme Court held that the payment of price is an essential part of a sale covered by Section 54 of the Transfer of Property Act, 1882 (the Transfer of Property Act). If a sale deed in respect of an immovable property is executed without payment of price and if it does not provide for the payment of price at a future date, it is not a sale at all in the eyes of law. Therefore, such a sale will not effect the transfer of the immovable property.
Kewal Krishan (the Appellant) executed a power of attorney in favour of Sudarshan Kumar (the Respondent) on March 28, 1980. Acting on the basis of the said power of attorney, two sale deeds were executed by the Respondent on April 10, 1981. The first sale deed was executed by him by which he purported to sell a part of the suit properties to his minor sons. The sale consideration was shown as Rs. 5,500/-. The other sale deed was executed by the Respondent in favour of his wife for consideration shown in the sale deed was of Rs. 6,875/-.
The Appellant contended that the purchasers i.e. wife and minor sons of the Respondent did not have any source of income at the time the sale deed was executed and therefore, consideration amounts were not out of reach of the purchasers. Further, contended that the market value of the suit properties was more than Rs. 30,000/- and there was no occasion to sell the suit properties at the price shown in the sale deeds.
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