On January 29, 2026, the Hon’ble Delhi High Court delivered a significant judgment in Neelam Bhatia and Ors. vs. Ritu Bhatia and Ors. CS(OS) 141/2022, reinforcing a settled position of law, which has emerged consistently in recent property jurisprudence, that ownership in an immovable property can be established only through a valid conveyance deed, such as a Sale Deed, Gift Deed, Relinquishment Deed, or a Partition Deed, as applicable.

The Plaintiffs, in the instant case, sought partition, permanent injunction and declaration in respect of land in the village Karawal Nagar, New Delhi. The case was premised on an unregistered Agreement to Sell (ATS), a General Power of Attorney (GPA), and a receipt dated April 7, 1981. The Defendants, however, relied on a registered sale executed in favour of their predecessor. Crucially, no suit for specific performance of the ATS was ever filed by either the Plaintiff or their predecessor.

The suit was rejected by the Hon’ble Delhi High Court under Order VII Rule 11 of CPC, as the Plaintiff failed to establish a valid cause of action. The Plaintiff’s case failed fundamentally because he was unable to establish a legally recognisable title to the suit property. In a suit for partition, the plaintiff must first demonstrate that he holds a valid ownership interest or share in the property sought to be partitioned. Absent proof of title, a claim for partition cannot be sustained.

In the present case, the plaintiff relied upon an unregistered Agreement to Sell, a General Power of Attorney (GPA), and a Receipt. However, none of these documents constitutes a valid instrument of conveyance under Indian property law. Further, it is the admitted position of the Plaintiff that a suit for specific performance of the Agreement to Sell was never filed.

The Hon’ble Court placed reliance on the judgments of the Hon’ble Supreme Court in Suraj Lamp & Industries (P) Ltd. v. State of Haryana (2012) 17 SCC 656, wherein it was categorically held that a power of attorney is not an instrument of transfer in regard to any right, title or interest in an immovable property. This position has been subsequently reaffirmed by the Hon’ble Supreme Court in Ramesh Chand vs Suresh Chand 2025 SCC Online SC 793, reiterating that an Agreement to Sell, in the absence of a registered Sale Deed, does not confer ownership.

In contrast, the Defendants held a duly executed and registered Sale Deed. A registered Sale Deed is a legally recognised instrument of conveyance and carries presumptive evidentiary value regarding title. Consequently, when weighed against informal and unregistered documents, the registered conveyance prevailed. Since the Plaintiff could not establish lawful ownership, no cause of action was made out in favour of the Plaintiff, and the very foundation of the partition suit failed, resulting in its dismissal.

DMD’s Comments:  

This present judgment underscores the importance of proper documentation and statutory compliance in matters concerning immovable property. Any person claiming ownership must ensure that their title is supported by a registered deed of conveyance, such as a Sale Deed, Gift Deed, Relinquishment Deed, or a Partition Deed, as applicable.

Individuals who presently hold property only on the basis of GPA/Agreement to Sell structures should, wherever legally permissible and within limitation, take steps to regularise their title. This may involve obtaining execution and registration of a proper conveyance deed from the recorded owner or, where appropriate, pursuing remedies such as specific performance. Delay in doing so can extinguish legal remedies.

In cases involving ancestral or coparcenary property, parties must ensure that title documents clearly reflect the nature of the property and the lineage of ownership. Revenue records, mutation entries, and the documentary chain of title should be consistent and complete. If a family partition has already taken place orally, it is prudent to formalise it through a registered partition deed to avoid future disputes.

Importantly, possession or long enjoyment of property does not automatically translate into ownership. Courts adjudicate title based on legally recognised conveyance instruments, not merely on informal understandings or payment of consideration.

Further, individuals should bear in mind that mere registration of a Sale Deed is not proof of ownership in itself. The Hon’ble Supreme Court, vide judgment dated May 7, 2025, in Mahnoor Fatima Imran and Ors. vs M/s Viswesara Infrastructure Pvt. Ltd. and Ors. SLP (C) No. 1866/2024 has reiterated that a registered sale deed, by itself, does not create a legal right of ownership if the vendor did not possess a lawful title at the time of executing the sale. The conveyance documents should be strictly in compliance with the statutory requirements, demonstrating a valid chain of title.

In essence, the judgment serves as a cautionary reminder that certainty and formality in conveyancing are indispensable. Those who neglect proper registration risk losing substantive rights in litigation, particularly in partition and title disputes.

Credits: Kuber Dewan (Partner) & Kaustubh Srivastava (Associate)