Payment of price is an essential part of a sale, thus sale deed executed without payment of price is void: Supreme Court

Last updated: 30 November 2021

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The Supreme Court has ruled that payment of the agreed price is a fundamental requirement for a sale deed to be legally valid under Section 54 of the Transfer of Property Act. If a sale deed for immovable property is executed without the price being paid, and without any provision for future payment, it is not considered a sale in the eyes of the law. Consequently, such a deed cannot transfer ownership of the property.

Court :
Supreme Court of India

Brief :
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.

Citation :
Civil Appeal Nos. 6989-6992 of 2021 arising out of S.L.P. (C) Nos. 2033-2036 of 2016 dated November 22, 2021

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