In a detailed judgment that touched upon core principles of property law, the Supreme Court on Wednesday dismissed an appeal filed by the legal heirs of a Tamil Nadu landowner, holding that an assignment of a decree for specific performance does not need registration under the Registration Act, 1908. The ruling brings clarity to a question that has, for years, confused trial courts and litigants: Does transferring a decree related to immovable property require a registered document?
Background
The dispute dates back more than three decades. In 1993, a court in Erode passed an ex-parte decree directing the defendant to execute a sale deed in favour of the original plaintiff. Two years later, that plaintiff assigned the decree to another man, Shanmugam, for ₹20,000.
The legal heirs of the judgment-debtor cried foul many years later. They argued that because the assignment deed was unregistered, it was invalid. The executing court agreed and stopped the execution of the sale deed. The High Court, however, reversed that decision and said no registration was needed since the decree itself did not create ownership.
This back-and-forth finally reached the Supreme Court.
Court’s Observations
During the hearing, Justice K.V. Viswanathan engaged closely with the lawyers, asking pointed questions about the nature of a specific performance decree. The bench repeatedly returned to one idea: A decree of specific performance does not transfer ownership.
Explaining this in simple terms, the bench observed, “The decree-holder only gains a right to ask the court to compel a sale. Ownership comes into the picture only when a registered sale deed is executed.”
The Court relied on well-known precedents stating that neither an agreement to sell nor a decree based on such an agreement creates any title in land. The judges noted that until the actual sale deed is executed-either by the seller or through the court-the decree-holder remains just that: a decree-holder, not an owner.
This distinction became crucial. Section 17(1)(e) of the Registration Act requires registration only when a decree or instrument “creates, declares or assigns” an interest in immovable property. But here, the decree itself created no such interest.
At one point the bench remarked, “If the decree does not create title, how can assigning that decree trigger a requirement of registration? There is simply nothing to register.”
The Court also rejected the appellants’ argument that non-registration could lead to revenue loss for the State, noting that no rights in land pass until a sale deed is finally registered. So multiple assignments, even if they happen, don’t result in avoidance of stamp duty.
Decision
Upholding the High Court, the Supreme Court concluded that the assignment deed executed in 1995 was valid without registration, and the executing court had “clearly erred” in blocking the sale.
In its final lines, the bench ordered:
“The assignment deed in this case did not require registration. The appeal is dismissed.”
With that, a 30-plus-year-old dispute over a simple village land transaction finally reached its last chapter.
Case Title: Rajeswari & Ors. vs. Shanmugam – Supreme Court on Registration Requirement for Assignment of Specific Performance Decree
Court: Supreme Court of India
Bench: Justices J.B. Pardiwala & K.V. Viswanathan
Date of Judgment: 19 November 2025