September 15, 2025

Sale Deed Executed Without Payment Of Price Is Not Valid; Such Sale Without Consideration Void: Supreme Court

Amit Kapoor05 mins
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The Supreme Court repeated that a sale deed executed without the payment of consideration is not a legitimate “sale” under Section 54 of the Transfer of Property Act, 1882 (“TPA”). Such a deed is void and non-use.

Reference was attracted from the situation of Kewal Krishnan v. Rajesh Kumar and Others, ( 2022) 18 SCC 489, where it was likewise held that the payment of price is a crucial part of a sale. If a sale deed in regard of a stationary home is executed without payment of price and if it does not attend to the payment of price at a future day, it is not a sale whatsoever in the eyes of regulation, the court claimed in Kewal Krishnan.

“The sale of an immovable property would have to be for a price and such a payment of price is essential, even if it is payable in the future. If a sale deed is executed without the payment of the price, it is not a sale at all in the eyes of law, specifically, under Section 54 of the Transfer of Property Act. Such a sale without consideration would be void and would not affect the transfer of the immovable property” the Court observed describing Kewal Krishnan.

A bench of Justice JB Pardiwala and Justice R Mahadevan regulationed in favour of the complainant that tested the sale deed executed in the accused’s support, upon keeping in mind that the accused fell short to verify the payment of consideration to the complainant, making the sale deed void.

It held true where the sale deed asserted that 9,000 had actually been paid previously and 6,000 was paid to the complainant at the time of enrollment, however the accused fell short to verify these settlements. Crucially, the accused’s hubby, that supposedly made the last payment, did not indicate; one attesting witness had actually passed away, and the various other was the accused’s sibling, whose statement was located undependable. The initial deed was likewise not created, causing a negative reasoning versus the accused.

Since the necessary aspect of payment of sale consideration was not confirmed, the Court held the sale deed was void abdominal initio. If the deed is void, there is no requirement to look for a petition for its termination. Hence, the restriction duration for match to recuperate belongings, when the sale is void, will certainly be regulated by Article 65 of the Limitation Act, the Court ruled.

“To put it simply, in the eyes of the law, the plaintiff could not be said to have executed the sale deed. Therefore, the plaintiff could indeed have maintained an action to obtain possession of the property on the basis of her title and filed the same within the period of 12 years from the date of knowledge that the possession of the defendant was adverse to that of the plaintiff,” the Court claimed.

Cause Title: SHANTI DEVI (SINCE DECEASED) WITH LRS. GORAN VERSUS JAGAN DEVI & & ORS.

Citation: 2025 LiveLaw (SC) 900.

Click right here to read/download the judgment

Also From Judgment: When Sale Deed Is Void, Suit For Possession Governed By Limitation Period Of 12 Years Under Article 65 Instead Of Art 59: Supreme Court

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