Assignment of Decree for Specific Performance Does Not Require Registration.

Headnote:

The Supreme Court held that an assignment of a decree for specific performance of a contract for sale of immovable property does not require registration under the Registration Act, 1908. The Court clarified that a decree for specific performance merely entitles the decree-holder to obtain a sale deed and does not itself create or transfer any interest in immovable property. Therefore, an unregistered assignment of such a decree is valid, and the assignee is entitled to execute the decree.

Background:

1. The appellants were heirs of a deceased judgment debtor.
2. An ex-parte decree was passed in O.S. No. 100/1989 by the First Additional Sub Court, Erode, for specific performance of a contract for sale.
3. The first respondent claimed to be the assignee of the decree by an assignment deed dated 17.07.1995 and filed E.P. No. 150/2004 for execution of the decree.
4. The Executing Court ordered execution of the sale deed in favor of the respondent in 2008.
5. The appellants filed E.A. No.180/2009 under Section 47 CPC, contending that the assignment deed was unregistered and therefore unenforceable.
6. The Executing Court agreed with the appellants, relying on earlier case law. The High Court reversed this, holding that registration was not required.

Court’s Observations:

1. A decree for specific performance does not create or assign any interest in immovable property; title passes only on execution of the sale deed.
2. Assignment of rights under a decree is valid without registration. The assignee can enforce the decree under Order 21 Rule 16 CPC.
3. The decree-holder’s rights are equitable rights to obtain performance, not proprietary rights, and the Registration Act applies only when interest in property is created or transferred.
4. Previous judgments that required registration misinterpreted the scope of Section 17(1)(e) of the Registration Act.
5. Non-registration does not invalidate the assignment, and the assignee is entitled to execution of the decree.

Legal Provisions Discussed

1. Section 17(1)(e), Registration Act, 1908 – Requirement of registration for assignment of immovable property.
2. Order 21, Rule 16, Civil Procedure Code, 1908 – Execution of decree by assignee.
3. Specific Relief Act, 1963 – Right to specific performance and enforceability by assignee.

Outcome

1. The Supreme Court dismissed the appeal.
2. Assignment of decree for specific performance does not require registration, and the assignee is entitled to execute the decree.
3. No order as to costs.

Citation: 2025 INSC 1329

Case: Rajeswari & Ors. v. Shanmugam & Anr.

Court: Supreme Court of India

Coram: K.V. Viswanathan, J.

Date of Decision: 19 November 2025

Civil Appeal No.: 13835 of 2025 (@ SLP(C) No. 3532 of 2018)