Assignment Of Specific Performance Decree Doesn’t Require Registration: Supreme Court

The Supreme Court clarified that a decree for specific performance does not itself create or transfer ownership rights in immovable property; hence, an assignment of such a decree does not require registration under Section 17 of the Registration Act, 1908. The Court reasoned that the decree merely facilitates enforcement of an existing contractual obligation and does not operate as a conveyance. This judgment distinguishes between documents that operate as actual transfers of property and instruments that enable execution of court decrees. The Court emphasized that procedural rights arising from a decree cannot be equated with proprietary rights. The ruling protects decree holders by ensuring they do not face unnecessary procedural obstacles in assigning decrees. It further guides executing courts on the scope of Order 21 Rule 16 CPC when dealing with assignments of decrees.