{"id":390515,"date":"2026-07-16T14:00:16","date_gmt":"2026-07-16T08:30:16","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=390515"},"modified":"2026-07-16T13:25:53","modified_gmt":"2026-07-16T07:55:53","slug":"disputed-property-title-affidavit-evidence-calcutta-hc-conveyance-deed","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2026\/07\/16\/disputed-property-title-affidavit-evidence-calcutta-hc-conveyance-deed\/","title":{"rendered":"Disputed Property Rights Cannot Be Decided on Affidavits: Calcutta HC Declines Conveyance Over Absence of Clear Title"},"content":{"rendered":"
\n

Calcutta High Court:<\/span> The Division Bench of Debangsu Basak and Md. Shabbar Rashidi, JJ., while dismissing the appeal and held that a conveyance deed cannot be directed in favour of a claimant whose title is clouded by suspicious documentation and unverified payments. It ruled that complex issues relating to ownership and validity of transfer require adjudication through a properly instituted civil suit with oral and documentary evidence.<\/p>\n

Background<\/p>\n

The case arose when the Sanchayani Savings and Investment (I) Ltd. (company) responsible for the real estate development projects had gone into liquidation. The Court had appointed a Special Officer to manage the company’s affairs, although an appeal against the winding-up order was pending. The company had undertaken several real estate development projects and had allotted various units to purchasers before liquidation. Original allottee (Allottee 1) was one such allottee. After the appointment of the Special Officer, efforts were made to contact all allottees so that pending payments could be collected and the projects completed. However, 4 allottees, including Allottee 1, remained untraceable.<\/p>\n

The applicant claimed ownership of the unit on the basis of a registered deed of sale executed in his favour by Allottee 1, since Allottee 1 in respect of the subject unit could not be located even after noticed by the Court. The applicant submitted that the allotment of the Allottee 1 in respect of the unit stood cancelled due to non-payment of the entire consideration by relying on an order dated 3 March 2020 passed by the coordinate Bench. The applicant sought a direction from the Court requiring the Special Officer appointed over the affairs of a company in liquidation to execute and register a deed of conveyance in respect of Unit No. 21 situated at Plots Nos. 62, 63 and 64, Sector 15, CBD Belapur, Navi Mumbai.<\/p>\n

The applicant contended that Allottee 1 had allotted the unit through a letter of allotment dated 10 January 1996. According to the applicant, allottee subsequently transferred all his rights in the unit through a registered sale deed dated 5 March 2019. Since the allotment in favour of the allottee had never been formally cancelled, the applicant argued that he had lawfully acquired all rights in the property and was entitled to a conveyance deed from the Special Officer.<\/p>\n

The applicant further submitted that he had paid all outstanding dues relating to the unit to the housing society and had even expressed his willingness to clear any further outstanding amounts if necessary. He asserted that neither the society nor the Special Officer had informed him of any unpaid dues.<\/p>\n

The Special Officer opposed the application. It was argued that although the unit had originally been allotted to the allottees had become untraceable despite repeated attempts to contact. The Special Officer also questioned the genuineness of the applicant’s claim and the documents relied upon. It was pointed out that the applicant had served as the Secretary of the housing association where the unit was situated. During that period, payments were allegedly deposited into the society’s account in respect of the disputed unit. The power of attorney listed 12 payments allegedly made between July and December 2018, including a payment of approximately ₹10.99 lakhs to the society, a cash payment of ₹8 lakh, and a property tax payment of ₹10 lakhs. The Special Officer argued that the circumstances surrounding these payments created suspicion regarding the authenticity of the transaction.<\/p>\n

The Special Officer submitted an additional concern on the manner in which the sale transaction had been executed. The applicant had acted in 2 capacities under the same transaction. He signed the deed of transfer as the attorney of the original allottee under a registered power of attorney and simultaneously accepted the transfer in his own favour as purchaser. The Special Officer argued that this unusual arrangement raised serious doubts about the legitimacy of the transfer.<\/p>\n

Decision and Analysis<\/p>\n

The Court carefully scrutinised the payments made by the applicant. It observed that the applicant was serving as Secretary of the Housing Society when several of the alleged payments were made. The Court noted that the involvement of the applicant in the manner as suggested by the Special Officer cannot be overlooked on the basis of the affidavit evidence on record. All documents pertaining to payments in respect of the unit concerned were not on record. In particular, evidence with regard to the cash payment and the property tax payment noted in the registered power of attorney were also not on record. Housing Society did not confirm receipt of payment despite the Special Officer requesting for the same. No documentary evidence adequately established the alleged cash payment or the claimed property tax payment. Furthermore, despite requests made by the Special Officer, the housing society never confirmed receipt of these payments.<\/p>\n

The Court held that the dispute involved serious questions regarding the validity of the transfer of disputed property. Furthermore, the authenticity of the documents and the payments allegedly made were also not proved by the applicant. Such disputed issues required oral and documentary evidence and could not be conclusively decided solely on affidavits. The Court suggested that the applicant could establish his title by filing an appropriate civil suit after obtaining leave under Section 446<\/a>, Companies Act, 1956<\/a>. However, the applicant expressly declined both to seek such leave and to institute a suit.<\/p>\n

The Court specified that due to the exitance of significant doubts regarding the applicant’s title, it could not conclude that there had been a valid transfer of the original allottee’s rights or that the applicant had become entitled to a conveyance deed. The Court also took note of the Asset Sale Committee’s recommendation that the unit be sold by public auction due to suspected irregularities and non-payment, which remained unchallenged.<\/p>\n

The Court dismissed the appeal and held that the applicant had failed to establish a clear and undisputed title to the property. Since the applicant’s claim remained unresolved and he had declined the appropriate remedy of filing a suit to prove his rights, the Court refused to direct the Special Officer to execute the conveyance deed.<\/p>\n

[Sanchayani Savings and Investment (I) Ltd.<\/span> v. RBI<\/span>, APO No. 208 of 2017 with CP No. 211 of 2015, decided on 24-6-2026<\/span>]<\/p>\n

*Judgment authored by: Justice Debangsu Basak<\/span><\/strong><\/p>\n\n

Advocates who appeared in this case:<\/p>\n

For the Appellant:<\/span> Biswabrata Basu Mallick, Advocate<\/p>\n

For Special Officer:<\/span> Sakya Sen, Sr. Adv., Suvadeep Sen, Sormi Dutta, Advocates<\/p>\n

For the Respondent:<\/span> Dilip Kr. Kundu, Arjun Basu, Aditi Biswas, Advocates<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Court found serious doubts regarding the validity of the transfer and authenticity of payment records based on the applicant’s dual role as attorney and purchaser. The Court held that such disputed questions required a civil trial and not adjudication on affidavits. Hence, it dismissed the application, refusing to direct execution of the conveyance deed.<\/p>\n","protected":false},"author":67544,"featured_media":390520,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,10],"tags":[40224,109963,2513,8131,109956,109960,109962,62873,29690,109964,32659,53105,109958,109959,109957,34727,109965,24534,109961,7721],"class_list":["post-390515","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-affidavits","tag-authenticity-of-transaction","tag-Calcutta_High_Court","tag-civil-suit","tag-debangsu-basak-j","tag-deed-of-conveyance","tag-genuineness-of-claim","tag-housing-society","tag-liquidation","tag-oral-and-documentary-evidence","tag-power-of-attorney","tag-property-tax","tag-real-estate-development-projects","tag-registered-deed-of-sale","tag-sanchayani-savings-and-investment-i-ltd","tag-secretary","tag-section-446-of-the-companies-act-1956","tag-special-officer","tag-transfer-of-rights","tag-winding-up"],"yoast_head":"\nDisputed Property Rights Cannot Be Decided on Affidavits: Calcutta HC Declines Conveyance Over Absence of Clear Title | SCC Times<\/title>\n<meta name=\"description\" content=\"The Calcutta High Court dismissed the appeal as the applicant had failed to establish a clear and undisputed title to the property. 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