The Supreme Court (SC), while dealing with the issue of whether an agreement to sell an immoveable property can be said to be barred under Karnataka Prevention of Fragmentation and Consolidation of Holdings Act, 1996 (1996 Act), has held that,“…Agreement to Sell is not a conveyance; it does not transfer ownership rights or confers any title.” The SC took note of the fact that Section 5 of the 1996 Act, only barred lease/sale/conveyance or transfer of rights and, therefore, held that the agreement to sell was not barred under the 1996 Act. However, since the consideration amount was already paid & the possession was handed over to the transferee, the property was considered to be duly transferred to the transferee.
