Proposed buyer can't sue third party claiming title: Supreme Court.

Proposed buyer can't sue third party claiming title: Supreme Court.

The Supreme Court held that an agreement to sell creates no ownership rights under Section 54 of the Transfer of Property Act, 1882, and a proposed purchaser cannot sue a third party claiming title and possession. The Court emphasized that plaints lacking cause of action or barred by law must be rejected under Order VII Rule 11 CPC. A mere injunction suit without seeking title declaration is not maintainable. It also flagged concerns over large cash transactions violating Section 269ST of the Income Tax Act. The Court allowed the appeal, rejected the plaint, and issued directions to curb undisclosed cash dealings.

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