NEW DELHI: The Delhi High Court has stated that frivolous cases filed against a property cannot be used as a “weapon of harassment,” allowing an owner with a contested building to proceed with its sale or transfer.
“The law acknowledges that courts possess the authority, in suitable cases, to exempt properties from the constraints of Section 52 of the Transfer of Property Act. This exemption serves to protect genuine property owners from being ensnared in vexatious, frivolous, or bad faith litigations,” remarked Justices Anil Kshetarpal and Harish V Shankar in a recent ruling.
The court also levied a penalty of Rs 5 lakh against a private realtor for filing a “fragile claim” regarding a property in South Delhi, where the HC had previously issued summons to the owner but refused to halt the property’s status.
The court asserted it would not reward a litigant attempting to misuse the legal system as a “tool for speculative adventurism,” thereby freeing the property to deter land-grabbers, speculators, and false claimants from obstructing the real estate market with baseless claims.
The realtor argued that discussions for the property’s sale and purchase began in April 2021 via WhatsApp and Zoom, due to pandemic restrictions. The builder claimed an oral agreement was made, with a partial payment made to finalize the deal.
However, the court determined a subsequently agreed MoU indicated that the deal was non-binding for both parties. It criticized the builder for “selectively relying on electronic communications” and the lack of proof of payment, concluding that the case was not about enforcing any legitimate contractual right but rather about clouding the property title and hindering its marketability.
Senior Advocate Jeevesh Nagrath, representing the owner, hailed the ruling as a “very progressive judgment in line with contemporary issues,” emphasizing that it “acknowledges the difficulties individuals encounter when their property is embroiled in prolonged disputes due to pending litigation.”
