From Possession to Paper: SC reaffirms adverse-possession title as a “pre‑existing right” (Mukesh v. State of M.P., 2024 INSC 1026) -A View point

 The Supreme Court in Mukesh v. State of Madhya Pradesh (decided 20 Dec 2024) held that where a compromise/consent decree merely recognises a litigant’s pre-existing right in the suit property (including a right that may have matured from continuous adverse possession), such a decree does not require compulsory registration under Section 17(2)(vi) of the Registration Act, 1908, and—on the facts—cannot be treated as a “conveyance” attracting stamp duty for mutation.

This is significant for adverse possession because the Court expressly relies on Ravinder Kaur Grewal to reiterate that continuous, uninterrupted adverse possession can confer right, title and interest and can be used as a sword—supporting the “pre-existing right” analysis.

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Supreme Court: No Registration Or Stamp Duty Required For Compromise Decree Acquiring Property With Pre-Existing Right

 According to the Court, a compromise decree would not require registration if the below mentioned three conditions mentioned under Section 17(2)(vi) are fulfilled: -

"(i)There must be a compromise decree as per the terms of the compromise without any collusion;

(ii)The compromise decree must pertain to the subject property in the suit; and

(iii)There must be a pre-existing right over the subject property, and the compromise decree should not create a right afresh."

REPORTABLE

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 14808 OF 2024

(Arising out of SLP (C)No. 4293 of 2021)

MUKESH Vs THE STATE OF MADHYA PRADESH & ANR. 

Author: R. MAHADEVAN, J.

Citation: 2024 INSC 1026

Dated: DECEMBER 20, 2024.

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