Good Faith And Due Inquiry: Essential For Bona Fide Purchaser Protection Under Specific Relief Act

The Supreme Court of India, in its recent judgment in Manjit Singh & Anr. vs. Darshana Devi & Ors¹., has reaffirmed that mere acquisition of property under a registered document is insufficient to claim protection under Section 19(b) of the Specific Relief Act, 1963 ("SRA"). It is paramount for the subsequent purchaser to prove that they acted in good faith and without notice after undertaking due inquiry.

The Court held that the failure to investigate the legal status and possession of the property before concluding the purchase negates the claims of the purchaser having acted without notice, thus denying them the benefits of Section 19(b) of the SRA.

Section 19(b) of SRA² provides an exception to the general rule of specific performance. It allows for enforcement of an agreement to sell against subsequent purchasers unless they are bona fide purchasers. Such purchasers must have acted in good faith, paid valuable consideration, and lacked notice of the original