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Supreme Court of India

Asha John Divianathan v. Vikram Malhotra & Ors.

Neutral citation
Bench A. M. Khanwilkar, Indu Malhotra and Ajay Rastogi JJ.
Decided 26 February 2021

INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.

3 Supreme Court benches have cited this judgment.

What the Court ordered

We hold that the condition predicated in Section 31 of the 1973 Act of obtaining “previous” general or special permission of the RBI for transfer or disposal of immovable property situated in India by sale or mortgage by a person, who is not a citizen of India, is mandatory.

Judgment, page 36

From the headnote

Foreign Exchange Regulation Act, 1973 – ss.31, 47, 50, 63 – foreigner who was the owner of property in question, executed an agreement of sale in favour of predecessor of the appellant and respondent no.4 after previous permission of the RBI – However, around the same time she gifted portion of the property to respondent no.1 though without any previous permission of the RBI – Suit filed by appellant and respondent no.4’s predecessor against the respondent no.1 inter alia for declaring the gift deeds in his favour as null and void and not binding – Dismissed by Trial Court – First appeal…

Authorities it was built on

Where later benches applied it

Of those, 3 mentioned

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