NEW DELHI: The Supreme Court on Friday called for nationwide reform of colonial-era property laws, instructing the Rights Commission to prepare a comprehensive report and study the use of blockchain technology to modernize the property registration system.
The directive came in a landmark judgment delivered by a bench of Justices Pamidighantham Sri Narasimha and Joymalia Bagchi, which struck down the Bihar Amendment 2019, which empowered registrars to refuse registration of sale or gift deeds without proof of mutation or distribution of jamobandi.
Justice Narasimha, who wrote the 32-page verdict, wrote: “The constitutionally protected right to own immovable property includes the freedom to acquire, hold and dispose of it at will. The efficiency and transparency of property transactions reflect the institutional maturity of the country and public confidence in its legal system.”
The court highlighted the persistent “registration-ownership dichotomy” in property law, stressing the need to move toward a compelling system of state-guaranteed ownership where registration serves as proof of ownership, not merely evidence of a transaction.
The court noted that two-thirds of civil litigation in India arises from property disputes, citing the burden of verifying ownership due to the system of “deemed ownership” under the Transfer of Property Act, the Stamp Act and the Registration Act, all of which date back to the colonial era.
The verdict urged the Center to explore blockchain-based land records, describing the technology as tamper-proof, transparent and capable of integrating cadastral maps, survey data and revenue records into a single system.
The court found Bihar’s rule arbitrary and unenforceable, noting that 80 percent of jamabandis in the state remain in the names of deceased ancestors, making it impossible to enforce.
The order came in response to a petition filed by Samiula, represented by advocate Atenam Velan, against the Patna High Court’s order upholding the 2019 amendment. The decision reaffirmed that mutation does not confer title, but only serves as a fiscal record, and called for systemic modernization to reduce property disputes and improve legal certainty.
