GAYA PRASAD vs SURENDRA BAHADUR SINGH, (DEAD) BY L.RS. & ORS.

The Supreme Court addressed the implications of the U.P. Encumbered Estates Act, 1934, particularly Sections 7, 14(7), and 18, in relation to an agreement to sell property. The Court held that an agreement to sell does not constitute a transfer of rights in immovable property and that the refusal of permission to sell under Section 7 renders the contract void under Section 23 of the Contract Act. Consequently, the High Court's decision to set aside the decree for specific performance in favor of the appellant was upheld.