ACHAL REDDI vs RAMAKRISHNA REDDIAR AND ORS.

The Supreme Court held that possession under an executory contract of sale is not adverse if it acknowledges the vendor's title, as per the legal principle that possession is not considered adverse when it is referable to a lawful title. The Court clarified that in cases of executory contracts, the transferee's possession is derivative and recognizes the vendor's ownership until a formal sale deed is executed. The appeal was dismissed, affirming the lower court's finding that the transaction in question was an agreement for sale and not an oral sale of the property.