New Delhi, Jan 22 Stressing the need for systemic reforms to curb property-related litigation and forgery, the Supreme Court has suggested to the Centre and state governments across the country that land records and registered documents be digitised using secure, tamper-proof technologies such as blockchain.
The suggestion came from a bench of Justices Rajesh Bindal and Manmohan, while allowing a civil appeal and restoring a lower appellate court’s judgment that upheld the validity of a registered sale deed, rejecting claims that it was a "sham" transaction.
In its judgment, the Justice Bindal-led Bench observed that technological intervention could play a crucial role in preserving the sanctity of property transactions and reducing disputes that "clog our judicial system".
"Before parting, this court deems it necessary to suggest to the Union and state governments the urgent need for the digitisation of registered documents and land records using secure, tamper-proof technologies such as Blockchain," the apex court said.
It added that blockchain functions as a shared digital ledger, ensuring immutability and security once a transaction is recorded.
"Many experts believe that Blockchain, a shared, digital record book (ledger) system, would ensure that once a transaction of a sale or mortgage or like nature is recorded, it becomes immutable and cryptographically secured," the judgment stated.
The Supreme Court stressed that such reforms were essential to tackle forgery, fabricated claims, and "clever drafting" aimed at unsettling settled property titles. "Such reforms are essential to minimise the scourge of forgery and 'clever drafting' that clogs our judicial system," it observed.
Highlighting the broader governance impact, the bench observed that certainty in land records was critical for public confidence. "Registered documents must inspire absolute confidence to ensure the ease of doing business and to uphold the sanctity of property titles in a modern economy," it said.
Bringing an end to a long-standing dispute over a 1971 registered sale deed, the Supreme Court set aside the Karnataka High Court’s 2010 ruling and restored the judgment of the first appellate court, dismissing the suit that sought to declare the sale deed as nominal and sham.
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