Shimla, Oct. 26 -- The Himachal Pradesh High Court has clarified that an agreement to sell a property does not confer ownership rights and cannot terminate the landlord-tenant relationship unless a registered sale deed is executed.

Justice Vivek Singh Thakur, while allowing a revision petition filed by landlord Prem Mohini Gupta against an order of the Rent Controller, held that the Rent Controller erred in concluding that a tenant had become part-owner of the property merely based on an agreement to sell. The case stemmed from a long-standing rent dispute over a portion of the "Bakery Building" at Dhalli, Shimla.

The Rent Controller had earlier accepted objections raised by the tenant's legal representative, Shyam Lal, who claimed owners...