Case Note & Summary
The case involves a property dispute where the original plaintiff (now represented by his legal heirs) filed a suit for declaration of title and possession based on a registered sale deed dated 4th February 1963 executed by the first defendant (his father-in-law) in his favour. The plaintiff claimed that he paid the consideration and was put in possession. However, the first defendant later executed a registered cancellation deed on 15th June 1967 unilaterally cancelling the sale deed. The trial court decreed the suit in favour of the plaintiff, but the High Court reversed the decision in appeal, holding that the cancellation deed was valid and that the sale deed was not acted upon. The Supreme Court examined the legal validity of unilateral cancellation of a registered sale deed. The court held that once a sale deed is registered, title passes to the vendee, and the vendor cannot unilaterally cancel it without the vendee's consent or a court decree. Such a cancellation deed is void and does not affect the vendee's title. The court also noted that the High Court erred in relying on the cancellation deed and in holding that the sale was not acted upon. The Supreme Court set aside the High Court's judgment and restored the trial court's decree, declaring the plaintiff's title and directing possession to be handed over.
Headnote
A) Property Law - Sale Deed - Unilateral Cancellation - Transfer of Property Act, 1882, Section 54; Registration Act, 1908, Section 17 - A registered sale deed, once executed and registered, transfers title to the vendee. The vendor cannot unilaterally cancel the deed without the consent of the vendee or without a court order. Such unilateral cancellation is void ab initio and does not affect the title of the vendee. The court held that the cancellation deed executed by the first defendant without the plaintiff's consent was invalid and did not revest title in the vendor (Paras 8-12).
Issue of Consideration
Whether a registered sale deed can be cancelled unilaterally by the vendor without the consent of the vendee or without a decree of court?
Final Decision
The Supreme Court allowed the appeal, set aside the High Court's judgment, and restored the Trial Court's decree. The suit was decreed declaring the plaintiff's title and directing the defendants to hand over possession.
Law Points
- Unilateral cancellation of registered sale deed is invalid
- Registered sale deed can only be cancelled by mutual consent or by court decree
- Section 17 of Registration Act
- 1908
- Section 54 of Transfer of Property Act
- 1882
