![]() The proper course would be to re-convey the property by a deed of conveyance by the transferee in favor of the transferor Once title to the property is vested in the transferee by the sale of the property, it cannot be divested unto the transferor by execution and registration of a deed of cancellation even with the consent of the parties.Hence such a deed of cancellation cannot be accepted for registration ![]() Such a document does not create any encumbrance in the property already transferred. A deed of cancellation of a sale unilaterally executed by the transferor does not create, assign, limit or extinguish any right, title or interest in the property and is of no effect.The court observed that it could be due to the reason that since the Vendor has already transferred all that he had unto the Purchaser, a cancellation deed, even if registered, would not create, assign, limit or extinguish any right, title or interest and hence such cancellation deed would have no impact in the eyes of law. There is no provision either in the TOPA or in the Registration Act, which deals with cancellation deed of a sale. 31 also provides remedy for cancellation that person against whom a written instrument is void or voidable, and who has reasonable apprehension that such instrument, if left outstanding may cause him serious injury, may sue to have it adjudged void or voidable and the Court may, in its discretion, so adjudge it and order it to be delivered up and cancelled. Since a sale of immovable property by a conveyance/sale deed creates right, title or interest and is for value of Rs.100/- or more, the same requires compulsorily registration as per Section 17 (b) of Registration Act, 1908.Īs regards, unilateral deed of cancellation, as per Section 62 of Contract Act, 1872, it is required that to rescind any contract which does not require any further performance from parties, all the parties therein must agree and execute new contract rescinding the old one.Ĭourt observed that the cancellation deed also ought to be executed by all parties to original sale deed. It was pointed out how a conveyance is different from any other transfer under TOPA and the peculiar aspects of conveyance which need to be considered while deciding the matter regarding cancellation thereof. The matter was decided by a single judge wherein it was held that since unilateral cancellation deed was executed without consent of other party and same did not comply with requirements of Section 32 A of the Registration Act, such cancellation deed was quashed and appeals were filed challenging the said order.Īn Amicus Curie was appointed by the court. However, after almost 10 years of registration of sale deed, the appellant being vendors therein registered a unilaterally executed cancellation deed. It was the case of respondent that she had paid the consideration payable under registered sale deed executed in her favour and had been put in possession of the immovable property purchased thereunder. , the aforesaid aspects around cancellation of conveyance were thoroughly discussed. In the matter of Latif Estate Line India Ltd. A sale U/s.54 of TOPA includes within its scope transfer of ownership rights in exchange for price promised to be paid-part paid and part- promised. It is not mandated under the TOPA that for sale to take place the entire price/consideration has to be paid. 'Sale' is also defined U/s.54 of TOPA, which means transfer of ownership in exchange for price. 5 of the Transfer of Property Act, 1882 (" TOPA") it is provided that 'Transfer of property' is 'performing of an act' whereby a living person conveys the property. However unlikely it may seem that once the conveyance is executed there can not be any cancellation thereof, still there are instances of cancellation or attempts of cancellation of such complete document of conveyance executed between the parties.
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