Case Note & Summary
The case involves a property dispute where the appellants claimed to have purchased land measuring Acs.3.46 cents from respondent Nos.1 to 4 through a registered sale deed dated 09.03.2005, executed by their power of attorney (respondent No.7). Subsequently, respondent Nos.1 to 4 executed a cancellation deed on 09.03.2005 and got it registered on 20.09.2007. They also filed a civil suit (O.S. No.142 of 2008) seeking declaration that the sale deed in favor of the appellants was illegal and void. After the cancellation, respondent No.8 purchased 0.25 cents of the land via registered sale deed dated 27.02.2009. The appellants filed a writ petition before the Madras High Court challenging the cancellation deed and alleging interference with possession. The learned Single Judge allowed the writ petition, holding that once a sale deed is executed, the land stands transferred and a cancellation deed cannot be registered without the consent of the purchaser. However, the Division Bench of the High Court allowed the intra-court appeal, setting aside the Single Judge's order, on the ground that the civil suit was pending and the writ court should not entertain factual disputes. The Supreme Court, after hearing the parties, noted that the civil suit was pending and the appellants had already filed a written statement. The Court held that the registration of a document is always subject to adjudication by the competent civil court. Since the suit was pending, the Court declined to examine the validity of the cancellation deed and disposed of the appeal with a direction to maintain status quo regarding possession until the disposal of the suit. The suit was directed to be disposed of expeditiously, preferably within one year. The Court also directed the registry to communicate the order to the trial court.
Headnote
A) Property Law - Unilateral Cancellation of Registered Sale Deed - Validity - Registration Act, 1908 - The appellants purchased land via registered sale deed executed by power of attorney; the original owners unilaterally registered a cancellation deed without the appellants' consent. The Supreme Court held that the validity of such cancellation deed is subject to adjudication by the competent civil court, especially when a civil suit is already pending. (Paras 3-15) B) Civil Procedure - Maintainability of Writ Petition - Alternative Remedy - Constitution of India, Article 226 - The High Court's Division Bench set aside the Single Judge's order, holding that writ petition was not maintainable due to factual disputes and pending civil suit. The Supreme Court affirmed, observing that since the appellants had already filed a written statement in the civil suit, the writ court should not examine the validity of the cancellation deed. (Paras 6-7, 14-16) C) Property Law - Rights of Subsequent Purchaser - Bona Fide Purchaser - Transfer of Property Act, 1882 - Respondent No.8 purchased 0.25 cents of the disputed land after the cancellation deed. The Court noted that the rights of all parties, including the subsequent purchaser, will be determined in the pending civil suit. (Paras 12, 15)
Issue of Consideration
Whether the High Court was justified in setting aside the order of the learned Single Judge and relegating the parties to the civil suit, in view of the pending suit for declaration and cancellation of the sale deed.
Final Decision
The Supreme Court disposed of the civil appeal by observing that the rights of the parties will be governed by the judgment in the pending suit O.S. No.142 of 2008. The parties were directed to maintain status quo with regard to possession as on the date of the order until the disposal of the suit. The suit was directed to be disposed of expeditiously, preferably within one year. No order as to costs.
Law Points
- Registration of document is always subject to adjudication of rights of parties by competent civil court
- Unilateral cancellation of registered sale deed is void and non est if done without consent of purchaser
- Writ court should not entertain disputes involving factual controversies when civil suit is pending
