Court Dismisses Devendra Singh's Appeal, Affirms Registered Sale Deed's Legitimacy Under Transfer of Property Act
In a significant ruling, the Allahabad High Court has dismissed an appeal by Devendra Singh seeking the cancellation of a registered sale deed with Great Home Developers Pvt. Ltd., affirming the legitimacy of the sale under the Transfer of Property Act, 1882. The decision, delivered by Justice Abdul Shahid, highlights that the non-payment of sale consideration does not automatically render a registered sale deed void.
The case arose when Devendra Singh filed for the cancellation of a sale deed dated December 10, 2008, claiming that a substantial portion of the sale consideration remained unpaid, with several cheques issued by the purchaser being dishonoured. Singh argued that the registered sale deed was executed with the understanding that full payment would be made in installments, and ownership would only transfer upon complete payment.
However, the High Court emphasized that under Section 54 of the Transfer of Property Act, a sale is defined as a transfer of ownership in exchange for a price paid, promised, or part-paid and part-promised. The court ruled that the actual payment of the entire price at the time of execution is not necessary for the completion of the sale, and once a sale deed is executed and registered, it does not become void due to unpaid consideration.
Justice Abdul Shahid noted that the sale deed explicitly recorded the receipt of the full consideration, transfer of ownership, and delivery of possession, and that any oral agreements contrary to the deed's recitals cannot be considered in court. Additionally, the court upheld the presumption of correctness associated with a registered document under the Registration Act, 1908, which Singh failed to rebut with strong evidence.
The court further observed that Singh had admitted to the execution and understanding of the sale deed and had not objected to the mutation of the property in the defendant's name for over two years. The High Court concluded that Singh's remedy lies in pursuing the recovery of the alleged outstanding balance, rather than seeking the cancellation of the sale deed.
This judgment aligns with precedents set by the Supreme Court, which have consistently held that non-payment of the sale consideration does not affect the validity of a registered sale deed, and the appropriate recourse is a suit for recovery of money.
Bottom Line :
Transfer of Property Act, 1882 - Mere non-payment or alleged non-payment of sale consideration after execution and registration of sale deed does not render sale deed void - Remedy of vendor is recovery of balance consideration and not cancellation of registered sale deed, particularly when deed records receipt of consideration and delivery of possession.
Statutory provision(s): Transfer of Property Act, 1882 Section 54, Evidence Act, 1872 Section 91, Registration Act, 1908 Section 58, Civil Procedure Code, 1908 Section 100
Devendra Singh v. Great Home Developers Pvt. Ltd., (All) : Law Finder Doc id # 2985904
