What's the latest supreme court judgement on cancellation of sale deed?

Recently, the Supreme Court held that non-payment of complete sale consideration can’t be a ground for Registered Sale Deed’s cancellation. This is the latest supreme court judgement on cancellation of sale deed.

This case came before the Supreme Court after the Gujarat High Court and the Trial Court allowed the application filed by the Respondents and held that the suit was barred by limitation. The Court, depending upon several circumstances and provisions, dismissed the appeal after allowing the application under the Code of Civil Procedure’s Order VII Rule 11(d).

The Plaintiff was the owner of an agricultural land plot that they planned to sell through a Sale Deed to the Respondent. But, Plaintiff said that the Respondent did not make the sale consideration’s full payment and pleaded the Court to cancel the Sale Deed. They also said that the suit property’s physical possession should be given to them. On the other hand, the Respondent said that the plaint was barred by the limitation and didn’t disclose any cause of action, both of which are grounds for rejection of a plaint under Order VII Rule 11, CPC.

I hope now you know about the latest judgement on cancellation of sale deed.

The cancellation of a sale deed is a crucial and complex topic and every buyer or seller should be well acquainted with it. I am glad you asked about the supreme court judgement on possession given with sale agreement. As a real estate investor, I keep myself updated on such topics.

The only practical way out of a flawed agreement is to invalidate the deed itself when information is withheld or misrepresented; some delicate scenarios occur. Furthermore, as the law generally forbids the cancellation of insignificant sale deeds, any cancellation must have specific justifications. 

Sections 31 to 33 of the Specific Relief Act, 1963 specify the circumstances in which a sales deed may be annulled. They range from blatant displays of favouritism to invalid deeds. Consult a Vakilsearch attorney if you are trapped in a sales deed lawsuit because the legal requirements in this area are complicated and convoluted.

According to Indian law, you can halt the registration of your conveyance or title deeds by registering a cancellation deed (sell, gift, exchange, transfer). A cancellation deed, a legal document, eliminates any rights the buyer of a property might have had against it.

The conditions that must be met by a deed in order for it to be dissolved are listed below.

Laws Pertaining to Cancellation of Sale Deed

Examples of when and how a sale deed may be revoked are provided in Sections 31 to 33 of the Specific Relief Act of 1963. This Act permits cancellation when and if 

1. A person believes that the deed is voidable or has reason to believe that such a deed will harm him if it remains in effect.

2. The court shall submit a copy of its order to the officer in whose office the instrument has been thus registered, and such officer shall note the circumstances of its cancellation, if the deed was registered in accordance with the laws outlined in the Indian Registration Act, 1908.

3. The cancellation may also be carried out with everyone's consent acting in unison.

Latest judgments on cancellation of sale agreement

The Supreme Court noted that a registered sale deed cannot be unilaterally revoked by one party to the said document in ostensible conformity with the High Court's directive because that would be unfair to the purchasers who are not parties in the High Court case. The bench ruled that even if part of the sale consideration has not been paid in full, this cannot be a reason to invalidate the sale deed.

The supreme court judgement on the sale deed decided that the sale would still be legitimate even if a portion of the purchase price were not paid. Even if the remaining sale consideration is not paid, the transaction cannot be revoked once the title to the property has already been transferred.

The parties must intend to transfer ownership of the property, on the understanding that the price will be paid either now or in the future, for there to have been a "sale." The sale deed's recitals, the parties' actions, and the documentation on file all serve to reveal the intention.

I hope I was able to help you with the supreme court judgement on possession given with sale agreement.

The Sale Deed refers to the main document by which transfer of Property Rights takes place from a seller to the buyer or purchaser and the latter gets the complete ownership of the property from then onwards. Now there are several updates and amends in the laws and recently I got to know about the

latest judgments on cancellation of sale deed. As of 17th September 2021, The Supreme Court stated that a registered sale deed cannot be annulled or cancelled unilaterally by one party to the mentioned document in purported compliance of the direction given by the High Court.

What is the supreme court judgment on registered sale deed?

I have seen several people asking how can we cancel a registered sale then let me tell you, as far as I have got to know that you cannot go against a registered sale deed unless you truly have valid points. For example, if it has been executed by fraud, the deed is voidable or has a doubt and more. In such cases you can definitely challenge and get it cancelled.

However, do remember that the

suit for cancellation of sale deed

is to be made within three years since the date of refusal to execute the sale deed limitation starts to file the suit. 

This is all I know about the

latest judgments on cancellation of sale deed and the time within which the cancellation suit should be filed.

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