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2023 Supreme(Chh) 548

GOUTAM BHADURI, SANJAY S. AGRAWAL
Punit Ram Khunte S/o Kalap Ramji Khunte – Appellant
Versus
Tara Manikpuri W/o Shri Ayodhyadas Manikpuri – Respondent


Advocates:
Advocate Appeared:
For the Appellant :Mr. Arvind Shrivastava, Advocate
For the Respondent:Mr. A.N. Bhakta & Mr. Vivek Bhakta, Mr. Devershi Thakur, Advocate

Judgement Key Points

Key Points: - The court held that non-payment of sale consideration could not be a ground for cancellation of the sale deed, and an agreement purporting cancellation due to non-payment cannot override the registered sale deed (!) (!) . - The registered sale deed Ex.D/1 shows the sale consideration and payments, and the agreement Ex.P/3 cannot override the registered instrument when the sale deed has been executed (!) (!) . - The appeal was dismissed; the plaintiff’s claim for cancellation was not valid, and the parties must bear their own costs (!) (!) . - The discussion includes section 54 of the Transfer of Property Act defining sale and its requirements, including that a sale is defined as transfer for a price paid or promised or part-paid/part-promised; and a sale requires a registered instrument for tangible immovable property of value above Rs. 100 (!) (!) . - The decision cites that even if entire consideration had not been paid, it could not be a ground for cancellation of the sale deed; remedies may lie for recovery but not cancellation (!) . - It discusses the binding precedent framework and the effect of conflicting judgments on high court decisions (contextual to the reasoning) (!) (!) (!) . - The specific factual finding: Ex.D/1 (sale deed) shows Rs. 30,00,000 paid by cheque and Rs. 12,50,000 cash; the agreement states different terms about cancellation upon cheque dishonor; there is a contradiction between Ex.D/1 and Ex.P/3 (!) .

What is the effect of non-payment of sale consideration on cancellation of a registered sale deed under Transfer of Property Act, 1882?

What is the binding nature of an agreement alleging cancellation (Ex.P/3) when a registered sale deed exists?

What is the proper remedy or recourse when non-payment of sale consideration occurs in a sale transaction?


JUDGMENT :

Goutam Bhaduri, J.

1. Challenge in this appeal is to the judgment and decree dated 26-4-2018 passed by the Additional District Judge, Raipur, in civil suit No.59-A/2017 whereby the suit filed by the appellant/plaintiff was dismissed.

2. Brief facts of the case, as pleaded in the plaint, are that the plaintiff owned a land bearing Kh.No.217/1 admeasuring 3000 sq.ft. wherein superstructure was raised on 1800 sq.ft. He entered into an agreement for sale on 18.11.2010 that the property in its entirety would be sold for a sale consideration of Rs.42,50,000/-. The cost of the suit property was Rs.50.00 lacs. The plaintiff averred that during the execution of the sale deed, out of sale consideration of Rs.42,50,000/-, Rs.30,00,000/- was paid by Cheque which the defendant availed on loan and for remaining Rs.12,30,000/- a cheque was given though in the sale deed, the amount of sale consideration was stated to be received in cash. At the same time, it was further agreed that an agreement was executed, which purports that an amount of Rs.12,30,000/- is being given by cheque which is entered as cash in the sale deed and further if the cheque was dishonoured by the bank on subsequent p

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