IMPORTANT POINT
The intention of the parties and the recitals in the sale deed are crucial in determining the transfer of ownership, and non-payment of the entire sale consideration does not necessarily invalidate the sale deed.

JUDGMENT :

Goutam Bhaduri, J.

1. Challenge in this appeal is to the judgment and decree dated 20-12-2023 passed by the 7th Additional District Judge, Raipur, in civil suit No.20-A/2021.

2. The facts of the case, in brief, are that the suit was filed by Noor Begam (plaintiff/respondent No.1) against M.D. Ashif Memon (defendant No.1/appellant), pleading, inter alia, that the plaintiff is the owner and in possession of land bearing khasra No.808/1 rakba 0.704 hectares. The said land was sold to the defendant by sale deed dated 23-6-2018, which was registered on 26-6-2018. The sale consideration was Rs. 3,09,76,000/- and in lieu of payment seven cheques of different denomination were given and it was assured that on presentation of said cheques the same will be honoured. The plaintiff and the defendant since were known to each other as such believing on the statement of the purchaser the sale deed was executed by the plaintiff in his favour. The said cheques when were deposited for clearance the same were dishonoured with an endorsement that “insufficient funds in account”. Though intimation was sent to the purchaser that the cheques have been dishonoured, but despite that the amount was not paid. The plaintiff stated that she demanded amount, but eventually it was not paid and sale consideration of Rs. 3,09,76,000/- remains unpaid. The publication was made for demand of money in the newspaper, but despite that the money was not paid and eventually the suit was filed for declaration and permanent injunction. The prayer was made for cancellation of the sale deed dated 23-6-2018, which was registered on 26-6-2018 and was not binding on the plaintiff. Further permanent injunction was sought for that the suit property should not be transferred to any third party.

3. The defendant refuted the claim and stated that possession of the suit property has been handed over to him after execution of the sale deed, which was also endorsed in the recital of the sale deed. It was further stated that the plaintiff and the defendant were known to each other as such it was agreed to purchase the land and different meetings were held in presence of the broker. It was disclosed to the seller that in order to purchase the land the brother of the defendant may have to obtain loan, which may take some time. Despite the said fact, the seller agreed and received an amount of Rs. 12.00 lacs in cash. Thereafter, the sale deed was registered initially in favour of the brother of the defendant on 16- 3-2017. According to the defendant, another land bearing khasra No.351 was purchased by the brother of the purchaser in the year 2017 and authentication (izek.khdj.k ) was not done as such the sale of property bearing khasra No.808/1 area 76000 sq.ft. was offered to be sold. The purchaser agreed to purchase the same and in lieu of consideration of earlier sale transaction, which did not materialise the land was got levelled and subsequently as per the sale deed the cheque was paid and sale deed got registered. According to the purchaser, it was agreed that the amount spent in levelling the land would be adjusted towards the sale consideration. The purchaser stated that he spent more than Rs. 20.00 lacs in levelling the land and certain dispute with respect to demarcation arose in between the parties, which led to filing of criminal complaint. The defendant admitted in his written statement that he is ready and willing to tender the sale consideration to the seller. Rest of the averments were denied. On the contrary, the defendant stated that since in the intervening period the price of land escalated the seller changed her stand to have more money, therefore, the dispute arose.

4. The learned trial Court on the basis of pleadings framed as many as seven issues and it was held that the amount of sale consideration tendered by cheque, which is shown in the sale deed, was not paid and accordingly it was held that the registered sale deed dated 26-6- 2018 is null and void.