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High Court of Delhi
VIBHU BAKHRU, J.
Gati Cargo Management Service
Versus
Sbl Industries Ltd.
CO. Appl. Nos. 648 of 2012 & 1838 of 2013 in Co. Pet. No. 321 of 2001
Decided on: 27-05-2014
Registration of Sale Deeds - Property Registration - Registration Act, 1908, Section 28, Section 30 - The court considered the validity of registration of sale deeds relating to a property situated in Bihar, registered with the office of Sub-Registrar, Mumbai. The judgment discussed the amendments to the Registration Act, 1908, and the applicability of Section 30(2) in the context of the State of Bihar. The court held that the registration of the sale deeds by the office of the Registrar in Mumbai was not flawed and could not be cancelled solely on the ground of being registered in Mumbai.
Fact of the Case:
The case involved a dispute over the registration of sale deeds relating to a property situated in Bihar, which were registered with the office of Sub-Registrar, Mumbai. The Official Liquidator sought cancellation of the sale deeds, alleging that the registration was void as the property was situated within the territorial limits of the Sub-Registrar, Ranchi, and not Mumbai. The applicants contended that the registration of the sale deeds was valid and in accordance with the statute enforce.
Finding of the Court:
The court found that the order cancelling the sale deeds was passed without notice to the applicants, violating the principles of natural justice. The court held that the registration of the sale deeds by the office of the Registrar in Mumbai was not flawed and could not be cancelled solely on the ground of being registered in Mumbai. The court recalled the order dated 30.11.2011 and restored the application to challenge the sale deeds on all grounds.
Issues: The issues addressed by the court included the validity of the registration of sale deeds relating to a property situated in Bihar, the applicability of Section 30(2) of the Registration Act, 1908, and the principles of natural justice in passing adverse orders without notice to the affected parties.
Ratio Decidendi: The court's decision was based on the principles of natural justice, the interpretation of the Registration Act, 1908, and the applicability of Section 30(2) in the context of the State of Bihar. The court emphasized the need for fair opportunity of being heard before passing adverse orders in judicial proceedings.
Final Decision: The court partially allowed the application and disposed of it by recalling the order dated 30.11.2011 and restoring the application to challenge the sale deeds on all grounds. The court permitted the Official Liquidator to file a fresh application to challenge the sale deeds and the transaction recorded therein on all available grounds within a period of eight weeks.
Vibhu Bakhru, J.
1. CA No.648/2012, has been filed by the applicants seeking recalling of the order dated 30.11.2011 passed in CA No.1557/2011 whereby the Court directed cancellation of sale deeds registered with the Sub-Registrar, Mumbai with respect to the property belonging to the company in liquidation situated at Plot No.74/A, Sub Plot No. 74/AII of Village Hehal, P.S. Sukhdeo Nagar, P.S.No.203, District Ranchi, Jharkhand and handing over the said property to the Official Liquidator. The applicants have also prayed for confirming the sale of the said property in favour of the applicants. CA No.1838/2013 has been filed by the applicants seeking modification of the order passed by this Court on 11.04.2012 in CA No. 648/2012 (Although, in the prayer made seeks modification of the order dated 30.11.2011, paragraph 9 of the application mentions order dated 11.04.2012). This court, by an order dated 11.04.2012 in CA No.648/2012, had directed maintenance of status quo with respect to the said property and had restrained the applicants from transferring, selling or alienating the said property.
2. The principal question to be considered is whether registration of a sale deed relating to a property situated in Bihar, with the office of Sub- Registrar - Mumbai would be valid.
3. The brief facts of the case are that SBL Industries Ltd. (company in liquidation and hereinafter referred to as the ‘company’) was the owner of the property situated at Plot No.74/A, Sub Plot No. 74/AII of Village Hehal, P.S. Sukhdeo Nagar, P.S. No.203, District Ranchi, Jharkhand since 1976. The said property is hereinafter referred to as the ‘subject property’. The applicants are stated to have purchased the said property, divided into eight shares, from the company for a total consideration of Rs. 40,00,000/- consisting of Rs. 5,00,000/- for each of eight divided shares of the subject property. The said consideration was paid during 18.10.2000 to 07.02.2001. In pursuance thereof, eight sale deeds dated 07.02.2001 were executed and registered with sub-Registrar, Mumbai. The said sale deeds are hereinafter referred to as the ‘subject sale deeds’.
4. On 12.09.2001, the present company petition - CP No.321/2001 was filed by a creditor of the company on account of non payment of its dues. On 30.11.2004, the said company petition was admitted by this Court and the Official Liquidator was appointed as a Provisional Liquidator. On 26.01.2006, an order for winding up the company was passed by this Court.
5. Thereafter, on 22.07.2011, the Official Liquidator filed an application, being CA No.1557/2011, for cancellation of the subject sale deeds on the ground that the registration was void as the subject property was situated within the territorial limits of the jurisdiction of the Sub-Registrar, Ranchi, however, the sale deeds were registered with the Sub-Registrar, Mumbai. This court, by an order dated 30.11.2011, allowed the said application and cancelled the registration of the subject sale deeds and directed the District Magistrate, Ranchi to take over the possession of the property and hand over the same to the Official Liquidator. It is relevant to mention that the counsel appearing for ex-management of the company, on instructions, consented to the cancellation of the registration.
6. Thereafter, on 10.04.2012, the applicants filed the present application - CA No.648/2012, for recalling of the directions passed by this Court on 30.11.2011 and also for confirming the sale of the subject property in favour of the applicants. This Court, by an order dated 11.04.2012, issued notice in the application and directed status quo to be maintained. The court further directed that any rent/income generated from the subject property be deposited in a new joint bank account to be operated jointly by the applicants as well as the Official Liquidator. The court also restrained the applicants from selling, alienating, encumbering, transferring or parting with the possessio
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