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IN THE HIGH COURT OF DELHI
Prathiba M. Singh, J.
Manohar Lal Muniyal - Appellant
Versus
Shyam Lata - Respondent
C.R.P. 7 of 2020 & CM Appl. 1959 of 2020 and C.R.P. 8 of 2020
Decided On : 18-02-2022




Registered sale deeds cannot be canceled based solely on claims of non-payment or fraud without substantial evidence, and suits filed beyond the limitation period are meritless.

Headnote:(A) Limitation Act, 1963 - Section 3 - Transfer of Property Act, 1882 - Section 55(4)(b) - Registration Act, 1908 - Sections 17 and 48 - Evidence Act, 1872 - Provisions under Order VII Rule 11 CPC - Suits for cancellation of registered sale deeds barred by limitation - Plaintiff failed to provide sufficient ground for cancelling registered sales despite claim of non-receipt of consideration. (Paras 11-12, 17, 19, 21, 22)

(B) The sanctity of registered sale deeds is upheld under law, and they cannot be canceled solely on grounds of partial payment or alleged fraud without substantial proof. The Plaintiffs' failure to appear and persistent delay in legal action further rendered the suits as meritless. (Paras 20, 21, 22)

Facts of the case:
The Plaintiff filed suits seeking cancellation of registered sale deeds executed in favor of the Defendants, claiming they were illiterate and misled by the Defendants who allegedly did not pay the requisite consideration. The Defendants contended the suits were barred by limitation and based on false assertions. (Paras 4-6, 8-9)

Findings of Court:
The Court dismissed the revision petitions against the Trial Court's order, holding that the suits were barred by limitation, and the registered deeds remained legally binding irrespective of claims made by the Plaintiff regarding the nature of the transaction. (Paras 22-23, 24)

Issues: Whether the claims made by the Plaintiff against the registered sale deeds were maintainable given the lapse of limitation and the sufficiency of the grounds raised for cancellation. (Paras 11, 22)

Ratio Decidendi: The Court affirmed that the failure to present valid grounds for cancellation and the delay in filing suit breached statutory limitations. Registered documents carry the presumption of validity and are binding unless substantial evidence is provided to the contrary. (Paras 17-22)

Result: Revision petitions allowed, and the suits dismissed.

Table of Content
1. background and context of the dispute (Para 2 , 3 , 4 , 5 , 6 , 7 , 8)
2. trial court's findings on the rejection of plaint (Para 9 , 10)
3. defendants' primary arguments regarding limitation and validity (Para 11 , 12 , 13)
4. legal validity and implications of registered sale deeds (Para 14 , 15 , 16)
5. limitations and implications of not receiving full consideration (Para 17 , 18 , 19 , 20 , 21)
6. final judicial conclusions on maintainability of the suits (Para 22 , 23)
7. conclusion and order of the court (Para 24 , 25)

JUDGMENT

Prathiba M. Singh, J. (Oral)--This hearing has been done through video conferencing.

2. These two revision petitions arise out of the impugned order dated 18th October, 2019 in CS No.889/18 & 890/18 titled Shyam Lata v. Sanjay Muniyal & Anr., by which the applications under Order VII Rule 11 CPC filed by the Petitioners/Defendants (hereinafter "Defendants") were rejected by the Trial Court.

3. Notably, in these petitions, notice was issued on 20th January, 2020 when the proceedings before the Trial Court were stayed. Thereafter, the Respondent-Plaintiff, Ms. Shyam Lata (hereinafter "Plaintiff") has been served and on the said date the Plaintiff was duly represented before this Court, however, thereafter she stopped appearing. On the previous date, i.e., 3rd December, 2021, this Court had directed the Trial Court to serve the Plaintiff in the suits through the Trial Court. However, it is informed by the ld. counsel for the Defendants, that on 8th January, 2022, before the Trial Court also, the Plaintiff did not appear. Therefore, the Plaintiff has not appeared in these petitions despite repeated opportunities. This Court has proceeded to hear the matter today and the Defendants have made their submissions.

4. These suits were filed by the Plaintiff, Ms. Shyam Lata, seeking declaration of the sale deeds dated 29th August, 2013 as null and void and cancellation of the said sale deeds as also injunction in respect of the flats situated on the Upper Ground Floor rear side (in C.R.P. 7/2020) and First Floor rear side (in C.R.P. 8/2020), both in the property No. RZ-E-53, out of Khasra No. 34/9, situated in the area of Village Dabri, Delhi state, colony known as West Sagar Pur, New Delhi-110046, measuring 100 Sq. Yards (hereinafter "suit properties").

5. The case of the Plaintiff in the suits is that the Plaintiff went to the Registrar's Office with the Defendants, for execution of an agreement to sell in respect of the suit properties. The Plaintiff claimed that she was an illiterate woman and the Defendants misused the personal relationship they had with the Plaintiff. The Defendant without paying the due consideration, got sale deeds executed between the Plaintiff and Defendants, as opposed to an agreement to sell which was the document that ought to have been executed.

6. Hence, the prayer which was sought in the suits was as under:

    "a) Pass a Decree thereby declaring the sale deed dated 29.08.2013 as null and void and cancel the sale deed as void ab initio.

    b) Restrain the defendant from sale, alienating, letting or creating third party interest in the suit property.

    c) Any other further order which this Hon'ble Court may deem fit and proper in the facts and circumstances of the case."

7. In the written statement filed before the Trial Court, the Defendants took two pleas. Firstly, that the sale deeds are registered sale deeds and no cancellation can be sought in this manner and secondly, the suits are barred by limitation. The Defendants further pleaded that the suits are false suits and the Plaintiff has followed a similar modus operandi in respect of four other flats which she has sold and she is in the habit of instituting such suits in respect of various other properties as well.

8. An application under Order VII Rule 11 CPC, for rejection of plaint, taking the said pleas was also filed by the Defendants.

9. Vide the impugned order dated 18th October, 2019, the Trial

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