Non-payment of part of sale consideration does not invalidate a registered sale deed; title passes at execution regardless of payment status.

ORAL ORDER

1. The present second appeal has been preferred challenging judgement and decree passed in Regular Civil Appeal no.144 of 2022 and Special Civil Suit no.76 of 2017 whereby the Principal District Judge, Bhuj at Kutchh dismissed the appeal on 23.08.2024 upholding the order of the Trial Court which dismissed the Special Civil Suit no.76 of 2017.

2. For the brevity and convenience, the parties are referred to as plaintiff and defendant.

3. The brief facts arising in the present Second Appeal are that the plaintiff filed the said Suit praying for cancellation of the saledeed, declaration and permanent injunction.

4. It was the case of the plaintiff in the Suit, that in 2019 the plaintiff purchased 51 plots located at Maduli Park vide registered saledeed and the plaintiff informed his friend about his intention for sale of the said 51 plots thereafter, the defendant no.1 expressed his interest for purchase of the said 51 plots from the plaintiff.

5. It is the case of the plaintiff that on 12.12.2012, defendant no.1 executed an agreement to sale for purchase of the said 51 plots at the rate of Rs.2,151 per square yard total admeasuring 9947.87 square yards and the total sale consideration was Rs.2,13,97,865/- and Rs.50,000/- was paid by the defendant no.1 as earnest money in cash and as per the terms of agreement to sell it was agreed that the defendant no.1 will pay the outstanding amount of consideration of Rs.1,63,97,865/- to the plaintiff on or before 20.06.2013.

6. It has also been stated by the plaintiff before the Trial Court that the plaintiff shall be entitled to the interest @01% on the said outstanding amount from the defendant no.1 and in pursuance of the same, defendant no.1 gave five cheques bearing no.707797, 707798, 707799, 707800, 707601 all dated 20.09.2013 of Rs.30 total amounting to Rs.1 crore 50 lakhs to the plaintiff towards the outstanding consideration amount of Rs.1,63,97,865/- and when the said cheques were deposited in bank the same returned with an endorsement of "funds insufficient".

7. It is the case of the plaintiff that the plaintiff executed saledeed No.7470 dated 14.12.2012 in favour of defendant no. 2 with respect to the plots and thereafter the plaintiff demanded the amount from the defendant nos 1 and 2 mentioned in the agreement to sale dated 12.12.2012 but the defendants did not make payment to the plaintiff and thereby committed cheating and fraud with the plaintiff and plaintiff has filed a complaint in this regard.

8. In view of the above referred fact, the plaintiff filed a Suit on the ground that full amount of sale consideration was not paid as per the agreement to sell dated 12.12.2012 therefore the sale deed be declared null and void and the sale deed be considered cancelled. The plaintiff also prayed for a declaration that the defendeant no.2 has no right to sell the disputed plots pursuant to the saledeed and the defendant no.1 and 2 have made cheating with the planetiff with respect to the disputed property.

9. The defendant appeared and resisted the suit by filing reply and denying the facts and also on the ground that the plaintiffs do not have any locus standi to file the suit and defendants denied the facts of agreement to sale and have denied of giving cheques and have stated that they have paid full amount of consideration of the plo