There is no provision in the Registration Act expressly barring remedy of damages.

ORDER: The petitioner prays for the issue of a writ of mandamus directing the respondents 1 to 5 to pay compensation and damages to the tune of Rs.7 lakhs to the petitioner.

2. Heard Mrs.S.V. Jayadharini, learned counsel appearing for the writ petitioner, Mr.M.Mahalingam, learned Government Advocate appearing for the respondent Nos.1 to 4, Mr.R.Sivakumar Kennedy for the fifth respondent and Mr.Sree Balaji for M.Sathianaryanan, learned counsel appearing for the sixth respondent.

3. According to the petitioner, the 5th respondent is the owner of the plot No.8/106, A.V.P. Layout, Gandhinagar, Tirupur, Coimbatore District. The 5th respondent borrowed a sum of Rs.3,50,000 from the petitioner and to secure the same he had deposited the documents of title relating to the said plot with the intention to create equitable mortgage to secure repayment of the amount borrowed. The petitioner further claims that on 18.1.1994 the 5th respondent entered into an agreement to sell with the petitioner for the sale of the suit property for a sale consideration of Rs.3,50,000. The sale agreement stipulated that the sale shall be completed within a period of nine months and on the petitioner paying the balance of sale consideration on the date specified in the agreement. The petitioner further claims that he had paid Rs.2 lakhs on 1.3.1994 and 24.4.1994 and subsequently the petitioner came to know that the 5th respondent is attempting to execute the sale deed in favour of the 6th respondent and a legal notice was issued on 21.9.1994 to the respondent Nos.5 and 6 for enforcing the sale agreement dated 18.1.1994.

4. The 5th respondent took the petitioner to the office of the third and 4th respondents on 29.9.1995 for verification of records in respect of the alienations or encumbrances. The petitioner applied for encumbrance certificate to the third and 4th respondent. The third respondent issued an encumbrance certificate dated 29.9.1995 for the period 1.9.1992 to 14.9.1994, wherein the mortgage to the tune of Rs.50,000 executed by the 5th respondent alone finds place. The 4th respondent also issued an encumbrance certificate, dated 28.8.1995 covering the period “15.9.1994 to 29.9.1995.” As seen from the encumbrance certificate there are no entries of encumbrance and therefore the petitioner was made to believe that the 5th respondent is the owner and he could purchase the property as per the earlier agreement. The petitioner proceeded with the purchase and registration of the sale deed of the said plot on 29.9.1995. On 29.9.1995, the 5th respondent executed the sale deed in favour of the petitioner and presented it for registration. The said sale deed was assigned as document No.P.123/95 by the 4th respondent. On 30th of September, 1995, the 5th respondent handed over possession of the suit property to the petitioner. On 30th September, 1995, the 6th respondent furnished the petitioner and informed him that he has purchased the property under a sale deed from the 5th respondent, dated 5.5.1994 registered as document No.3346 of 1994 and that the writ petitioner has no right. From the copy of the document produced by the 6th respondent, the petitioner came to know that a sale deed has been registered by the 5th respondent in favour of the 6th respondent, which sale is not reflected in the encumbrance certificate issued by the third and fourth respondent. It is obviously clear that the 3rd and 4th respondents have without verification and scrutiny had issued a “Nil” encumbrance certificate. The said action of the third and fourth respondents is arbitrary, violative of Art.19(1)(f), (g) of the Constitution and as a result of the negligence on the part of the respondents 3 and 4, the petitioner had sustained damages. The petitioner is aggrieved by the act of the third and fourth respondents in issuing a “Nil” Encumbrance Certificate and the sale deed executed by the 5th respondent in favour of the 6th respondent has not been shown in the encumbrance certif

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