Madurai Bench of Madras High Court
M. VENUGOPAL
R. Ramasubbu
Versus
The Registrar of Co-operative Societies, (Housing) & Others
W.P.(MD)No.5417 of 2008
Decided On :Decided on: 18-03-2011
Cancellation of Sale Deed - Co-operative Society - Tamil Nadu Co-operative Societies Act - Section 17 of Indian Registration Act - Principles of Natural Justice - Transfer of Property Act, 1882 - [CANCELLATION OF SALE DEED] - [CO-OPERATIVE SOCIETY] - [Tamil Nadu Co-operative Societies Act, Section 90, Section 153] - The court discussed the legality of unilaterally cancelling a Sale Deed by a Co-operative Society, the principles of natural justice, and the rights of the parties involved. Key legal provisions such as Section 17 of the Indian Registration Act and the Transfer of Property Act, 1882 were interpreted and influenced the court's decision.
Fact of the Case:
The Petitioner sought the cancellation of a Sale Deed executed by a Co-operative Society in favor of another party. The Petitioner claimed that the Sale Deed executed in his favor was unilaterally cancelled by the Society without notice or proper procedure. The Petitioner also alleged that the Society re-allotted the property to another party without following the terms of the Sale Deed.
Finding of the Court:
The court found that the cancellation of the Sale Deed by the Co-operative Society was not legally permissible and advised the Petitioner to seek a remedy through a competent Civil Court. The court emphasized the need for the Petitioner to file a cancellation of the Sale Deed executed in favor of the other party and seek a comprehensive remedy in accordance with the law.
Issues: The issues involved the legality of the cancellation of the Sale Deed by the Co-operative Society, the violation of principles of natural justice, and the rights of the parties involved.
Ratio Decidendi: The court held that the cancellation of the Sale Deed by the Co-operative Society was not legally permissible and advised the Petitioner to seek a remedy through a competent Civil Court. The court emphasized the need for the Petitioner to file a cancellation of the Sale Deed executed in favor of the other party and seek a comprehensive remedy in accordance with the law.
Final Decision: The Writ Petition was disposed of, leaving the parties to bear their own costs. The court advised the Petitioner to seek a remedy through a competent Civil Court and file a cancellation of the Sale Deed executed in favor of the other party.
1. The Petitioner has filed the present Writ Petition seeking the relief of Writ of Certiorarified Mandamus in calling for the records pertaining to the order passed by the 1st Respondent/Registrar of Co-operative Societies, (Housing), Chennai in proceedings Na.Ka.No.8457 /2007/rg 1 dated 28.04.2008 and to quash the same as an illegal one. Further, the Petitioner has also sought for passing of an order by this Court in directing the 3rd & 4th Respondents to hand over the possession of the plot bearing Survey No.234/2, plot No.B207, Kalanivasal Village, Karaikudi Taluk, Sivagangai District, sold to the Petitioner by the 3rd Respondent Society under the Sale Deed dated 07.03.1986 registered in document No.462 of 1986 in the office of the Joint Sub-Registrar II, Karaikudi.
2. The Petitioner became the Member of the 3rd Respondent/Co-operative House Site Societies Limited. His membership No. is 97. The said society purchased the land and converted them into house plots and offered to sell the same to its members who do not own any house of their own.
3. ThePetitioner was allotted the plot bearing No.B207 by the 3rd Respondent/Society on 23.06.1985 and executed a registered Sale Deed dated 07.03.1986 for a valuable consideration. On the date of sale itself, he was put in possession of the property. At that point of time, he served as special temporary co-operative Sub-Registrar in the office of Regional Deputy Director Audit Board for Milk Co-operative, Madurai.
4. According to the Petitioner, after purchasing the plot, he obtained a planning permit for construction of a house on 23.12.1987 in the Panchayat Union Office, Sakkottai. He obtained sanction for House Building as per order of Additional Registrar (credit) in No.74388/86 DA2 dated 21.04.1988. He commenced excavation work and laid foundation at a cost of Rs.30,000/-. He could not continue the construction work because of the fact that he was transferred to Madurai and he desired to complete the same as soon as he returned to Karaikudi. When he visited the site during the first week of July 1995, he found that the 4th Respondent was constructing a house. Thereupon, he enquired about the same with the 3rd Respondent/ Society and was informed that the Sale Deed registered in his favour was cancelled because he had not completed the construction as per conditions mentioned in the Sale Deed dated 07.03.1986. Therefore that the said plot was re-allotted to the 4th Respondent.
5. The plea of the Petitioner is that the 3rd Respondent/Society had not issued any notice before cancelling the Sale Deed executed in his favour. Moreover, the 3rd Respondent/Society as per the recitals of the Sale Deed dated 07.03.1986 had no right to re-allot the property to anyone without any notice or hearing him. Also, there was no clause in the Sale Deed dated 07.03.1986 to the effect that if construction was not completed within two years, the Society could cancel the Sale Deed and re-allot the same to any person.
6. The Petitioner instituted a civil suit in O.S.No.57 of 1996 on the file of District Munsif Court, Karaikudi and the said suit was dismissed on the basis that the said dispute can be raised before the 2nd Respondent/Deputy Registrar, Co-operative Societies (Housing), Virudhunagar as per Tamil Nadu Co-operative Societies Act. However, when the matter was taken up on appeal in A.S.No.49 of 1999, the same was confirmed by the learned Sub Judge, Devakottai. Consequently, he raised a dispute in ARC.No.242/02-03 before the 2nd Respondent as per Section 90 of the Tamil Nadu Cooperative Societies Act. The 2nd Respondent passed an award on 29.08.2007 declaring that the cancellation deed dated 03.05.1994 and the Sale Deed made in favour of the 4th Respondent dated 23.05.1994 are invalid. The 2nd Respondent, came to the right conclusion that the 3rd Respondent/ Society has not entitled to cancel the allotment, if the allottee has not completed construction within a period of two years
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