The unilateral cancellation of a sale deed is invalid, and the registering authority does not have the power to register such a cancellation.

1. Heard the learned counsel for the petitioner, as well as the learned counsels appearing on behalf of the respondents.

2. This writ petition has been filed praying for a Writ of Declaration, to declare the cancellation of the deed of sale, dated 16.8.2007, executed by the second respondent and registered as Document No.3937 of 2007, on the file of the first respondent, as null and void.

3. It has been stated that the petitioner company, incorporated under the Companies Act, 1956, had entered into an agreement, with the second respondent, during the course of its business, to purchase the property, measuring an extent of about 16 acres and 13 cents, comprised in the various survey numbers, situated in Kollapakkam Village, Sriperumbudur Taluk, Kancheepuram District. Pursuant to the said agreement, the second respondent, through his Power of Attorney, had executed a registered sale deed, dated 31.10.2005, registered as Document No.4102 of 2005, on the file of the Sub-Registrar, Pammal, conveying an extent of 11 acres and 90 cents, comprised in the various survey numbers. The second respondent had registered another sale deed, dated 10.2.2006, registered as Document No.412 of 2006, on the file of the said Sub-Registrar, Pammal, conveying an extent of 3 acres and 38 cents, comprised in two survey numbers, in Kollapakkam Village, Sriperumbudur Taluk, Kancheepuram District. As such, the second respondent had conveyed a total extent of 15 acres and 28 cents, to and in favour of the petitioner company.

4. It has been further stated that, when the sale deeds had been executed, the second respondent had put the petitioner company in absolute possession of the properties in question and had also handed over the documents pertaining to the said properties. From the date of the purchase of the properties, the petitioner company has been in continuous possession and enjoyment of the same. While so, the second respondent herein, had executed a `Cancellation of Deed of Sale’, on 16.8.2007, which had been registered, on 28.8.2007, seeking to cancel the sale deed executed on 31.10.2005. The said deed, bearing Document No.3937 of 2007, had been registered on the file of the first respondent.

5. The main contention of the learned counsel appearing on behalf of the petitioner is that the `Cancellation of Deed of Sale’, dated 16.8.2007, registered as Document No.3937 of 2007, on the file of the Sub-Registrar, Pammal, executed on 31.10.2005, cannot be held to be valid in the eye of law. When the sale deed had been signed by the vendor, as well as the purchaser, it cannot be cancelled by executing a cancellation deed by one of the parties to the said document, unilaterally.

6. The learned counsel appearing on behalf of the petitioner had relied on the decision of the Full Bench of this Court reported in Latif Estate Line India Ltd. Vs. Hadeeja Ammal 2011(2) CTC 1, wherein, it has been held that a deed of cancellation of sale does not create, assign, limit or extinguish any right, title or interest in an immovable property and has no effect in the eye of law. Once the title to the property is transferred, by way of a sale, it cannot be divested by the execution of a deed of cancellation, even with the consent of the parties concerned. As such, a deed of cancellation cannot be accepted for registration, as there is no provision in the Transfer of Property Act, 1882, or in the Registration Act, 1908, for the cancellation or annulment of a sale deed.

7. The learned counsel had also relied on a decision of this Court, reported in G.D. Subramaniam Vs. The Sub Registrar 2009(1) CTC 709, wherein, it had been held that the registration of a cancellation deed of sale executed, unilaterally, without the knowledge and consent of the other parties to the sale deed, and without complying with Section 32-A of the Registration Act, 1908, is invalid, as such registration is without jurisdiction and therefore, it is liable to be set aside.

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