The intention of the parties in a sale deed, as evidenced by the recitals, is crucial in determining the passing of title and the validity of the sale. The power of the registering authority to cancel a registered document should be carefully exercised.

JUDGMENT

(Prayer: Writ Petition filed under Article 226 of the Constitution of India praying this Court to issue a writ of mandamus directing the respondents to consider the petitioner’s representation dated 21.01.2022 and cancel the sale deed dated 17.04.2019 vide Doc. No.10429/2019 and dated 13.10.2021 vide Doc. No.24984/2021 by reconvening the property in the name of the petitioner.)

1.The present petition has been filed by the petitioner for a direction to the respondents 1 and 2 to consider his representation for cancellation of the sale deed executed by the petitioner in favour of the 3rd respondent on the ground that the sale consideration has not passed on to the petitioner.

2. It is the case of the petitioner that he is in the business of construction of building and that he had purchased the property, which is the subject matter of the present case, in the year 2006 and due to certain financial crisis, the petitioner, being in dire need of money, was inclined to sell the property and the 3rd respondent had shown his inclination to purchase the property for a sum of Rs.48,87,000/- as per the guideline value. Further to the negotiation, the amount, aforesaid, was agreed upon and towards advance, an amount of Rs.5,00,000/- (Rupees Five Lakhs only) was paid by way of cheque bearing No.325832 drawn on State Bank of India, Villianur Branch, Puducherry and on presentment, the cheque the amount was honoured. Subsequent to the same, on the agreement of the 3rd respondent, who agreed to pay the balance sale consideration vide two cheques, the petitioner received two cheques bearing Nos.927730 and 937731 for a sum of Rs.21,93,000/- and Rs.21,94,000/- dated 17.4.2019 drawn on Punjab National Bank. Pursuant to the said receipt, the sale deed was registered on 17.4.2019 in favour of the 3rd respondent vide Doc. No.10429/2019 before the 1st respondent.

3. It is the further case of the petitioner that on presentment, the said cheques were returned citing insufficiency of funds and though the sale consideration was not complete, yet the property was conveyed to the 3rd respondent. It is the further case of the petitioner that though he approached the 3rd respondent regarding payment of the balance amount, yet the 3rd respondent refused to make the payment and asked the petitioner to wait.

4. It is the further averment of the petitioner that when he applied for encumbrance certificate to check on the status of the property, he found to his shock and surprise that the property was mortgaged to the 4th respondent for a sum of Rs.10,00,000/- vide Doc. No.17489/2019 dated 21.08.2019 and enquiry revealed that the 3rd respondent along with his family members had moved out of the house in Puducherry and their whereabouts could not be traced.

5. It is the further averment of the petitioner that during the pandemic period, the petitioner somehow could locate the 3rd respondent and he entered into a Deed of Understanding which contained a specific clause that in the event of the 3rd respondent’s failure to pay the entire balance sale consideration, from the date of entering into the deed of understanding, the petitioner was entitled to cancel the sale deed, which was registered as Doc. No.8483/2021. It is the further averment of the petitioner that once again it came as a shock that on 11.3.2021, a deed of cancellation of mortgage was entered vide Doc., No.6813/2021 and a fresh mortgage was entered on 11.3.2021 fide Doc. No.6824/2021 for a sum of Rs.75,00,000/- (Rupees Seventy Five Lakhs), with certain persons. Therefore, culling out all the aforesaid facts with regard to the fraud perpetrated on the petitioner by the 3rd respondent, a detailed representation was made on 8.9.2021 to the Superintendent of Police, CB-CID, for registration of FIR, but the same was closed on 18.3.2022 citing the issue to be of civil nature. Thereafter, on 21.01.2022, the petitioner, along with necessary enclosures filed representation for cancellation of the sale deed da