IN THE HIGH COURT OF JUDICATURE AT MADRAS
N. ANAND VENKATESH, J.
R.Amsaveni - Appellant
Versus
The Managing director, Tamilnadu Housing Board - Respondent
WP No. 15016 of 2021 and WMP No. 15897 of 2021
Decided on : 25-03-2025
Advocate Appeared :
For the Appellant : Mr.M.Roshan Atiq
For the Respondent : Mr.D.Veerasekaran Standing Counsel, Mr.B.Vijay, Additional Government Pleader, Mr.J.Franklin
(A) Registration Act - Section 77A - Constitution of India - Article 226 - Challenge to the proceedings regarding the registration of a Sale Deed - Petitioners sought rectification of an erroneous Sale Deed executed in favor of the 5th respondent, claiming to be the widow of the original allottee - The court found that the Sale Deed was executed fraudulently and declared it null and void. (Paras 8, 9)
(B) Legal heirs - The petitioners, as legal heirs of the original allottee, are entitled to the Sale Deed - The court emphasized that fraudulent documents lack legal standing and must be annulled. (Paras 8, 9)
Facts of the case:
The petitioners are the wife and daughter of the original allottee who died after paying for a housing plot. The 5th respondent fraudulently obtained a Sale Deed claiming to be the widow. The Housing Board had previously canceled this Sale Deed due to fraud.
Findings of Court:
The Sale Deed executed in favor of the 5th respondent is declared null and void, and the Housing Board is directed to execute a Sale Deed in favor of the petitioners.
Issues: The main issues were the validity of the Sale Deed executed in favor of the 5th respondent and the rightful ownership of the property by the petitioners as legal heirs.
Ratio Decidendi: The court ruled that fraudulent documents are non est in the eye of law and that the original allotment rights automatically pass to the legal heirs upon the original allottee's death.
Result: Writ petition allowed with directions.
ORDER :
This writ petition has been filed challenging the proceedings of the 3rd respondent dated 12.06.2020 and for a consequential direction to the 3rd respondent to rectify the error committed by the 4th respondent in registering the Sale Deed dated 02.02.2009 and for a further direction to the 2nd respondent to register the Sale Deed in favour of the petitioners.
2. Heard Mr.M.Roshan Atiq, learned counsel appearing on behalf of the petitioners, Mr.D.Veerasekaran, learned Standing Counsel appearing on behalf of the respondents 1 and 2, Mr.B.Vijay, learned Additional Government Pleader appearing on behalf of respondents 3 and 4 and Mr.J.Franklin, learned counsel appearing on behalf of the 5th respondent.
3. The husband of the 1st petitioner submitted an application for allotment of housing plot before the 2nd respondent. Based on the same, allotment order was passed on 23.11.1992 and Plot No.MIG3504 was allotted in the name of the husband of the 1st petitioner. The total cost was fixed at Rs.85,500/- The further case of the petitioners is that the 1st petitioner's husband paid all the instalments and he was entitled to get the Sale Deed executed in his name. However, he died on 21.09.2023 leaving behind his wife and daughter who are the petitioners herein. The petitioners submitted representations seeking for transfer of the allotment in their favour, so that they can get the Sale Deed executed in their names.
4. The grievance of the petitioners is that they came to know that the 5th respondent had managed to get the Sale Deed executed in her name on 02.02.2009 as if she is the widow of the original allottee Rajendran. Immediately, a complaint was given to the Housing Board and an order came to be passed on 08.07.2015 by the Managing Director of the Tamil Nadu Housing Board, cancelling the Sale Deed executed in favour of the 5th respondent and for a further direction to initiate criminal proceedings against the 5th respondent and those officials who had connived with the 5th respondent and created the Sale Deed in her favour. The relevant portion in the order is extracted hereunder:

5. The above order was put to challenge by the 5th respondent in W.P.No.22760 of 2015. This writ petition came to be disposed of by this Court by an order dated 02.11.2022 and the relevant portions are extracted hereunder:
7. Admittedly, it is not disputed by the first respondent that the subject property has been originally allotted to one K.Rajendran, lease cum sale agreement has been executed and the plot has been handed over to the said Rajendran on 26.02.1994 and he was required to pay the monthly instalments. After his death, it appears that out right sale has been executed in favour of the petitioner claiming to be wife of the said Rajendran. Thereafter, on coming to know about the above sale deed, the fourth and the fifth respondents have filed a Writ Petition in W.P.No.10251 of 2014 and this Court by an Order dated directed the first respondent to conduct enquiry by issuing notice to the petitioner and the fourth and fifth respondents and after enquiry, the first respondents had passed the impugned Order holding that the allotment has been made in favour of K.Rajendran and he had paid the initial deposit and the instalments regularly. But, no document, whatsoever, has been filed to show that consideration of Rs.2,15,000/- has been paid by the petitioner.
8. Whereas, the sale deed has been executed in favour of the petitioner for a total consideration of Rs.85,500/- and the officials of the Tamilnadu Housing Board appears to have executed the sale deed in favour of the petitioner. On enquiry, it was found that no payment has been made. Though it is claimed by the petitioner that a sum of Rs.2,50,000/- has been paid, no receipt has been filed. Therefore, the impugned Order has been passed cancelling the sale deed and during the enquiry it is also found that there is collusion between the petitioner and the officials and the Order also directed ac
Fraudulent documents lack legal standing and must be annulled, with rights passing to legal heirs of the original allottee.
Fraudulent sale deeds executed without consideration are null and void, and legal heirs of the original allottee are entitled to property rights.
Registration authorities cannot cancel registered sale deeds; only Civil Courts can adjudicate fraud claims.
Registration Department cannot cancel registered sale deeds alleging fraud; civil court jurisdiction required for title adjudication.
Court directs Sub-Registrar to decide on registering cancellation deed of bogus sale deed within four weeks.
Fraud vitiates all proceedings, and any document created under fraudulent circumstances is null and void.
The Registration Department lacks authority to cancel registered documents; petitioners must approach civil courts for such matters.
Ownership disputes over property transactions must be adjudicated in a civil court, not through cancellation by a registering authority.
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