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2026 Supreme(Mad) 1861

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
R. POORNIMA, J.
Leelabai (Died) - Appellant
Versus 
S.Kandhamani – Respondent
SA No.250 of 2003, CMP No.2341 of 2003
Decided On : 02-04-2026

Advocates Appeared:
For the Appellant : Mr.D.P.Sundararaj
For the Respondent:Mr.Ananth C Rajesh, Mr.T.Amjad Khan Government Advocate

Once a registered sale deed is executed, the vendor cannot unilaterally cancel it, as title has legally passed. Such cancellation requires a decree from a competent civil court. Additionally, civil courts retain exclusive jurisdiction over disputes concerning absolute title to immovable property, notwithstanding orders from non-judicial consumer forums.

Headnote:(A) Property Law - Registered Sale Deed - Unilateral cancellation - Validity - Once a registered sale deed is executed and title has passed to the purchaser, the vendor cannot unilaterally cancel the deed. Such cancellation is invalid as title can only be divested/challenged through a decree from a competent Civil Court. (Paras 15, 20)

(B) Civil Procedure - Jurisdiction of Civil Court - Disputes regarding title and validity of registered documents - Statutory bar under specific legislative acts concerning cooperative societies does not extend to the adjudication of title to immovable property. Civil courts retain exclusive jurisdiction over such matters. (Para 22)

(C) Natural Justice - Right to be heard - A unilateral cancellation of a property deed without prior notice or opportunity for the affected party to be heard is arbitrary, capricious, and legally unsustainable. (Paras 15, 21)

Facts of the case:
A member was allotted a plot by a society, and a registered sale deed was executed in their favor. Subsequently, the society unilaterally cancelled this deed, citing a resolution and attempts to comply with an order from a consumer dispute forum obtained by a third party. The member challenged the cancellation, seeking a declaration of title and permanent injunction. After the lower appellate court reversed the trial court's dismissal, this appeal was filed.

Findings of Court:
The court determined that a vendor has no authority to unilaterally divest title once it has been legally transferred via a registered sale deed. It further clarified that consumer dispute forums lack the jurisdiction to conclusively decide complex questions of title. The society’s failure to provide notice or refund the purchase price rendered the cancellation void.

Issues: The main issues were the validity of a unilateral cancellation of a registered sale deed, the scope of the civil court's jurisdiction over title disputes despite contrary administrative or quasi-judicial orders, and the requirement of natural justice in the cancellation of property rights.

Ratio Decidendi: Once a registered sale deed is executed and title passes to the purchaser, the vendor cannot unilaterally cancel the instrument; such action requires a formal decree from a competent Court. Furthermore, statutory bars preventing civil litigation in cooperative matters do not apply to questions of absolute title and the validity of registered deeds.

Result: Second appeal dismissed; judgment of the appellate court confirmed.

Table of Content
1. summary of conflicting claims regarding property title allotment (Para 1 , 2 , 3 , 4 , 10)
2. factual history of property allotment and sale execution (Para 5 , 6 , 7 , 8 , 9 , 11 , 12 , 13 , 14)
3. invalidity of unilateral sale deed cancellation and consumer forum limits (Para 15 , 16 , 17 , 18 , 19 , 21)
4. prohibition of unilateral cancellation of registered sale deeds (Para 20 , 22)
5. final confirmation of title and permanent injunction (Para 23 , 24 , 25)

JUDGMENT :

R. POORNIMA, J.

This second appeal is filed by the 1st Defendant as against the judgment and decree of the II Additional Sub Judge, Tirunelveli, made in AS No.96 of 2001, dated 22/07/2002, reversing the judgment and decree, dated 04/04/2000 made in OS No.433 of 1997 on the file of the District Munsif Court, Tirunelveli.

2.The first respondent herein, who is the plaintiff before the Trial Court, contended that she was a member (No.390) of the second defendant Society. She applied for allotment of a house site and, pursuant thereto, was directed to pay a sum of Rs.1,058/- towards the cost of the plot. The plaintiff paid the said amount on 09.07.1992 under Receipt No.436.

2.1.As per the resolution of the Special Officer and proceedings of the Society, Plot No.152 was allotted to the plaintiff for construction of a dwelling house. Consequently, a sale deed was also executed by the Society in her favour on 20.07.1992 and was duly registered as Document No.1528/1992 before the Sub-Registrar, Melapalayam. Possession of the property was also handed over to the plaintiff on the same day.

2.2.The plaintiff further contended that, subsequently and without any authority, the Special Officer of the Society cancelled the sale deed by executing a deed of cancellation dated 04.05.1993 registered as document No.822/93. The said cancellation, allegedly based on a resolution dated 27.02.1993, was not communicated to the plaintiff and is invalid in law. No reasons were assigned for such cancellation. The plaintiff alleged that the cancellation was arbitrary, capricious, and without jurisdiction. The plaintiff preferred a petition under Section 90 of the Co-Operative Societies Act, which was taken as Petition No.342 of 1992 before the competent authority. By order, dated 29.06.1994, the authority held that there was no illegality in the execution of the sale deed in favour of the plaintiff. It was further held that the cancellation deed dated 04.05.1993 executed by the Special Officer was null and void and a direction was issued to cancel the said cancellation deed within one month from the date of the order. The authority also directed that the plaintiff is entitled to possession and enjoyment of Plot No.152. Pursuant to the said order, the Special Officer executed a further deed on 05.08.1994 affirming that the original sale deed dated 20.07.1992 executed in favour of the plaintiff is valid and continues to remain in force.

2.3.The plaintiff further stated that, after taking possession, she levelled the land, submitted a building plan to the Municipality, and incurred substantial expenses with the intention of constructing a house. The plan was approved on 06.02.1997. It was also stated that in the sale deed dated 20.07.1992, her name was wrongly mentioned as “K. Kanthamani” instead of “S.Kanthamani” which was later rectified by a registered rectification deed dated 17.07.1996 executed by the Society.

2.4.The plaintiff further averred that she subsequently came to know that the first defendant had filed a complaint before the District Consumer Disputes Redressal Forum, Tirunelveli, in C.O.P. No.6 of 1993, claiming that the suit property had originally been allotted to her and that its cancellation was improper. The Consumer Forum allowed the complaint, and the appeal preferred by the Society in Appeal No.491 of 1994 was also dismissed.

2.5.The plaintiff contended that she was not made a party to the said proceedings. Based on the orders of the Consumer Forum, the Society

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