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2007 Supreme(Online)(AP) 5

ANDHRA PRADESH HIGH COURT
Bilal Nazki, G. Chandraiah, V. V. S. Rao, JJ
Yanala Malleshwari w/o Y. Yadagiri Reddy Others v. Ananthula Sayamma W/o Lte Gopaiah and another
W.P. No. 23005 of 2004 | W.P. No. 23088 of 2004 | W.P. No. 25661 of 2005 | W.P. No. 879 of 2006



Advocates:
For the Appellants/Petitioners: M. R. K. Chowdary, K. Ramakrishna Reddy, N. Subba Reddy, V. Venkata Ramana, J. Prabhakar, H. Venugopal
For the Respondents: Sri Mahamood Ali, Sri Y. Srinivasa Murthy, Sri M. S. Ramachandra Rao

A vendor cannot unilaterally cancel a registered sale deed as it conflicts with property law principles; disputes must be resolved in civil court.

Headnote:(A) Registration Act, 1908 - Sections 17, 18, 32, and 35 - Specific Relief Act, 1963 - Sections 31 and 34 - Writ petitions challenging registration of cancellation deeds of sale - Legal issue on jurisdiction of registering officers and their duty to investigate validity of documents presented for registration - Court ruled that cancellation deeds must be pursued through civil court, as registration involves private law disputes that cannot be resolved through judicial review. Court emphasizes the necessity for evidence in civil proceedings, and the public interest in preventing fraudulent transactions. (Paras 93, 99, 128)

Facts of the case:
Petitioners challenged the validity of cancellation deeds registered by the Sub-Registrar, claiming they were executed fraudulently to nullify legitimate sale transactions. There were multiple petitions highlighting a pattern of unilateral cancellations by vendors, creating a conflict between buyers and sellers. (Paras 1, 82)

Findings of Court:
The registering authority does not possess the power to invalidate a registered sale deed through a cancellation deed, as this leads to conflicts in property rights and undermines public policy. Petitioners must resort to civil remedies to challenge such cancellations. (Paras 119-127)

Issues: Whether the registration of cancellation deeds violates the rights of bona fide purchasers and the extent of authority of registering officers regarding document validity. (Paras 2, 84)

Ratio Decidendi: The rights of a vendor extinguished through a registered sale deed cannot be unilaterally reclaimed, emphasizing that registration is not merely procedural but serves to protect property rights and deter fraudulent transactions. The civil courts are the appropriate forum to address these disputes. (Paras 112, 118, 124)

Result: Writ petitions dismissed, parties directed to pursue civil remedies. (Paras 128, 129)

1. INTRODUCTION : - Almost a century old Registration Act , 1908, which came into force on 1-1-1909, after about fifteen amendments, has now thrown up sea - saw situation played by human ingenuity. These cases have thrown up a couple of interesting questions of law having far reaching consequences. Whether a person can nullify the sale by executing and registering a cancellation deed? Whether a registering officer, like District Registrar and / or Sub Registrar appointed by the State Government, is bound to refuse registration when a cancellation deed is presented? When cancellation deed is registered how the grievance, if any, is to be redressed in law? These and other incidental questions are required to be answered by this Full Bench.

2. BACKGROUND FACTS
At the outset, brief reference may be made to the pleadings, in these petitions. W. P. No. 23005 of 2004* is filed by the petitioner seeking a writ of Mandamus declaring the action of the third respondent (hereafter called, Sub Registrar) in registering the deed of cancellation, dated 20-8-2003, beaaring document No. 2854 of 2003 executed by respondents 4 and 5. It is the case of the petitioner that her husband purchased Flat No. 302 in II Floor of Ashwood Villa under a registered sale deed, dated 12-1-1994, together with undivided share in the land admeasuring 100 square yards. The same was executed by respondents 5 and 6. The petitioner took possession of the flat and allegedly invested considerable amounts on improvements. It appears there is a dispute between the buillder on one side and respondents 4 and 5 on the other side, who are seeking redressal before various authorities. The petitioner also alleges that all the owners of the apartments in the Ashwood Villa formed into an association, spent money for construction of compound wall, landscaping, provision for drain water pipes and for lighting of the stilt. It is stated that the builder contravened the sanction plan and on apprehension, the petitioner and others approached various forums for regularization of constructions. The builder with the connivance of respondents 4 and 5 (owners of the land), made constructions in deviation of the sanctioned plan. They also filed writ petition being W. P. No. 8971 of 1999 for regularization. The same was disposed of by this Court directing the Commissioner, Municipal Corporation of Hyderabad, who by proceedings, dated 26-3-2004, regularized constructions. When the enquiry was pending before the Commissioner, Municipal Corporation of Hyderabad, respondents 4 and 5 produced copies of cancellation deed cancelling the registered sale deed executed in favour of the petitioner. The execution and registration of cancellation deed at the Office of the Sub Registrar is a fraud committed by respondents 3, 4 and 5 in active collusion with the officials. The cancellation deed was executed on the ground that the petitioner did not pay the sale consideration and therefore, the sale could not be completed. By the said cancellation deed, the sale deed executed in favour of the petitioner on 12-1-1994 was cancelled, which is illegal and contrary to the provisions of Registration Act and Transfer of Property Act , 1882 (TP Act).
* In W. P. Nos. 22298, 23005 and 23088 of 2005, the background facts are the same.


3. Respondents 4 and 5 filed common counter affidavit. It is to the following effect. The dispute raised in the writ petition pertains to contractual obligation between the petitioner and respondents 4 and 5. The same is a matter to be decided by the competent civil Court. Writ jurisdiction in public law remedy cannot be invoked for resolution of private law dispute. The writ petition, is therefore, not maintainable. The Registration Act does not confer any power on registering officer to make an enquiry into infringement of rights resulting from cancellation of sale deed or any other deed. The Rules framed under the Registration Act specifically prohibit any enquiry by the registering o











































































































































































































































































































































































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