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2025 Supreme(Online)(KAR) 6200

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
MR JUSTICE M.G.S. KAMAL, J
Rudramma D/o Late Gurusiddappa – Appellant
Versus
Bangalore Development Authority T. Chowdaiah – Respondent
WRIT PETITION NO. 27855 OF 2018 (LA-BDA)



Advocates:
Advocate Appeared:
For the Appellant :SRI. D.L. JAGADEESH, SENIOR COUNSEL FOR SMT. RAKSHITHA D.J., ADVOCATE
For the Respondent:SRI. G.M. ANANDA, ADVOCATE

A registered sale deed cannot be unilaterally cancelled by the vendor; such action must be adjudicated by a competent court under Section 31 of the Specific Relief Act.

Headnote:(A) Specific Relief Act, 1963 - Section 31 - Unilateral cancellation of sale deed - Petitioners claimed ownership of land acquired by respondent for layout formation, with compensation awarded and site allotted - Respondent sought to cancel the sale deed unilaterally, which is impermissible under law - Court held that once a sale deed is executed and registered, the vendor loses all rights over the property, and cancellation can only be ordered by a competent court. (Paras 7, 8, 9, 10)

(B) Property Law - Rights of parties post-sale - The court reiterated that a registered sale deed transfers ownership, and any attempt to cancel it unilaterally is invalid. (Paras 8, 9)

Facts of the case:
Petitioners owned land acquired for layout, received compensation and site allotment, but faced unilateral cancellation threats from respondent based on claims by another individual.

Findings of Court:
The court confirmed that the respondent cannot unilaterally cancel the sale deed and quashed the notice issued for cancellation.

Issues: The main issues were whether the respondent could unilaterally cancel the sale deed and the legal implications of such actions.

Ratio Decidendi: The court ruled that a registered sale deed cannot be cancelled unilaterally by the vendor, and any such action must be adjudicated by a court.

Result: Petition allowed; notice quashed.

ORAL ORDER

Petitioners are before this Court claiming to be the owners of land in Sy.No.8 measuring 1 acre 20 guntas of Soolikere village, Kengeri Hobli, Bangalore South Taluk, which was acquired by respondent -BDA for the purpose of formation of Nadaprabhu Kempegowda Layout. That award was passed in terms of which petitioner No.1 was held to be entitled for compensation in a sum of Rs.40 lakhs and developed land to an extent of 9583 sq. ft. in the form of site. In furtherance thereof, respondent -BDA allotted site bearing No.3303 forming part of land in Sy.No.35/2 of Bheemana Kuppe village, Sector- F, 7th block, Kempegowda Layout vide letter of allotment dated 13.06.2017 produced at Annexure-B. That deed of sale dated 27.06.2017 were executed and registered in respect of aforesaid sites by the respondent -BDA in terms of deed of sale produced at Annexure-C. Possession of the aforesaid site delivered and katha was registered. That petitioner No.1 has been paying the property tax in respect of aforesaid site.

2. When things stood thus, representative of the respondent -BDA had informed the petitioner that respondent - BDA is proposing to allot the very same site in favour of one M.Ramaiah on the premise that land in Sy.No.35/2 over which said site is located belonged to Sri.M.Ramaiah and who is also entitled for allotment of developed area. That respondent -BDA has issued a notice dated 05.01.2018 produced at Annexure -L and that by the very same notice had called upon the petitioner to cancel the deed of sale on his own and to submit the records to respondent -BDA in this regard, failing which the respondent -BDA would initiate action in accordance with law. Aggrieved by the same petitioners are before this Court.

3. Sri. D.L.Jagadesh, learned Senior counsel reiterating the averments and grounds urged in the petition refers to the judgment passed by this Court in the case of K. Raju vs. Bangalore Development Authority reportedILR 2011 KAR. 120 and also another judgment in the case ofBINNY MILL LABOUR WELFARE HOUSE BUILDING CO-OPERATIVE SOCIETY LIMITED VS. D.R. MRUTHYUNJAYA ARADYA reported inILR 2008 KAR. 2245 submits that it is settled position of law that once the deed of sale is executed it cannot be cancelled unilaterally except by a decree by competent Court of law. He further submits that respondent -BDA without resorting to said action cannot call upon the petitioners to unilaterally cancel the said deeds of sale nor can they threatened the petitioners of they taking action in failure of cancellation of sites by the petitioners on its own.

5. In response, learned counsel for the respondent - BDA submits that notice at Annexure-L came to be issued in view of the demand made by Sri.M.Ramaiah owner of the land in Sy.No.35/2, over which the sites have been formed and allotted to the petitioner No.1. He submits that the petitioner was not denied of his entitlement but was only called upon to surrender the said site to accommodate the claim of the said M.Ramaiah. He submits that there is no illegality or irregularity committed by the respondent -authorities. Hence, seeks for dismissal of the petition.

6. Heard. Perused the records.

7. There is no dispute of the fact that land belonging to the petitioner No.1 was acquired and he was held entitled for payment of compensation of Rs.40 lakhs as well as in the form of developed area to an extent of 9583 sq.ft. There is also no dispute of the fact that in furtherance to said entitlement of the petitioner, respondent -BDA allotted a site referred to above in terms of letter of allotment and were also executed deed of sale. Thus, allotment, delivery of possession and conveyance of title stood completed divesting the rights of the respondent - BDA in respect of said property. Once that is done, there is no provision for the respondent -BDA to resort for unilateral cancellation either by way calling upon the petitioner to voluntarily cancel or a threat to cancel on their own.

8. The Coordinate

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