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2024 Supreme(Online)(MAD) 16369

HIGH COURT OF MADRAS
Honourable Mr Justice S. SOUNTHAR
R.Chandran – Appellant
Versus
The Inspector General of Registration – Respondent



A Sale Agreement does not convey interest in immovable property, and inquiries into registered Sale Deeds cannot compel cancellation without a statutory basis.

Headnote:

Mandamus - Sale Agreement - Registration Act Section 77A - The court ruled that a sale agreement does not create any interest in immovable property and struck down the provision allowing cancellation of a registered sale deed on fraud.

Fact of the Case:

The petitioner sought a Mandamus to investigate the circumstances of a Sale Deed executed against his prior Sale Agreement with the 6th respondent, alleging fraud after the 6th respondent sold the property to other respondents.

Finding of the Court:

The court found that the petitioner's Sale Agreement did not confer any legal interest in the property and highlighted that it is incumbent upon him to pursue remedies through the Civil Court instead of seeking inquiry from the 1st respondent.

Issues: Whether the petitioner could compel an inquiry into the validity of a Sale Deed executed against an existing Sale Agreement and petition for cancellation based on fraud.

Ratio Decidendi: The court emphasized that a Sale Agreement lacks the power to create a title in immovable property, and the authority for cancelling a registered Sale Deed on fraud was invalidated, necessitating legal action through civil litigation.

Final Decision: Writ petition dismissed with liberty to pursue civil remedies.

O R D E R

The writ petitioner herein seeks a Mandamus directing the 1st respondent to consider his representation dated 21.01.2019 and conduct an enquiry into circumstances under which registered Sale Deed dated 02.11.2018 in favour of the respondents 4 and 5 was executed by 6th respondent.

2. According to the petitioner, he entered into a Sale Agreement with

6th respondent for purchase of the property in SF.No.251/2A with an extent of 0.38.0 Hectares in Sevaganapalli Village, Hosur Taluk, Krishnagiri District. It is the case of the petitioner that violating the agreement entered with the petitioner, the agreement vendor-Nanjamma/the 6th respondent herein sold the agreement mentioned property to the respondents 4 and 5 by way of registered Sale Deed dated 02.11.2018. Therefore, the petitioner submitted a representation before the 1st respondent dated 21.01.2019 requesting him to conduct an enquiry with regard to the circumstances under which the Sale Deed was executed in favour of the respondents 4 and

5 and to cancel the above Sale Deed on the ground of fraud.

3. The petitioner herein is only an agreement holder. It is settled law, Sale Agreement will not create any interest in an immovable property. If it is the case of the petitioner that when the Sale Agreement between him and 6th respondent was subsisting, violating the terms of the same, 6th respondent sold the property to respondents 4 and 5, it is always open to the petitioner to explore legal remedies available to him before the Civil Court including the suit for specific performance of the agreement.

4. Instead of pursuing the legal remedies available to the petitioner before the Civil Court, he submitted a representation before the 1st respondent dated 21.01.2019 to conduct an enquiry with regard to the circumstances under which the Sale Deed was executed in favour of the respondents 4 and 5 and to cancel the sale deed on the ground of fraud.

5. In fact, Section 77A of the Registration Act which enable the Registering Authority to cancel the registered document on the ground of fraud was struck down by the Division Bench of this Court in M.Kathirvel vs. The Inspector General of Registration (W.P.No.10291 of 2022 etc., batch, dated 02.08.2024). Therefore, the prayer made by the petitioner for cancellation of the registered document in favour of the respondents 4 and 5 cannot be accepted. The 1st respondent cannot pass any order affecting the registration of the Sale Deed in favour of the respondents 4 and 5 by conducting any enquiry. Therefore, no purpose will be served by directing the 1st respondent to conduct an enquiry on the representation submitted by the petitioner.

6. The writ petition is dismissed with liberty to the petitioner to explore other remedy available to him before the Civil Court. No costs.

07.08.2024 Index : Yes/No Speaking order:Yes/No Neutral Citation:Yes/No dm To

1.The Inspector General of Registration, Office of Inspector General of Registration, No.100, Santhome High Road, Mylapore, Chennai – 600 028.

2.The Deputy Inspector General of Registration, Krishnagiri Range, Krishnagiri District.

3.The District Registrar, Krishnagiri District, Krishnagiri.

S.SOUNTHAR, J.

dm

07.08.2024

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