A registered deed of transfer, such as a gift deed, cannot be unilaterally cancelled by the grantor. Such an act is legally unsustainable and contrary to public policy, as the grantor is divested of title upon registration and must seek judicial intervention if the deed is void or voidable.

Prayer:- Writ Petition filed under Article 226 of the Constitution of India, 1950, praying to issue a Writ of Certiorarified Mandamus, to call for the entire records in connection with the Cancellation Deed dated 21.09.2007 executed by the respondents 4 to 7 and registered by the 1st respondent registered as Document No.5848 of 2007 and quash the same and consequently restrain the respondents from in any manner dealing with the said property in S.F. No. 246/1 of Kalapatti Village, Gandhipuram Sub-Registration District and Coimbatore Registration District.

For Petitioner : Mr. Ramesh Venkatachalapathy

For R1 & R2 : Mr.D.Ravichander, Special Government Pleader

For R3 : Mr.K.Magesh

For R4 to R7 : Mr.P.Saravana Sowmiyan

O R D E R

The Cancellation Deed, cancelling the Gift Deed dated 21.09.2007 executed by the respondents 4 to 7 and registered vide Document No.5848 of 2007 is sought to be quashed in the present writ petition.

2. The petitioners made a submission that they jointly purchased the property described in the present writ petition. They entered into a sale agreement for forming a layout of the subject properties and it seems that the lay out has not been approved by the competent authorities. Since the lay out has not been approved by the competent authorities, the Gift deed executed in favour of the local authorities for forming a lay out had been cancelled by the respondents 4 to 7. The Cancellation Deed is now in question in the present writ petition on the ground that unilateral cancellation of Gift Deed is bad in law.

3. Gift deed once executed, cannot be cancelled at the instance of the parties, more so, issues regarding the unilateral cancellation of settlement deed is no res integra and the Hon'ble Full Bench of this Court in the case of Latif Estate Line India Ltd. -vs- Hadeeja Amma reported in [(2011) 2 CTC 1] held as follows:-

“ 48. Section 54 of the Transfer of Property Act defined the word “Sale”, which means transfer of ownership by one person to another. In other words, sale is transfer of all rights, title and interest in the properties which are possessed by the transferor to another person namely, the purchaser. In case of transfer by way of sale, the transferor cannot retain any part of his interest or right in that property. Such transfer of ownership must be for a price paid or promised or part-paid and part-promised. Even if the whole price is not paid, but the document is executed and registered, the sale would be complete. The transfer is complete and effective upon the completion of the registration of the Sale Deed. Once the vendor is divested himself of his ownership of the property, then he retains no control or right over the said property.

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54. There is no provision in the Transfer of Property Act or in the Registration Act, which deals with the cancellation of Deed of Sale. The reason according to us is that the execution of a Deed of Cancellation by the vendor does not create, assign, limit or extinguish any right, title or interest in the immovable property and the same has no effect in the eye of law. A provision relating to the cancellation of a document is provided in Section 31 of the Specific Relief Act, 1963 (Old Section 39). Section 31 reads as under:

“31. When cancellation may be ordered.—

(1) Any person against whom a written instrument is void or voidable, and who has reasonable apprehension that such instrument, if left outstanding, may cause him serious injury, may sue to have it adjudged void or voidable, and the Court may, in its discretion, so adjudge it and order it to be delivered up and cancelled.

(2) If the instrument has been registered under the Indian Registration Act, 1908 (16 of 1908), the Court shall also send a copy of its decree to the officer in whose office the instrument has been so registered; and such officer shall note on the copy of the instrument contained in his books the fact of its cancellation.”

55. From the reading of the aforesaid provision, it is