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Permits and Legal

Cancellation of Sale Deed – Legal Steps, Reasons.

By Hemali Patel
Cancellation of Sale Deed - featured image
Table of contents

The cancellation calculation of the sale deed is one of the legal processes that helps in annulling the existing sale traction. This blog provides information regarding the sales deed cancellation and its process. 

Understanding of sale deed

It is a legal document that officially changes the property ownership from the seller to the buyer. It is an important document that is necessary for property-related activities. 

Key Elements of a Sale Deed

  • Parties Involved
  • Property Description
  • Sale Consideration
  • Payment Terms
  • Transfer of Title

Reasons for Cancellation of Sale Deed

Reasons for Cancellation

There are various reasons for cancelling the sale deed. Some of them are fraud or misrepresentation, mutual agreement, violation of terms and conditions and any legal problems. 

The sale deed cancellation has been taken care of by different legal provisions and acts in India. Some are

Indian Contract Act, 1872

Sections 31 to 33 deal with contingent contracts. In this, the sale deed can be called if conditions are not met.

Transfer of Property Act, 1882

Sections 54 and 55 provide details about the obligations of buyers and sellers. If there is any problem with them it can be cancelled. 

Specific Relief Act, 1963

Section 31 allows for the cancellation of sale deeds. It allows only if they are found void or voidable.

Procedure for Cancellation of Sale Deed

The steps involved in the sale deed cancellation must be proper. Only correct steps can ensure legal compliance. 

Mutual Agreement

If both parties agree to the sale deed cancellation, then they can execute the cancellation process. Here the document must be signed by both parties. They must also state the reasons for the cancellation and their agreement for sale deed

If the cancellation is contested, then the aggrieved party can send a legal notice to the other party. This notice states that there must be a reason for the cancellation and also demands annulment from another party. This step is an important step that starts the legal proceedings. This is initiated mainly if the cancellation is not mutual. 

Filing a Suit

If there is any dispute then the affected party can file a lawsuit for cancellation in proper court. The lawsuit must include a written complaint, affidavit and supporting documents. 

Court Proceedings

Then the court will check the evidence and hear from both parties. If the court finds merits in the case then an order for cancellation will be given. The court can also direct the payment for damages or any compensation if needed. 

Implications of Sale Deed Cancellation

Cancellation of Sale Deed-1

There are various implications for the cancellation of deeds both financially and legally. Some of the implications are property restoration, consideration of refund, legal charges, damage or compensation. 

Case Laws on Sale Deed Cancellation

For understanding the deed cancellation the case laws can be used. This can help in understanding the matters regarding sale deed cancellation. These have previously happened cases,

S.P. Chengalvaraya Naidu vs Jagannath (1994): here the Supreme Court has helped the sale deed gotten by fraud. Then the deed became void by the defrauded party.

Bishundeo Narain vs Seogeni Rai (1951): in this case, the court ruled out the sale deed. This is because it has been executed under duress or undue influence.

Kaliaperumal vs Rajagopal (2009): here the court cancelled the sale deed. The reason is that the deed has been executed without any consideration.

Procedure for Online Cancellation of Sale Deed

In several states of India, online procedures have been introduced for the cancellation of deeds. Here an outline of the general steps that need to be followed for cancellation is given

  • Access the official website of the state’s land registration department.
  • Create an account or log in to the existing account.
  • Complete the online application form. The details include property information, cancellation reasons and so on.
  • Scan and upload the necessary documents. That includes the original deed document and other evidence documents.
  • Then submit the application and pay the applicable fees.
  • You can use the portal to track the application status
  • In some cases, there may be a virtual hearing or application reviewing process. 

For more information, you can refer to the following links,

Conclusion

The sale deed cancellation is a complex process. This requires careful consideration from the legal point of view, their procedures and implications. This blog can help you understand the process involved in sale deed cancellation. And also the other legal procedures and information. 

FAQs

1. Can sale deeds executed under duress be cancelled?


Yes, sale deeds made under duress can be cancelled.

2. How does the Specific Relief Act of 1963 relate to sale deed cancellation?


If the sale deed is void or voidable, Section 31 of the Specific Relief Act, 1963 allows cancellation.

3. What is the role of a court in sale deed cancellation?


The court will check the evidence, then hear from both parties and make a decision for cancellation.