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ravikumarbcombl (advocate)     06 August 2008

cancellation of sale

Dear Members, i would like to receive your valid suggestion on the following facts:

1) is it possible to cancel an already executed sale deed, by the vendor solely later.

2) in case the vendor sold the land when he is not having the right to convey and eventhough the land conveyed the possession is still with the vendor at that stage can the vendor go for cancellation solely? i mean without the presence of the purchaser, can the vendor execute the cancellation deed is my question.

Kindly clarify and give your feed back.

Thanks and Regards

Ravi

 



Learning

 14 Replies

Hemant Agarwal (ha21@rediffmail.com Mumbai : 9820174108)     06 August 2008

Ravi :


For selling the land, which legally does not belong to the vendor, the Vendor will be held for :


a) Criminal Misrepresentation


b) Criminal Breach of Trust


c) Cheating, Fraud, Forgery


Keep Smiling ... Hemant Agarwal


 


 


 

Samir Modasia (Lawyer Daman 09825947684)     06 August 2008

No

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     07 August 2008

Mr. Ravi,


Vendor fails to discharge the encumbrance and he vendee is dispossessed of the property, he is entitled for the refund of the purchase money. Ganpat Ranglal vs.Mangilal, AIR 1962, MP 144. If the property has a charge for maintenance and it is purchased by another the right of the maintenance holder will not be defeated by such transfer and he transferee with notice will acquire the property only subject to such charge for maintenance. 

saumit joshi (advocate)     07 August 2008

Dear.,Ravi


if ur case if purchaser is knowing such thing than he must apply for deed of cancellation of sale in sub-registrar office exparty. and also make criminal charge against vendor.


 

Vikram Chandra (Advocate)     07 August 2008

Dear Ravi,


       When the Vendor does not have any right or title in property he cannot sell or transfer the same to anybody and it attracts various penal provisions a part from civil cases to the effected party. As far as your case is concerned you are specific that the vendor does not have the clear title and I suggest in that case your vendor should compensate his vendee and cancel the registered document before the concerned sub-registrar office along with the presence of vendee.


regards.

aruntrivedi (lawyer)     09 August 2008

what learned friend hemant has said is right, the view of learned vikram is also right.


the cancellation of sale is bilateral and not unilateral. and you cannot cancel the sale at your will. you can sale at your will but once the property is sold the cancellation of deed process can be done only with the help of purchaser. For the wrongful deed of selling the property without right attracts many criminal penal proceedings which are punishable. Also the amount of consideration shall have to be refunded to the purchaser under the terms and conditions and interest rate what are imposed by him. it can be resolved by mutual understanding and giving more money as refund with interest and/or what money the purchaser is asking. Also make an affidavit by vendor for his all misdeed and also an affidavit by purchaser for not taking any action civil/criminal. Go for cancellation of Deed of Conveyance before SROffice and resolve the matter. The highlight of the entire question & reply is that the cancellation of Deed is bilateral and no unilateral action can be taken.

ravikumarbcombl (advocate)     09 August 2008

thanks for all... for your valuable reply... as everyone said on this topic certainly the vendee have the right to file a criminal charges against the vendor . but the real thing is very interesting ..... the vendor already knows the fact.... so that both are mutually agreed for settlement and cancel the deed that's why i am asking about the importance of the presence of vendee/purchaser.... As Mr.Arun explained clearly it's a bilateral hence obviously both the parties are must to cancel the same.. then other informations regarding that criminal proceedings referred by Mr Hemant and others also quite useful informations....... thanks a lot for everyone.


 


Regards


Ravi

anil k ranade (tax & management consultant)     10 August 2008

1. your querry is not clear. (a) if it is "void contract" ab initio, then there is no necessity even for cancellation of sales deed.


(b) if it is "contigent to certain actions from vendor" , then purchaser can go for "specific performance of contract" and cancellation may not be feasible.


(c) Generally  in agreement to sale, it is specified that there is title for vendor to sale & purchaser has satisfied himself about the same , at time of entering into contract--- hence there can not be case of breach of trust or misrepresentation involving criminal liability. Purchaser can treat the same as "voidable contract " & can rescind the same.


(d) It is advisable to ascertain the facts & reasons for necessity of cancellation and if deem necessary then cancel the same with mutual consents & terms.


(e) If cancellation is required due to sme problems with purchaser , then with due notice vendor can do the same,


Thanks!


Anil Ranade


 

anil k ranade (tax & management consultant)     10 August 2008

1. your querry is not clear. (a) if it is "void contract" ab initio, then there is no necessity even for cancellation of sales deed.


(b) if it is "contigent to certain actions from vendor" , then purchaser can go for "specific performance of contract" and cancellation may not be feasible.


(c) Generally  in agreement to sale, it is specified that there is title for vendor to sale & purchaser has satisfied himself about the same , at time of entering into contract--- hence there can not be case of breach of trust or misrepresentation involving criminal liability. Purchaser can treat the same as "voidable contract " & can rescind the same.


(d) It is advisable to ascertain the facts & reasons for necessity of cancellation and if deem necessary then cancel the same with mutual consents & terms.


(e) If cancellation is required due to sme problems with purchaser , then with due notice vendor can do the same,


Thanks!


Anil Ranade


 

Atul (Advocacy)     13 August 2008

Ravi,


If the contract is ab-initio void ,then there is no need to cancel the agreement. Only You've to see, Whether the agreement has been mutated or not? And If it is wrongfully mutated , then only You've to go for an application for cancellation the same to the S.R. as well as a complaint for fraud & criminal misrepresentation.

ca.bhupendrashah (FCADISA)     13 August 2008

what about capital gains and refund of stamp duty?

Srinivas.B.S.S.T ( Advocate)     14 August 2008

When the deed itself is cancelled by
both the parties to the same as RAVI said there is no question of
capital gains and so far as refund of stamp duty is concerned there
will be no refund of the same. Moreover they have to pay addtional
charges to ratify the entry already made by the registrar.

ca.bhupendrashah (FCADISA)     15 August 2008

ok


 

prabodh kumar patel (advocate)     10 November 2008

A registered Sale Deed cannot be cancelled by execution of another deed.


A suit is to be filed bfore the court of Civil judge for declaration od the Sale Deed as Null & void.


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