Alok Vashishth
(Querist) 26 August 2011
This query is : Resolved
Is it possible to cancel/ reverse a registered sale deed of property if the payment is done through PDC and PDC is being dishonoured by the buyer later.
Sailesh Kumar Shah
(Expert) 26 August 2011
Yes but subject to terms of sale deed. For cancellation,you have to file civil suit.
ajay sethi
(Expert) 26 August 2011
what were the terms and conditions of sale deed? does the deed contain a clause that in event of dishonour of cheque agrrement would be terminated .
Raj Kumar Makkad
(Expert) 26 August 2011
ajay! There is no need to mention such clause in the sale-deed. It is understood that without consideration, no sale-deed is valid so it can safely be got cancelled/set-aside.
Alok Vashishth
(Querist) 26 August 2011
So, what experts are saying that if a registered sale deed is executed with a clause that if cheque is bounced, then sale deed stands cancelled and buyer lose all right on the property. But, to claim back the property, the buyer need to file a civil suite.
Am I right ??
Dr Anil Kumar Singh
(Expert) 26 August 2011
Who is in possession of property ? You should file a criminal case against him alongwith application for cancellation of the sale deed. Since the consideration is not given, and froud has been done the registrar if deems fit may cancell the same.
prabhakar singh
(Expert) 26 August 2011
By"PDC" what you mean????
Raj Kumar Makkad
(Expert) 27 August 2011
PDC stands for Post Dated Cheque.
Criminal action can also be initiated against such buyer who deliberately issued cheuqe having full knowledge that it is going to be bounced.
prabhakar singh
(Expert) 27 August 2011
Then making a clause of cancellation is desirable as if not mentioned mutation will be forth after and though on bounce of cheque sale deed will become VOID due to law of contract which lays "an agreement without consideration is void" but due to mutation there will be clog on title and element of possession in danger,hence a suit to cancel may become an requirement in absence of such a clause.
Guest
(Expert) 27 August 2011
without passing of consideration the sale deed is void. you have two ways you can file a cheque case or cancel the sale deed through civil court.
sanjeev murthy desai
(Expert) 23 November 2011
In your case sale deed is valid under eyes of laws. Cancellation of sale deed is not possible. You have only right to sue for recovery of consideration from the Vendee.Hence you have two options 1 is file a complaint under 138 of NI act and also file suit for recovery of consideration setout in the sale deed.
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