Cancellation of sale deed

Querist : Anonymous (Querist) 11 November 2009 This query is : Resolved
A has given a property on lease to B for 20 years thorugh unregistered Lease deed. The lease deed was signed before notary. There is a condition in the Sale Deed saying If lessor wants to sell the property, then he should first pffer the lessee and that in canse lessee rejects the offer then only the lessor may sel the Property to third party. The lesses r in physical possession of the property till date.

The lesser died last year. His wife sold the property to third party without offering to the lesse. She executed sale deed on behalf of her sons also as GPA holder. One of her son is mentally challenged person.

The question is whether lessee may seek cancellation of Sale deed?

The wife of deceaed land lord now saying that the she borrowed money from the purchaser, he took me to the Sub registrar's office saying that she ha sto sign loan papers and that she don't want to sell the property. But she is educated women.

What is the way out?

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Theja (Expert) 11 November 2009
This kind of right is called 'right of first refusal'. In the event of breach to this right holder, the right holder may sue the seller. But the remedy normally would be damages only. But, in exceptional cases the sale deed may be invalidated.

A.P.Manoranjan (Expert) 11 November 2009
Your Quierry is not clear. Please clarify whether it is a sale deed or a mortgage deed? since the purchaser has asked her to sign loan papers.

Querist : Anonymous (Querist) 11 November 2009
It is sale deed... Not mortgage deed. Now the purchaser is telling that she was under the impression that the papers she signed were for loan.

Manish Singh (Expert) 11 November 2009
i think Ms theja has given appropriate reply. since specific performance herein may become impossible, it might be possible that the court will grant you damages.
file suit for specific performance along with damages. if that does not sustain, ask only damages.

Raj Kumar Makkad (Expert) 11 November 2009
No way but to go for damages. specific relief of cancellation of registered sale-deed cannot be provided in your favour in the given circumstances.

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