Sale deed cancellation after registration due to dishonor of cheque issued

A registered sale deed cannot be automatically cancelled solely because a cheque given as consideration was dishonored. 

While the cheque bounce may have legal consequences under the Negotiable Instruments Act, the sale deed itself remains valid.

The seller's recourse is to pursue legal action, such as filing a civil suit for recovery of the unpaid amount, rather than attempting to cancel the registered sale deed. 

A registered sale deed signifies the transfer of ownership of a property. 

Once registered, it is a legally binding document. 

A bounced or dishonored cheque, while potentially leading to a criminal case under the Negotiable Instruments Act (Section 138), does not automatically nullify the sale deed

The seller's primary remedy in such a situation is to file a civil suit for recovery of the outstanding amount due under the sale deed. 

You can also pursue legal action for the cheque bounce under the NI Act. 

Have you given possession of the agricultural land to the buyer? If not, do not give possession. If they go to police, the police cannot act as it involves verification of documents. This is a case of fraud because you signed the documents in good faith that the cheques would be honoured. If you do not give possession only a court can decide the matter. At the same time you take action under NI-138 also unless it is too late.

The facts posted are contradictory and confusing. 

On the one hand it is stated that that "We sold our Agricultural Land for Consideration Value of Rs.14,50,000. Which is mentioned in the Sale Deed through 2 cheque numbers". But on the other hand it is stated that "The above Consideration Value was not actual sale amount and Actual Sale amount is Rs. 26,00,000". How such contradictory facts?

Your profile suggests that you are setting a question paper than posting realtime query.

No, sale deed can not be cancelled on ground of non payment of part sale consideration. Appropriate remedy for you is to approach civil court for recovery of balance sale consideration. 

Dear Sirs,

Rs. 14,50,000 is the Consideration Value mentioned in Sale Deed, to reduce the stamp Duty to be Paid.

Actual Sale Price we sold and buyer agreed is Rs. 26,00,000/- which is the Market Price that the buyer agreed to pay us.

Out of which he has cleared Rs. 9,00,000 through 1st cheque + Rs, 7,50,000 through RTGS in total Rs. 16,50,000, which is 2Lakh more than the Consideration amount shown in Sale Deed.

For rest Rs. 9,50,000 He had given two cheques,  both he has stopped in the Bank, One cheque is mentioned in the Sale Deed as part of the consideration amount, 

Please let me know what can we do to recover the rest Rs. 9,50,000/-

If there are facts in your query, you can approach a civil court to recover the amount.

Please Let me Know if we can claim the Sale Value to be 26,00,000 in the civil court as we have signed on the Sale Deed on stamp Paper that we are selling our land for Consideration of Rs. 14,50,000 with two attesting witnessess, particularly if the two witnessess testify on our side?

To put cheque bounce case also we required to show the liability on the buyer as the buyer himself stopped payment of cheques and not due to insufficient balance.

Please help me on what can be done in this situation to recover our money, as we sold land due to medical expenses of my mother, and we need the money badly.

Same query has been posted today itself. See response of experts in the same thread and do not repeat as it will not serve any purpose.

What do you think, shall it change opinion of experts by repitition, which is absurd and ridiculous.