SEEKING CANCELLATION OF SALE DEED

Introduction

Sale deeds are documents that prove ownership of a property that is being transferred or sold. When a disputed sale deed is challenged in court, an aggrieved party may typically seek a declaration from the court rendering the sale deed invalid. The court considers whether the sale deed was procured under coercion, undue influence or fraud, and then renders its ruling. This article seeks to analyse the legalities associated with challenging a sale deed in court and the relevant court fees applicable to such suits.

Analysis

This issue was addressed in a notable verdict by the Andhra Pradesh High Court in Suraneni Lakshmi vs. B. Venkata Durga Rao and Anr., wherein it was stated that, in order to seek a declaration rendering a sale deed invalid, it is generally necessary to also seek its cancellation where the executant of the deed wants it to be annulled. However, if a non-executant seeks annulment of the deed, they need to file a suit to seek a declaration that the deed is invalid, or non est, or illegal or that it is not binding on them.

The Supreme Court has reiterated this point in Suhrid Singh Alias Sardool Singh v. Randhir Singh and Others and J. Vasanthi v. N. Ramani Kanthammal. In both cases, it was held that when an executant of a sale deed sues for its cancellation, they are required to pay ad valorem court fee on the consideration stated in the sale deed.

On the other hand, when a non-executant sues for a declaration that the deed is invalid, they only need to pay a fixed court fee of Rs. 19.50 as stipulated in Article 17(iii) of the Second Schedule of the Act. However, if the non-executant is not in possession, they have to pay an ad valorem court fee as per Section 7(iv)(c) of the Act.This issue reappeared in Ram Kumar and Another v. Ritik and Others, wherein it was noted that if a plaintiff is seeking a declaration that the sale deed is null and void while not being party to the sale deed and not seeking possession, then they are not required to pay ad valorem court fee; however, if they are seeking a cancellation of the sale deed along with a consequential relief of possession, such payment would be necessary.

Conclusion

It can be concluded that challenging a sale deed is legally possible and differs depending on whether the plaintiff is an executant or a non-executant. The payment of court fee also varies according to this distinction, as it is higher for the former. Much depends on the facts of the case, as the plaintiff may also be seeking a consequential relief of possession in addition to a declaration. Thus, to successfully seek a declaration for rendering a sale deed invalid and its consequent cancellation, it is important to be mindful of the facts of the dispute and the relevant provisions under the Court Fees Act.

-Kunal Sinha

[Kunal Sinha is an accomplished Indian lawyer, he is currently practising at the Supreme Court of India and the High Court of Delhi. Mr. Sinha is reachable through his email address – kunaldev@gmail.com and chambers.sinha@gmail.com and his phone number – +91 8287409593.]