#saledeed #nonpayment #saleagreement #cancellationofsaledeed #cancellation
#supremecourtofindia #suit_for_cancellation_of_saledeed #void #invalid_sale
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A suit for cancellation of sale deed is not the correct remedy on this ground.
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Let use what the law says:
Section 54 of Transfer of Property Act: Defines Sale.
Sale is a transfer of ownership in exchange for a price paid or promised or partpaid and partpromised.
Recently in the case of Dahiben vs. Arvindbhai Kalyanji Bhanusali (AIR 2020 SUPREME COURT 3310) decided on July 9, 2020, Supreme Court did not cancel a sale deed on the ground of Nonpayment of consideration amount.
The Supreme Court relied on its previous verdict in Vidyadhar v. Manikrao, (1999) 3 SCC 573, which established that nonpayment of a part of the sale price does not affect the validity of the sale. Once the title in the property has passed, the sale cannot be invalidated solely based on nonpayment of the balance sale consideration.
In Dahiben case, sale deed was executed and registered on 2nd July, 2009 and consideration amount was paid through 36 postdated cheques and the details of the cheque were given in Sale deed.
The purchaser sold the land via a registered sale deed dated 2013.
The seller/Dahiben filed a suit for cancellation of sale deed of 2009 and restoration of possession on the ground of nonpayment of Sale amount fully. She made a case that she was illiterate and unaware of the sale deed's contents when they affixed their thumb impressions. She stated that only Rs. 40,000 was paid rest 30 cheques for Rs. 1,73,62,000 were fake and unpaid.
Trial court dismissed the suit on the ground of limitation.