Property once sold cannot be cancelled by execution of unilateral cancellation deed, the Madras High Court has ruled.
A Full Bench comprising Chief Justice MY Eqbal, Justices P Jyothimani and TS Sivagnananm gave the ruling on Tuesday while passing orders on a writ appeal from a Realtor challenging the orders of a single judge.
The bench said that a deed of cancellation of a sale unilaterally executed by the transferor did not create, assign, limit or extinguish any right, title or interest in the property and was of no effect.
Such a document did not create any encumbrance in the property already transferred.
Hence, such a deed of cancellation could not be accepted for registration.
Once the title to the property was vested in the transferee by the sale of the property, it could not be divested unto the transferor by execution and registration of a deed of cancellation even with the consent of the parties, the bench added.
The proper course would be to reconvey the property by a deed of conveyance by the transferee in favour of the transferor.
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