Voidance of registered document
Srinivasan V E
(Querist) 06 July 2012
This query is : Resolved
Advise the validity of the subsequent sale deed when the first sale deed has been cancelled by mutual consent. By mutual consent, i mean that the cancellation also happens through registration of the cancellation, and payment of necessary stamp duties.
In this case, the original seller noticed some anomalies in the title of the property that he sold to the first party, after the first buyer had effected a subsequent sale to a third party.
Now, by cancelling the first deed, what happens to the subsequent sale deed, as the subsequent seller does not hold the title to the property? As the first transaction has been voided, what would be the status of subsequent transactions? Thanks, in anticipation of a response.
Adv.R.P.Chugh
(Expert) 06 July 2012
No cancellation can never be done to the detriment of a third party for consideration who has purchased the property bona fide. Cancellation won't negative his rights unless he is also made a party to the cancellation and his sale deed is also cancelled.
ashutosh mishra
(Expert) 06 July 2012
If I understand it correctly then your query is that A sold the "property" to B.Then B sold the same to C.
Thereafter A detected some defect in his title and called upon B to discuss the problem where after A and B mutually agreed
to cancel the sale deed made by A in favor of B.That is possible in law.
It should be understood very clearly that A can not transfer any better right to B than one he had and the same was defective and the same very defective title was transferred by B to C .
C has now elective right to either hold that defective title or to sue B for damages and compensation.
Srinivasan V E
(Querist) 07 July 2012
Thanks, for the responses. Mr.Ashutosh's response was sort of precise. Wud C have any right to sue A on this matter??
Rajeev Kumar
(Expert) 07 July 2012
No C has only right to sue against B
