as per 'The Specific Relief Act, 1963', cancellation of Sale Deed should be ordered by Court and Registrar cannot cancel the sale deed.

2) M/S.Latif Estate Line India Ltd vs Mrs. Hadeeja Ammal on 11 February, 2011 – AIR 2011 Mad 66 (F.B.)

56. A Full Bench of the Madras High Court in the case of Muppudathi Pillai Vs. Krishnaswami Pillai, AIR 1960 Madras 1 elaborately discussed the provision of Section 39 (New Section 31) and held:-

12. The principle is that such document though not necessary to be set aside may, if left outstanding, be a source of potential mischief. The jurisdiction under Section 39 is, therefore, a protective or a preventive one. It is not confined to a case of fraud, mistake, undue influence, etc. and as it has been stated it was to prevent a document to remain as a menace and danger to the party against whom under different circumstances it might have operated. A party against whom a claim under a document might be made is not bound to wait till the document is used against him. If that were so he might be in a disadvantageous position if the impugned document is sought to be used after the evidence attending its execution has disappeared. Section 39 embodies the principle by which he is allowed to anticipate the danger and institute a suit to cancel the document and to deliver it up to him

59. After giving our anxious consideration on the questions raised in the instant case, we come to the following conclusion: –

(i) A deed of cancellation of a sale unilaterally executed by the transferor does not create, assign, limit or extinguish any right, title or interest in the property and is of no effect. Such a document does not create any encumbrance in the property already transferred. Hence such a deed of cancellation cannot be accepted for registration. (ii) Once title to the property is vested in the transferee by the sale of the property, it cannot be divested unto the transferor by execution and registration of a deed of cancellation even with the consent of the parties. The proper course would be to re-convey the property by a deed of conveyance by the transferee in favour of the transferor. (iii) Where a transfer is effected by way of sale with the condition that title will pass on payment of consideration, and such intention is clear from the recital in the deed, then such instrument or sale can be cancelled by a deed of cancellation with the consent of both the parties on the ground of non-payment of consideration. The reason is that in such a sale deed, admittedly, the title remained with the transferor. (iv) In other cases, a complete and absolute sale can be cancelled at the instance of the transferor only by taking recourse to the Civil Court by obtaining a decree of cancellation of sale deed on the ground inter alia of fraud or any other valid reasons.

60. Having regard to the conclusions arrived at as aforesaid, the questions referred are ans

3) bank has rightly opined that registrar cannot cancel the sale deed . you have to file suit in court against the property owners and obtain court orders for cancellation of sale deed

1. if every one are mutually concerned, no need to file a civil suit.

2. file a case before the lok adalat for validation of sale.

3. all parties shall appear before the court and accept your ownership.

4. thereafter a decree shall be passed by the lok adalat, that decree has same force and validity as passed by the civil court.

5. whole proceeding will take less than a month, because no notice, summon, advocate and court fee is required.

6. no appeal shall lie against decree of lok adalat so its decree is final.

1) if you want clear and marketable title to property you must go to court

2) it is better you pay some money to sellers and perfect your title to the property through court orders

1. no need to file any suit, you can follow above said procedure instead of regular suit just for declaration of your ownership in the property.

Now when i applied for loan. It got stopped in legal verification saying that Registar has no right to cancel sale deed. You should go to the court suit against all the property owners. All property owners A,b,x and y should appear in court and accepts yes they agree to cancel. This process would take 5 to 6 months.

Since everything happened on mutual concern why should I go to court?

If the bank's legal adviser is stating that this requirement is to be fulfilled then the bank may not take risk to overlook this observation made by their legal adviser.

Also his objection on this cannot be set aside because the Registrar cannot accept the cancellation deed at this stage and it was a wrong guidance.

Instead of cancellation, the vendors of X could have executed a rectification deed incorporating the desired changes, which was the proper legal action for making any correction.

Now as per the advise of the legal adviser you may file a declaration suit to declare your title on the basis of his suggestion to obtain loan from that bank or you may change the financial institution which can relax this condition for obtaining loan.

But since the ownership is transferred to me and my name got added to patta. Why do i need to go to court. The reason if i go to all the 4 parties they might end up in asking money to do so. What should I need to do?

There is no answer in law for your this question.

As per law, the cancellation of registered sale deed cannot be made in the registrar's office, it has to come through the process of court vide a suit for cancellation of sale deed and other formalities by giving valid reasons that why court has been approached for cancelling the rgistered sale deed especially when there is an option or remedy to execute a registered rectification deed for carrying out the amendments/corrections in the existing sale deed.

Please remember that a reflection in EC or patta cannot be claimed as title document.

You may consult a lawyer in the local for further advises on this issue.