In a recent decision, the High Court of Telangana, led by Justice Gadi Praveen Kumar, handled a complicated property disagreement involving the one-sided cancellation of a sale agreement. Here's a breakdown of what happened.
G. Naga Lakshmi filed a petition against the Joint Sub-Registrar's decision in Ranga Reddy District to register a cancellation document. This document, dated July 8, 2011, canceled an earlier sale agreement and power of attorney. Lakshmi argued this action was illegal and unfair.
On October 5, 2009, the 4th respondent, Mikkilineni Baby Sarojini, made a sale agreement with Lakshmi for a plot in Kondapur, Ranga Reddy District. The deal was for ₹39,00,000, and the full amount was reportedly paid.
Sarojini later claimed the agreement was fake, saying it was actually a loan deal. This led to a criminal case against Lakshmi for cheating, with charges filed under Section 420 of the IPC.
Lakshmi's lawyer referred to a Supreme Court decision, arguing that one-sided cancellations are invalid and illegal. They stressed that only a proper court could cancel such agreements.
“The power to register a document of cancellation cannot be seen as giving a legal decision-making power to the registering authority…” - Supreme Court
The Joint Sub-Registrar stated that the cancellation was done following orders from higher authorities after an investigation. Sarojini had also filed a civil lawsuit, which was decided in her favor in 2016, declaring the original agreement invalid.
Justice Gadi Praveen Kumar found that the Sub-Registrar's registration of the cancellation deed did not follow legal rules. The court canceled the registration, emphasizing that such cancellations need a court order and proper notice to everyone involved.
The matter was sent back to the Joint Sub-Registrar for reconsideration, with instructions to consider the civil court's judgment and provide all parties a chance to be heard. A decision is expected within three months.
The court's decision shows the importance of following legal rules in property disputes, especially regarding the cancellation of registered documents.
