Registration of document is always subject to adjudication of rights of parties by competent Civil Court, reiterates Top Court

Read Judgment: Amudhavali & Ors. vs. P. Rukumani & Ors

Pankaj Bajpai

New Delhi, December 8,2021: The Supreme Court has reiterated that registration of a document is always subject to adjudication of rights of the parties by the competent civil court. 

A Division Bench of Justice R. Subhash Reddy and Justice Hrishikesh Roy therefore refused to examine the validity of cancellation deed, observing that the rights of the parties will be subject to adjudication in Civil Suit. 

The background of the case was that P. Rukumani & Ors (first to fourth Respondents) who were original owners of the land covered by Kalapatti Village, had executed a registered power of attorney in favour of the seventh Respondent. On the other hand, Amudhavali & Ors (Appellants) claimed that, they had purchased the said land from first to fourth Respondent, vide registered sale deed executed by their Power of Attorney. Subsequently, the first four Respondents prepared the Cancellation Deed and got it registered. 

Later, they filed a civil suit to declare the sale deed executed in favour of the appellants, as illegal, void and non-est. Subsequent to registration of cancellation deed, an extent of 0.25 cents of land was transferred by registered sale deed in favour of the eighth Respondent. 

Questioning the cancellation deed and alleging interference with possession, the Appellants approached the High Court, contending that once the sale was effected by way of a registered sale deed, then the first to fourth Respondents could not have canceled the sale deed unilaterally and get it registered.

The High Court held that civil suit filed by first to fourth Respondents for declaration and cancellation of the sale deed is already pending consideration and rights of the parties will be adjudicated in the pending suit. 

After considering the arguments, the Apex Court said that it is not in dispute, that after registering the cancellation deed, first to fourth Respondents have filed a civil suit which is pending, seeking declaration that sale deed executed in favour of the appellants is null and void. 

The Single Judge of the High Court also observed that the subsequent cancellation deed is always subject to adjudication of rights of the parties by the competent civil court, added the Court. 

As much as the appellants have already filed a written statement in the civil suit and contesting the same, the Top Court refused to examine the validity and effect of such cancellation deed, at this stage.