SMT GOMA DEVI W/O SHRI MANNA LAL D/O SHRI KANA VS LAXMI NARAIN SHARMA S/O SHRI GAINDI LAL SHARMA

Background

The appellant sought cancellation of a registered sale deed dated 16.04.2009 on the ground of non-payment of the full sale consideration. Sale deed, possession, and mutation supported the transfer.

Issues before the Court

• Whether non-payment of the full sale consideration invalidates a completed registered sale deed where title was intended to pass.

Court held

The appeal was dismissed, and the court held that non-payment of the entire consideration does not invalidate a completed registered sale where title was intended to pass, leaving the seller with the remedy of recovering unpaid consideration.

Legal principle reflected in official synopsis

Under Section 54 of the Transfer of Property Act, 1882, non-payment of the entire consideration does not invalidate a completed registered sale where title was intended to pass; the seller's remedy is recovery of unpaid consideration.

Key points

• The appellant sought cancellation of the registered sale deed dated 16.04.2009.
• The ground for seeking cancellation was the non-payment of the full sale consideration.
• Sale deed, possession, and mutation supported the transfer.
• The Rajasthan High Court dismissed the appeal.

Why it matters

This ruling clarifies that a completed registered sale deed is not invalidated solely due to non-payment of the full sale consideration when title was intended to pass, indicating that the appropriate remedy for the seller is to seek recovery of the unpaid amount.

Acts / sections identified

Topics