Registering Authorities Lack Power to Cancel Sale Deeds via Summary Proceedings

In a recent ruling, the Madras High Court made a significant observation regarding the authority of Registering Authorities and District Registrars in the cancellation of Sale Deeds. The court emphasized that these authorities are not empowered to cancel Sale Deeds through summary proceedings, highlighting the need for a trial conducted by a Civil Court for such actions.

The bench, comprising Justice SM Subramaniam and Justice K Rajasekar, stated that the role of District Registrars is limited to forming opinions on errors, omissions, or violations during the registration process. Cancelling Sale Deeds, the court ruled, falls under the purview of a trial, exclusively within the jurisdiction of a Civil Court.

The court’s ruling emphasized the importance of due process in adjudicating civil disputes, asserting that comprehensive procedures outlined in the Code of Civil Procedure, Civil Rule of Practice, and the Specific Relief Act must be followed.

The decision underscored that property rights, enshrined as constitutional rights under Article 300A, cannot be infringed upon through summary proceedings.Furthermore, the court clarified that while Registrars have the authority to refuse registration of documents in cases of fraud, this power is limited.

Only if there is prima facie evidence of fraud or impersonation can a document be cancelled during a summary enquiry conducted by the District Registrar. Any doubts regarding the prima facie case must be resolved through adjudication in a Civil Court.

The ruling stemmed from a plea filed by Netvantage Technologies Pvt Ltd, challenging the cancellation of sale deeds. The court noted that neither the District Registrar nor the Inspector General of Registration had the authority to cancel sale deeds without following the relevant legal procedures.

In conclusion, the Madras High Court’s ruling clarifies the boundaries of authority under the Registration Act and reinforces the importance of upholding due process and property rights in adjudicating civil disputes. Any aggrieved party must seek remedy through the competent high court to address issues related to the cancellation of sale deeds or declaration of their nullity.

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