In exercise of the powers conferred by Subsection (1) of Section 22 A of the Registration Act 1908, the Government of Tamil Nadu has declared a few documents as opposed to public policy through the G.O Ms No.150 Commercial Taxes dated September 22, 2000. This order also restrains the cancellation sale deed without the consent of the parties.
By revoking the above G.O. on July 25, 2007, it has now been made possible for the seller of a property to cancel the sale deed without the consent of the buyer. This has thrown a lot of issues and may have undesirable consequences.
Unilateral cancellation of the sale deed brings with it a host of problems, mostly for the buyer. There are instances in the past when the seller had cancelled the sale deed and the buyer approached the court for remedy. It will be pertinent to note that the Commissioner and Inspector-General of Registration and Stamps, Government of Andhra Pradesh, in his circular Memo No.G1/4838/04 dated December 17, 2004 had directed the registering officers to add a footnote to the effect that the cancellation deed is registered under the provisions of the Registration Act and that such unilateral cancellation is not valid unless the deed, which is cancelled, is annulled by the competent court.
Registered sale deeds executed duly have some sanctity and the people at large rely on them to test the title of a particular person to a particular property. If a person executes a sale deed and registers it today and then on the next day if he cancels it, there will be utter chaos in the market.
( Courtesy : The Hindu )
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