The Bangalore Development Authority (BDA) cannot unilaterally effect a cancellation of sale deed on a site which has been allotted to someone. A senior citizen who had purchased a site from an original allottee found herself stranded as the BDA had cancelled the sale deed of the original allotment. “The BDA cannot unilaterally register a Deed of Cancellation of Sale negating a sale already effected,” the HC said bringing relief to the site owner.
HR Satyanarayana of Nagarabhavi approached the High Court against the BDA seeking to quash the Deed of Cancellation the civic body had effected in 2007. The site in question in Nagarabhavi was allotted to one KS Hosamane by the BDA. Satyanarayana purchased the site from Hosamane. Satyanaraya obtained plan sanction and licence on the site in 2003.
But in 2007 Satyanaraya learnt that the BDA had instructed the sub-registrar not to permit registration of any transaction relating to the site. On enquiry he learnt that a Cancellation Deed dated May 19, 2007 was effected by the BDA against KS Hosamane the previous owner of the site.
Approaching the HC, Satyanarayana’s advocate argued that the Cancellation Deed was “without jurisdiction as neither any notice nor any opportunity of hearing was afforded either to” Satyanarayana or Hosamane. It was also submitted that the BDA “has no authority in law to cancel the registered Sale Deed unilaterally and the jurisdictional Sub-Registrar has not authority to cancel the registration of the document unilaterally after it has been registered under the provisions of the Registration Act and the Rules framed there under.”
The HC found the evidence supporting the cause of Satyanarayana. Justice Alok Aradhe in his judgement said, “I have considered the submissions made by the learned counsel for the petitioner and I have perused the record. Admittedly, the vendor of the petitioner was allotted the site in question and a Sale Deed was executed in his favour which was duly registered. The said Sale Deed has been cancelled unilaterally by a Deed of Cancellation dated 19-05-2007 by the BDA without issuing any notice either to respondent No 2 or to the petitioner. The BDA cannot unilaterally register a Deed of Cancellation of Sale negating a sale already effected in view of the provisions contained in Sections 47 to 49 of the Indian Registration Act, 1908 read with Section 31 of the Specific Relief Act and Section 54 of the Transfer of Property Act, 1882.”
Setting aside the cancellation deed, the HC said, “The aforesaid action therefore, is ab initio void and cannot be sustained in the eye of law.”
