Registering Authority can’t Cancel Registration once Sale Deed is Registered

May 28, 2018

Case name: Smt. Kusum Lata v. State of U.P. & ors.

Date of Judgment: May 18, 2018

The seminal issue that fell for consideration before the Allahabad High Court in the case was whether a sale deed registered under the Registration Act, 1908 can be cancelled or set aside by registering authority or by any other authority invoking administrative powers, if the registration is questioned on the count of impersonation/fraud? 

Bench’s Verdict

The Three-Judge Bench of the Allahabad High Court while arriving at its decision made reference to Section 69 of the Registration Act, 1908 which entrusts the power on Inspector General to make rules consistent with the Act and pertaining to regulation of registration of instruments and documents in the State.

As the Uttar Pradesh Government has not framed any rules under Section 69 for annulment of document, the Allahabad High Court held that Registering Authority cannot annul sale deed and made the following observations in the case:

• That  unless and until there is an express provision in the Act or in the Rules, no Government Order could be issued giving power to a Registering Authority to annul a document on the administrative side. Such powers given would be wholly arbitrary and against and against the provisions of the Act.
• That the State Government cannot, while taking recourse to the executive power of the State under Article 162, deprive a person of his property. Such power can be exercised only by authority of law and not by a mere executive fiat or order.
• That the language of Article 162 clearly indicates that the powers of the State executive do extend to matters upon which the State Legislature is competent to legislate and are not confined to matters over which legislation has been passed already. Where a particular subject is regulated by a legislative enactment, the field is said to be covered by such statute. In such matters and on such subjects the executive powers is circumscribed.
• That the executive exercising powers under Article 162 cannot issue orders which contravene provisions of a statute or are inconsistent with the same.
• The State in exercise of its executive power is charged with the duty and the responsibility of carrying on the general administration of the State. So long as the State Government does not go against the provisions of the Constitution or any law, the width and amplitude of its executive power cannot be circumscribed.
• So long as the Rules are not framed as enumerated under Section 69 of the Registration Act, a document cannot be annulled on the basis of the Government Order issued under Article 162 of the Constitution.
• If the document registered by the registering authority was illegal or if there was any irregularity then the course to question that was by invoking appropriate proceedings before a Civil Court.

In view of the aforesaid observations, the Allahabad High Court held that once a sale deed has been registered, the registering authority does not have any power or authority under the Registration Act, 1908 to cancel the registration, even if an allegation of impersonation/fraud is alleged.