District registrars don’t have power to cancel sale deed: Madras High Court

Neither the district registrar nor the inspector general of registration are vested with powers to cancel a sale deed executed by following the procedures as contemplated under the Registration Act, the Madras High Court has said.

The remedy for an aggrieved person is to approach a competent civil court of law and seek cancellation of the sale deed or to appeal for declaring it as null and void, it added while passing its judgment in the Netvantage Technologies Pvt Ltd versus The Inspector General of Registration and Stamps and Others

However, in its order dated March 20, 2024, the two-Judge Bench of Justice SM Subramaniam and K Rajasekar said: “If the district registrar finds that there is a prima facie proof to establish fraud or impersonation while conducting a summary enquiry, then alone the document is to be cancelled.”

“But, in respect of any iota of doubt on the prima facie case, the district registrar is not empowered to adjudicate the issues on merits and is bound to relegate the parties to the civil court of law for adjudication,” it added.

“The mechanism provided under the Code of Civil Procedure, Specific Relief Act and Civil Rules of Practice at no circumstances be diluted, by indirectly conferring the powers of the civil court to the district registrar to invalidate the documents. Thus, the scope under the Registration Act to cancel the documents on the ground of fraud or impersonation is undoubtedly limited,” it further added.

While stating that the registrars are quasi-judicial authorities , the HC also said that in case the registering authority suspects forgery or impersonation at the time of sale deed registration, it is empowered to refuse registration. Under Rule 55 of the Registration Rules, the sub-registrar can refuse sale deed registration if he has reason to believe that:

1. The parties appearing or about to appear before him are not the persons they profess to be.
2. The document is forged.
3. The person appearing as a representative, assign or agent, has no right to appear in that capacity.
4. The executing party is not really dead as alleged by the party applying for registration
5. The executing party is a minor or an idiot or a lunatic.