Non-payment of purchase consideration does not automatically void a sale deed: Supreme Court

Non-payment of purchase consideration does not automatically void a sale deed: Supreme Court

Table of Contents

Case Title: Raziya Begum & Ors. Versus Nafisa Begum Abdul Hamid & Ors.

Case No.: Civil Appeal No. 7225 of 2011

Coram: Justice J.B. Pardiwala and Justice K. Vinod Chandran

Court Observation

“When a sale deed is registered, even upon part payment of the sale price, title would pass to the transferee. The non-payment of remaining part of the sale price would not invalidate it and the remedy would be to recover the balance sale consideration, but not cancellation of sale deed for non-payment of balance sale consideration.”

“The sale deed executed with full knowledge of the part consideration alone having been passed, cannot be rendered void or inoperative merely because the balance consideration promised to be paid, which promise was incorporated in the sale deed, had not been complied with. The right of the plaintiffs was to file for recovery of balance sale consideration and not to seek declaration that the sale deeds were null and void; which they are not.”