HC - No unilatory cancellation of registered deed


IN THE HIGH COURT OF JUDICATURE OF ANDHRA PRADESH
AT HYDERABAD

THE HON’BLE SRI JUSTICE L.NARASIMHA REDDY

Writ Petition No.21162  of 2010
ORDER:
         
          The petitioners and respondent No.5 entered into an agreement of sale with the 4th respondent – Construction Company, for developing a piece of land situated in Ibrahimpatnam, Krishna District.  An agreement of sale-cum-G.P.A. was executed by them in favour of the 4th respondent, on 01.10.2007.  Alleging that the 4th respondent did not honour the schedule of construction and that it had violated the conditions of the agreement of sale, the petitioners proposed to cancel the G.P.A.  Accordingly, they submitted a document of cancellation of G.P.A. before the 3rd respondent.  The latter refused to admit the document to registration, on the basis of a circular dated 31.03.2010.  The petitioners challenge the circular as well as the refusal by the 3rd respondent to admit the document for registration.  They contend that once a G.P.A. is executed by them, they have prerogative to cancel and there does not exist any justification for the respondents in not registering the document.

          A counter-affidavit is filed on behalf of respondents 1 to 3.  Separate counter-affidavits are filed by respondents 4 and 5. 

          Heard Sri B.P.Raju, learned counsel for the petitioners, learned Government Pleader for Revenue, Sri G.Vivekanand, learned counsel for the 4th respondent and Sri B.AdinarayanaRao, learned counsel for the 
5th
 respondent.

          The petitioners and the 5th respondent joined in executing an agreement of sale-cum-GPA in favour of the 4th respondent.  The petitioners felt that the 4th respondent did not honour certain terms of the contract.  Therefore, they intended to cancel the GPA, and accordingly, presented a document for registration.

          The 2nd respondent issued a circular, dated 31.03.2010.  The operative portion of the said circular reads:

      “It therefore, in continuation of the instructions issued in the reference cited, the following instructions are issued that no registering officer shall register a deed of revocation/cancellation of General power of attorney coupled with previously registered documents of agreements of sale to safe guard the interest of the Agent/Vendee.  In case if any such deeds of revocation/cancellation of General Power of Attorney combined with Agreement of Sale/ Development Agreements is presented for registration, the Registering Officers are directed to refuse the document for registration citing the instructions issued in this memo.”

          From this, it is clear that in case there exists general power of attorney coupled with obligation, namely agreement-of-sale, a deed of revocation/cancellation of such document executed by one of the parties to the transaction, cannot be admitted to registration.  As a matter of fact, the circular enunciates the settled principle of law.  It hardly needs any emphasis that whenever a contract is brought about between two individuals or agencies and mutual obligations are created thereunder, cancellation of the contract of the document can take place only with the participation of both.  If one of the parties does not agree for cancellation, the only course for such party is to approach a civil Court and seek necessary remedy.  The petitioners are not able to point out as to which provision of law does the circular violate.
          The petitioners have another insurmountable difficulty in proposing to cancel the GPA.  As observed earlier, the GPA was executed by the petitioners and the 5th respondent in favour of the 4th respondent.  In the proposed cancellation deed, the 5th respondent did not figure as a party.  When so many anomalies are there, the 3rd respondent cannot be expected to register the document. 

          The writ petition is, accordingly, dismissed, leaving it open to the petitioners to work out their remedies in a civil Court.

          There shall be no order as to costs.

____________________
L.NARASIMHA REDDY, J.   
Dated:19.01.2012

Note: Furnish C.C. in one week.
                                   (B/o)
                                     GJ


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