- 1 - NC: 2025:KHC:4034 WP No. 10563 of 2018 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 29TH DAY OF JANUARY, 2025 BEFORE THE HON'BLE MR JUSTICE M.G.S. KAMAL WRIT PETITION NO. 10563 OF 2018 (LA-BDA) BETWEEN: SRI L RENUKAPPA AGED ABOUT 64 YEARS, S/O LATE K.G. LINGANNA NO.1514, 2ND BLOCK, SIR M. VISHWESHWARAIAH LAYOUT, BANGALORE - 560 060. ...PETITIONER (BY SRI. D.L. JAGADEESH, SENIOR COUNSEL FOR SMT. RAKSHITHA D.J., ADVOCATE) AND: 1. BANGALORE DEVELOPMENT AUTHORITY T.CHOWDAIAH ROAD, KUMARA PARK WEST, BANGALORE - 560 020 REPRESENTED BY ITS COMMISSIONER. 2. THE ADDITIONAL LAND ACQUISITION OFFICER BANGALORE DEVELOPMENT AUTHORITY T.CHOWDAIAH ROAD, KUMARA PARK WEST, BANGALORE - 560 020. Digitally signed by SUMA B N Location: High Court of Karnataka - 2 - NC: 2025:KHC:4034 WP No. 10563 of 2018 3. THE EXECUTIVE ENGINEER BANGALORE DEVELOPMENT AUTHORITY NADAPRABHU KEMPEGOWDA LAYOUT DIVISION, T.CHOWDAIAH ROAD, KUMARA PARK WEST, BANGALORE - 560 020. 4. THE DEPUTY SECRETARY-I BANGALORE DEVELOPMENT AUTHORITY T.CHOWDAIAH ROAD, KUMARA PARK WEST, BANGALORE - 560 020. ...RESPONDENTS (BY SRI. AJAY KUMAR M., ADVOCATE FOR R1 TO R4) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF CONSITUTION OF INDIA PRAYING TO QUASH THE PROCEEDINGS/NOTICE DATED 5.1.2018 AS PER ANNEXURE-L PROPOSING TO CANCEL THE SALE DEEDS EXECUTED BY THE R-1 IN FAVOUR OF THE PETITIONER IN RESPECT OF THE SCHEDULE PROPERTY AS THE SAME IS ARBITRARY, ILLEGAL AND CONTRARY TO LAW AND ETC. THIS PETITION COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE M.G.S. KAMAL - 3 - NC: 2025:KHC:4034 WP No. 10563 of 2018 ORAL ORDER Petitioner is before this Court claiming to be the owner of land in Sy.No.109/3 measuring 2 acres 4 guntas and 38 guntas in Sy.No.109/7 of Kommaghatta village, Kengeri Hobli, Bangalore South Taluk, which was acquired by respondent - BDA for the purpose of formation of Nadaprabhu Kempegowda Layout. That award was passed in terms of which petitioner was held to be entitled for compensation in a sum of Rs.10 lakhs and developed land to an extent of 18926 sq. ft. in the form of four sites. In furtherance thereof, respondent -BDA allotted site bearing Nos.3299, 3300, 3301 and 3302 forming part of land in Sy.No.35/2 of Bheemana Kuppe village, Sector- F, 7th block, Kempegowda Layout vide letters of allotment produced at Annexure-E series. That deeds of sale dated 21.06.2017 were executed and registered in respect of aforesaid sites by the respondent -BDA in terms of deeds of sale produced at Annexure-F series. Possession of the aforesaid sites delivered and katha was registered. That petitioner has been paying the property tax in respect of aforesaid sites. - 4 - NC: 2025:KHC:4034 WP No. 10563 of 2018 2. When things stood thus, representative of the respondent -BDA had informed the petitioner that respondent - BDA is proposing to allot the very same sites in favour of one M.Ramaiah on the premise that land in Sy.No.35/2 over which said sites are located belonged to Sri.M.Ramaiah and who is also entitled for allotment of developed area. That respondent -BDA has issued a notice dated 05.01.2018 produced at Annexure -L and that by the very same notice had called upon the petitioner to cancel the deeds of sale on his own and to submit the records to respondent -BDA in this regard, failing which the respondent -BDA would initiate action in accordance with law. 3. In response thereof, the petitioner had submitted his reply dated 12.1.2018 wherein the petitioner apart from denying the contents of the notice had specifically contended that said M.Ramaiah did not have any right to seek allotment of the very same sites inasmuch as only extent of 9 guntas out of 3 acres 9 guntas of his land was acquired and that he was paid compensation in a sum of Rs.2,42,00,000/- and he did not have any right to seek allotment of sites. That since the - 5 - NC: 2025:KHC:4034 WP No. 10563 of 2018 respondent-authorities have threatened to take action in pursuant to Annexure -L, petitioner is before this Court. 4. Sri. D.L.Jagadesh, learned Senior counsel reiterating the averments and grounds urged in the petition refers to the judgment passed by this Court in the case of K. RAJU VS. BANGALORE DEVELOPMENT AUTHORITY reported ILR 2011 KAR. 120 and also another judgment in the case of BINNY MILL LABOUR WELFARE HOUSE BUILDING CO-OPERATIVE SOCIETY LIMITED VS. D.R. MRUTHYUNJAYA ARADYA reported in ILR 2008 KAR. 2245 submits that it is settled position of law that once the deed of sale is executed it cannot be cancelled unilaterally except by a decree by competent Court of law. He further submits that respondent -BDA without resorting to said action cannot call upon the petitioner to unilaterally cancel the said deeds of sale nor can they threatened the petitioner of they taking action in failure of cancellation of sites by the petitioner on its own. 5. In response, learned counsel for the respondent - BDA submits that notice at Annexure-L came to be issued in view of the demand made by Sri.M.Ramaiah owner of the land - 6 - NC: 2025:KHC:4034 WP No. 10563 of 2018 in Sy.No.35/2, over which the sites have been formed and allotted to the petitioner. He submits that the petitioner was not denied of his entitlement but was only called upon to surrender the said sites to accommodate the claim of the said M.Ramaiah. He submits that there is no illegality or irregularity committed by the respondent -authorities. Hence, seeks for dismissal of the petition. 6. Heard. Perused the records. 7. There is no dispute of the fact that land belonging to the petitioner was acquired and he was held entitled for payment of compensation in the form of money as well as in the form of developed area to an extent of 18,926 sq.ft. There is also no dispute of the fact that in furtherance to said entitlement of the petitioner, respondent -BDA allotted four sites referred to above in terms of letters of allotment and were also executed deeds of sale. Thus, allotment, delivery of possession and conveyance of title stood completed divesting the rights of the respondent -BDA in respect of said property. Once that is done, there is no provision for the respondent - BDA to resort for unilateral cancellation either by way calling - 7 - NC: 2025:KHC:4034 WP No. 10563 of 2018 upon the petitioner to voluntarily cancel or a threat to cancel on their own. 8. The Coordinate Bench of this Court in the case of BINNY MILL LABOUR WELFARE HOUSE BUILDING CO- OPERATIVE SOCIETY LIMITED VS. D.R. MRUTHYUNJAYA ARADHYA reported in ILR 2008 KAR. 2245 while dealing with unilateral cancellation of a sale deed at paragraph 36 , 37 has held as under; "36. When the owner of a property sells/conveys the property to the purchaser under a written document and get the same registered, the right and the title to the said property is transferred from the owner to the purchaser on registration of the said documents. After such registration the owner of the property ceases to have any interest and all his rights in the property gets extinguished. He would not have any right to meddle with the property thereafter. If such a person were to execute one more sale deed and get it registered in respect of the said property the said sale deed has no value in the eye of law. The reason being on the date of the second sale deed, he is not the owner of the property. Therefore, the purchaser would not get title to the property as the vendor could convey only that title which he has in the property on the date of execution and registration of the sale deed. Similarly, if after execution and registration of the sale deed, the owner wants to get back the property, it has to be done by canceling the sale deed on any of the grounds which are available to him under the provisions of the Indian Contract Act. Unilaterally he cannot execute what is styled as a deed of cancellation, because on the date of execution and registration of the deed of cancellation, the said person has no right or interest in that property. Normally what can be done by a Court can be done by - 8 - NC: 2025:KHC:4034 WP No. 10563 of 2018 the parties to an instrument by mutual consent. Even otherwise if the parties to a document agree to cancel it by mutual consent for some reason and restore status quo ante, it is possible to execute such a deed. An agreement of sale, lease or mortgage or partition may be cancelled with the consent of the parties thereto. Because in the case of agreement of sale, lease, mortgage or partition, each of the parties to the said document even after the execution and registration of the said deed retains interest in the property and, therefore, it is permissible for them to execute one more document to annul or cancel the earlier deed. However, it would not apply to a case of deed of sale executed and registered. In the case of a sale deed executed and registered the owner completely loses his right over the property and the purchaser becomes the absolute owner. It cannot be nullified by executing a deed of cancellation because by execution and registration of a sale deed, the properties are being vested in the purchaser and the title cannot be divested by mere execution of a deed of cancellation. Therefore, even by consent or agreement between the purchaser and the vendor, the said sale deed cannot be annulled. If the purchaser wants to give back the property, it has to be by another deed of conveyance. If the deed is vitiated by fraud or other grounds mentioned in the Contract Act, there is no possibility of parties agreeing by mutual consent to cancel the deed. It is only the Court which can cancel the deed duly executed, under the circumstances mentioned in Section 31 and other provisions of the Specific Relief Act, 1963. Therefore, the power to cancel a deed vests with a Court and it cannot be exercised by the vendor of a property. In this context it is necessary to see Section 31 of the Specific Relief Act, which reads as under:— “31. When cancellation may be ordered.- (1) Any person against whom a written instrument is void or voidable, and who has reasonable apprehension that such instrument, if left outstanding may cause him serious injury, may sue to have it adjudged void or voidable; and the court may, in its discretion, so adjudge it and order it to be delivered up and cancelled. - 9 - NC: 2025:KHC:4034 WP No. 10563 of 2018 (2) If the instrument has been registered under the Indian Registration Act, 1908 (16 of 1908), the Court shall also send a copy of its decree to the officer in whose office the instrument has been so registered; and such officer shall note on the copy of the instrument contained in his books the fact of its cancellation.” 37. A reading of the aforesaid provision makes it clear that both void and voidable instruments can be cancelled by the Court. The cause of action for such an action is an apprehension, if such an instrument is left outstanding may cause serious injury to the person against whom the written instrument is void or voidable. Such a person has the discretion to approach a competent Civil Court for adjudging the said instrument to be delivered up and cancelled. Even though in law a void instrument is unenforceable, has no value in the eye of law, void ab initio, the very physical existence of such a document may cause a cloud on the title of the party or cause injury or one can play mischief. Therefore, the law provides for cancellation of such instruments which are also non est, but which are in existence as a fact physically to get over the effect of such instrument. Once such an instrument is registered, the said registration has the effect of informing and giving notice to the World at large that such a document has been executed. Registration of a document is a notice to all the subsequent purchasers or encumbrances of the same property. The doctrine of constructive notice is attracted. Therefore, the effect of registration of an instrument not only affects the rights of the parties to the instrument but also affects parties who may claim under them. Therefore, once such an instrument is ordered to be delivered up and cancelled an obligation is cast upon the Court to send a copy of its decree to the officer in whose office the instrument was registered, so that such an officer shall note on the copy of the instrument contained in his books the fact of its cancellation. Once such an entry is made in the books of the Sub-Registrar about the cancellation of the registered instrument, it also acts as a notice of cancellation to the whole World and it is also a - 10 - NC: 2025:KHC:4034 WP No. 10563 of 2018 constructive notice of cancellation of the said instrument." 9. Following the same, another Coordinate Bench of this Court in the case of K. RAJU VS. BANGALORE DEVELOPMENT AUTHORITY reported in ILR 2011 Kar. 120 at paragraph 43, 44 has held as under; "43. It is clear from the above provision that both void and voidable instruments can be cancelled by the Court. This Court in Binny Mill Labour Welfare House Building Co-Operative Society Limited v. D.R. Mruthyunjaya Aradhya [LLR 2008 KAR 2245.] was considering a similar case where the vendor of the property had unilaterally cancelled the sale deed. It is held as under: “Unilaterally he cannot execute what is styled as a deed of cancellation, because on the date of execution and registration of the deed of cancellation, the said person has no right or interest in that property. Normally what can be done by a Court can be done by the parties to an instrument by mutual consent. Even otherwise if the parties to a document agree to cancel it by mutual consent for some reason and restore status quo ante, it is possible to execute such a deed. An agreement of sale, lease or mortgage or partition may be cancelled with the consent of the parties thereto. Because in the case of agreement of sale, lease, mortgage or partition, each of the parties to the said document even after the execution and registration of the said deed retains interest in the property and, therefore, it is permissible for them to execute one more document to annul or cancel the earlier deed. However, it would not apply to a case of deed of sale executed and registered. In the case of a sale deed executed and registered, the owner completely loses his right over the property and the purchaser becomes the absolute owner. It cannot be nullified by executing a deed of cancellation because - 11 - NC: 2025:KHC:4034 WP No. 10563 of 2018 by execution and registration of a sale deed, the properties are being vested in the purchaser and the title cannot be divested by mere execution of a deed of cancellation. Therefore, even by consent or agreement between the purchaser and the vendor, the said sale deed cannot be annulled. If the purchaser wants to give back the property, it has to be by another deed of conveyance. If the deed is vitiated by fraud or other grounds mentioned in the Contract Act, there is no possibility of parties aggreing by mutual consent to cancel the deed. It is only the Court which can cancel the deed duly executed, under the circumstances mentioned in Section 31 and other provisions of the Specific Relief Act, 1963. Therefore, the power to cancel a deed vests with a Court and it cannot be exercised by the vendor of a property.” (emphasis supplied by me) 44. It is thus clear that when the sale deed executed and registered, the owner completely loses his right over the property and the purchaser becomes the absolute owner. It cannot be nullified by executing a deed of cancellation because by execution and registration of a sale deed, the properties are being vested in the purchaser and the title cannot be divested by mere execution of a deed of cancellation. Therefore, even by consent or agreement between the purchaser and the vendor, the said sale deed cannot be annulled. If the purchaser wants to give back the property, it has to be by another deed of conveyance. If the deed is vitiated by fraud or other grounds mentioned in the Contract Act, there is no possibility of parties agreeing by mutual consent to cancel the deed. It is only the Court which can cancel the deed duly executed, under the circumstances mentioned in Section 31 and other provisions of the Specific Relief Act, 1963. Therefore, the power to cancel the deed vests with a Court and it cannot be exercised by the vendor of a property. After execution and registration of the sale deed, the BDA cannot determine the validity of the sale deed. It can neither execute a cancellation deed unilaterally. If the BDA is of the view that the sale deed executed by it is contrary to law, it has to approach the Civil Court for its cancellation as - 12 - NC: 2025:KHC:4034 WP No. 10563 of 2018 provided under Section 31 of the Specific Relief Act, Point No. (ii) is answered accordingly." 10. In view of the aforesaid settled position of law and the facts narrated hereinabove, petition is allowed. Notice dated 05.01.2018 at Annexure-L issued by the respondent No.1 is hereby quashed. Sd/- (M.G.S. KAMAL) JUDGE RU, List No.: 1 Sl No.: 30