The Supreme Court, interpreting Section 31 of the Specific Relief Act, 1963 ("SRA"), held that a third party affected by a void sale deed is not required to seek its cancellation. The Court emphasized that if a sale deed is executed between two parties, a third party who was not involved in the transaction, but whose rights are impacted, cannot be compelled to file a separate application under Section 31 of the SRA to cancel the deed.
In the case at hand, the core issue revolved around the legality of a sale deed executed by one co-owner of joint family property. This co-owner sold the entire property to the Appellant without the consent or authorization of the other co-owners (Respondents). Importantly, at the time of the transfer, the individual share of the co-owner who executed the sale had not been determined.
The Respondent challenged the validity of this sale by filing a title suit, asserting that the transfer was void because the co-owner/transferor was only entitled to sell his own undivided share in the property, not the entire property. Therefore, the transfer of the entire suit property to the Appellant was beyond the co-owner's legal rights and thus void.
Agreeing with the Respondent's arguments, the Supreme Court observed that when a property has multiple co-owners, a purchaser (like the Appellant) cannot acquire rights, title, or interest in the entire property based solely on a sale deed executed by just one of the co-owners. The co-owner/transferor could only transfer his undivided share, not the whole property.
The Court also addressed an argument raised by the Appellant, who claimed that since the Respondent had not specifically sought the cancellation of the sale deed, the deed could not be invalidated on its own. The Court dismissed this argument, stating that the Respondent was not required to seek formal cancellation under Section 31 of the SRA. Therefore, the sale deed could be declared void without a separate cancellation suit.
**Case Title:** *SK. Golam Lalchand vs. Nandu Lal Shaw @ Nand Lal Keshri @ Nandu Lal Bayes & Ors., Civil Appeal No. 4177 of 2024*
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