Cancellation of Instruments

Non-Payment of Sale Consideration Cannot Void a Registered Sale Deed: The Allahabad High Court Revisits Section 54 of the Transfer of Property Act

In Devendra Singh v. Great Home Developers Pvt. Ltd., the Allahabad High Court held that a registered sale deed reciting full receipt of consideration and delivery of possession cannot be cancelled merely because the buyer's cheques were later dishonoured, since Section 54 of the Transfer of Property Act makes actual payment no precondition to a completed sale — the seller's remedy lies in a suit for the balance price, not in unwinding the conveyance.