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        Money Laundering

        2015 (12) TMI 1736 - AT - Money Laundering

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        Registered absolute sale prevails over unproved conditional transfer claim, so attachment of the flat was sustained. A registered deed of absolute sale that records full payment and acknowledgement of consideration cannot be displaced by a later, unproved plea that the ...
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                                Registered absolute sale prevails over unproved conditional transfer claim, so attachment of the flat was sustained.

                                A registered deed of absolute sale that records full payment and acknowledgement of consideration cannot be displaced by a later, unproved plea that the transfer was conditional on dishonoured cheques. The Tribunal found the appellant's reliance on cheque details unreliable, noted no satisfactory explanation for delayed presentation, and accepted that the respondent had not been shown to have colluded. Because no competent court had cancelled the sale deed or declared it void, title and possession remained with the vendee, leaving the appellant with no subsisting right to resist attachment of the flat. The attachment was therefore upheld.




                                Issues: Whether Flat No. 204 could be excluded from attachment on the appellant's claim that the sale in favour of the alleged accused was conditional and ineffective because the cheques towards consideration were dishonoured.

                                Analysis: The sale deed was a registered deed of absolute sale and recorded that the entire consideration had already been paid and acknowledged before execution. The later plea that the transfer was conditional on honour of post-dated cheques was inconsistent with the document and unsupported by a satisfactory explanation for the delayed presentation of the cheques. The Tribunal also found serious doubt about the authenticity of the page relied upon by the appellant to show the cheque details, and the appellant failed to disprove the respondent's case of collusion. In the absence of any competent court cancelling the registered sale deed or declaring it void, title and possession remained with the vendee, and the appellant had no subsisting right in the attached flat.

                                Conclusion: The claim that the flat was not liable to attachment was rejected; the attachment was upheld and the appeal failed.

                                Final Conclusion: The Tribunal held that a registered absolute sale could not be displaced by an unproved plea of conditional transfer and dishonoured cheques, and the appellant had no enforceable right to resist attachment of the property.

                                Ratio Decidendi: Where a registered deed conveys title absolutely and remains uncancelled by a competent court, a later claim of non-payment or conditional sale does not by itself divest the transferee's ownership or defeat attachment proceedings.


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                                ActsIncome Tax
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