Unilateral cancellation of a registered sale deed is not registrable without both parties' consent and signatures.

A unilateral cancellation of a registered sale deed is not registrable where the vendor acts alone, because cancellation of a completed bilateral transaction requires the participation and consent of both parties. Earlier rulings striking down Section 22-A of the Registration Act, 1908, removed only the public-policy bar and did not create a right to register unilateral cancellation deeds. Reading Sections 17, 18, 32-A, 34 and 34-A of the Registration Act, 1908 with Section 62 of the Indian Contract Act, 1872, the Court treated rescission as requiring bilateral action. A circular insisting on both parties' signatures was therefore consistent with these principles.

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Issues: Whether a registered sale deed can be cancelled unilaterally by the vendor and presented for registration without the purchaser's consent or signature.

Analysis: The Court held that the earlier decisions striking down Section 22-A of the Registration Act, 1908, only invalidated the public-policy based prohibition and did not confer any right to register a unilateral cancellation deed. Reading Sections 17, 18, 32-A, 34 and 34-A of the Registration Act, 1908 together, the Court held that cancellation of a registered sale deed affects a completed bilateral transaction and, in the absence of a specific statutory provision, cannot be entertained at the instance of the vendor alone. The Court also relied on Section 62 of the Indian Contract Act, 1872 to hold that rescission of a contract must be bilateral. The impugned circular requiring both parties' signatures was found consistent with these principles.

Conclusion: A unilateral deed of cancellation of a registered sale deed is not registrable without the express consent and participation of both parties; the writ appeal failed.

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