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of <h1>Court cancels sale deed for fraud, vendors lacked authority. Protecting bona fide purchasers. Pursue remedies against vendors.</h1> <h3>Radhey Shyam Arora Versus State of U.P. And 6 Others</h3> The Court upheld the cancellation of a sale deed due to fraudulent execution, finding that the petitioner's vendors lacked legal authority to execute it. ... - Issues involved: Validity of order cancelling registration of sale deed, authority to execute sale deed, fraud and manipulation in execution of sale deed, applicability of Government Order dated 13.8.2013, protection of bona fide purchaser's interest, authority of Registering Authority to cancel sale deed.Validity of order cancelling registration of sale deed: Petitioner challenged the order cancelling the registration of a sale deed executed in his favor, claiming to be a bona fide purchaser. Respondents alleged that the property belonged to them based on a gift deed dated 5.10.2005. The Assistant Inspector General of Registration issued notices and after an enquiry, the order cancelling the registration was passed. Petitioner argued that the cancellation was improper, while respondents contended that the sale deed was executed fraudulently.Authority to execute sale deed: The Court found that the property in question was owned by Kunwar Bahadur Bhatnagar, who had executed a gift deed in favor of the respondents in 2005. After his death, the respondents became the owners. The sale deed executed by the petitioner's vendors, claiming inheritance from Kunwar Bahadur Bhatnagar, was deemed fraudulent as they had no legal authority to execute it. The Court upheld the cancellation of the sale deed based on the fraudulent execution.Applicability of Government Order dated 13.8.2013: The Government Order reiterated the authority of judicial, quasi-judicial, and administrative bodies to recall orders obtained through fraud. The Court approved the Order, emphasizing that fraud vitiates proceedings and any benefits obtained through fraud cannot stand. The Court held that the Order did not introduce new rules but reiterated established legal principles regarding fraud.Protection of bona fide purchaser's interest: While the petitioner claimed to be a bona fide purchaser, the Court focused on the lack of legal authority of the vendors to execute the sale deed. The Court emphasized that transactions by imposters cannot be approved of, even if the purchaser is bona fide. The Court highlighted that the petitioner could seek remedies against the vendors for compensation and take criminal action.Authority of Registering Authority to cancel sale deed: The Court cited the Full Bench of Andra Pradesh High Court, stating that registering authorities have the power to cancel sale deeds obtained through fraud. The Court emphasized that a person with a valid title must enjoy their property rights, and the registering authority can cancel fraudulent transactions to protect the true owner's rights. The Court dismissed the writ petition, stating that the petitioner could seek recourse through a civil suit if they felt their substantive rights were affected.
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