This civil appeal arose from a judgment of the High Court, which had reversed the concurrent findings of the Trial Court and the First Appellate Court. The original plaintiffs (represented by respondents) had filed a suit seeking to declare two registered sale deeds dated March 10, 1975, as void and inoperative, to cancel them, and to claim absolute ownership and permanent injunction over the properties. The Supreme Court examined whether non-payment of a portion of the sale consideration—where the vendee had retained a part of the price to clear the vendor’s pending institutional debts—renders a completed, registered sale deed void or invalid.
- Validity of Sale on Part-Payment: Referring to Section 54 of the Transfer of Property Act, 1882, and precedents like Vidhyadhar v. Manikrao and Dahiben v. Arvindbhai Kalyanji Bhanusali, the Supreme Court reiterated that actual payment of the entire sale price at the time of execution is not a sine qua non for completing a sale.
- Passing of Title: Once a sale deed is executed and registered, title passes to the transferee even if only part of the price has been paid. The real test is the intention of the parties to transfer ownership, which is gathered from the recitals and conduct.
- Remedy of the Vendor: Non-payment or breach of a promise to pay the balance consideration does not make the sale deed null, void, or inoperative, nor does it warrant the cancellation of the sale deed; the appropriate remedy for the vendor is to file a suit for the recovery of the balance sale consideration.
- Limitation and Delay: The original sale deeds were executed in 1975 and 1976, while the suit was instituted much later in 1984, raising issues of limitation regarding any potential claims for recovery.
- Final Ruling: The Supreme Court allowed the appeal, setting aside the High Court’s judgment and restoring the concurrent findings and dismissal of the plaintiffs’ suit by the Trial Court and First Appellate Court. The Court maintained that the appellants/defendants are required to pay the balance sale consideration along with interest to the creditors/plaintiffs as originally directed by the Trial Court.




