Smt. Chhaya Devi Agrawal vs Devashish Panda on 24 March, 2026

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    Chattisgarh High Court

    Smt. Chhaya Devi Agrawal vs Devashish Panda on 24 March, 2026

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                                                                                2026:CGHC:14144
    
                                                                                                  AFR
    
                                    HIGH COURT OF CHHATTISGARH AT BILASPUR
    
                                                     FA No. 99 of 2019
    
                                            Judgment reserved on 15/12/2025
    
                                            Judgment delivered on 24/03/2026
    
                       Smt. Chhaya Devi Agrawal W/o Shri Chhedilal Agrawal Aged About 48 Years
                       R/o Srinagar Road Gudhiyari, Raipur, Tahsil And District Raipur
                       Chhattisgarh., District : Raipur, Chhattisgarh
                                                                                          ... Appellant
    
                                                           versus
    
                       1 - Devashish Panda S/o Shri K.P. Panda, Aged About 38 Years R/o Quarter
                       No. 1661, Khanij Nagar Post Ravigram, Vip Road (Wrongly Mentioned As
                       Vrp Road ) Raipur, Tahsil And District Raipur, Presently At Mascot (Arab
                       Country), Through Power Of Attorney Holder Subrat Kar, S/o C.R. Kar, Aged
                       About 41 Years R/o B-16,street 11, Ashish Nagar, West Rishali, 490006,
                       District Durg Chhattisgarh., District : Durg, Chhattisgarh
    
    
                       2 - Registrar Cooperative Societies Vivekanand Nagar, Raipur Tahsil And
                       District Raipur Chhattisgarh., District : Raipur, Chhattisgarh
    
    
                       3 - National Mineral Development Corporation Employees Society Limited
                       Raipur Chhattisgarh Through Liquidation Rajkumar, Naidu, Aged About 52
                       Years R/o Pachpedi Naka Raipur Chhattisgarh., District : Raipur,
                       Chhattisgarh
    
    
    VED
                       4 - Liquidation Rajkumar Naidu S/o Shri K.S. Naidu Aged About 52 Years R/o
    PRAKASH
    DEWANGAN
                       Panchpedi Naka, Raipur, National Mineral Development Corporation
    Digitally signed
    by VED PRAKASH
    DEWANGAN
    Date: 2026.03.25
    18:58:37 +0530
                                               2
    
    
    
    
    Employees Cooperative Housing Society Limited Raipur Chhattisgarh.,
    District : Raipur, Chhattisgarh
                                                                          ... Respondents

    (Cause title taken from Case Information System)

    For Appellant : Mr. B.P. Sharma and Ms. Nidhi Tiwari,
    Advocates

    SPONSORED

    For Respondent No.1 : Mr. Prafull N. Bharat, Senior Advocate
    along with Mr. Harshal Chouhan, Advocate

    For other Respondents : None, though served.

    Hon’ble Shri Justice Ravindra Kumar Agrawal
    C.A.V. Judgment

    1. The present first appeal under Section 96 of the Code of civil

    Procedure, 1908, has been filed by the Defendant No. 4, against the

    impugned judgment and decree dated 05-10-2018, passed by the

    learned 4th Additional Judge to the Court of First Additional District

    Judge, Raipur, District Raipur in Civil Suit No. 59-A/2013, whereby the

    suit filed by the plaintiff for declaration of title and permanent injunction

    is decreed in his favour, and the counter claim of the Defendant No. 4

    for declaration of title and permanent injunction is dismissed.

    2. For the sake of convenience, the status of the parties shown in the suit

    is being taken to refer to the respective parties in the present appeal.

    3. The plaintiff instituted a Civil suit before the learned trial Court for the

    relief of declaration of title, declaration that the revocation deed dated

    10-03-2011 and sale deed dated 10-03-2011 executed by the

    Defendant No. 3 in favour of Defendant No. 4 is not binding upon him,

    and permanent injunction over the suit property, i.e. the open and

    diverted land of residential plot No. 25, Khasara No. 332/1, 332/2 and
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    334, area 2400 Sqr. Ft. (60 x 40 ft.), situated at village Purena, P.H.

    No. 113, R.I. Circle Raipur, Tahsil and District Raipur, which is the

    property belonging to “Rashtriya Khanij Vikas Nigam Karmchari

    Sahakari Samiti” (in short “the Society”). It is pleaded by the plaintiff

    that the plaintiff has purchased the suit land through the registered

    sale deed dated 16-07-2001, from its owner, M.A. Appan, and came

    into possession thereof. He constructed the boundary wall and

    surrounded the suit land by wall and constructed a water tank also.

    The Defendant No. 2 was appointed as the Prescribed Authority of the

    said Society, vide order dated 20-01-2011. He sent a proposal for the

    liquidation of the property of the Society to the Deputy Registrar on 25-

    01-2011. On 28-01-2011, Defendant No. 3 was appointed as liquidator

    of the said Society. After his appointment as liquidator, the Defendant

    No. 3, on 10-03-2011, without there being any notice or intimation to

    the plaintiff, produced a revocation deed before the Sub-Registrar,

    Raipur, which was accepted for its registration and on the same day, a

    sale deed was executed in favour of the Defendant No. 4. The said

    sale deed is executed without there being any authority and void ab-

    initio and the Defendant No. 4 could not get any title by the said sale

    deed. Such a sale deed dated 10-03-2011 is not binding upon the

    plaintiff. He obtained a copy of the sale deed on 13-05-2011. He also

    came to know that the Board of Directors have also filed an appeal

    against the dissolution of the Society, before the Registrar, Co-

    operative Societies, Raipur, which is pending for its consideration. On

    16-05-2011, the plaintiff served a legal notice under Section 94 of the

    Cooperative Societies Act, 1960 (hereinafter called as “the Act of
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    1960″) and Section 80 of the C.P.C. through his counsel, and then filed

    the civil suit.

    4. After service of summons, the Defendants Nos 2 and 3 have filed their

    written statement jointly, denied the pleading of the plaint and pleaded

    that the plot No. 25 was being allotted to the plaintiff as he was a

    member of the Society and he was well aware of the terms and

    conditions of allotment of the plot. After allotment of the plot, the

    plaintiff has to start construction within six months and complete it

    within three years. On 04-01-2011, a notice was issued to the plaintiff

    to start his construction within 21 days from the date of receipt of

    notice and to pay the development charges to the Society, failing

    which the allotment of the plot to him is liable to be cancelled. The

    plaintiff has not given any heed to the notice, and since the tenure of

    the earlier managing committee is over, the Deputy Registrar

    appointed another Prescribed Authority vide order dated 20-01-2011.

    On 25-01-2011, a report was submitted before the Deputy Registrar,

    Co-operative Societies, Raipur, for the liquidation of the Society, under

    Section 69 of the Act of 1960. On 28-01-2011, Defendant No. 3 was

    appointed as liquidator. In the meeting dated 01-02-2011, it was

    resolved that the allotment of those allottees of the plots should be

    cancelled who have not started construction yet. On 25-02-2011, the

    plaintiff was served with a notice and informed about the cancellation

    of the allotment of his plot. It is also pleaded that Clause 43(1) of the

    By-Laws of the society provided that if the allottees had not completed

    their construction within three years, their land should be vested with

    the Society. Under the said condition of the By-Laws, the allotment of
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    the land of the plaintiff was cancelled, and the deed was executed on

    10-03-2011. The plot was sold by M. A. Appan after obtaining due

    permission from the Respondent No. 2. The conditions of the sale

    deed have not been challenged and are binding upon the plaintiff. The

    Defendant No. 3 has executed the sale deed in favour of Defendant

    No. 4, in accordance with the conditions of By-Laws, and the plaintiff

    has no right or title over the suit land. The plaintiff was served with a

    notice dated 04-01-2011 and then the notice dated 25-02-2011 with

    respect to the cancellation of allotment of the plot. The Defendant No.

    4 is the title and possession holder of the suit land. The suit is

    undervalued, and no cause of action arose in favour of the plaintiff.

    5. The Defendant No. 4 has also filed his written statement. He also

    denied the pleadings of the plaint with the averments that the plaintiff

    was not the title or possession holder of the suit land, and the

    boundary wall was also constructed by Defendant No. 4. The

    cancellation of allotment of the plot of the plaintiff is strictly in

    accordance with the By-Laws of the Society. After following the due

    procedure of cancellation of the plot, the same is allotted to Defendant

    No. 4, and the sale deed was executed on 10-03-2011. After the date

    of execution of the sale deed, i.e. 10-03-2011, the Defendant No. 4

    would become the title and possession holder of the suit land, and his

    name is also recorded in the revenue records. The Defendant No. 4

    also objected to the undervaluation of the suit and accrual of the cause

    of action.

    6. The Defendant No. 4 filed her counter-claim also, for declaration of
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    title, declaration that the suit land has been allotted to the Defendant

    No. 4 under the conditions of the By-Laws of the Society for the

    construction of a house, which are binding upon the plaintiff, and also

    for permanent injunction. It is pleaded in the counter-claim that the

    Defendant No. 4 was a landless lady and she was allotted the suit land

    by the Society, under the existing By-Laws of the Society. She

    obtained membership of the Society under the terms and conditions of

    the By-Laws. Since the plaintiff had violated the terms and conditions,

    his allotment was cancelled, and the suit land was allotted to her.

    Therefore, she prayed for a declaration of title in her favour, and has

    filed the counter-claim.

    7. The plaintiff filed the written statement of the counter-claim of

    Defendant No. 4 and denied her right over the suit land. In

    consonance with the pleading of his plaint, he filed his written

    statement. The By-Laws govern the management of the Society’s

    internal affairs and cannot be given the force of law. The counter claim

    mainly consists of the procedure of execution of the sale deed by the

    Society, allotment of the plot and provisions of By-Laws. Paragraph 4

    of the counterclaim is not in consonance with the relief sought therein.

    The Samiti has already executed a sale deed in favour of the plaintiff

    earlier, and it was executed by the Society under the existing By-Laws.

    The procedure adopted by the authorities for the cancellation of the

    allotment of the plot to the plaintiff is illegal and against the procedure

    prescribed for it. The Civil Court has the jurisdiction to cancel the

    registered sale deed, and the liquidator has no right or authority to do

    so. The sale deed executed in favour of the Defendant No. 4 is illegal
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    and void, and no right, title or possession can be transferred in her

    favour by the said deed. Defendant No. 4 cannot challenge the sale

    deed of the plaintiff. The Defendant No. 4 is not the title or possession

    holder of the suit land, but the plaintiff is the title and possession

    holder of the suit land. The Defendant No. 4 is not entitled to any relief,

    and her counter-claim is liable to be dismissed.

    8. Based on the pleading of the parties, the learned trial court framed the

    following issues:-

    “1. क्या वादी द्वारा प्रतिवादी कं 0-2 राष्टीय खनिज विकास

    निगम कर्मचारी सहकारी गृह निर्माण समिति मर्यादित में खुली

    परिवर्तित आवासीय भूमि खसरा नं0-332/1, 332/2 तथ 334

    का भाग रकबा साईज 60 गुणित 40 बराबर 2400 वर्गफु ट

    वाके मौजा पुरैना प०ह०नं० 113 रा०नि०म० रायपुर-1 तहसील

    व जिला रायपुर स्थित भूखंड क0-25 को श्री एम०ए० एप्पन से

    पंजीकृ त विलेख दिनांक 16/07/2001 के तहत वादग्रस्त

    भूखण्ड के कय किये जाने के पश्चात प्रतिवादी क0-2 द्वारा

    अधिरोपित शर्तों का पालन नहीं किया गया?

    2. क्या वादी द्वारा उक्त शर्तों का पालन न किये जाने के कारण

    प्रतिवादी क-2 वादग्रस्त भूखण्ड के आबंटन को निरस्त करने का

    अधिकारी था ?

    3. क्या प्रतिवादी क०-३ द्वारा वादग्रस्त भूखंड का आबंटन के

    संबंध में निष्पादित निरस्तीकरण विलेख दिनांक 10/03/2011

    विधिपूर्ण न होने से वादी पर बंधनकारी नही है ?

    4. क्या प्रतिवादी कमांक-3 द्वारा प्रतिवादी क०-4 के पक्ष में
    8

    निष्पादित विक्रय इकरारनामा दिनांक 10/03/2011 वादी पर

    बंधनकारी नही है ?

    5. क्या वादी प्रतिवादी क0-4 को वादग्रस्त भूखण्ड पर वादी के

    कब्जे में किसी भी रीति से अंतरित किये जाने की स्थायी

    निषेधाज्ञा प्राप्त करने का अधिकारी है ?

    6. क्या वादी वादग्रस्त भूखण्ड की स्वामी घोषित किये जाने का

    अधिकारी है?

    7. क्या वादी याचित अनुतोष प्राप्त करने का अधिकारी है?

    8. सहायता व व्यय ?

    अतिरिक्त वाद प्रश्न

    9. क्या प्रतिवादी क्रमांक 2 द्वारा वादी के पक्ष में आबंटित

    वादग्रस्त भू-खण्ड को विधिवत निरस्त किया जाकर प्रतिवादी

    कमांक 4 को विधिवत आबंटित कर आधिपत्य सौपा गया है?

    10. क्या वर्तमान में उक्त वादग्रस्त भू-खण्ड पर प्रतिवादी “नहीं”

    कमांक 4 एक मात्र स्वत्व एवं आधिपत्य है?

    11. प्रतिवादी कमांक 4 उक्त वादभूमि के संबंध में वादी के

    विरूद्ध स्थायी निषेधाज्ञा की सहायता प्राप्त करने का अधिकारी

    है?

    12. क्या प्रतिवादी कमांक 4 द्वारा अपने प्रतिदावा का उचित

    मुल्यांकन कर पर्याप्त कोर्ट फीस चस्पा किया गया है?”

    9. The plaintiff Devashish Panda has examined himself as P.W. 1.
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    Although the affidavit in the form of examination in chief of Subrat Kar

    has been filed, the plaintiff has not put him for cross-examination. He

    relied upon the document Ex. P-1, which is a copy of the letter dated

    09-08-2011 written by the liquidator to the Municipal Corporation, Ex.

    P-2 is the letter written by the members of the Samiti to the Municipal

    Corporation, Ex. P-2 (correct number would be Ex. P-3) is the legal

    notice dated 16-05-2011 sent by the plaintiff to the Registrar, Co-

    operative Societies, Raipur, Ex. P-3 and P-4 are the postal receipts,

    Ex. P-5 is the no-objection certificate dated 16-07-2001, Ex. P-8 is the

    amended order dated 16-09-2011 issued by the Joint Registrar, Co-

    operative Societies, Raipur, Ex. P-9 is the cancellation deed dated

    10-03-2011.

    10. The Defendant No. 4 examined her witness, Anil Agrawal, as D.W. 1.

    She relied upon the document Ex. D-1, which is a copy of the sale

    deed dated 03-03-1994, and the sale deed dated 10-03-2011, Ex. D-2

    is a copy of the receipt of deposition of the diversion fee, Ex. D-3 is a

    copy of the no-objection certificate issued by the house construction

    cell of Municipal Corporation, Raipur.

    11. After appreciation of the evidence produced by the parties and perusal

    of the pleading and hearing them, the learned trial court passed its

    judgment and decree on 05-10-2018 and decreed the suit of the

    plaintiff in his favour, declaring that he is the title and possession

    holder of the suit land, and the sale deed dated 04-03-2011 is void and

    not binding upon the plaintiff and also passed the decree of permanent

    injunction in his favour. The counter-claim of Defendant No. 4 has
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    been dismissed. Hence, this first appeal is filed by Defendant No. 4.

    12. Learned counsel appearing for the appellant would submit that the

    impugned judgment and decree passed by the learned trial Court is

    contrary to the facts on record as well as settled principles of law

    governing conditional transfers of immovable property. It is an

    admitted position that the original sale deed executed by the Society in

    favour of its member, namely A.M. Appan, contained a specific and

    unequivocal condition in Clause 2 mandating that the allottee shall

    commence construction within six months from the date of execution

    of the sale deed and complete the same within a period of three years.

    The said clause further provided that in case of non-compliance, the

    Society shall have the right to cancel the allotment and resume the

    property after refunding the consideration amount with applicable

    interest. Such a stipulation clearly constitutes a condition subsequent

    within the meaning of Section 31 of the Transfer of Property Act, 1882,

    and is legally valid and enforceable. The plaintiff, having stepped into

    the shoes of the original allottee, was equally bound by these

    conditions. Admittedly, no construction was carried out within the

    stipulated period, resulting in cancellation under the By-Laws of the

    Society and terms of the sale deed. In these circumstances, the

    revocation deed dated 10-03-2011 and the consequential sale deed

    executed in favour of the appellant are lawful, valid, and binding, and

    the learned trial Court has erred in holding otherwise.

    13. It is further submitted that the learned trial Court has failed to

    appreciate the statutory powers vested in the liquidator under Section
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    71 of the Act of 1960. Upon the Society going into liquidation, all its

    assets vested in the duly appointed liquidator, who was empowered

    not only to realize the assets but also to take all necessary steps for

    proper administration, including cancellation of irregular or non-

    compliant allotments and re-allotment of plots. In the present case, the

    liquidator/Defendant No. 3, after following due procedure, issued

    notices dated 04-01-2011 and 25-02-2011 to the plaintiff regarding

    non-compliance and cancellation of allotment. Thereafter, a registered

    deed of cancellation was executed and duly registered before the Sub-

    Registrar, Raipur, followed by execution of a registered sale deed in

    favour of the Defendant No. 4 upon receipt of valid consideration of

    Rs. 2,40,000/-. The entire process adopted is in consonance with the

    By-Laws of the Society and statutory provisions. Even assuming that

    the liquidator was subsequently removed, the acts performed by him

    during his tenure are fully protected under the de facto doctrine, as

    consistently upheld by the Hon’ble Supreme Court, and therefore

    cannot be invalidated in collateral civil proceedings between private

    parties.

    14. Lastly, it is submitted that the appellant is a bona fide purchaser for

    value, who was validly allotted the suit property after lawful

    cancellation of the earlier allotment. The appellant has not only

    acquired a valid title through a registered instrument but has also been

    recorded in the revenue records as the title holder in possession. The

    learned trial Court, despite recording findings in favour of the appellant

    on Issue No. 1 and partly on Issue No. 2, has failed to draw the correct

    legal inference from such findings and has erroneously granted a
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    declaration and injunction in favour of the plaintiff. The Court below

    has overlooked that once the condition of the original grant stood

    violated, no subsisting right, title, or interest remained with the plaintiff.

    The findings regarding the invalidity of the sale deed dated 10-03-2011

    are thus perverse and unsustainable in law. In view of the above

    submissions, it is prayed that this appeal may be allowed, set aside

    the impugned judgment and decree dated 05-10-2018, and decree the

    counter-claim of the Defendant No. 4 by declaring her as the lawful

    owner and in possession of the suit land along with consequential

    relief of permanent injunction.

    15. He would rely upon the judgment of “Gokaraju Rangaraju v. State of

    Andhra Pradesh“, 1981 (3) SCC 132, “Pushpa Devi M. Jatia v. M.L.

    Wadhawan, Additional Secretary, Govt. of India and Others“, 1987

    (3) SCC 367, “Indu Kakkar v. Haryana State Industrial

    Development Corporation Ltd. and Another” 1999 (2) SCC 37,

    “Aman Semi-Conductors (Private) Limited v. Haryana State

    Industrial Development Corporation Limited and Another”, 2023

    (18) SCC 559, and “The State of Telangana v. Sri Managipet @

    Mangipet Sarveshwar Reddy”, Judgment dated 06-12-2019 passed

    in Criminal Appeal No. 1662/2019, by the Hon’ble Supreme Court.

    16. On the other hand, learned Senior Advocate appearing for the

    Respondent No. 1/plaintiff submits that the impugned judgment and

    decree passed by the learned trial Court are well-reasoned, based on

    proper appreciation of evidence, and in consonance with the settled

    principles of law, and therefore call for no interference in the present
    13

    appeal. It is an admitted and proved fact on record that the plaintiff had

    purchased the suit property by a duly registered sale deed dated 16-

    07-2001 from its lawful owner M. A. Appan, and was placed in

    peaceful possession thereof. Pursuant to such lawful purchase, the

    plaintiff had also raised construction in the form of a boundary wall and

    water tank, thereby establishing his possession. Once an absolute

    sale deed was executed in favour of the plaintiff, complete right, title,

    and interest in the suit property stood transferred to him, and the

    Society ceased to have any subsisting right over the said property. Any

    subsequent unilateral act of cancellation of such registered sale deed,

    without recourse to a competent civil court, is ex facie illegal and void,

    and the learned trial Court has rightly held that the so-called

    revocation deed dated 10-03-2011 and the consequential sale deed

    executed in favour of Defendant No. 4 are not binding upon the

    plaintiff.

    17. It is further submitted that the reliance placed by the appellant on the

    alleged conditional nature of the sale deed is wholly misconceived.

    The conditions, if any, incorporated in the sale deed or By-Laws of the

    Society cannot override the statutory mandate governing transfer of

    property. Once an absolute conveyance is executed, any condition

    restraining enjoyment or providing for automatic resumption is hit by

    the principles underlying Section 11 of the Transfer of Property Act.

    Even otherwise, such a drastic consequence of divesting a lawful

    owner of his title cannot be effected unilaterally by the Society or its

    liquidator. Under Section 31 of the Specific Relief Act, 1963, any

    cancellation or setting aside of a written instrument can only be
    14

    effected by a competent civil court. The liquidator has no adjudicatory

    power to declare a registered sale deed as cancelled or void.

    Therefore, the cancellation deed dated 10-03-2011, having been

    executed without jurisdiction and without authority of law, is a nullity

    and does not divest the plaintiff of his title.

    18. It is further submitted that Defendant No. 4 has no independent right or

    title over the suit property, as she was never a valid member of the

    Society, which is a sine qua non for allotment of plots under the By-

    Laws of the Society. The alleged allotment in her favour is thus

    contrary to the very scheme and object of the Society and is void ab

    initio. Furthermore, Sections 69 and 71 of the Act of 1960, relied upon

    by the Defendant No. 4, do not empower the liquidator to cancel

    concluded and registered sale transactions. The powers of the

    liquidator are limited to realization and distribution of the assets of the

    Society and do not extend to the adjudication of title or annulment of

    vested rights of third parties. The liquidator merely steps into the

    shoes of the Society and cannot exercise powers greater than those

    available to the Society itself. Hence, the entire action of cancellation

    and sale is without jurisdiction. The plaintiff continues to be the lawful

    title holder and in possession of the suit property, and Defendant No. 4

    has failed to establish any legal right in her favour. The provisions of

    Section 31 of the Specific Relief Act, 1963, have also not been

    followed. The findings recorded by the learned trial Court are based on

    cogent evidence and correct interpretation of law, and do not suffer

    from any perversity or illegality warranting interference by this Court.
    15

    19. It is further submitted that Defendant No. 4 has not examined herself

    before the Court to prove the averments made in her written

    statement/counter-claim. The witness, Anil Agrawal (D.W.1), who has

    been examined on her behalf, is neither her power of attorney holder

    nor an authorized person competent to depose on her behalf. The

    counter-claim filed by Defendant No. 4 is in the nature of a plaint,

    wherein she claims right, title, and interest over the suit land;

    therefore, it was incumbent upon her to step into the witness box to

    substantiate her claim. In the absence of her examination, an adverse

    inference ought to be drawn against her. This position of law has been

    clearly laid down by the Hon’ble Supreme Court in “Vidhyadhar v.

    Manikrao & Anr.“, (1999) 3 SCC 573. Therefore, the judgment and

    decree passed by the learned trial court dismissing the counter-claim

    of Defendant No. 4 is fully justified, and the present appeal is liable to

    be dismissed.

    20. I have heard learned counsel for the parties and perused the record of

    the trial Court and gone through the pleadings and evidence available

    in the case.

    21. The question that arises for determination in the present appeal is

    whether the registered sale deed dated 16-07-2001 executed in favour

    of the plaintiff could have been unilaterally cancelled by the Society

    through its liquidator, and whether, on the strength of such

    cancellation, a valid title could have been conveyed to Defendant No.

    4 by the subsequent sale deed dated 10-03-2011. The answer to this

    issue goes to the root of the matter, as the entire claim of Defendant
    16

    No. 4 rests upon the legality of the cancellation and the consequent

    transfer.

    22. The plaintiff Devashish Panda (P.W.1) has deposed that he purchased

    the suit property, namely Plot No. B-25 admeasuring 2400 sq. ft.

    situated at village Purena, through a duly registered sale deed dated

    16-07-2001 from M.A. Appan with the consent of the housing

    cooperative society. He has stated that since the date of purchase, he

    has been in continuous possession of the suit land and has exercised

    rights of ownership thereon. In support of his possession, he deposed

    that he got a boundary wall constructed around the plot and also

    constructed a water tank. He further stated that the society had

    provided him a water pipeline connection and that he has been paying

    charges in respect of such facilities. He relied upon documents,

    including the registered sale deed (Ex. P-1), no-objection certificate

    (Ex. P-5), membership receipt (Ex. P-6), and building permission

    granted by the Municipal Corporation (Ex. P-7), to substantiate his title

    and possession. In cross-examination, he stated that the copy of the

    sale deed executed in favour of Shri M. A. Appan is Ex. D-1, and that

    he had gone through and read over the contents of the said sale deed.

    He denied that he had not complied with Clauses 2, 3 and 4 of the

    sale deed Ex. D-1. He admitted that he has not started his

    construction over the suit land within 03 years of its allotment/sale

    deed, nor has obtained any permission from the concerned

    department. he further admitted that after the cancellation of his

    allotment of land, he moved his application for permission for

    construction. He already made an application for the sanction of the
    17

    map of the house, and in between he came to know about the

    execution of document Ex. P-9. He admitted that he constructed the

    boundary wall in the year 2001. He did not know that Chhaya Devi had

    mutated her name in the municipal records and had obtained

    permission for the construction of the house. Since Rajkumar Naidu

    has cancelled his allotment of plot and executed the cancellation deed

    without any notice to him, he served the notice Ex. P-2 upon him. He

    further admitted that on 09-08-2011, a letter was written by Rajkumar

    Naidu to the Municipal Zone Commissioner with respect to illegal

    construction over the plots. Thereafter, the Zone Commissioner

    withdrew the sanction of construction of the house. He denied

    receiving the amount of Rs. 1,85,000/- through the Cheque No.

    689673, as mentioned in the document Ex. P-9. He also deposed

    about unawareness of the revocation deed of the allotment letter. He

    further denied that Defendant No. 4 is the owner and is in possession

    of the suit land.

    23. The Defendant No. 4, Chhaya Devi Agrawal, herself has not been

    examined in the case. On her behalf, her witness Anil Agrawal, D.W. 1,

    has been examined. He deposed in his evidence that his sister is a

    member of the Samiti, having her membership No. 104. She has

    purchased the plot No. B-25, area 2400 Sqr. Ft. from the Samiti, for

    the total consideration of Rs. 2,40,000/- through the deed dated 10-03-

    2011. Earlier, a registered sale deed was executed in favour of M.A.

    Appan, on 13-03-1994, thereafter, he sold the land to the plaintiff after

    obtaining NOC from the Samiti, on 16-07-2001. The plaintiff Devashish

    Panda was bound by the By-Laws of the Samiti. He has not complied
    18

    with the conditions of the By-Laws of the Samiti, and therefore, the

    sale deed dated 16-07-2001 was cancelled by the cancellation deed

    dated 10-03-2011. Suppressing the cancellation of his sale deed, the

    plaintiff made his application before the Zone Commissioner, Municipal

    Corporation, Raipur, for the sanction of the map, which was approved

    on 19-04-2011. Thereafter, he made his objection before the Zone

    Commissioner on 09-08-2011 regarding the stopping of the illegal

    construction. After his objection, the sanction of construction was

    withdrawn on 11-01-2012. The plot No. B-25 was allotted to his sister,

    and a sale deed was executed in her favour and the possession of the

    same was handed over. She got her name mutated in the municipal

    and revenue records and obtained permission for the construction of

    the house on dated 15-09-2011. After the cancellation of allotment of

    the land to the plaintiff, the same was allotted to Defendant No. 4.

    24. In cross-examination, he admitted that he is not the power of attorney

    holder of his sister Chhaya Devi. He himself has not filed written

    statement in the case. The counterclaim is also filed by her own

    signature. She is suffering from Kidney disease; therefore, she will not

    examine herself as the witness. He, neither a party to the deed Ex. D-

    1 nor a witness. There is no document filed by her that the Defendant

    No. 3 has handed over the possession of the land to Defendant No. 4.

    He also did not see the cancellation deed. He did not know about the

    cancellation deed and the sale deed, Ex. P-9 and D-1 were executed

    on the same day and at the same time, having their document

    numbers 197 and 198. He has not filed any document regarding

    possession. He voluntarily stated that they have constructed a
    19

    boundary wall there. Though it is not written in his affidavit, the affidavit

    contains information about the construction. There is no publication of

    a general notice in news-paper, and his sister has not verified from the

    relevant records. He did not know about the proceedings in the Samiti

    drawn by Defendant No. 3. He did not know about the document of the

    plaintiff.

    25. It is an undisputed fact that the plaintiff acquired the suit land by way

    of a duly registered sale deed dated 16-07-2001. As per Section 54 of

    the Transfer of Property Act, 1882, a sale of an immovable property of

    the value of one hundred rupees and upwards can be made only by a

    registered instrument, and upon such execution, the ownership in the

    property stands transferred to the purchaser. Thus, once the sale deed

    was executed in favour of the plaintiff, complete right, title, and interest

    in the suit property stood vested in him, leaving no subsisting

    ownership with the Society except to the extent permissible under law.

    26. The defendants have sought to justify the cancellation of the sale deed

    of the plaintiff on the ground that the original allotment and sale were

    subject to a condition requiring the start of construction within six

    months and completion within three years. Such a condition, even if

    proved, must be examined in light of the statutory provisions contained

    in the Transfer of Property Act, 1882. Under Section 10, any condition

    absolutely restraining the transferee from enjoying or disposing of the

    property is void, and Section 11 further provides that any direction

    restricting the mode of enjoyment of property, where the interest

    created is absolute, is also void. Though Section 31 recognizes
    20

    conditional transfers, the enforcement of such a condition subsequent

    cannot be effected unilaterally so as to divest a transferee of vested

    ownership rights without recourse to due process of law. The proper

    remedy, in such circumstances, would be to seek appropriate relief

    before a competent civil court, and not to resort to unilateral

    cancellation. It is relevant here to notice Section 10, 11 and 31 of the

    Transfer of Property Act, 1882, which are as under:-

    “10. Condition restraining alienation.–Where

    property is transferred subject to a condition or

    limitation absolutely restraining the transfer or

    any person claiming under him from parting with

    or disposing of his interest in the property, the

    condition or limitation is void, except in the case

    of a lease where the condition is for the benefit of

    the lessor or those claiming under him.

    Provided that property may be transferred to or

    for the benefit of a woman (not being a Hindu,

    Muhammadan or Buddhist), so that she shall not

    have power during her marriage to transfer or

    charge the same or her beneficial interest therein.

    11. Restriction repugnant to interest created.

    –Where, on a transfer of property, an interest

    therein is created absolutely in favour of any

    person, but the terms of the transfer direct that

    such interest shall be applied or enjoyed by him
    21

    in a particular manner, he shall be entitled to

    receive and dispose of such interest as if there

    were no such direction. Where any such direction

    has been made in respect of one piece of

    immoveable property for the purpose of securing

    the beneficial enjoyment of another piece of such

    property, nothing in this section shall be deemed

    to affect any right which the transferor may have

    to enforce such direction or any remedy which he

    may have in respect of a breach thereof.

    31. Condition that transfer shall cease to have

    effect in case specified uncertain event

    happens or does not happen.–Subject to the

    provisions of section 12, on a transfer of property

    an interest therein may be created with the

    condition superadded that it shall cease to exist

    in case a specified uncertain event shall happen,

    or in case a specified uncertain event shall not

    happen.”

    27. In the present case, the Society, acting through its liquidator, executed

    a cancellation deed dated 10-03-2011 without instituting any civil

    proceedings for cancellation of the earlier registered sale deed. This

    action, in the considered opinion of this Court, is wholly without

    jurisdiction. The law is well settled that a registered sale deed cannot

    be cancelled unilaterally by the vendor or any authority claiming under
    22

    him. Such cancellation must be effected only by a decree of a

    competent civil court under the provisions of the Specific Relief Act,

    1963, particularly Sections 31 and 34 as has been held in the case of

    Thota Ganga Laxmi and another v. Government of Andhra

    Pradesh and Others“, 2010 (15) SCC 207. Therefore, the

    cancellation deed dated 10-03-2011 is a nullity in the eyes of the law

    and does not have the effect of extinguishing the plaintiff’s title.

    28. The reliance placed by the defendants on the powers of the liquidator

    under Sections 69, 70, and 71 of the Chhattisgarh Cooperative

    Societies Act, 1960, also does not support their case. Section 69

    provides for the winding up of a cooperative society, while Section 70

    lays down the consequences of such winding up. Section 71

    enumerates the powers of the liquidator, which include taking custody

    of the assets of the society, realizing its dues, and distributing the

    proceeds among the creditors and members. However, a careful

    reading of these provisions makes it evident that the powers conferred

    upon the liquidator are administrative and facilitative in nature. They

    do not include any adjudicatory authority to annul or cancel concluded

    and registered transactions of sale, nor do they empower the liquidator

    to divest third parties of vested property rights. The liquidator merely

    steps into the shoes of the Society and cannot exercise powers

    beyond those available to the Society itself.

    29. In the case at hand, once the Society had already executed a

    registered sale deed in favour of the plaintiff, it ceased to have any

    ownership interest in the property, and consequently, the liquidator
    23

    could not have exercised any power to cancel such sale. Therefore,

    the cancellation deed executed by the liquidator is clearly beyond the

    scope of his statutory authority and is liable to be declared void.

    30. It is relevant here to notice the conditions of the sale deed executed in

    favour of M. A. Appan and the plaintiff Devashish Panda. The

    conditions of the sale deed dated 03-03-1994, executed in favour of M.

    A. Appan is as under:-

    “2. यह कि उक्त वर्णित विक्रय शुदा भूखण्ड/सम्पत्ति पर क्रे ता

    सदस्य द्वारा के वल आवासीय प्रयोजन हेतु भवन का निर्माण किया

    जावेगा। क्रे ता सदस्य को इस विक्रय पत्र निष्पादन पंजीयन

    दिनांक से 6 माह की अवधि के भीतर भवन निर्माण का कार्य

    प्रारम्भ करना आवश्यक होगा तथा प्रारम्भ किए गए भवन निर्माण

    के कार्य को तीन वर्ष की अवधि तक पूर्ण करने हेतु क्रे ता सदस्य

    बाध्य होगा। यदि क्रे ता सदस्य द्वारा उक्त वर्णित अनुसार तीन वर्ष

    के भीतर भवन का निर्माण नहीं किया जाता है, तब ऐसी दशा में

    संशोधित उपलब्धि की धारा 43 (एक) के तहत विक्रे ता समिति

    उक्त वर्णित शुदा भूखण्ड/सम्पत्ति के आबंटन को निरस्त कर

    पंजीयन को निरस्त करवा सके गा और क्रे ता सदस्य द्वारा अदा की

    गई विक्रय प्रतिफल की राशि को पोस्ट ऑफिस के प्रचलित सेविंग

    ब्याज दर के मान से ब्याज सहित बैंक ड्राफ्ट के माध्यम से वापस

    कर दिया जावेगा। और इस प्रकार से ऐसी भूखण्ड विक्रे ता समिति

    की पुनः सम्पत्ति हो जावेगी।

    3. यह कि क्रे ता सदस्य किन्हीं विशेष परिस्थितियों में उक्त वर्णित

    निर्धारित अवधि में निर्माण प्रारम्भ कर तीन वर्ष के भीतर निर्माण
    24

    की कार्यवाही पूर्ण नहीं कराता है तब ऐसी दशा में क्रे ता सदस्य

    द्वारा लिखित आवेदन पर विक्रे ता समिति के प्रबन्ध समिति द्वारा

    दो बार निर्धारित अवधि में वृद्धि की जा सके गी। उक्त वृद्धि किसी

    भी दशा में दो वर्ष से अधिक की नहीं होगी। अर्थात् विक्रे ता

    समिति की प्रबन्ध समिति को कु ल दो वर्ष तक की अवधि में वृद्धि

    का अधिकार है।

    4. यह कि उक्त वर्णित की गई अवधि वृद्धि के बावजूद अवधि

    वृद्धि के पश्चात निर्धारित अवधि में भवन निर्माण का कार्य पूर्ण

    नहीं किया जाता है, तब ऐसी दशा में विक्रे ता समिति क्रे ता सदस्य

    को उसके द्वारा अदा की गई विक्रय प्रतिफल की राशि उक्त

    वर्णित ब्याज सहित बैंक ड्राफ्ट/बैंकर्स चेक के माध्यम से वापस

    करेगी।

    5. यह कि क्रे ता सदस्य द्वारा भवन निर्माण के पूर्व उसके द्वारा

    प्रस्तावित भवन के मानचित्र के सम्बन्ध में विक्रे ता समिति से

    स्वीकृ ति प्राप्त कर निर्माण कार्य प्रारम्भ करेगा। भवन निर्माण हेतु

    विक्रे ता समिति द्वारा निर्धारित नियम क्रे ता सदस्य पर बन्धनकारी

    होगा तथा उसी के अनुसार ही उसके द्वारा भवन का निर्माण किया

    जावेगा। अलावा इसके भवन निर्माण के संबंध में क्रे ता सदस्य पर

    नगर निवेश अधिनियम, 1972 व पंचायत राज अधिनियम, 1979

    के प्रावधान लागू होंगे।

    6. यह कि कार्नर भूखण्ड के आबंटन व विक्रय पत्र निष्पादन की

    दशा में क्रे ता सदस्य को अपनी भूमि में से यातायात सुविधा हेतु

    ………… की जगह छोड़नी होगी।

    25

    7. यह कि विक्रय शुदा भूखण्ड/सम्पत्ति पर निर्मित भवन का

    उपयोग क्रे ता सदस्य द्वारा स्वयं के आवास के लिए किया जावेगा

    कदाचित क्रे ता सदस्य द्वारा क्रय शुदा भूखण्ड/सम्पत्ति पर बने

    भवन को किराये पर दिया जाता है, तब ऐसी दशा में क्रे ता सदस्य

    को विक्रे ता समिति से लिखित अनुमति लेना आवश्यक होगा।

    अलावा उसके दी गई अनुमति में वर्णित समस्त निर्देश क्रे ता

    सदस्य पर बन्धनकारी होगा।

    8. यह कि क्रे ता सदस्य यदि भवन निर्माण हेतु ऋण लेना चाहे तब

    ऐसी दशा में ऋण हेतु आवेदन किसी शासकीय, अर्धशासकीय,

    सहकारी संस्था मर्यादित कम्पनी से विक्रे ता समिति के माध्यम से

    आवेदन प्रेषित कर ऋण प्राप्त कर सके गा। ऋण हेतु

    भूखण्ड/सम्पत्ति एवं उस पर निर्मित भवन उपरोक्त शासकीय

    अर्धशासकीय व सहकारी संस्था या मर्यादित कम्पनी के पास

    बन्धन रखा जा सकता है।

    9. यह कि क्रे ता सदस्य द्वारा विक्रय शुदा भूखण्ड/सम्पत्ति अथवा

    उस पर बने मकान को किसी अन्य को विक्रय करना चाहे तो

    विक्रय बाबत प्रस्तावित विक्रय मूल्य की लिखित सूचना विक्रय

    पत्र निष्पादन दिनांक से 45 दिन पूर्व लिखित में विक्रे ता समिति

    को दिया जाना अनिवार्य होगा। सूचना मिलने के पश्चात उक्त

    वर्णित अवधि के भीतर विक्रे ता समिति यदि चाहे तो प्रस्तावित

    विक्रय मूल्य की राशि अदा कर विक्रय शुदा सम्पत्ति/भूखण्ड

    अथवा उस पर बने मकान को पुनः क्रय कर सकती है। इस प्रकार

    उक्त 45 दिनों की अवधि में विक्रे ता समिति अपने अग्रक्रय

    अधिकार का उपयोग नहीं करती है तब ऐसी दशा में क्रे ता सदस्य
    26

    अपने प्रस्तावित क्रे ता को विक्रय शुदा भूखण्ड/सम्पत्ति अथवा उस

    पर बने मकान को विक्रय करने हेतु स्वतन्त्र होगा। लेकिन

    प्रस्तावित क्रे ता को सर्वप्रथम विक्रे ता समिति का सदस्य बनना

    आवश्यक होगा। सदस्यता प्राप्त करने के पश्चात प्रस्तावित क्रे ता

    को विक्रय मूल्य (विक्रय प्रतिफल) की राशि का पांच प्रतिशत

    सम्मति शुल्क के रूप में विक्रे ता समिति को अदा करेगा।

    10. यह कि बिना विक्रे ता समिति के सदस्य बने यदि प्रस्तावित

    क्रे ता को इस विक्रय विलेख में वर्णित क्रे ता सदस्य द्वारा विक्रय

    शुदा भूखण्ड/सम्पत्ति अथवा उस पर बने मकान को विक्रय किया

    जाता है, ऐसी दशा में किया गया विक्रय अवैध माना जावेगा और

    इस विलेख में वर्णित क्रे ता सदस्य की सदस्यता विक्रे ता समिति से

    समाप्त कर दी जावेगी व उपरोक्त वर्णित अनुसार रकम की

    अदायगी कर विक्रय शुदा भूखण्ड/सम्पत्ति का कब्जा विक्रे ता

    समिति द्वारा प्राप्त कर लिया जावेगा।

    11. यह कि विक्रे ता समिति के सम्पूर्ण आवासीय क्षेत्र में मवेशियों

    व भारी वाहनों का संचय या संग्रह व प्रवेश वर्जित है: क्रे ता सदस्य

    या उसके किसी किरायेदार द्वारा विक्रयशुदा भूखण्ड/संपत्ति के

    किसी भाग या उस पर बने मकान में व उसके किसी भाग में डेयरी

    फार्म इत्यादि नहीं खोल सकें गे। वहीं भारी वाहनों के लिए भी

    गैरेज इत्यादि का निर्माण नहीं किया जा सके गा।

    12. यह कि क्रे ता सदस्य द्वारा निर्मित भवन में किसी भी प्रकार की

    परिवर्तन की दशा में, परिवर्तन के पूर्व प्रस्तावित परिवर्तन के संबंध

    में अनुमति विक्रे ता समिति से लिया जाना आवश्यक होगा।
    27

    13. यह कि विक्रे ता समिति के द्वारा अपनी आवासीय योजना के

    तहत उसके द्वारा क्रय की गई भूमि को कृ षि प्रयोजन से भिन्न

    प्रयोजन हेतु (आवासीय प्रयोजन) परिवर्तन कराया गया विक्रय

    शुदा भूखण्ड/संपत्ति की परिवर्तित लगान की अदायगी की

    जिम्मेदारी क्रे ता सदस्य की होगी।

    14. यह कि विक्रे ता समिति के द्वारा सार्वजनिक हित एवं

    सार्वजनिक उपयोग हेतु सड़क, भवन, बिजली, पेयजल, सुरक्षा

    या किसी अन्य मद पर किए गए व्यय को समान रूप से इस क्रे ता

    सदस्य सहित अन्य क्रे ता सदस्यों द्वारा वहन किया जावेगा तथा

    प्रतिवर्ष भुगतान इस क्रे ता सहित अन्य क्रे ता सदस्यों द्वारा विक्रे ता

    समिति को अदा किया जावेगी, जिसकी रसीद विक्रे ता समिति

    द्वारा प्रदान की जावेगी।

    15. यह कि क्रे ता सदस्य द्वारा इस विक्रय विलेख में वर्णित उक्त

    शर्तों में से किसी भी शर्त या शर्तों के उल्लंघन की दशा में क्रे ता

    सदस्य के पक्ष में किए गए आबंटन एवं विक्रय पत्र निष्पादन व

    पंजीयन को रद्द कराने का अधिकार विक्रे ता समिति को होगा।

    16. यह कि उक्त शर्तों के अतिरिक्त क्रे ता सदस्य एवं उसके

    हस्तांतरित अनुक्रम पर वे समस्त नियम लागू होंगे जो कि समिति

    व तत्समय प्रभावशील विधि के अन्तर्गत निर्धारित किए गए हों।

    इसी तरह विक्रे ता समिति के उपनियम में निर्दिष्ट नियम एवं समय-

    समय पर समिति की कार्यकारिणी व प्रबंध समिति के निर्णय का

    पालन भी क्रे ता सदस्य को करना होगा। किसी भी शर्त या निर्णय

    के उल्लंघन की दशा में क्रे ता सदस्य के आबंटन को रद्द करने का
    28

    अधिकार व उस पर समुचित निर्णय लेने का अधिकार विक्रे ता

    समिति को होगा।

    ******* उपरोक्त सभी तथ्यों एवं शर्तों को पढ़कर, समझ कर,

    सही पाकर इसमें लिखे सभी बातों को स्वीकार कर स्वस्थ चित्त से

    क्रे ता सदस्य के पक्ष में इस विक्रय विलेख का निष्पादन मेरे द्वारा

    मुकाम रायपुर में दो गवाहों के समक्ष हस्ताक्षर कर निष्पादित

    किया गया, ताकि प्रमाण रहे एवं आवश्यकता पड़ने पर काम

    आवे।”

    31. The relevant part of the contents of the sale deed dated 16-07-2001

    executed in favour of the plaintiff Devashish Panda is as under:-

    “यह कि उपरोक्त भूमि को पूर्व में मैंने राष्ट्रीय खनिज विकास

    निगम कर्मचारी सहकारी गृह निर्माण समिति रायपुर म.प्र. (मध्य

    प्रदेश सहकारी समिति अधिनियम 1960 के अन्तर्गत पंजीयन

    क्रमांक आर.पी.आर./140/90-91 में एक पंजीकृ त सहकारी

    समिति प्रधान कार्यालय कोमाखान हाऊस सिविल लाईन रायपुर

    तह. व जिला रायपुर द्वारा अध्यक्ष बी.आर. गुप्ता आत्मज श्री

    एन.आर. गुप्ता पता एन.एम.डी.सी. कोमाखान हाऊस, सिविल

    लाईन रायपुर म.प्र.) से क्रय किया था। जोकि मेरे पक्ष में प्रबन्ध

    कार्यकारिणी की बैठक दिनांक 28.2.94 को संचालक मंडल द्वारा

    सर्वसम्मति से लिये गये निर्णयानुसार उक्त भूमि को मेरे पक्ष में

    रजिस्ट्री हेतु स्वीकृ ति प्रदान की गई थी। एवं मेरे पक्ष में दिनांक 3

    मार्च 1994 को पुस्तक क्रमांक-अ-1 ग्रन्थ क्रमांक-17554 पृष्ठ

    1+7 क्रमांक- 11287 देकर पंजीकृ त किया गया था।

    29

    ******* चूंकि उक्त भूमि के मालिक होने के नाते मै उक्त

    जमीन को बिक्री करने का अधिकार रखता हूं, अतः आज दिनांक

    को मुझे घरेलू कार्य हेतु नगद रकम की जरूरत पड़ने के कारण

    पृष्ठ एक में दर्शाये गये क्रे ता:- देबाशीष पाण्डा के पास उक्त जमीन

    विक्रय कर सौदे की पूरी राशि प्राप्त कर संबंधित विभाग से

    एन.ओ.सी. प्राप्त कर उसके पक्ष में रजिस्टर्ड बैयनामा कर रहा

    हूं।”

    32. From perusal of the sale deed Ex. D-1, it transpires that there was a

    condition that the purchaser M. A. Appan shall start construction within

    06 months and should complete within 03 years, yet he had not

    started construction within the stipulated period, and his allotment was

    not cancelled nor was any notice issued to him. Despite having

    knowledge of the said fact, he was granted no objection to sell the

    land to the plaintiff and the land was sold to him on 16-07-2001

    through the registered sale deed. There was no such condition in the

    sale deed of the plaintiff, though he too was bound by the By-Laws of

    the Society.

    33. Another important aspect that renders the defendants’ case doubtful is

    that the cancellation deed and the subsequent sale deed in favour of

    Defendant No. 4 were executed on the very same day, i.e., 10-03-

    2011. Clause 9 of the contents of the sale deed dated 10-03-2011 (Ex.

    D-1), executed in favour of the Defendant No. 4 is also relevant to be

    reproduced here, which is as under:-

    “9. यह कि क्रे ता सदस्य द्वारा विक्रय शुदा भूखण्ड/संपत्ति अथवा
    30

    उस पर बने मकान को किसी अन्य को विक्रय करना चाहे तो

    विक्रय बाबत् प्रस्तावित विक्रय मूल्य की लिखित सूचना विक्रय

    पत्र निष्पादन दिनांक से 45 दिन पूर्व लिखित में विक्रे ता समिति

    को दिया जा अनिवार्य होगा। सूचना मिलने के पश्चात उक्त वर्णित

    अवधि के भीतर विक्रे ता समिति चाहे तो प्रस्तावित विक्रय मूल्य

    की राशि अदा कर विक्रय शुदा संपत्ति/भूखण्ड अथवा उस पर बने

    मकान को पुनः क्रय कर सकती है। इस प्रकार उक्त 45 दिनों की

    अवधि में विक्रे ता समिति अपने अग्रकया अधिकार का उपयोग

    नहीं करती है तब ऐसी दशा में क्रे ता सदस्य अपने प्रस्तावित क्रे ता

    को विक्रयशुदा भूखण्ड/संपत्ति अथवा उस पर बने मकान को

    विक्रय करने हेतु स्वतंत्र होगा। लेकिन प्रस्तावित क्रे ता को

    सर्वप्रथम विक्रे ता समिति का सदस्य बनना आवश्यक होगा।

    सदस्यता प्राप्त करने के पश्चात प्रस्तावित क्रे ता को विक्रय मूल्य

    (विक्रय प्रतिफल) की राशि का पांच प्रतिशत सम्मति शुल्क के

    रूप में विक्रे ता समिति को अदा करेगा।”

    34. Clause 9 of the sale deed Ex. D-1 clearly stipulates that the proposed

    purchaser should be a member of the Society and such a member

    should have deposited 5% of the total consideration of the sale to the

    Society. There is no evidence on record produced by Defendant No. 4

    that she has deposited the said amount with the Society. It is

    undisputed that on the same day, i.e. on 10-03-2011, the cancellation

    deed of the allotment of the land to the plaintiff and the sale deed in

    favour of Defendant No. 4 was executed. Further Clause 2 of the

    contents of the sale deed Ex. D-1 provides that if the

    purchaser/allottee does not complete his construction over the allotted
    31

    land within 03 years, the Society have a right to cancel the allotment of

    the land, and the sale consideration is to be refunded along with the

    prevailing bank rate of interest. There is no evidence on record that

    the said amount was refunded to the plaintiff, except the endorsement

    in the cancellation deed dated 10-03-2011 (Ex. P-9) that the amount is

    refunded along with the interest through the cheque. Whether the said

    amount was actually received by the plaintiff or not has not been

    proved.

    35. The other submissions of Defendant No. 4, founded on the de facto

    doctrine is required to be examined in the backdrop of the nature of

    powers exercised by the liquidator and the character of the impugned

    acts. The doctrine, as authoritatively explained by the Hon’ble

    Supreme Court in “Gokaraju Rangaraju v. State of Andhra Pradesh

    1981 (3) SCC 132, validates acts of an officer who is in de facto

    possession of an office under colour of lawful authority, so as to

    protect third parties and ensure continuity in administration. However,

    the Court has clearly circumscribed the doctrine by holding that such

    protection is available only in respect of acts done within the apparent

    scope of authority of the office and not to acts which are wholly without

    jurisdiction. The de facto doctrine cannot be invoked where the officer

    has no authority at all to act in the matter; it applies only to acts done

    within the scope of the office and not to acts which are wholly outside

    the jurisdiction of such office. Thus, while irregularity in appointment

    may be cured, absence of power cannot be.

    36. In the present case, even if it is assumed that Defendant No. 3
    32

    continued to act as a de facto liquidator despite subsequent change or

    irregularity in his appointment, the crucial issue is whether the acts

    performed by him fall within the lawful ambit of powers of a liquidator.

    Under Sections 69 to 71 of the Chhattisgarh Cooperative Societies

    Act, 1960, the role of a liquidator is essentially administrative, taking

    custody of the assets of the society, realizing its dues, settling claims,

    and distributing the proceeds. The liquidator merely steps into the

    shoes of the society and cannot exercise powers superior to or

    independent of it. Neither the society nor the liquidator is vested with

    adjudicatory authority to cancel a concluded and registered sale deed

    or to divest a purchaser of vested title without recourse to a competent

    civil court. Therefore, the act of executing a unilateral cancellation

    deed dated 10-03-2011, followed by a fresh sale in favour of

    Defendant No. 4, is clearly beyond the statutory powers of liquidation.

    37. In light of the facts of the present case, the reliance placed by the

    appellant on the de facto doctrine is wholly misplaced. As held by the

    Hon’ble Supreme Court in “Aman Semi-conductors Pvt. Ltd. v.

    Haryana State Industrial Development Corporation Ltd.” 2023 (18)

    SCC 559, the doctrine is intended to protect acts performed by an

    authority under the colour of lawful office so as to safeguard third-party

    interests and ensure continuity in administration; however, it cannot be

    invoked to validate actions which are inherently without jurisdiction or

    which result in deprivation of vested rights without authority of law. In

    the present case, even if the liquidator is assumed to have acted as a

    de facto authority, the act of unilaterally cancelling a duly registered

    sale deed of the plaintiff and executing a fresh sale deed in favour of
    33

    Defendant No. 4 is not an act within the permissible scope of powers

    of a liquidator under the Chhattisgarh Cooperative Societies Act, 1960.

    Such cancellation directly affects vested proprietary rights and could

    only have been undertaken through a competent civil court. Therefore,

    the impugned cancellation deed dated 10-03-2011, being an act wholly

    without jurisdiction, cannot derive any protection under the de facto

    doctrine, and the subsequent sale in favour of Defendant No. 4, being

    founded on such void action, does not confer any valid title upon her.

    The Court has emphasized that the de facto doctrine is not a panacea

    to cure jurisdictional defects, and cannot be extended to actions which

    have the effect of extinguishing substantive rights without authority of

    law. The distinction between acts done in irregular exercise of lawful

    authority and acts done in complete absence of authority has been

    clearly maintained, and only the former can be protected.

    38. Applying the aforesaid principles to the facts of the present case, this

    Court finds that the cancellation of the plaintiff’s registered sale deed

    was not an act done in mere irregular exercise of power but was a

    substantive act wholly without jurisdiction. The subsequent change in

    the office of the liquidator does not validate such an action, nor can the

    de facto doctrine be pressed into service to confer legality upon it.

    Since the liquidator lacked inherent authority to annul the plaintiff’s

    vested title, the cancellation deed and the consequential sale deed in

    favour of Defendant No. 4 remain void and non est in the eyes of the

    law. Accordingly, the plea of the appellant based on the de facto

    doctrine is liable to be rejected.

    34

    39. Furthermore, Defendant No. 4 has not entered the witness box to

    substantiate her claim. Her case rests upon the testimony of D.W.1,

    who has, in his cross-examination, admitted that he is neither a power

    of attorney holder nor a party to the relevant documents and lacks

    personal knowledge of the material facts. The law is well settled that

    where a party fails to step into the witness box to depose in support of

    its case, an adverse inference is liable to be drawn against such party.

    This omission on the part of Defendant No. 4 significantly weakens her

    counter-claim and renders her assertions unproved. In the case of

    Vidyadhar v. Manikrao, AIR 1999 SC 1441, the Hon’ble Supreme

    Court has held that:-

    “16. Where a party to the suit does not appear

    into the witness box and states his own case on

    oath and does not offer himself to be cross

    examined by the other side, a presumption would

    arise that the case set up by him is not correct as

    has been held in a series of decisions passed by

    various High Courts and the Privy Council

    beginning from the decision in Sardar Gurbakhsh

    Singh v. Gurdial Singh and Anr.. This was followed by

    the Lahore High Court in Kirpa Singh v. Ajaipal

    Singh and Ors. AIR (1930) Lahore 1 and the

    Bombay High Court in Martand Pandharinath

    Chaudhari v. Radhabai Krishnarao Deshmukh AIR

    (1931) Bombay 97. The Madhya Pradesh High

    Court in Gulla Kharagjit Carpenter v. Narsingh
    35

    Nandkishore Rawat also followed the Privy Council

    decision in Sardar Gurbakhsh Singh‘s case (supra).

    The Allahabad High Court in Arjun Singh v. Virender

    Nath and Anr. held that if a party abstains from

    entering the witness box, it would give rise to an

    inference adverse against him. Similarly, a

    Division Bench of the Punjab & Haryana High

    Court in Bhagwan Dass v. Bhishan Chand and Ors.,

    drew a presumption under Section 114 of the

    Evidence Act against a party who did not enter

    into the witness box.”

    40. The plea of Defendant No. 4 that she is a bona fide purchaser also

    does not merit acceptance. It is a settled principle of law that a

    transferee cannot acquire a better title than that of the transferor.

    Since the Society, through its liquidator, had no authority to cancel the

    earlier sale deed and had no subsisting title in the property, it could not

    have conveyed any valid title to Defendant No. 4. The subsequent

    entries in revenue or municipal records, even if made, do not confer

    title and are only for fiscal purposes.

    41. In view of the aforesaid consideration, this Court is of the considered

    opinion that the learned trial Court has rightly considered the evidence

    available on record and law applicable to it and has decreed the suit of

    the plaintiff and dismissed the counter-claim of Defendant No. 4. The

    findings recorded by it do not suffer from any illegality or perversity

    warranting interference by this Court. Accordingly, the judgment and
    36

    decree passed by the learned trial Court deserve to be affirmed, and

    the present appeal, being devoid of merit, is liable to be dismissed.

    42. Accordingly, the appeal filed by the appellant/Defendant No. 4 is

    dismissed.

    43. Parties to bear their own costs.

    44. An appellate decree be drawn accordingly.

    Sd/-

    (Ravindra Kumar Agrawal)
    Judge
    ved
    37

    HEAD NOTE

    ******* The de facto doctrine cannot be invoked to validate

    acts which are wholly without jurisdiction, and therefore, a

    unilateral cancellation of a registered sale deed by a

    liquidator, being beyond statutory authority, remains void

    and incapable of conferring valid title through any

    subsequent transfer.



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