Conveyance Deed Cancelled | Legal Grounds & Process Explained

A conveyance deed is a crucial legal document that solidifies the transfer of property ownership from one party to another. While it is typically regarded as final and legally binding, there are circumstances where a conveyance deed can be cancelled. Cancellation may arise due to fraud, misrepresentation, coercion, undue influence, mistake, or legal incapacity of a party involved in the transaction.

If a conveyance deed was obtained illegally or unfairly, the affected party has the right to seek legal recourse through the courts. The cancellation process involves filing a suit, presenting evidence, and obtaining a court order, which must then be registered with the relevant land authorities. Failure to follow proper legal channels can result in complications, especially if the property has been transferred to a third party.

In this blog, we explore the legal grounds for cancelling a conveyance deed, the court procedures involved, and the consequences of cancellation. Additionally, we highlight key Supreme Court judgments that have shaped the legal interpretation of conveyance deed cancellations. Whether you're a buyer, seller, or legal professional, understanding the circumstances under which a conveyance deed can be revoked is crucial to navigating property transactions effectively.

Can A Conveyance Deed Be Canceled?

A conveyance deed is normally taken to be the final and binding document of transfer of ownership of property. However, under certain circumstances, it is revocable in law or can be declared voidable. This is possible when the deed is invalid because of defects in execution or when, with established evidence of fraud or other underhand methods, the conveyance was wrongly obtained.

Legal Grounds for Cancellation of a Conveyance Deed

Following are the legal grounds in which a conveyance deed can be cancelled:

Fraud

A deed obtained through misrepresentation, coercion, or any kind of fraudulent activity may be canceled. This could arise where one party has been misled about the nature of the transaction, either the value of the property or some other material fact.

Undue Influence

When one party exercises undue influence over the other, making them sign the deed by using some position of power or trust, the deed may be termed as void.

Coercion or Duress

The deed can be canceled if one party, under some threat or coercion, was forced to sign it.

Mistake

In cases involving mutual mistake as to a basic feature of the property or transaction, cancellation may be granted. However, a unilateral mistake is not sufficient in most of the cases.

Forgery

Where the deed is forged or was executed by the owner contrary to their real or genuine consent, it becomes void.

Incapacity

Where, in the satisfaction of any competent authority, one of the parties is incapacitated to contract, such as a minor or mentally incapacitated individual, the deed may be annulled.

Violation Of Legal Provisions

If the deed of conveyance contravenes the provisions of ordinary law or any statutes, it could be declared void.

Legal Procedure For Cancellation Of A Conveyance Deed

Follow this procedure to get a Conveyance Deed cancelled:

Filing A Suit

The aggrieved party must then take recourse to the appropriate court through a civil suit to seek cancellation of the deed. The suit shall, in specific and unequivocal terms, set forth the grounds for seeking cancellation, together with appropriate documentary evidence.

Notice To The Other Party

Service of notice shall be issued by the court to the other party involved in the conveyance, giving him the opportunity to reply to the charges against him.

Evidence And Arguments

In this trial, both parties submit their evidence and arguments to the court. This may include documentary evidence, witness testimonies, and expert opinions.

Court Decision

The court shall declare whether the deed of conveyance has to be canceled after taking into consideration the evidence and arguments placed before it, regardless of which side the court found more convincing. The personas can appeal against the cancellation of the conveyance deed.

Registration Of Cancellation

The court order, that is going to have the deed canceled, should be registered with the relevant land registration authorities, such that they can register the order under which ownership will change.

Also Read : Step-by-Step Process Of Conveyance Deed Registration Offline In Maharashtra

Consequences Of Cancelling A Conveyance Deed

Following are the consequences of cancelling a conveyance deed:

• In the case of reversal of ownership, the property reverts to the original owner as though the transfer had never taken place.
• The recipient may have to return payments made and may also be liable for damages.
• The parties involved may incur the legal expenses in connection with the court proceedings.
• The resale of the property to a third party later on complicates matters in cancellation with a multitude of claims colliding.
• Such reversals may cause both monetary and legal issues for everyone.

Also Read : Difference Between Conveyance Deed And Sale Deed

Supreme Court Judgement On Conveyance Deed Cancelled

A few judgments by the Supreme Court (SC) on cancellation of Conveyance Deed are:

Suraj Lamps & Industries Pvt. Ltd. vs. State of Haryana

In this case, the SC ruled a conveyance deed obtained through fraud or misrepresentation is voidable and can be canceled. Such methods are commonly misused to evade taxes/fee and are responsible for black money and illegal land dealings, adversely affecting genuine transactions. Thus, the court opined that such transfers are not valid except for limited protection under Section 53A of the Transfer of Property Act for part performance.

Kale & Others vs. Deputy Director of Consolidation

Here, the SC stated that a mutual mistake of fact can justify cancellation, whereas a unilateral mistake alone is usually insufficient. It emphasized that both parties must share the misunderstanding for legal grounds to exist. A mistake by only one party does not typically warrant cancellation.

Conclusion

The cancellation of a conveyance deed is a complex legal process that requires strong grounds such as fraud, coercion, mistake, or legal incapacity. If a conveyance deed was obtained through unlawful means, the affected party must take legal action by filing a suit in court and following due process. Once the court declares the deed void, it must be officially registered to ensure the reversal of ownership.

Understanding the legal provisions and consequences of getting a conveyance deed cancelled is essential for both buyers and sellers to avoid legal disputes and financial losses. Seeking professional legal advice can help navigate the process efficiently and protect property rights. If you find yourself in a situation where a conveyance deed needs to be revoked, consulting a legal expert is the best course of action to safeguard your interests.

FAQs

A few FAQs on cancellation of conveyance deed are:

Q1. What if the conveyance deed was forged?

A forged deed, or one signed without the true consent of the owner, is automatically void and can be canceled.

Q2. Can a deed be canceled if one party lacked the capacity to contract?

Yes, if a party was a minor or mentally incompetent at the time of signing, the deed can be canceled.

Q3. What is the legal procedure for canceling a conveyance deed?

The process involves filing a civil suit, providing evidence, and attending court hearings where the judge will make a decision.

Q4. What are the consequences of canceling a conveyance deed?

Consequences include reversal of ownership, potential financial liabilities, legal costs, and complications if the property was resold to a third party.