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Supreme Court Clarifies Third-Party Rights: No Need to Cancel Void Sale Deeds

The Supreme Court has ruled that under Section 31 of the Specific Relief Act, 1963, it is not mandatory for a third party, against whom a sale deed is void, to seek its cancellation. The ruling highlights that when a sale deed is executed between parties, a third party affected by it does not need to file a separate application for its cancellation.

In the case presented, a co-owner sold the entire joint family property without the authorization of other co-owners. The respondent challenged this sale, arguing that the co-owner was only entitled to transfer his share, not the entire property. The court agreed, ruling that the subsequent purchaser could not claim rights to the entire property solely based on a deed executed by one co-owner.

The appellant, in defense, argued that the respondent had not sought the cancellation of the sale deed, implying it should stand. However, the court rejected this, relying on Section 31 of the Specific Relief Act, which allows—but does not require—a party to request cancellation. The court emphasized that since the respondent was not a party to the deed, they were not obligated to seek its cancellation.

This ruling reinforces that cancellation of a sale deed under Section 31 is not compulsory for third parties and applies only to the involved parties.

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