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Unilateral Cancellation of Registered Sale Agreement Not Permissible: Bombay HC

Case Law Details

TaxGuru Citation
2026 taxguru.in 879
Case Name
Macrotech Developers Ltd. Vs Joint Sub-Registrar and Ors. (Bombay High Court)
Date of Judgement/Order
Only available for paid members
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Macrotech Developers Ltd. Vs Joint Sub-Registrar and Ors. (Bombay High Court)

The writ petition before the Bombay High Court arose from a dispute concerning cancellation of a registered agreement for sale in a real estate project. The petitioner, a promoter of a project registered under MahaRERA, had executed an agreement for sale in May 2018 in favour of certain allottees. Due to persistent defaults in payment of instalments by the allottees, the petitioner issued a termination notice and thereafter filed a complaint before MahaRERA under Section 31 of the Real Estate (Regulation and Development) Act, 2016 (RERA). The complaint sought directions to the allottees to execute and register a deed of cancellation of the agreement for sale. In the alternative, the petitioner sought appointment of a fit person, including a MahaRERA officer, to execute and register such deed, along with a direction to the concerned Sub-Registrar to register it.

MahaRERA allowed the complaint by its order dated 14 August 2024, granting the reliefs sought. When the allottees failed to comply, the petitioner initiated execution proceedings under Section 40 of RERA. In the execution order dated 28 November 2024, MahaRERA, instead of appointing a fit person to execute the deed of cancellation, suo motu directed the Sub-Registrar to cancel the registered agreement for sale. When this execution order was placed before the Sub-Registrar, the Sub-Registrar refused to comply, stating that MahaRERA had no authority to direct unilateral cancellation of a registered instrument.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 19,782

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