Punjab & Haryana High Court Upholds Vacation of Temporary Injunction After Execution of Registered Sale Deed; Holds Non-Payment of Consideration Does Not Invalidate Sale
Case Name: Rajeshwari Yadav v. Jawahar Singh Yadav and Another
Date of Judgment: 16 January 2026
Citation: CR-9518-2025
Bench: Hon’ble Mr. Justice Deepak Gupta
Held: The Punjab and Haryana High Court held that once a registered sale deed is executed, title to the immovable property stands transferred to the vendee, and mere dishonour or non-payment of sale consideration does not render the sale void or revive ownership rights in favour of the vendor. The Court held that in such circumstances, the vendor’s remedy lies in recovery of money and not in seeking injunction against the vendee.
Summary: The civil revision petition was filed by the plaintiff assailing the appellate order dated 07.11.2025 passed by the Additional District Judge, Gurugram, whereby the order of temporary injunction granted by the Trial Court was set aside. The plaintiff had instituted a civil suit seeking declaration and consequential relief of permanent injunction in respect of the suit property.
The undisputed factual position was that the plaintiff had executed a registered sale deed dated 26.07.2019 in favour of the defendants for a total consideration of ₹29,94,750/-. The consideration was paid through a cheque which was dishonoured upon presentation. Thereafter, the plaintiff initiated proceedings under Section 138 of the Negotiable Instruments Act, 1881. During pendency of those proceedings, the defendants tendered a demand draft dated 05.08.2020 for the entire sale consideration, which the plaintiff declined to accept.
Instead of accepting the payment or pursuing recovery of the amount, the plaintiff filed the present suit seeking a declaration that the sale deed was not binding and sought to restrain the defendants from raising construction or creating third-party interest in the property. The Trial Court partly allowed the application under Order XXXIX Rules 1 and 2 CPC and restrained the defendants from creating third-party interest. However, the Appellate Court vacated the injunction.
The High Court upheld the appellate order, holding that execution of a registered sale deed conveys title unless it is set aside on legally sustainable grounds such as fraud, misrepresentation, or coercion, none of which were prima facie established. The Court held that non-payment or delayed payment of sale consideration does not invalidate a completed sale and does not divest the vendee of title. The Court further observed that the plaintiff, having declined the tendered payment, could not seek equitable relief of injunction.
Decision: The civil revision petition was dismissed. The order dated 07.11.2025 vacating the temporary injunction was upheld.