Recovery of Sale Consideration--Sections 91 and 92 Indian Evidence Act--Balance Claim Beyond Registered Sale Deed Consideration Barred, Tax Evasion Disentitles Court Relief
Once a registered Sale Deed is executed between parties specifying a sale consideration, a suit to recover any balance amount based on an earlier Agreement to Sell is barred under Sections 91 and 92 of the Indian Evidence Act, 1872, as oral evidence cannot be admitted to contradict terms reduced to a registered document. The execution of a Sale Deed with a different consideration operates as a novation of the original contract under Section 62 of the Indian Contract Act, 1872. Further, a party who participates in cash transactions structured to evade tax liability cannot seek court's assistance to enforce such transactions.
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