Circular No. 28442/C1/2024, Cancellation Deed Clarification, 2024
The Office of the Inspector General of Registration, Chennai, issued Circular No. 28442/C1/2024 dated 8 May 2024, directing registering officers to classify a deed cancelling a sale under Article 17 of the Indian Stamp Act, 1899, even if it involves a transfer of property. Following the Indian Stamp (Tamil Nadu Amendment) Act, 2023, Tamil Nadu Act 13 of 2024, the circular declares two earlier Inspector General of Registration circulars unenforceable and removes their requirements concerning endorsements and classification as a conveyance.
What the circular governs
Circular No. 28442/C1/2024 dated 8 May 2024, issued by the Office of the Inspector General of Registration, Chennai, explains how registering officers must classify deeds that cancel an earlier sale. The clarification follows the amendment of Article 17 of the Indian Stamp Act, 1899, through the Indian Stamp (Tamil Nadu Amendment) Act, 2023, Tamil Nadu Act 13 of 2024.
The amended Article 17 covers an attested instrument cancelling a previously executed instrument, whether or not the cancellation involves a transfer of property, where the instrument is not otherwise provided for.
What has changed
The Office of the Inspector General of Registration states that the following earlier instructions have become unenforceable after implementation of Tamil Nadu Act 13 of 2024:
- Circular No. 53459/C1/2012 dated 4 February 2013 required a sale cancellation deed that did not mention a property transfer to be classified under Article 17.
- That earlier circular also required an endorsement stating that no transfer of rights would occur through the cancellation document.
- Circular No. 11907/J3/2017 dated 23 August 2018 required a sale cancellation deed mentioning relinquishment of rights by the buyer to be classified as a conveyance.
Under the amended position:
- A deed cancelling a sale is classified as a cancellation under Article 17, even if it purports to transfer property.
- Such a deed is not classified as a conveyance under Article 23 merely because it mentions a property transfer or relinquishment of rights.
- Registering officers must no longer add the endorsement that no transfer of rights will occur through the cancellation document.
- The amended Article 17 specifies one thousand rupees, replacing the earlier amount of fifty rupees shown in the circular.
Who is affected
Circular No. 28442/C1/2024 directly instructs Deputy Inspectors General of Registration, District Registrars and Sub Registrars. It is also relevant to buyers, sellers, property owners and professionals presenting a deed that cancels a sale, because it changes the document classification and the endorsement applied during registration.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Will a sale cancellation deed be treated as a conveyance if it transfers property?
No. Circular No. 28442/C1/2024 says a deed cancelling a sale is classified under Article 17 as a cancellation, even if it purports to transfer property, and is not classified as a conveyance under Article 23.
Will the Sub Registrar add an endorsement saying the cancellation does not transfer rights?
No. Registering officers are instructed not to add the endorsement that no transfer of rights will occur through the cancellation document.
What amount does the amended Article 17 specify for a cancellation instrument?
The amended Article 17 reproduced in the circular specifies one thousand rupees. The pre-amended amount shown is fifty rupees.
Do the earlier cancellation deed circulars still apply?
No. The Office of the Inspector General of Registration states that Circular No. 53459/C1/2012 dated 4 February 2013 and Circular No. 11907/J3/2017 dated 23 August 2018 have become unenforceable following implementation of Tamil Nadu Act 13 of 2024.
