There is a clear and well marked distinction between a suit for cancellation of a deed affecting certain property and a suit for declaration that a particular document is inoperative as against the plaintiff. A suit for cancellation must be brought by a person who was a party to the deed or by a person who is otherwise bound by it in law. But a person who is neither party to the deed nor bound by it need not sue for its cancellation. Where the plaintiff seeks to establish title in himself but, cannot do so without removing an inseparable obstacle to such a deed to which he may be a party, he must get it cancelled. However, when he seeks to establish a title and finds himself threatened by a transaction between some parties, his remedy is to get a declaration that the decree or deed or transaction is invalid so far as he is concerned. When a person is a party to the deed, he can get over the effect of such deed, only in a manner provided under the Indian Contract Act, especially when third party interests are created. But when he is eonomine a party but in law is not a party to such deed, he can seek a declaration that such a deed is not binding on him, when no third party interest is created. A sale deed obtained by an agent in the name of his wife cannot be treated as a sale deed in favour of a third party. It is a sale deed in favour of the agent only, which is void, until the condition stipulated in Section 215 of the Contract Act is fulfilled.
The effect of such declaration is the sale deed becomes inoperative and purchaser under the sale deed cannot claim any right under the sale deed, in view of the declaration granted by the Court. The title of the plaintiff to the property under dispute was never in doubt, as the purchaser traces his title to plaintiff. The said sale deed creates a cloud on the title of the plaintiff. The declaration granted by the Court that the said sale deed is not binding on the plaintiff, removes the cloud and the plaintiff continues to be the owner, notwithstanding the said sale deed. The said sale deed is in the name of the wife of the agent. No third party interest is involved. Therefore, no relief of cancellation need be prayed for.