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1995 Supreme(SC) 1279

SUPREME COURT OF INDIA
(Gujarat High Court)
B N Kirpal, Faizan Uddin, K Ramaswamy
PATEL NATWARLAL RUPJI, PETITIONER
VERSUS
KONDH GROUP KHETI VISHAYAK AND ANOTHER, RESPONDENTS.
SLP (C) No. 11280 of 1989
decided on December 6, 1995.

Advocates:
P.C.KAPUR

Headnote:

Transfer of Property Act - Section 53-A - Contract - Possession and enjoyment of land - Balance amount was agreed to be paid on or before - Pursuant thereto he was put in possession and ever since he was in enjoyment thereof in his own right as owner - Proclamation of sale land by second respondent Sale Officer was illegal - Consequently he filed suit for declaration and injunction - According to petitioner he having been inducted in possession and remained in enjoyment of land in his own right agreement land is not liable to attachment and he could not be proceeded with to realize amount due award - Respondents resisted case set up by petitioner – Held, High Court after exhaustive consideration of evidence and unerring circumstances emerging there from has concluded that petitioner is resident different village at distance of about miles and his son was working as doctor in Village - Evidence established that he did not have consideration said to have been paid to whose husband was absconding at relevant time - They had intimacy with and her husband - View to save property agreement was brought into existence - It is fraudulent agreement and no consideration has been passed there - Agreement was executed after attachment but before judgment was - For vast property of acres court land and acres and odd dry land consideration mentioned in document is inadequate - It was brought into existence to defeat right of respondents to proceed against property - In view of these facts though agreement was in writing petitioner is not genuine transferee but privy to fraud - Contract is sham and nominal document fraudulently brought into existence - In State of Gujarat by virtue of local amendment to Stamp Act agreement of sale is register able document but was not registered - Attachment before judgment prevails over agreement - That apart it cannot be used as title for declaration in suit but benefit of Section - Availed of as shield to retain possession - Instead agreement is sought to be used as sword to defeat rights of respondents who have obtained lawful award - An order of attachment before judgment was issued pending making of award - Attempt of petitioner is to defeat rights of first respondent to proceed against property of debtor – Thus it would be clear that petitioner has not come to court with clean hands – Petition dismissed

ORDER

1. This special leave petition is directed against the judgment and order dated 18-6-1988 of the Division Bench of the Gujarat High Court rendered in First Appeal No. 11 of 1976.

2. A sum of Rs 1,31,596.07 was due from one Nagindas Tarachand as Secretary of the first respondent-Society and an award for recovery thereof was made against him. An extent of 58 acres, 13 gunthas of land bearing Survey No. 467 situated in Kondh Village of the debtor in Surendranagar in Gujarat State was attached on 1-2-1969 to recover the said dues. A public notice (Exh. 123) was published in Gujarat Samachar in March 1969. The petitioner filed Special Civil Suit No. 69 of 1971 in the Court of the Senior Civil Judge at Surendranagar for a declaration that the suit land was not liable to attachment and sale by public auction to execute the award made in favour of the first respondent-Society and also for permanent injunction restraining the second respondent (Sale Officer) from selling the land and also for perpetual injunction restraining them from interfering with the petitioners possession and enjoyment of the land. According to the petitioner, Bai Leelawati, wife of Nagindas, as General Power of Attorney had executed an agreement on 29-6-1969 to sell the said land in his favour for a consideration of Rs 35,000. On the even day, he paid a sum of Rs 15,000 as part consideration and a further sum of Rs 15,000 was paid on the following day, i.e., 30-6-1969. The balance amount was agreed to be paid on or before 29-6-1971. Pursuant thereto, he was put in possession and ever since he was in enjoyment thereof in his own right as owner. The proclamation of sale dated 22-6-1971 of the land by the second respondent (Sale Officer) was illegal. Consequently, he filed the suit for a declaration and injunction on 19-11-1971. According to the petitioner, he having been inducted in possession and remained in enjoyment of the land in his own right under the agreement, the land is not liable to attachment and he could not be proceeded with to realise the amount due under the award. The respondents resisted the case set up by the petitioner. It was averred in the written statement that the agreement dated 29-6-1969 (Exh. 55) is not a true and genuine agreement. It was brought into existence to defeat the claim of the first respondent. No consideration has been paid under the agreement. It is only a collusive agreement brought by Leelawati with the assistance of the petitioner.

3. The trial court after framing appropriate issues conducting trial of the suit and on consideration of evidence found that the agreement was genuine, true and valid and that the petitioner was inducted into possession under the said agreement. The respondents obtained a decree against Nagindas on 19-5-1970. The proclamation of sale was issued on 22-1-1971. The agreement of sale had by the petitioner is dated 29-6-1969. Therefore, the petitioner, having been in possession of the land under the agreement, is entitled to retain possession of the land and he could not be proceeded with against the said property. Accordingly, the suit was decreed on 31-7-1975. On appeal, the Division Bench by the aforesaid judgment and order dated 11-6-1988 allowed the appeal and dismissed the suit.

4. Shri Mehta, learned Senior Counsel for the petitioner, contended that by operation of Section 53-A of the Transfer of Property Act (for short, "the Act") the petitioner is entitled to retain possession of the land; that he had already performed his part of the contract except payment of a sum of Rs 5000 which was to be paid at the time of registration of the document; he having had lawful agreement is entitled to the declaration as prayed for and the consequent injunctions; the attachment of the property being subsequent to the agreement the petitioner is entitled to resist the action of the respondents; and that the High Court without going into the question whether the agreement was prior to the date of the





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