SUPREME COURT OF INDIA
S.B. SINHA AND MARKANDEY KATJU, JJ.
HARDEY SINGH Appellant;
Versus
GURMAIL SINGH (DEAD) BY LRS. Respondent.
Civil Appeal No. 6222 of 2000
Decided on February 2, 2007
Advocates appeared
A. Mariaputham, Ms Prathiba M. Singh, Gaurav Sharma and Sumeet Bhatia (for Maninder Singh), Advocates, for the Appellant;
R.K. Kapoor, Mukesh K. Verma and S.S. Yadav (for Anis Ahmed Khan), Advocates, for the Respondents.
Transfer of Property Act - Interpretation of Section 43 - [PROPERTY TRANSFER] - [Section 41, Section 43] - The court discussed the provisions of Sections 41 and 43 of the Transfer of Property Act, highlighting the distinction between the two provisions and their respective applications. It emphasized the conditions that must be satisfied to benefit from Section 41 and Section 43, and the principle of feeding the estoppel under Section 43. The court also referred to relevant case laws to support its interpretation.
Fact of the Case:
Harcharan Singh transferred properties to his wife Udham Kaur in lieu of maintenance. Udham Kaur claimed absolute ownership under the Hindu Succession Act, and filed a suit against her husband. During the suit, Harcharan Singh sold the land to the respondent. Udham Kaur filed another suit, claiming that the transaction was hit by the doctrine of lis pendens. The respondent contended that he was a bona fide purchaser for value and raised additional grounds after Udham Kaur's death.
Finding of the Court:
The trial court and the first appellate court decreed the suit in favor of Udham Kaur, while the High Court held that Section 43 of the Transfer of Property Act would be attracted. The court rejected the respondent's claim under Section 41 but upheld it under Section 43, considering Harcharan Singh's plea and the devolution of property after Udham Kaur's death.
Issues: Interpretation of Section 43 of the Transfer of Property Act, applicability of Section 41, and the effect of the transaction during the pendency of the suit.
Ratio Decidendi: The court applied the provisions of Section 43 and emphasized the conditions for its application, including the rule of feeding the estoppel. It also clarified the distinction between Section 41 and Section 43, and referred to relevant case laws to support its findings.
Final Decision: The court dismissed the appeal, holding that the respondent's claim under Section 43 of the Transfer of Property Act was valid, and the plea of inapplicability of Section 43 could have been taken by Harcharan Singh and not by the appellant.
Judgment
S.B. SINHA, J. - This appeal raises an interesting question of law in regard to interpretation of Section 43 of the Transfer of Property Act, 1882 ("the Act", for short).
2. Harcharan Singh, original Defendant 1, allegedly transferred some properties in favour of his wife Udham Kaur in lieu of maintenance pursuant to a compromise entered into by and between them. She claimed herself to be the absolute owner thereof in terms of Section 14(1) of the Hindu Succession Act, 1956. She filed a suit against her husband Harcharan Singh for a declaration that she was the owner in possession of the suit land. The learned trial Judge was of the opinion that as she had been in possession of the property in lieu of maintenance, she was "entitled to enjoy the fruits thereof only during her lifetime". An appeal was preferred there against and the appellate court declared her to be the full owner in possession of the suit land. Indisputably, during pendency of the said suit, Harcharan Singh sold the said land to the respondent herein by a deed of sale dated 17 - 3 - 1982 and he had been given possession thereof. Another suit was filed by Udham Kaur.
3. The appellant (sic respondent), in the suit, inter alia, raised a plea that he was a bona fide purchaser for value, whereas the case of Udham Kaur was that as the properties were purchased during pendency of the suit, the same was hit by the "doctrine of lis pendens", as envisaged under Section 52 of the Act. The said contention of the respondent was not accepted by the learned trial Judge as also by the first appellate court holding that the transaction was hit by the doctrine of lis pendens. In the second appeal, one additional ground was taken by him viz. having regard to the death of Udham Kaur, the properties devolved upon the appellant herein as also on Harcharan Singh in equal shares; and, thus, he should be declared to be the owner of the lands in terms of Sections 41 and 43 of the Act.
4. The High Court, although rejected the contention of the respondent herein that Section 41 of the Act would be attracted, but opined that Section 43 would. The appellant is, thus, before us.
5. Mr A. Mariaputham, learned counsel appearing on behalf of the appellant took us through the judgment of the High Court and contended that as the bona fides of the respondent were not proved and furthermore in view of the fact that the High Court itself opined that he was not entitled to the benefit of Section 41 of the Act, the judgment of the High Court upholding his claim in terms of Section 43 thereof cannot be sustained.
6. Mr R.K. Kapoor, learned counsel appearing on behalf of the respondent, on the other hand, supported the judgment.
7. Although, in this appeal we are not concerned with the applicability of Section 41 of the Act, with a view to appreciate the rival contentions raised by the parties we may notice the provisions of both Sections 41 and 43 of the Act, which are as under:
"41. Transfer by ostensible owner. - Where, with the consent, express or implied, of the persons interested in immovable property, a person is the ostensible owner of such property and transfers the same for consideration, the transfer shall not be voidable on the ground that the transferor was not authorised to make it:
Provided that the transferee, after taking reasonable care to ascertain that the transferor had power to make the transfer, has acted in good faith.
43. Transfer by unauthorised person who subsequently acquires interest in property transferred. - Where a person fraudulently or erroneously represents that he is authorised to transfer certain immovable property and professes to transfer such property for consideration, such transfer shall, at the option of the transferee, operate on any interest which the transferor may acquire in such property at any time during which the contract of transfer subsists. Nothing in this section shall impair the right of transferees in good faith for consideration without
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