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VIKRAM NATH, PRASANNA B. VARALE
Thekkattu Hajara Ibrahim – Appellant
Versus
Mohammed Kutty – Respondent
ORDER :
1. Leave granted.
2. The appeal arises against judgment of the Kerala High Court dated 03.06.2019 in First Appeal No. 508 of 2012, whereby the High Court allowed the appeal preferred by respondent no.1 herein, who is the original plaintiff in a suit for recovery of earnest money and creation of charge under Section 55(6)(b) of the Transfer of Property Act, 1882,1[TP Act] and thereby created a statutory charge upon the suit property in possession of the appellant herein.
3. The matter involves competing claims of the appellant, a bona fide purchaser, and respondent no. 1, who seeks a statutory charge under Section 55(6)(b) of TP Act.
4. The brief facts of the case are that an agreement dated 22.01.2007 was signed between respondent no. 2, the original owner of the property, and one Areekkara Abdul Basheer, under which the property was to be sold by respondent no.2 for Rs. 50,00,000 (Rupees Fifty Lakhs Only), with an advance payment being made. This agreement also allowed the property to be registered in favor of Areekkara Abdul Basheer or his nominee. Subsequently, on 31.03.2007, respondent no. 2 entered into another agreement to sell the same property to respondent nos. 1 and 3
The statutory charge under Section 55(6)(b) of the TP Act cannot exist if the underlying agreement is rescinded and unenforceable.
A statutory charge under Section 55(6)(b) of the Transfer of Property Act is enforceable against a bona fide purchaser for value, despite their claim to protection under the Specific Relief Act.
Point of law: Specific performance of Agreement - where the relief of specific performance was refused, a charge be created over the suit schedule property to ensure repayment of the amount.
Buyer entitled to charged decree within limitation under Section 55(6)(b) of the Transfer of Property Act if non-performance not due to buyer's fault.
The main legal point established in the judgment is that a plaintiff's statutory charge under Section 55(6) of the Transfer of Property Act entitles them to seek further relief against proposed defen....
Point of Law : Review jurisdiction is extremely limited and unless there is mistake apparent on the face of the record, the order/judgment does not call for a review.
The main legal point established in the judgment is the entitlement of the plaintiff to a refund of advance money and the absence of a charge over the property in the absence of specific recital for ....
A subsequent purchaser cannot claim absolute title over property if a prior sale agreement exists, as statutory charges apply for unpaid purchase money.
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