1979 Supreme(AP) 278

Andhra Pradesh High Court
Judges : ALLADI KUPPUSWAMI
Pedria Venkatramaiah - Appellant
Versus
Paladugu Subramanyam - Respondent
C.R.P. No. 4759/78
Decided On : 08-13-79
Advocates Appeared :
Mr. T. Veerabhadrayya,Mr. P.V.R. Sarma

Headnote:Transfer of Property Act, Section 55(6)(b)—Applicability—Suit for refund of advance amount paid in respect of sale of land which was invalidated by an ordinance of 1972—Charge created on the property in the decree—Execution of decree can be ordered—Purchaser need not file a separate suit.

       Held : Sec. 56 (6) (b) applies only where the buyer property declines to accept delivery. This provision can have no application where the agreement itself is void or becomes void by reason of statutes prohibiting such contracts. Unless and until the vendor secured the possession of the land and was in a position to deliver it to the purchaser, the statutory lien under Section 55 (6) (b) would not be created in favour of the purchaser in respect of the money that he might have paid under the contract of sale.

       It is true that in this case the contract was valid at tile time when it was entered into, but became void by reason of a subsequent enactment. Nevertheless on the date when the plaintiff filed the suit to recover his purchase money there was no valid contract in existence.

       Hence he could not claim a charge under Section 55 (6) (b) of the Transfer of property Act. This is not a case where the Court declared a charge which had existed previously under operation of law, but created a charge for the first time by and under the decree. Therefore the decree was capable of execution and there was no need to file any separate suit.