Karnataka High Court
Moulasab Bandgisab Goundi - Appellant
Versus
Yamanappa Ameenappa Hikodi - Respondent
Decided On : 09-02-05
R.S.A. : 650 of 1995
sale deed - Property Dispute - Transfer of Property Act, 1882 - Section 53-A, Contract Act (1872) - Section 56 - Land Acquisition Act - [Section 53-A, Contract Act (1872) - Section 56 - Land Acquisition Act]
Fact of the Case:
The plaintiff filed a suit to declare that the defendant No. 5 has not acquired any right, title or interest in the alleged sale deed dated 10-5-1982 executed by defendants 1 to 4. The plaintiff claimed to have purchased the property from defendants 1 to 4, but defendant No. 5 contested, stating a prior agreement and possession.
Finding of the Court:
The Court found that the plaintiff was not a bona fide purchaser for value without notice, as defendant No. 5 was put in possession prior to the plaintiff's alleged purchase. The Court held that defendant No. 5 had a priority over the plaintiff's alleged sale deed.
Issues: The issues included the entitlement of the plaintiff to purchase the land, rejection of the prayer for declaratory relief, and the priority of the sale agreement over the sale deed.
Ratio Decidendi: The Court applied Section 53-A of the Transfer of Property Act, which states that a person in possession of the property under a sale agreement has priority over a subsequent purchaser. The Court also considered the concept of caveat emptor, emphasizing the importance of due diligence before a purchase.
Final Decision: The Court dismissed the appeal, holding that defendant No. 5 had a priority over the plaintiff's alleged purchase, and the plaintiff was not entitled to declaratory relief.
( 2 ) THE plaintiff had filed a suit to declare that the defendant No. 5 has not acquired any right, title or interest in the alleged sale deed dated 10-5-1982 executed by defendants 1 to 4 and also to issue permanent injunction restraining the defendant No. 5 from interfering with the peaceful possession and enjoyment of the suit land by the plaintiff and to order for delivery of possession if the Court finds that the plaintiff is not in possession or lost the possession of the suit land. The plaintiff said to have purchased the suit schedule property from defendants 1 to 4 for a valuable consideration of Rs. 10,000/- under a sale deed dated 30-7-1979 which is to the extent of 3 acres 10 guntas situated at Tadalagi village, basavana Bagewadi Taluk. It is stated that immediately after the sale deed the title of the suit property passed to the plaintiff and the possession was also given and he started cultivating the property, and that subsequently, defendants 1 to 4 without the knowledge of the plaintiff have executed the sale deed dated 10-5-1982 in favour of defendant No. 5 in respect of the same property for a sale consideration of Rs. 10,500/ -. Hence, the suit. The said suit was resisted by defendant No. 5 stating that there is a sale agreement by defendants 1 to 4 in his favour and he has also paid Rs. 6,000/- as earnest money and an agreement of sale was entered into between him and defendants 1 to 4 on 17-5-1979 and also thereafter there is a mutation entry effected subsequent to the delivery of possession in his favour in m. E. No. 1120 and he is in possession and enjoyment of the same and the alleged sale in favour of the plaintiff is void and not binding on him and also that plaintiff is a government employee working as a police and in the proceedings before the Assistant Commissioner there is a finding that the plaintiff is a non-agriculturist and he is prohibited from purchasing Agricultural land against which, no appeal was preferred. Whereas he has purchased the property from the original vendor, as such, he is in possession and enjoyment and the suit is filed by the plaintiff is only to harass him. Based on the pleadings as many as 7 issues were framed. Thereafter, after the evidence was let in and after hearing the parties, the suit filed by the plaintiff was dismissed by the Addl. Civil Judge, Bijapur in O. S. No. 169/83. Thereafter, an appeal was preferred before the II Addl. District Judge, Bijapur in R. A. No. 7/88 by the plaintiff and that also came to be dismissed while confirming the judgment and decree passed by the Addl. Civil Judge, Bijapur. Being aggrieved by the same, this second appeal has been preferred by the plaintiff. Originally this appeal filed by the plaintiff was disposed of by this Court on 7-9-1998 by allowing the appeal against which, the defendant No. 5 preferred Civil appeal No. 1539/99 before the Apex Court wherein, the order passed in this second appeal by Sri T. N. Vallinayagam, J. was set aside by the Apex Court on the ground that no substantial questions of law were raised for consideration and remitted the matter back to this Court to dispose of the matter after formulating the substantial questions of law that arises for consideration. After remand, this Court on 7-7-2005 has raised the following substantial questions of law for consideration: 1 ). Whether the lower appellate Court was right in holding that the plaintiff was not entitled to purchase the suit land and the title has not passed to him ? 2 ). Whether both the Courts below were right in rejecting the prayer of the plaintiff or declaratory relief ? 3 ). Whether the agreement to sell the
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