IN THE HIGH COURT OF JUDICATURE AT PATNA
MUNGESHWAR SAHOO, J.
Kewal Kishun Singh & Ors - Appellants
Versus
Satya Narayan and Ors. - Respondents
First Appeal No.240 of 1978
Decided On : 22-4-2015
Title Suit - Interpretation of Sale Deeds - - [1978 Patna 97, 2011 (6) SCC 555] - The court discussed the interpretation of sale deeds and the passing of title, emphasizing the importance of payment of full consideration amount and exchange of registration receipt for the transfer of title. The court also highlighted the significance of possession and the need for the plaintiff to perform their part of the contract before the repudiation by the appellants.
Fact of the Case:
The plaintiff filed a suit for declaration of title and claimed that the suit property was purchased by them based on registered sale deeds. The defendants contested, stating that the title would pass only on payment of full consideration amount and that the plaintiff failed to pay the balance amount, leading to the repudiation of the contract.
Finding of the Court:
The court found that the title did not pass to the plaintiff as the balance consideration amount was not paid, and the registration receipt was not handed over. The court reversed the lower court's decision and dismissed the plaintiff's suit for declaration of title.
Issues: Validity of cause of action, maintainability of the suit, limitation, bonafide purchaser, validity of sale deeds, valid tender of rehan money, entitlement for decree and permanent injunction, other reliefs
Ratio Decidendi: The passing of title is contingent on the payment of full consideration amount and the exchange of registration receipt. The plaintiff must perform their part of the contract before the repudiation by the appellants.
Final Decision: The appeal was allowed, and the plaintiff's suit for declaration of title was dismissed.
1. The defendants have filed this First Appeal against the Judgment and Decree dated 31st January, 1978 passed by learned 2nd Addl. Subordinate Judge, Ara in Title Suit No.13 of 1975 / 28 of 1977 whereby the learned Court below decreed the plaintiff’s suit for declaration of title and directed the appellant to receive the balance consideration amount of Rs.3300/- and to hand over the original sale deed to the plaintiff respondent.
2. The plaintiff respondent filed the aforesaid suit praying for declaration that the suit property is the purchased land of the plaintiff and the plaintiffs acquired right, title and interest in the suit property on the basis of the registered sale deeds.
3. The plaintiff prayed for the aforesaid relief alleging that the defendants appellants have given the suit property in Rehan to the plaintiffs after taking Rs.13,200/- . Possession was also handed over to the plaintiffs. When the defendants appellants were in need of money, they approached the plaintiffs for selling the suit property for Rs.17,000/- and the parties agreed that Rs.13,200/-, the Rehan money is to be adjusted with the other Rs.500/- loan and the balance of Rs.33,00/- was to be paid by the plaintiff in cash to the defendant appellant at the time of exchange of equivalents. According to this agreement, three sale deeds were executed and registered with respect to the suit property. The first sale deed was for Rs.10,000/- in which Rs.77,00/- was adjusted and Rs.2300/- was to be paid in cash at the time of handing over the exchange receipts and the second and third sale deeds were for Rs.3500/- cash wherein Rs.3000/- was to be adjusted in each sale deed and the remaining Rs.500/- in each sale deed was to be paid in cash at the time of exchange of this equivalents. According to the plaintiff, the plaintiff tendered the money on several occasions and asked the defendant to hand over the receipts but the defendant appellant avoided and ultimately appellants refused to hand over the receipt. Hence, the suit was filed.
4. The appellant filed contesting written statement alleging that the appellants were in dire need of money, therefore, they agreed to sell and the intention of the parties was that the title with respect to the suit property will pass only on payment of full consideration amount. Since the appellants were in dire need of money, they after registration of the sale deed demanded several time to the plaintiff to pay the balance consideration amount of Rs.3300/- but the plaintiff did not pay the same, therefore, the appellants repudiated the contract between the parties and then the part of the suit property was transferred by them to the defendant No.5 because of the fact that they were in dire need of money. Since the plaintiff did not pay the balance consideration amount, no title passed on to him, in such circumstances, the plaintiff’s suit is liable to be dismissed.
5. On the basis of the aforesaid pleadings, the learned trial Court framed the following issues :
(i) Have the plaintiffs got any valid cause of action to the suit?
(ii) Is the suit as framed maintainable?
(iii) Is the suit barred by limitation?
(iv) Is the defendant No.5 bonafide purchaser of suit property for value without notice of the alleged transaction?
(v) Are the alleged sale deed of the plaintiffs is valid legal and for consideration and are they binding on the defendant No.5?
(vi) Was their any valid tender of rehan money by the plaintiff as alleged?
(vii) Are the plaintiffs entitled for the decree as claimed?
(viii) Are the plaintiffs entitled for decree of permanent injunction as prayed for?
(ix) To what other relief or releifs, if any, are the plaintiffs entitled?
6. After trial, the learned trial Court came to the conclusion that the intention of the parties was that the title will pass only on the registration of the sale deed and, therefore, decreed the plaintiff’s suit directing the defendant to receive the balance consideration amount of Rs.330
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