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2021 Supreme(Cal) 113

IN THE HIGH COURT OF CALCUTTA
Debangsu Basak, J.
Bijay Kumar Jhunjhunwala - Appellant
Versus
Jaya Jhunjhunwala & Ors. - Respondents
Old G A No. 2448 of 2019; G.A. No. 1 of 2019; Civil Suit No. 238 of 2019
Decided On : 05-01-2021

Advocates Appeared:
Surajit Nath Mitra, Advocate, Rajarshi Dutta, Advocate, Deepak Jain, Advocate, K. Thakker, Advocate, Ratul Das, Advocate, Aditya Garodia, Advocate, Mainak Bose, Advocate, Rishab Karnani, Advocate, Tanmoy Roy, Advocate

Prima facie claim to property ownership, balance of convenience and inconvenience, and the requirement of valid registered documents for property transfer.

Headnote:

Deed of Conveyance - Immovable Property - Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 - [SUMMARY]

Fact of the Case:

The plaintiff sought interim relief in a suit for declaration and injunction related to a deed of conveyance of an immovable property. The plaintiff claimed joint ownership of the property with the first defendant and had entered into an agreement partitioning the property. Disputes arose when the first and second defendants executed a deed of conveyance selling the property to the third defendant.

Finding of the Court:

The court found that the plaintiff had a prima facie claim to one half share of the property and that the defendants had not produced any valid registered document to establish the transfer of the plaintiff's or Smt. Suwati Devi's shares to the third defendant. The court also noted that the balance of convenience and inconvenience favored the plaintiff, and issued an injunction restraining the defendants from disposing of the shares held by Smt. Suwati Devi, since deceased, in the property.

Issues: The issues included the extent of the plaintiff's claim to the property, the validity of the deed of conveyance, and the transfer of shares to the third defendant.

Ratio Decidendi: The court held that the plaintiff had a prima facie claim to one half shares of the property and that the defendants had not provided evidence of the transfer of shares to the third defendant. The court also considered the balance of convenience and inconvenience in favor of the plaintiff.

Final Decision: The court issued an injunction restraining the defendants from disposing of the shares held by Smt. Suwati Devi, since deceased, in the property and ordered the plaintiff to deposit a sum of Rs. 1,30,00,000 with the Registrar Original Side within seven days.

JUDGMENT

Debangsu Basak, J. - In a suit for declaration and injunction in relation to a deed of conveyance of an immovable property, the plaintiff has sought interim relief in this application.

2. Learned Senior Advocate appearing for the plaintiff has submitted that, one Smt. Rukmani Devi and Smt. Suwati Devi had jointly purchased an immovable property lying and situate at premises No. 228 A, Chittaranjan Avenue, Kolkata - 700 006 on May 8, 1940. By reason thereof they had become the joint owner of such property. Such owners had constructed a five-storied building thereon. On May 14, 1948, Smt. Suwati Devi and her husband adopted the plaintiff as their son. Such adoption had been recorded by a registered deed dated October 14, 1950. The husband of Smt. Suwati Devi died on October 14, 1950 leaving behind his last registered will and testament dated October 14, 1950. On May 10, 1978, Smt. Suwati Devi had died leaving behind her registered will and testament dated October 14, 1950. The right, title and interest of Smt. Suwati Devi in respect of the immovable property concerned had devolved upon the plaintiff. During the lifetime of Smt. Suwati Devi, the other co-owner of the immovable property, Smt. Rukmani Devi had transferred her half share in the property concerned in favour of Smt. Krishni Jhunjhunwala by registered deed of gift dated September 29, 1953. Smt. Krishni Jhunjhunwala had died on March 13, 1980 leaving behind a will dated January 15, 1980. By such will, Smt. Krishni Jhunjhunwala had bequeathed her undivided one- half share in respect of the property concerned in favour of the wife of her grandson Sri Sharad Jhunjhunwala. Probate in respect of the will of Smt. Krishni Jhunjhunwala had been granted on September 14, 1998. By a registered deed dated May 21, 2009, executor of the will of Smt. Krishni Jhunjhunwala transferred the one-half share in the property concerned to the first defendant. Consequently, the plaintiff and the first defendant had become joint owners of the immovable property concerned each being entitled to half share therein.

3. The plaintiff and the first defendant had entered into an agreement dated May 31, 2000, partitioning the said property. The plaintiff and the first defendant had been enjoying their respective portions of such immovable property peacefully. In April 2017 the plaintiff come to learn that Kotak Mahindra Bank Limited had initiated proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 in respect of the property. Such secured creditor had issued a possession notice. The plaintiff had protested against such actions taken by the secured creditor. The secured creditor had not responded to the letters written on behalf of the plaintiff. Since the secured creditor had not taken any steps, the plaintiff did not avail of his remedies under the Act of 2002.

4. The third defendant approached the plaintiff with a request for attornment of several tenancies in February 2018. The plaintiff had permitted the third defendant to receive and realise rent. However, the third defendant failed to honour the agreement. Thereafter, the plaintiff had learnt that, the first and the second defendant representing themselves to be joint owners of the immovable property executed and registered a deed of conveyance dated September 4, 2018. By such registered deed of conveyance, the first and the second defendant had purported to sell the entirety of the said property in favour of the third defendant.

5. Learned Senior Advocate appearing for the plaintiff has drawn the attention of the Court to the recitals in the deed of conveyance dated September 4, 2018. He has submitted that, the recitals are false and contrary to the records. The first and the second defendant had claimed in the recitals that they were the joint owners of the property concerned when in fact they were not so. According to him, the right, title and interest of Smt. Suwati

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