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2023 Supreme(Cal) 1377

IN THE HIGH COURT AT CALCUTTA
Harish Tandon, Prasenjit Biswas, JJ.
Makhan Chandra Hazra & Ors. – Petitioners
Versus
Netai Chand Hazra & Ors. – Respondents
S.A.T. 289 of 2015 CAN 1 of 2015 (Old No. CAN 5903 of 2015)
Decided On : 06-06-2023

Advocates:
Advocate Appeared:
For the Appellant : Mr. Krishna Das Poddar, Mr. Pradip Paul, Ms. Renesa Dey.

IMPORTANT POINT
The central legal point established in the judgment is the significance of consideration in a sale deed and the impact of the entry in the Record of Rights on property title.

Headnote:

Sale Deed - Property Dispute - Registration Act, Section 17; Transfer of Property Act, Section 5 - The court discussed the validity of a sale deed dated 28th April, 1957, and its implications on the transfer of property. It emphasized the importance of consideration in a sale deed and clarified that a memo of consideration is not necessary if the recitals clearly indicate the payment. The court also highlighted that the entry in the Record of Rights does not impact the title of the property and concluded that the plaintiffs had the right to claim their interest based on the sale deed.

Fact of the Case:

The plaintiffs filed a suit for declaration of right, title, and interest in a property based on a sale deed dated 28th April, 1957. The defendants contested the validity of the sale deed, claiming lack of consideration and disputing the entry in the Record of Rights.

Finding of the Court:

The court found that the sale deed was valid and passed the title to the plaintiffs. It emphasized the importance of consideration in a sale deed and clarified the impact of the entry in the Record of Rights on property title.

Issues: Validity of the sale deed, impact of consideration in a sale deed, and the significance of the entry in the Record of Rights.

Ratio Decidendi: The court emphasized that consideration is integral to the transfer of property and clarified that a memo of consideration is not necessary if the recitals clearly indicate the payment. It also highlighted that the entry in the Record of Rights does not impact the title of the property.

Final Decision: The appeal and the connected application were dismissed, and the title in favor of the plaintiffs was declared to the extent of 1.95 decimal of land based on the sale deed.

JUDGMENT :

1. Both the Courts below have decreed the suit in part and the concurrent findings are sought to be assailed in the instant appeal raising an issue that those are perverse and mutually destructive.

2. A suit for declaration of right, title and interest in respect of the suit property consisting of 2.92 decimal of land on the basis of a deed of sale being No. 3485/1957 dated 28th April, 1957 was filed by the plaintiffs/respondents. Admittedly the entire suit property belong to Bholanath Hazra, the predecessor of both the parties. It is a categorical stand of the plaintiffs/respondents that the said original owner during his lifetime executed and registered a deed of sale in favour of one of his son, namely Haripada Hazra, being the predecessor of the plaintiffs/respondents and, therefore, excluded the other heirs to inherit the said property. Since the defendants/appellants were creating a cloud on the title acquired by the plaintiffs/respondents by way of inheritance from his father, namely Haripada Hazra, the suit came to be filed for declaration of title in respect thereof.

3. Basically it is a suit based upon the said sale deed dated 28th April, 1957, which according to the defendants/appellants is sham transaction. According to the defendants/appellants the sale deed lacks consideration, which is one of the integral part of transfer of immovable property and, therefore, cannot be regarded as valid in the eye of law. It is further contended that it is inconceivable that a father during his lifetime would execute a purported sale deed in favour of one of his son depriving the other heirs and, therefore, such transaction is not real. A further stand is taken that the said Haripada Hazra during his lifetime never asserted the right, title and interest in respect of the suit property even after the entry made in the Record of Rights in favour of all the heirs of the said Bholanath Hazra, which conclusively proves that the property was never intended to be sold by the said original owner. Lastly, it is contended that a story of execution of deed of relinquishment is made out in the plaint which implies that the purported sale deed was never acted upon and, therefore, no right, title and interest would pass upon the plaintiffs/respondents on the basis thereof.

4. Both the Courts disbelieved the story set up by the defendants/appellants. The transaction of immovable property fetching more than a value of Rs.100/-is required to be executed by a written document and is compulsorily registrable under Section 17 of the Registration Act. The moment the document is executed by the original owner having right, title and interest in respect of the immovable property and the said document is duly registered with the Registering Authority, it passes the title immediately upon execution and registration thereof. A plea is sought to be taken that the sale deed without any consideration is ineffective, bad and illegal in the eye of law.

5. There is no quarrel to the proposition that in order to pass on the title or in other words transfer the title in respect of the immovable property, the consideration is an integral part thereof. We had an occasion to peruse the certified copy of the sale deed relied upon by the defendants/appellants, wherefrom it appears that the price of the property was shown at Rs.300/-. The recital in the deed would further evince that the aforesaid price has been paid to the original vendor by the said Haripada Hazra and, therefore, it cannot be said that there is no consideration shown in the deed.

6. We cannot overlook the fact that there are various modes of writing the sale deeds effecting the transfer of immovable property. Sometimes the deeds are executed in English language and the format, which is being used in respect thereof, shows something differently than the sale deed executed in vernacular language. What is important in the aforesaid matter that the executant is transferring his right, title and int

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