IN THE HIGH COURT OF CHHATTISGARH AT BILASPUR
GOUTAM BHADURI, DEEPAK KUMAR TIWARI, JJ.
Kamta Prasad S/o Dheluram – Appellant
Versus
Pilwadas S/o Baijnath – Respondent
F.A No.358 of 2019
Decided on : 29-11-2023
Mortgage - Property Dispute - Transfer of Property Act, 1882 - Section 58(c)
Fact of the Case:
The Plaintiffs claimed ownership of a property sold by their father, alleging it was a mortgage, not an absolute sale. The Defendants denied the allegations and claimed possession of the property.
Finding of the Court:
The Court found that the sale deed was not a mortgage but an absolute sale. It also found that no partition had taken place between the Plaintiffs, and they were not entitled to a permanent injunction.
Issues: The main issues were whether the sale deed was a mortgage or an absolute sale, and whether a partition had taken place between the Plaintiffs.
Ratio Decidendi: The Court relied on the Transfer of Property Act, 1882, specifically Section 58(c), to determine the nature of the sale deed. It also considered the absence of evidence of partition and the principles of co-parcenary property under Hindu law.
Final Decision: The Appeal was allowed, and the Plaintiffs were granted ownership and possession of the disputed land, with the Defendant restrained from interfering.
JUDGMENT :
Goutam Bhaduri, J.
1. Heard.
2. The present Appeal is against the judgment and decree dated 30.04.2019 passed by the District Judge, Bemetara in Civil Suit No.16-A/2018 whereby, the suit filed by the Appellants/Plaintiff was dismissed.
3. (I) The brief facts of the case as pleaded are that the Appellants/Plaintiffs who are three in number namely Kamta Prasad, Yado Ram and Lakhbir Singh were sons of Dheluram-Defendant/Respondent No.2. They held a co-parcenary property, which was recorded in name of their father Dheluram. The Plaintiffs claimed that the partition was effected between them and the suit property which was sold by Dheluram belongs to them as it fell in their share. The sale deed was executed in respect of Khasra Nos.792 admeasuring 0.30 hectares and 796 admeasuring 0.64 hectares by father of the Plaintiffs. The Plaintiffs pleaded that their father was given a share of a different land. Over that background, in the year 2011, Dheluram sold the property to Defendant No.1-Pilwadas wherein, the right was claimed by the Plaintiffs. According to the Plaintiffs, they were in dire need of money and as such, a sham and bogus sale deed was executed by their father, though the suit land does not belong to him. It was further pleaded that on the same date of the execution of sale deed i.e. 26.05.2011, another agreement was executed which purports that it was a mortgage. A prayer was made that the suit property which bears Khasra Nos.792 admeasuring 0.30 hectares and 796 admeasuring 0.64 hectares belongs to Yado Ram and Kamta Prasad, the Plaintiffs. Defendant No.1- Pilwadas was the purchaser and prayer was made that he be restrained to interfere in their possession by way of a permanent injunction. (II) The Defendants denied the allegations made in the Plaint. It was further pleaded by execution of the sale deed on 26.05.2011 that they came into possession of the suit land by purchase and the sale deed was an absolute one and no mortgage was created. It was stated even otherwise that the agreement which was executed on 26.05.2011 does not create any right in favour of the Plaintiffs. It was stated that as per the Revenue Court’s order, since the dispute arose with regard to the possession, by order of the Revenue Court, they came into possession of the suit land and prayed for dismissal of the suit.
4. The learned trial Court framed as many as 6 issues and primarily, it was held that the sale deed dated 26.05.2011 was not a mortgage but it was an absolute sale. It was further held that no partition had ever taken place between the Plaintiffs and they are not entitled for grant of permanent injunction in respect of the suit property. Primarily on these two issues, the suit was decided, which resulted into dismissal. Hence this Appeal.
5. Being aggrieved by the said judgment and decree, learned Counsel for the Appellants/Plaintiffs submits that document Ex.P-1 shows that the sale deed was not an absolute one but was a mortgage. He further submits that no partition had ever effected, therefore, Dheluram did not have an absolute right to sell a particular part of the land to the purchaser-Pilwadas, Defendant No.1. He further submits that it being a settled proposition and no Cross Appeal having been filed, the finding of fact that no partition has affected would become absolute, therefore, the impugned judgment and decree is faulty, which needs to be interfered with by this Court.
6. Per contra, learned counsel for Respondent/Defendant No.1-Pilwadas, the purchaser submits that no prayer has been made in the suit for cancellation of the sale deed. He further submits that the Defendant, being the bona fide purchaser, was placed into the possession and the same could not have been disturbed. He further submits that the sale deed, once having been registered, would have a presumptive value and the suit was filed beyond 3 years of limitation period, therefore, it was barred by time. He placed reliance in the matter of Kashiram and o
Bhaskar Waman Joshi v. Narayan Rambilas Agarwal (1960) 2 SCR 117 : AIR 1960 SC 301
Commissioner of Wealth-Tax, Kanpur etc. etc. v. Chander Sen etc.
Hardeo Rai vs. Sakuntala Devi and others reported in (2008) 7 SCC 46
Indira Kaur v. Sheo Lal Kapoor (1988) 2 SCC 488 : AIR 1988 SC 1074
K. Simrathmull v. Nanjalingiah Gowder . 1962 Supp (3) SCR 476 : AIR 1963 SC 1182
Mrs. Akella Lalitha vs. Sri Konda Hanumantha Rao and Anr. reported in AIR 2022 SC 3544
Mushir Mohd. Khan v. Sajeda Bano (2000) 3 SCC 536
Pandit Chunchun Jha v. Sk. Ebadat Ali (1955) 1 SCR 174 : AIR 1954 SC 345
Pandit Chunchun Jha v. Sk. Ebadat Ali (1955) 1 SCR 174 : AIR 1954 SC 345
Ramlal and Another vs. Phagua and Others reported in (2006) 1 SCC 168
Ramdas vs. Sitabai & Ors reported in AIR 2009 SC 2735.
S.B.I. vs. Ghamandi Ram reported in (1969) 2 SCC 33
Umabai v. Nilkanth Dhondiba Chavan (2005) 6 SCC 243
The main legal point established is the interpretation of Section 58(c) of the Transfer of Property Act, 1882, to determine the nature of a sale deed as a mortgage or an absolute sale.
The court annulled a sale deed executed under fraudulent circumstances, affirming that a seller lacking exclusive rights cannot validly transfer property.
The existence of a joint Hindu family does not automatically presume property ownership as joint family unless affirmative proof of joint family funds is established.
The court emphasized that evidence cannot be adduced contrary to the arguments in a written document and held that the relief of partition cannot be granted in the face of a document registered lawfu....
A sale deed must explicitly state conditions for re-transfer to qualify as a mortgage by conditional sale under Section 58(c) of the Transfer of Property Act.
The court reaffirmed that a sale deed executed for family and legal necessity by a joint family member is binding, barring challenge by family members after significant delay without sufficient cause....
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