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2007 Supreme(Del) 1056

High Court Of Delhi
SANJAY KISHAN KAUL
MUKESH BHARGAVA - Appellant
Versus
CANARA BANK - Respondents
IA 152 Of 2007
Decided On : 05/16/2007

Advocates Appeared:
J.P.Gupta, MANOJ BHANDARI, Rajat Aneja, S.K.Jha, SANGRAM PATNAIK

Headnote:Recovery of Debts Due to Banks and Financial Institutions Act, 1993

       Sections 17, 18, 24 &29 - Income Tax Act,1961- Second & Third Schedule - Income Tax (Certificate Proceedings) Rules, 1962 Rule 11 - Bar to jurisdiction - Sale of property in execution of the order of Tribunal - Challenge by plaintiff claiming independent title to the property in question - Inquiry into the claim of plaintiff already pending before the Tribunal- Suit seeking declaration and injunction which will have effect of nullifying the order of the Tribunal is not maintainable - Suit dismissed with cost.

       [Paras 12, 13, 14, 15, 20 & 21]


SANJAY KISHAN KAUL, J.

( 1 ) IA 152/2007 (u/o. 7 R. 11 CPC)The plaintiffs have filed a suit for declaration and permanent and mandatory injunction. The subject matter of the suit is the immovable property being the first floor of property No. B-97, Lajpat Nagar, New Delhi (hereinafter referred to as the suit property ). The plaintiffs seek a declaration that they are owners of the suit property and that the defendants, more particularly defendant no. 1 bank, be restrained from selling, alienating, encumbering or creating any third party interest in the suit property.

( 2 ) THE plaintiffs claim to have purchased the suit property from Mrs. Anjana luthra, defendant no. 2, vide a registered sale deed and to have been put in possession in pursuance thereto. The sale deed, possession letter and receipt were all executed on 28. 1. 2005. The suit has been instituted through a power of attorney holder. The plaintiffs claim to have paid a sum of Rs. 7. 00 lacs to defendant no. 2 while purchasing the property.

( 3 ) THE cause of action for filing the suit is stated to have arisen when the plaintiffs received a notice for settling a sale proclamation under Rule 53 of the Second Schedule to the Income Tax Act, 1961 (hereinafter referred to as the i. T. Act ). These notices were served by pasting at the address, though they were sent to defendants no. 9 and 10. The plaintiffs claim to have done whatever was required for verification of title before purchasing the property and the plaintiffs were being cheated and a fraud was committed by the defendants collectively against the plaintiffs. It is alleged that a collusive decree was obtained ex parte. Defendants no. 9 and 10, who are the judgment debtors, did not contest the suit and defendant no. 1, the bank, is stated to have done nothing to protect the mortgage property.

( 4 ) THE plaintiffs have given a brief of history of the suit property in para-10 of the plaint as under:

"10 (a) That initially the entire property bearing No. B1/97, Lajpat Nagar-I, New Delhi, was allotted and leased out to Sh. Krishan Gopal by virtue of a lease and conveyance deed dated 30. 03. 1970 duly registered as document No. 2233 and 2234 in Addl. Book No. 1, Vol. No. 2388 on pages 85 to 87 and 88 and 89 on 07. 04. 1970 in the office of Sub-Registrar, New Delhi. The said Sh. Krishan Gopal died on 02. 03. 1994. (b) Consequent to the death of Sh. Krishan Gopal, on 03. 08. 1994 the aforesaid property was duly substituted in the joint names of Smt. Purushotama devi, Sh. Kuldeep Chander, Sh. Harish Chander, Sh. Vinod Kumar and Sh. Anil Kumar (Widow and sons of Shri Krishan Gopal and R/o B-I/97, Lajpat Nagar, New Delhi), which is entered in the records of Landdo, Nirman Bhawan, New Delhi, vide their letter No. Landdo/ps-II/416. (c) That on 07. 10. 1994 Agreement to sell was entered upon between smt. Purushotama Devi, Sh. Kuldeep Chander, Sh. Harish Chander, Sh. Vinod Kumar and sh. Anil Kumar through his general Smt. Kusum Jetley with Sh. Mohanjit Singh and mrs. Daljeet Kaur for the sale of aforesaid property. Thereafter Sh. Mohanjit singh and Mrs. Daljeet Kaur reconstructed a building on the said plot of land after getting the building plan sanctioned from MCD out of which the first floor is in occupation and possession of the plaintiffs hereinabove. (d) The entire property was converted into a free hold property vide conveyance Deed dated 03. 07. 1995 in the names of (i) Smt. Purushotama Devi, (ii)Sh. Kuldeep Chander, (iii) Sh. Harish Chander, (iv) Sh. Vinod Kumar, (v)Sh. Anil kumar, all are legal heirs of Late Sh. Krishan Gopal resident of B-I/97, Lajpat nagar, New Delhi. The said Conveyance Deed is registered as document No. 6008 in addl. Book No. II, Vol. No. 8809, at pages 48 to 49 on 25. 07. 1995. (e) Thereafter two Sale Deeds both dated 28. 11. 1995 were executed for the entire first floor between (i) Smt. Purushotama Devi, (ii) Sh. Kuldeep Chander, (iii) Sh. Harish Chander, (iv) Sh. Vinod Kumar, (v) Sh. Ani
























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