IN THE HIGH COURT OF DELHI AT NEW DELHI
GAURANG KANTH, J.
Vipen Kumar Parwanda - Appellant
Versus
Gunjan Kumar and Another - Respondents
RFA No. 125 of 2022, C.M. Nos. 17240 of 2022 & 4682 of 2023
Decided On : 25-04-2023
SALE OF PROPERTY - SUIT FOR INJUNCTION AND POSSESSION - SALE DEED EXECUTED BY APPELLANT IN FAVOR OF RESPONDENT - APPELLANT CLAIMED THAT TRANSACTION WAS A LOAN TRANSACTION AND NOT AN INTENDED SALE - HELD, THAT THE SALE DEED CLEARLY SHOWS THAT THE NATURE OF THE TRANSACTION IS AN ABSOLUTE CONVEYANCE OF PROPERTY I.E. THE SALE OF THE SUIT PROPERTY - SECTIONS 91 AND 92 OF THE EVIDENCE ACT, 1872 ARE ATTRACTED IN THE PRESENT CASE - NO EVIDENCE OF ANY ORAL AGREEMENT OR STATEMENT SHALL BE ADMITTED, AS BETWEEN THE PARTIES TO SUCH INSTRUMENT, FOR THE PURPOSE OF CONTRACTING, VARYING, ADDING TO OR SUBTRACTING FROM ITS TERMS - APPEAL DISMISSED.
Fact of the Case:
Appellant and Respondent No. 2 purchased a property from one Shri Prabhu Singh vide Agreement to sell and General Power of Attorney (GPA) both dated 24.04.1992. The said property was converted from leasehold to freehold by both Appellant and Respondent No. 2 vide Conveyance deed dated 11.07.1994. Over the said land, both the defendants constructed a residential house, comprising of Basement, Ground Floor, First Floor and Second Floor. Respondent No. 1 claims that vide a General Power of Attorney dated 04.04.1995, Respondent No. 2 authorized the Appellant to sell the aforesaid property and receive such sale consideration. Pursuant to that, both the defendants expressed their interest to sell the ground floor of the aforesaid property and thereupon discussions were held with regard to that. On 01.11.2009, Appellant entered into an Agreement to Sell with Mr. Ashwani Kumar/husband of Respondent No. 1/Plaintiff with respect to the ground floor of the property i.e., plot bearing No. 139, Block A, Kalkaji Extension Scheme, New Delhi ("suit property"), whereunder the Appellant agreed to sell the suit property to Mr. Ashwani Kumar/husband of Respondent No. 1 for a sale consideration of Rs. 22,50,000/- (Twenty-Two Lacs Fifty Thousand Only). Respondent No. 1 claims that on the same day, a sum of Rs. 12,50,000/- (Twelve Lacs Fifty Thousand Only) was paid in cash as part of payment/advance, to the Appellant against the total sale consideration of Rs. 22,50,000/-. Further, the balance sum of Rs. 10,00,000/- (Ten Lacs Only) were also received by the defendants vide cheque bearing No. 884511 dated 15.01.2010. Respondent No. 1 further claims that as per one of the clauses of the Agreement to Sell dated 01.11.2009, the sale deed was to be registered either in the name of Mr. Ashwani Kumar/husband of Respondent No. 1 or that of his nominee. Subsequently, the sale deed dated 15.01.2010 with respect to the suit property was registered in the name of Respondent No. 1 on 22.01.2010.
Finding of the Court:
The sale deed dated 15.01.2010 does not by any stretch of imagination through any of the recitals show that the instrument was only executed to secure a loan. Arguendo, even if assuming without conceding that the sale deed dated 15.01.2010 was to secure a loan, the Appellant could have executed a mortgage deed instead of executing a sale deed, which has already been registered as well. Hence, the contention of the learned counsel for the defendants that the whole transaction was a loan transaction and not an intended sale does not find any sustenance.
Issues: Whether the transaction between the Appellant and Respondent No. 1 was merely a mortgage of the suit property and was not an intended sale transaction.
Ratio Decidendi: Sections 91 and 92 of the Evidence Act, 1872 are attracted in the present case. No evidence of any oral agreement or statement shall be admitted, as between the parties to such instrument, for the purpose of contracting, varying, adding to or subtracting from its terms.
Final Decision: Appeal dismissed with costs quantified as Rs. 25,000/- to be paid to Respondent No. 1 within 4 weeks from today.
JUDGMENT :
Gaurang Kanth, J.
The Appellant in the present Appeal is impugning the judgment dated 05.01.2022 (“Impugned judgment”) in CS DJ No. 209865/2016 passed by the Court of learned ADJ-05, South East District, Saket Courts, Delhi titled as ‘Smt. Gunjan Kumar v. Shri Vipin Kumar Parwanda’ Vide the Impugned Judgment, the learned Trial Court was pleased to allow the Suit for Injunction and Possession filed by the Plaintiff/Respondent No. 1.
FACTS GERMANE FOR THE ADJUDICATION OF THE PRESENT APPEAL ARE AS FOLLOWS:
2. It is the case of Respondent No. 1 (Original Plaintiff in the Civil Suit) that Respondent No. 2 (Original Defendant No. 2 in the Civil Suit) and Appellant (Original Defendant No. 1 in the Civil Suit) are wife and husband and they purchased a property i.e., plot bearing No. 139, Block A, Kalkaji Extension Scheme, New Delhi admeasuring 160 sq. meters from one Shri Prabhu Singh vide Agreement to sell and General Power of Attorney (GPA) both dated 24.04.1992. Further, the said property was converted from leasehold to freehold by both Appellant and Respondent No. 2 vide Conveyance deed dated 11.07.1994. Over the said land, both the defendants constructed a residential house, comprising of Basement, Ground Floor, First Floor and Second Floor.
3. It is further the case of Respondent No. 1 that vide a General Power of Attorney dated 04.04.1995, Respondent No. 2 authorized the Appellant to sell the aforesaid property and receive such sale consideration.
4. Pursuant to that, both the defendants expressed their interest to sell the ground floor of the aforesaid property and thereupon discussions were held with regard to that. On 01.11.2009, Appellant entered into an Agreement to Sell with Mr. Ashwani Kumar/husband of Respondent No. 1/Plaintiff with respect to the ground floor of the property i.e., plot bearing No. 139, Block A, Kalkaji Extension Scheme, New Delhi (“suit property”), whereunder the Appellant agreed to sell the suit property to Mr. Ashwani Kumar/husband of Respondent No. 1 for a sale consideration of Rs. 22,50,000/- (Twenty-Two Lacs Fifty Thousand Only). Respondent No. 1 claims that on the same day, a sum of Rs. 12,50,000/- (Twelve Lacs Fifty Thousand Only) was paid in cash as part of payment/advance, to the Appellant against the total sale consideration of Rs. 22,50,000/-. Further, the balance sum of Rs. 10,00,000/- (Ten Lacs Only) were also received by the defendants vide cheque bearing No. 884511 dated 15.01.2010. Respondent No. 1 further claims that as per one of the clauses of the Agreement to Sell dated 01.11.2009, the sale deed was to be registered either in the name of Mr. Ashwani Kumar/husband of Respondent No. 1 or that of his nominee. Subsequently, the sale deed dated 15.01.2010 with respect to the suit property was registered in the name of Respondent No. 1 on 22.01.2010.
5. Further, it is the case of Respondent No. 1 that at the time of executing the sale deed, though it was recorded in the document that actual physical possession of the suit property had been handed over by the defendants to Respondent No. 1, but the defendants had expressed some difficulty in handing over possession on account of the their daughter's final school examinations and they had promised Respondent No. 1 that they would hand over vacant peaceful possession to her immediately after their daughter's examinations were over. However, when the defendants continued occupying the suit property and failed to hand over peaceful possession thereof to Respondent No. 1, she was compelled to institute the suit in December, 2010. Pertinently, Respondent No. 1 and her husband also came to know that the defendants entered into various agreements to sell with various other persons and one of those alleged purchaser namely Shri Sanjeev Malhotra had also filed an FIR against the defendants.
6. Both Respondent No. 2 and the Appellant filed separate written statement to the suit. In the written statement filed by Respondent No. 2, it was stated tha
Karan Madan v. Nageshwar Pandey
Smt. Gangabai v. Smt. Chhabubai
Mohinder Singh v. Jaswant Kaur (D) Thr. L.rs.
Tara Sikand Atwal v. Viraj Sikand
(1) Agreement to Sell – Registered Sale Deed carries with it a formidable presumption of validity and genuineness – Registration is not a mere procedural formality but a solemn act that imparts high ....
The validity of a registered sale deed is presumed and the burden of proving its invalidity due to fraud lies on the challengers.
The court established that a transaction could be classified as a mortgage rather than a sale, emphasizing the burden of proof and admissibility of oral evidence.
The burden of proof in a property dispute lies on the person claiming the title, and strict compliance with the provisions of the Registration Act is necessary for the validity of a sale deed and reg....
Specific Relief Act, 1963 – Section 20 – Indian Evidence Act, 1872 – Sections 91 and 92 – Agreement to sell – Decree for specific performance of contract – Agreement does not require to be signed nec....
Fraud must be established by clear evidence; a sale deed executed for valid consideration is valid and cannot be canceled without substantial proof of misrepresentation.
The court affirmed that a sale deed executed with authority is valid unless fraud or coercion is proven, and claims must be filed within a statute of limitations.
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