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2022 Supreme(Guj) 482

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
A. P. THAKER, J.
Jayeshkumar Mathurbai Patel – Appellant
Versus
Mukeshbhai Vershibhai Desai – Respondent
R/APPEAL FROM ORDER NO. 130 of 2020 With CIVIL APPLICATION (FOR STAY) NO. 1 of 2020
Decided On : 27-04-2022

Advocates:
Advocate Appeared:
For the Appellant :MR. MIHIR THAKORE, SR. ADVOCATE WITH SHASHVATA U SHUKLA
For the Respondent:MR. KAMAL TRIVEDI, SR. ADVOCATE WITH MR SUNIL S JOSHI

Headnote:(A)Code of Civil Procedure - Order 43 Rule 1(r) - Specific Relief Act - Section 91 and Section 96 - Appeal against interim injunction refusal - Plaintiffs sought specific performance, cancellation of documents and declaration of injunction regarding disputed property - Referral of land ownership documents, underscoring execution issues and payment disputes - Trial Court held no prima facie case nor balance of convenience in favor of plaintiffs, resulting in dismissal of injunction application. (Paras 1, 3, 5, 43)

(B) Real Estate Transactions - Validity of sale deeds and agreements to sell - Moot points discussions concerning ownership transfer validity upon registration and subsequent contested transactions - Discussion on statutory provisions and existing contract rights impacted by notice; implications on bona fide purchasers. (Paras 21, 35, 41)

(C) Jurisdiction of Courts - Appellate courts generally refrain from engaging with merit-based disputes at the interim stage; Preservation of subject property interests emphasized amid litigation. (Paras 30, 43)

Facts of the case:
Plaintiffs appealed against a trial court's order disallowing an interim injunction regarding property in dispute, historically shared by defendants, highlighting a series of agreements and contentions of fraud against contractual obligations.

Findings of Court:
Plaintiffs failed to substantiate claims against multiple defendants regarding executed contracts or provide evidence of payment in a disputed MoU, lacking prerequisites for injunction.

Issues: The court primarily navigated ownership validity conflicting with existing sales and agreements framed.

Ratio Decidendi: A deed's registration does not in itself validate ownership if contested by proper legal standing, with emphasis on bona fide purchasers without knowledge of previous contracts.

Result: Appeal dismissed; construction on property shall remain subject to suit outcome.

Table of Content
1. plaintiff's claim and property background (Para 1 , 2 , 3)
2. arguments for interim injunction by plaintiffs (Para 4 , 5 , 6)
3. court's analysis on arguments and evidence (Para 7)
4. legal reasoning on property rights and obligations (Para 10 , 11 , 33)
5. court's final decision regarding injunction (Para 44)

JUDGMENT :

1. Being aggrieved and dissatisfied with the impugned order dated 19.2.2020 passed below Exh-5 by the learned Principal Senior Civil Judge, Ahmedabad (Rural), Mirzapur, Ahmedabad in Special Civil Suit no. 119 of 2019 whereby the trial Court has disallowed the application filed by the plaintiffs-appellants for interim injunction, the original plaintiffs have preferred this Appeal from Order under Order 43 Rule 1(r) of Code of Civil Procedure.

2. The appellants are the original plaintiffs and the respondents are the defendants before the trial Court. For the brevity and convenience, the parties are referred to in this order as per the nomenclature assigned to them in the trial Court.

3. The plaintiff has filed the Suit for specific performance, cancellation of documents and declaration of injunction in respect to the Suit property being land revenue survey No. 52 admeasuring 0-48-56 Hect - Are- Sq. Mtrs and Survey No.53 admeasuring 0 – 52 - 61, Hect – Are – Sq. Mtrs (Final Plot No. 79 admeasuring 7500 sq. Mtrs of the TP Scheme no.3 (Vejalpur), situated at Mauje: Vejalpur, District: Ahmedabad, on the following facts:

3.1 The suit properties originally belong to defendant Nos. 2 and 3, each having one-half share in the suit property. On 15.2.2017, notarised agreement to sell (Serial No. 250/17) was executed by defendant No.2 in favour of defendant no.1 with respect to her undivided one-half share of the suit property i.e. admeasuring 3750 sq. mtrs. On the same day, a Special Power of Attorney executed by defendant no.2 in favour of defendant no.1 regarding the one-half share of the property which was notarised (Sr. No. 251/17).

3.2 On 30.11.2017, the defendant No.3 executed notarised possession Agreement-cum-declaration (1695/17) in favour of defendant no.1 for her one-half share of the suit property i.e. admeasuring 3750 sq.mts. On the same day, defendant no.3 has also executed a Special Power of Attorney in favour of defendant No.1, which was also notarised (1696/17). That on 1.5.2018, a registered agreement to sell No. 1034 came to be executed by defendant No.3 (through Power of Attorney) in favour of defendant No.1 regarding one-half share of suit property. On 2.5.2018, registered sale deed No.1044 came to be executed by defendant no.3 (through Power of Attorney) in favour of defendant No.4 regarding her one-half share of suit property admeasuring 3750 sq.mtrs.

3.3 On 14.5.2018, a registered sale deed No. 1157 came to be executed by defendant No.2 (through her Power of Attorney defendant No.1) in favour of defendant No.1 regarding one-half share of the suit property. On the same day, a notarised MoU came to be executed between defendant No.1 and plaintiff whereby defendant No.1 agreed to sell the suit property to the plaintiff and the plaintiff had already paid Rs. 84 Lakh under MoU to the defendant No.1.

3.4 It is alleged by the plaintiff that the defendant No.1 has failed to get cancelled document, if any, executed by the defendant No.2 and 3 and also to execute the sale deed in their favour, the defendant No.1 did not care to do so. According to the plaintiff, they came to know from the Newspaper that notice for title clearance was issued by the advocate for the rest of the defendants and on inquiry found that various documents which includes cancellation of the transaction between the defendant No.1 and defendant Nos. 2 & 3. It was also revealed that defendant No.4 has executed sale-deed on 19.12.2018 bearing No. 6863 and it is also revealed that defendant No.2 has also executed a deed in favour of defendant No.5 dated 5.12.2018 vide No. 6802. According to plaintiff, thus, the defendants have joined

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