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2022 Supreme(Guj) 884

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
A.P. Thaker, J.
Manubhai Chhotabhai Patel & 1 Others – Appellants
Versus
Manubhai Motibhai Patel-died-through His Heirs And L.R. – Respondents
Second Appeal No. 202 of 2015
Decided On : 15-06-2022

Advocates appeared:
K.V.Shelat, Manav A.Mehta, M.C.Barot, Advocates

Headnote:

Civil Procedure Code, 1908 – Section 100 –Tenancy Act, 2021 – Section 43 –Contract Act, 1872 – Section 202 – Power of Attorney – Second Appeal – Original-defendants – Second Appeal has been preferred by defendants against judgment and decree passed by learned Principal District Judge, Regular Civil Appeal confirming judgment and decree of learned Trial Court passed in Special Civil Suit, under Section 100 of Code of Civil Procedure, 1908 – Held, Facts and circumstances of case, it is clearly found that there is no question of any applicability of Power of Attorney as irrevocable and defendants had agreed to act upon it against interest of plaintiff. On perusal of entire pleadings as well as oral and documentary evidence placed before learned Trial Court and judgment and decree of both Courts below, it clearly transpires that both Courts below have properly appreciated evidence on record and has properly interpreted the Power of Attorney and have not committed any error in facts and law in passing judgment and decree in favour of plaintiff and against present appellants - Facts and circumstances of case, therefore, Court have decided all points in negative accordingly – Appeal dismissed.

Judgement Key Points

Case Identification and Parties

  • Second Appeal No. 202 of 2015 filed by original defendants (appellants: Manubhai Chhotabhai Patel & 1 other) against original plaintiff (respondent: Manubhai Motibhai Patel, died through heirs & L.R.) before Gujarat High Court at Ahmedabad, decided on 15-06-2022. (!) [13000363070001]
  • Appellants are original defendants; respondents are original plaintiffs; parties referred as per trial court designation.[13000363070001]

Suit Property

  • Suit land: New tenure land at Revenue Survey No. 944/1 (0.28 Gunthas) and No. 941/1 (0.22 Gunthas), Uvarsad, Taluka Gandhinagar; originally belonged to Motibhai Hirabhai (plaintiff's father), mutated to plaintiff and mother Chanchalben Motibhai.[13000363070002] (!)

Key Facts - Power of Attorney (POA)

  • Plaintiff and Chanchalben executed POA dated 29.03.1989 in favor of defendant No.1 (Manubhai Chhotabhai) for management/administration of suit land. (!) (!) [13000363070022]
  • Plaintiff issued cancellation notice dated 07.05.1996 to defendant No.1 specifying suit land; notice returned as refused. (!)
  • Despite cancellation, defendant No.1 converted land from new to old tenure (order 31.03.1998), paid premium, and executed registered sale deed to his son (defendant No.2) on 02.04.1998. (!) (!)
  • Defendants claimed POA coupled with interest, receipt of Rs.63,100/- consideration, possession handover, and authority to sell after conversion due to tenancy restrictions under Section 43 of Tenancy Act. (!) (!)
  • No documentary evidence produced by defendants for payment of Rs.63,100/-; defendants admitted lack of such evidence. (!) (!) [13000363070024]

Procedural History

  • Defendants filed Civil Suit on 18.05.1996 seeking declaration that POA irrevocable and injunction against plaintiff; interim injunction rejected. (!) (!)
  • Plaintiff filed Special Civil Suit No.31/1999 for: cancellation of sale deed to defendant No.2 (declared void/ab initio), declaration of ownership/possession, permanent injunction against defendants' interference. (!) [13000363070003]
  • Trial court framed issues on ownership, POA cancellation, sale deed validity, possession, purchase consideration, relief entitlement; decided issues 1,2,3,4,6 for plaintiff, issue 5 against defendants; decreed suit (28.02.2014). (!) [13000363070003] (!) (!) (!) [13000363070004][13000363070005][13000363070006]
  • First Appellate Court (Regular Civil Appeal No.1/2015, Principal District Judge, Gandhinagar) framed issues on awareness of cancellation, sale rights, sale deed validity, trial court errors; dismissed appeal (13.05.2015), confirming trial decree. (!) (!) (!) (!) (!) (!) (!)

Substantial Questions of Law (Admitted on 08.09.2016)

  • (A) Whether courts erred in holding POA revocable without proper notice, despite being irrevocable/coupled with interest, possession handover, and consideration receipt; whether plaintiff estopped.[13000363070007] (!)
  • (B) Whether improper cancellation notice (wrong address, no public notice) invalidates revocation.[13000363070007] (!) (!)
  • (C) Whether courts erred in not framing proper issues based on pleadings.[13000363070007] (!)
  • (D) Whether courts erred in allowing suit, ignoring relevant facts.[13000363070007] (!)

Arguments - Appellants (Defendants)

  • POA irrevocable under Power of Attorney Act/Contract Act (S.202), coupled with interest (consideration paid, possession given); survives mother's death; converted land under S.43 Tenancy Act; defendant No.2 bona fide purchaser; improper notice; no public notice required; courts misappreciated evidence. (!) (!) (!) [13000363070011]
  • Prior suit by defendants reflects no knowledge of cancellation; plaintiff resiled due to land price rise. (!) (!)

Arguments - Respondents (Plaintiff)

  • POA general for administration/management, not coupled with interest or sale authority; mere "interest" word insufficient; revocable unilaterally; concurrent findings on facts; no evidence of consideration; knowledge of cancellation via prior suit; sale to son not bona fide; mother's death ends POA for her share. (!) (!) (!) (!) (!) [13000363070014]
  • No need for public notice; S.202 inapplicable absent interest creation. (!) (!) [13000363070023]

High Court Findings and Holdings

  • All substantial questions decided negatively: POA general (Exh.18), for administrative acts (applications, receipts, authority dealings), no sale power, no interest created (no consideration evidence, no irrevocability recital); revocable; courts properly interpreted POA/evidence.[13000363070009][13000363070016][13000363070022][13000363070023]
  • Defendants had knowledge of cancellation (filed prior suit challenging interference); S.3 Power of Attorney Act inapplicable.[13000363070018][13000363070022] (!)
  • No interference with concurrent factual findings (payment, interest creation, POA nature) in second appeal.[13000363070025]
  • Sale deed void/ab initio, not binding on plaintiff; defendants no right/title post-cancellation. (!) (!) [13000363070026]

Final Order

  • Second Appeal dismissed; parties bear own costs; decree drawn; records remanded.[13000363070027] (!) (!) (!) (!)

JUDGMENT :

1. This Second Appeal has been preferred by the defendants against the judgment and decree dated 13.05.2015 passed by the learned Principal District Judge, Gandhinagar in Regular Civil Appeal No.1 of 2015 confirming the judgment and decree of the learned Trial Court passed in Special Civil Suit No.31 of 1999 dated 28.02.2014, under Section 100 of the Code of Civil Procedure, 1908.

2. The appellants are the original-defendants and the respondents are the original-plaintiffs. For the brevity and convenience, the parties are referred to in this Judgment as per the character assigned to them by the learned Trial Court.

3. The brief facts of the case are as under :

    3.1. It pertains to new tenure land situated at Revenue Survey No. 944/1 ad-measuring 0.28 Gunthas and Revenue Survey no. 941/1 ad-measuring 0.22 Gunthas situated at Uvarsad : Taluka, District Gandhinagar, which was originally belong to one Motibhai Hirabhai, who was the father of the respondent - original plaintiff and thereafter, the said suit land stood mutated in the name of the plaintiff and her mother Chanchalben Motibhai.

3.2. That the plaintiff and Chanchalben Motibhai gave a power of attorney on 29.03.1989 in favour of Manubhai Chotabhai (defendant No.1). After her death, the plaintiff issued a Notice on 07.05.1996 to the defendant No.1 for cancelling the said Power of Attorney, wherein, he was specifically informed regarding the suit land. The said Notice was returned with an endorsement of refused. According to the plaintiff, though the Power of Attorney was cancelled, the defendants filed a Civil Suit on 18.05.1996 in the Civil Court, Gandhinagar and prayed that the defendants (plaintiffs of this case) do not have any right to cancel the Power of Attorney and he had also sought for interim injunction, which came to be rejected by the learned Trial Court.

3.3. According to the plaintiff, though the Power of Attorney was cancelled that the defendants initiated proceedings of conversion of land from new tenure to old tenure and obtained order accordingly from the authority on 31.03.1998 and on that basis, defendant No.1 has executed one sale deed in favour of his son - defendant No.2 vide registered sale deed dated 02.04.1998, which are not binding to the plaintiff. It is also alleged that the defendants had no any right or title over the land since the plaintiff was residing at Ahmedbad. Defendant No.1 executed sale deed and also trespass over the land and on that basis, the plaintiff filed a suit for cancellation of the registered sale-deed and for declaration and injunction restraining the defendants to enter upon the land and do anything and creating third party interest.

3.4. The defendants have resisted the suit by filing reply at Exh.17 and denied all the contentions of the plaintiff. According to the defendants, as a plaintiff and his mother were intended to sale the property and since it could not be transferred without converting it in old tenure land they executed Power of Attorney in favour of the defendant No.1 with interest thereon and has accepted the amount of Rs.63,100/- and has also handed over the possession of the land in question to defendant No.1. The defendants took stand that having possession of the suit land and on that basis, they have acted upon to obtain necessary permission from the authorities for conversion of land from new tenure to old tenure and also paid amount of premium. It is also contended that since there was a rise in the price of land, the plaintiffs wanted to resile from the obligation under the Power of Attorney, he had to file the suit against them.

3.5. It is also contended that the defendant No.2 is a bona fide purchaser of the land and that has paid requisite consideration and has become owner of the property by registered sale deed and the plaintiff has no right to restrain them from using land in question and the suit itself is liable to be dismissed.

4. On the basis of the pleadings of the parties, the lear

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