IN THE HIGH COURT OF KERALA AT ERNAKULAM
M.A. ABDUL HAKHIM, J.
C.K. Ravi Kumar S/o Kuttan - Appellant
Versus
John Franklin S/o Israel Sathyanesan - Respondent
F.A.O. No. 89 of 2024
Decided On : 23-07-2025
(A) Specific Relief Act, 1963 - Section 15(b) - Transfer of Property Act, 1882 - Section 55(6)(b) - Appeal against attachment before judgment - Plaintiff claimed charge over property based on agreements - Court held that no privity of contract existed between plaintiff and defendants 1 & 2, and plaintiff's claim was barred by limitation - The plaintiff did not attain the status of buyer under Section 55(6)(b) to claim charge over property. (Paras 14 - 17 )
(B) Interlocutory Orders - The appellate court will not interfere with the exercise of discretion by the trial court unless shown to be arbitrary or perverse. (Paras 10 - 12 )
Facts of the case:
The plaintiff filed a suit for recovery of Rs.35,62,500/- with interest, claiming a charge on property based on agreements made by defendants. The trial court allowed attachment before judgment, which defendants appealed against.
Findings of Court:
The appellate court found that the plaintiff lacked privity of contract and that the claim was time-barred, thus setting aside the trial court's order.
Issues: Whether the plaintiff is entitled to charge under Section 55(6)(b) of the Transfer of Property Act? The court ruled that the plaintiff did not qualify as a buyer under the relevant section.
Ratio Decidendi: The court emphasized that rights under a contract cannot be transferred without the consent of all parties involved, and the plaintiff's claim was found unsustainable due to lack of privity and limitation.
Result: Appeal allowed, impugned order set aside.
| Table of Content |
|---|
| 1. plaintiff's claim for recovery based on agreements. (Para 1 , 2) |
| 2. trial court granted attachment before judgment. (Para 3 , 4) |
| 3. court's procedure in considering evidence. (Para 5 , 6) |
| 4. arguments regarding privity of contract and discretion. (Para 9 , 10 , 11 , 12) |
| 5. plaintiff's status under transfer of property act. (Para 14 , 15 , 16 , 17) |
| 6. appeal allowed, order set aside. (Para 18) |
JUDGMENT :
M.A. ABDUL HAKHIM, J.
1. The appellants are the defendants 1 and 2 in the suit. The 1st respondent/plaintiff filed the suit for recovery of an amount of Rs.35,62,500/- with future interest @ 6% per annum from the date of suit till realisation from the defendants and their assets charged on the plaint schedule property. The plaint schedule property is having an extent of 29.78 Ares and the residential buildings and shop rooms therein belonged to the defendant No.1. The defendants Nos.1 and 2 entered into an Agreement for sale dated 18.09.2014 with the defendant No.3 agreeing to sell the plaint schedule property @ Rs.2,15,000/- per cent within a period of three months after receiving an advance consideration of Rs.35,00,000/- from the defendant No.3. The said Agreement for sale contained an endorsement dated Nil signed by the parties to the said agreement that a new Agreement is executed since the sale could not be completed within three months from 18.06.2014. The defendant No.3 executed an Agreement for sale dated 28.04.2016 with the plaintiff, agreeing to sell the plaint schedule property @ Rs.2,95,000/- per cent within a period of six months after receiving an advance consideration of Rs.25,00,000/- from the plaintiff. The said Agreement contains four endorsements signed by the defendant No.3 extending the period of the Agreement till 30.10.2017.
2. The contention of the plaintiff is that the defendants 1 & 2 have personally acknowledged and ratified the fact that they had duly authorised the defendant No.3 to enter into sub-agreements for sale with respect to the plaint schedule property; that since the plaint schedule property was entangled in litigation and the plaintiff believed that the plaint schedule property would be sold to him when litigation is over; that the plaintiff was always ready and willing to perform his part of the contract; that the plaintiff came to know that the defendants are trying to sell the plaint schedule property to strangers; that even though there is no privity of contract between the plaintiff and the defendants 1 & 2, by the implication of the terms of the parent agreement for sale and the sub-agreement for sale, there is an implied and constructive contract between the plaintiff and the defendants 1 & 2; that since the plaintiff has not improperly declined to accept delivery of property by tendering the balance consideration, the plaintiff is having charge over the plaint schedule property; and that since the relief for specific performance is barred by the law of limitation, the plaintiff can only seek recovery of the advance amount along with interest and future interest.
3. Along with the suit, the plaintiff filed I.A. No.1/2023 seeking attachment before judgment of the plaint schedule property and the conditional attachment was granted. The defendant Nos.1 & 2 filed their objection to I.A. No.1/2023. The defendant No.3 did not file any objection to I.A. No.1/2023. The plaintiff filed an additional affidavit. The defendant Nos.1 & 2 filed I.A. No.4/2024 to lift the attachment before judgment. The 3rd defendant filed an objection contending that the plaintiff is entitled to attachment.
4. The Trial Court passed a common order allowing I.A. No.1/2023, ordering attachment of the plaint schedule property and dismissed I.A. No.4/2024.
5. The Trial Court did not mark any document while considering I.A.No. 1/2023. The impugned order refers to various documents produced before the Trial Court. After consideration of those documents, the Trial Court rendered the impugned order. The Appendix
The plaintiff lacked privity of contract and was barred by limitation, thus unable to claim a charge under the Transfer of Property Act.
A statutory charge under Section 55(6)(b) of the Transfer of Property Act is enforceable against a bona fide purchaser for value, despite their claim to protection under the Specific Relief Act.
Contractual obligations under an agreement of sale prevail over subsequent rights of attaching creditors, reinforcing that pre-existing rights must be recognized despite creditor actions.
(1) Attachment before judgment cannot extend to properties which have already been alienated prior to institution of suit – Attachment before judgment cannot override a prior completed transfer.(2) E....
The main legal point established in the judgment is the court's affirmation of the specific performance of the agreement of sale dated 05-8-1995, and the rejection of the 4th defendant's claim as a b....
(1) Agreement to Sell – Only a valid and enforceable contract can be ordered to be specifically performed.(2) Agreement to Sell – Court is not bound to order specific performance even if it is lawful....
An injunction cannot be granted when the underlying contract is contingent, as it violates the principles of specific performance and appellate jurisdiction.
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