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2014 Supreme(Raj) 154

SUPREME COURT OF INDIA
Maya Devi Vs. Lalta Prasad (Radhakrishnan, J.)
HON'BLE K.S. RADHAKRISHNAN, J.
HON'BLE VIKRAMAJIT SEN, J.
Maya Devi
Versus
Lalta Prasad
Civil Appeal No. 2458 of 2014 (Arising out of SLP (C) No.23069 of 2012),
decided on 19.02.2014

Headnote:(a) Registration Act, 1908, Sec. 4,9, 17 — Probative value of document — Document of transfer of property or interest therein — Held — Registered document has more probative value than unregistered document. (Para 15)

       ¼d½ iaft;u vf/kfu;e] 1908] /kkjk 4] 9] 17 & nLrkost dk izkekf.kd egRo & lEifr ;k mlesa fgr ds vUrj.k ds nLrkost & vfHkfu/kkZfjr & iaftd`r nLrkost dk viaftd`r nLrkost dh vis{kk vf/kd izekf.kd egRo gksrk gSA

        ¼in la[;k 15½

       (b) Contract Act, 1872, Sec. 74 — Imposition and breach of penalty — Breach of contract — Held — Imposition and recovery of penalty on breach of a contract is legally impermissible under the Indian Contract Act. (Paras 16, 21)

       ¼[k½ lafonk vf/kfu;e] 1872] /kkjk 74 & 'kkfLr dk vf/kjksi.k ,oa Hkax djuk & lafonk Hkax & vfHkfu/kkZfjr & lafonk ds Hkax gksus ij 'kkfLr dk vf/kjksi.k ,oa olwyh oS/kkfud :i ls Hkkjrh; lafonk vf/kfu;e ds rgr vuuqKs; gSA

        ¼in la[;k 16] 21½

       (c) C.P.C., Order 8 Rule 10 and Order 9 Rule 6 — Duty of Court in case of non-filing of written statement — Judgment in absence of written statement — The factum of defendant having been set exparte — It does not invite a punishment in the form of an automatic decree — Held — Court is duty bound to diligently ensure that the plaint stand proved and the prayer therein are worthy of being granted. (Para 28)

       Appeal allowed.

       ¼x½ fl-iz-la-] vkns'k 8 fu;e 10 ,oa vkns'k 9 fu;e 6 & fyf[kr dFku ugha nk;j djus ds ekeys esa U;k;ky; dk drZO; & fyf[kr dFku ds vHkko esa fu.kZ; & izfroknh ds rF; dks ,di{kh; vikLr fd;k & ;g Loeso fMØh ds :i esa ltk vkeaf=r ugha djrh & vfHkfu/kkZfjr & rRijrk ls ;g lqfuf'pr djus gsrq U;k;ky; drZO;c) gS fd okn i= lkfcr gqvk vkSj mlesa dh xbZ izkFkZuk eatwj fd;s tkus ;ksX; gSA ¼in la[;k 28½

       vihy Lohdkj dhA

       

Hon'ble RADHAKRISHNAN, J.—Leave granted.

2. The appellant herein filed an Objection Petition under Order 21 Rule 58 CPC, when the decree obtained by the respondent in Civil Suit No.407 of 2007 was sought to be executed. Suit was filed for the recovery of an amount of Rs.3,40,000/- with interest, which was sought to be realized, on the property covered by an agreement for sale dated 3.11.2003 between the judgment debtor and decree holder. The appellant claimed that she became the absolute owner of the suit property by virtue of a registered General Power of Attorney dated 12.5.2006 and that she has been in actual physical possession of the suit property. The Petition was contested by the decree holder/respondent stating that the applicant/objector had no legal right, title or interest and that the execution of the General Power of Attorney and its registration would not confer any ownership right in favour of the appellant/objector. Reliance was also placed on the judgment of this Court in Suraj Lamp and Industries Private Limited Through Director vs. State of Haryana & Anr. (2009) 7 SCC 363. The Executing Court vide its order dated 23.7.2010 dismissed the Objection Petition filed by the appellant. Aggrieved by the same, the appellant preferred Execution First Appeal No.23 of 2010 before the High Court of Delhi at New Delhi. The High Court also placed reliance on the judgment of this Court in Suraj Lamp and Industries Private Limited (supra) and dismissed the appeal holding that the documents relied upon by the appellant would not confer ownership or possession over the property in her favour. The High Court also vide its order dated 24.1.2011 upheld the order of the Executing Court. Aggrieved by the same, this appeal has been preferred by the appellant.

3. Shri Rajesh Kumar, learned counsel appearing for the appellant submitted that the ratio laid down by this Court in Suraj Lamp and Industries Private Limited (supra) was wrongly applied by the Executing Court as well as the High Court. Learned counsel submitted that in the final judgment which is reported in Suraj Lamp and Industries Private Limited (2) Through Director vs. State of Haryana & Anr. (2012) 1 SCC 656, this Court has clarified the position that the judgment would not affect the validity of sale agreements and powers of attorney executed in genuine transactions and that the judgment would operate only prospectively. Learned counsel also submitted that the alleged agreement executed between the respondent and one Prem Chand Verma on 3.11.2003 was a collusive one, subsequently created, to get over the registered Power of Attorney executed on 3.6.1982 between the appellant and wife of Prem Chand Verma, viz. Nirmal Verma. Learned counsel also pointed out that Civil Suit No.407 of 2007 was preferred by the respondent herein against Prem Chand Verma based on the deed of agreement dated 3.11.2003 created for the said purpose. Referring to the above-mentioned judgment, learned counsel further pointed out that Prem Chand Verma did not contest the Suit and he was declared ex-parte and a decree was passed in favour of the respondent. Learned counsel pointed out that the decree was obtained by collusion and practicing fraud on the Court and the Executing Court has committed an error in rejecting the Objection filed by the appellant herein, so also by the High Court by not appreciating the facts in the correct perspective.

4. Shri K. Krishna Kumar, learned counsel for the respondent, submitted that both the Executing Court and High Court have correctly applied the principles laid down in Suraj Lamp and Industries Private Limited (supra). Learned counsel pointed out that any process which interferes with regular transfers under deeds of conveyance properly stamped, registered and recorded in the registers of the Registration Department, is to be discouraged and deprecated and the Executing Court has rightly declined to give its seal of approval to General Power of Attorney, Agreem















































































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