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1987 Supreme(Mad) 441

1988 1 MLJ 447
Sivasubramaniam, J.
M. Mohamed Kassim And Ors.
Versus
C. Rajaram And Ors.
Decided on: 10/12/1987
A.S.Nos.756, 1177 of 1979 and 82 of 1982

Registration of document has to be done by the Sub-registrar of the concerned area.

Headnote:Indian Registration Act, 1908- Section 17 -Compulsory registration of documents has to be done by the sub-registrar under whose jurisdiction the property lies.

       

JUDGMENT

Sivasubramaniam, J.

1. The unsuccessful third defendant in O.S. No. 97 of 1975 on the file of the Subordinate Judge, Nagercoil, is the appellant in A.S. No. 756 of 1979. Defendants 5, 6 and 7 who are the legal representatives of the deceased 2nd defendant in the said suit, are the appellants in A.S. No. 1177 of 1979 and the first defendant in the said suit is the appellant in A.S. No. 82 of 1982.

2. The first respondent in all these appeals is the plaintiff in the said suit and he filed the same in a representative capacity for himself and on behalf of all the creditors of the first defendant for a consideration that the sale deeds executed by the first defendant are void and not binding on the general body of the creditors of the first defendant and also for a decree against him for realisation of Rs. 49,909,25 with interest and for costs of suit. The plaintiff has also prayed for an injunction against the purchasers of the suit properties from the first defendant from effecting any alterations in the suit properties. The material allegations in the plaint filed by the plaintiff are as follows: On 14.4.1974 the first defendant executed a promissory note in favour of the plaintiff for a valuable consideration of Rs. 42,296 agreeing to pay the same on demand or order with interest 12 per cent per annum. The first defendant has not paid back any amount inspite of repeated demands. The first defendant was the owner of the suit properties and he had no other properties. On 25.3.1975 the first defendant executed a sale deed in favour of the fourth defendant relating to item No. 1. On the same day, the first defendant executed another sale deed in respect of item No. 2 in favour of the second defendant. Subsequently, on 25.6.1975 the fourth defendant sold item No. l to the third defendant. All the aforesaid sale deeds have been brought into existence by the defendants with intent to defeat and delay the execution of the decree that may be passed against, the first defendants These sale deeds have been registered in Kerala, at Parasala Sub Registrar's Office, with a view to prevent the creditors from gaining knowledge about the same. In all the sale deeds on imaginary item, in which the first defendant had no right, has been included as item 2 so as to facilitate registration in Kerala. The defendants 2 and 4 are related to the first defendant and the third defendant is a close friend of the other defendants. Defendants 2 to 4 are not transferees in good faith. The transfers have been effected in pursuance of a scheme perpetrated by the first defendant in collusion with the other defendants with a view to place the properties out of the reach of the plaintiff and other creditors. The sale deeds are not supported by consideration and necessity. The sales are collusive and fraudulent transactions. The first defendant was working as Manager under the plaintiff in the Petrol Bunk at Vadesery. From 16.4.1975 the first defendant suddenly ceased to attend the office and he sent intimation to the plaintiff that he was laid up in his house due to blood pressure. Subsequently, on enquiry, the plaintiff learnt that the first defendant was deliberately evading to surrender the keys of the almirah and the table. The plaintiff has filed this suit in a representative capacity. The plaintiff is entitled to a decree for realisation of Rs. 909.25 due to him with interest thereon. The plaintiff is entitled to a decree for a declaration that the sale deeds executed in favour of defendants 2 to 4 are void and not binding upon him and other creditors of the first defendant.

3. The first defendant resisted the suit and filed a written statement raising the following contentions: The promissory note was executed under the following circumstances. The defendant joined the plaintiff's service on a monthly salary in 1956 and was in discharge of the petrol Bunk of Vadasery. Subsequently, this defendant was also in charge of the other concerns of the plaint





























































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