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2000 Supreme(Mad) 96

High Court of Judicature at Madras
THE HONOURABLE CHIEF JUSTICE MR. K.G. BALAKRISHNAN & THE HONOURABLE
MR. JUSTICEK.P. SIVASUBRAMANIAM
M.M.S. Investments through its Managing Director and 4 others
Versus
V. Veerappan and 8 others
L.P.A. No. 211 of 1999 and C.M.P. No. 19891 of 1999
Decided On : 25-01-2000

Advocates:
Mr. R. Muthukumarasamy, Advocate for Appellants. Mr. T.R. Rajagopalan,
Senior Counsel for Mr. G. Ethirajulu, Advocate for Respondents.

Impleadment of parties under O.1, Rule 10, CPC is general and includes a situation under O.22, Rule 10, CPC.

Headnote:Specific Relief Act (XLVI of 1963), Secs.19, 16(1)(c) and (b)-Specific performance of agreement---Subsequent purchaser for valuable consideration with or without prior knowledge of a prior sale agreement can raise any ground other than that under Sec.16(c) to resist specific performance of agreement.

Judgment :-

K.P. Sivasubramaniam, J.

1. In this appeal, the correctness or otherwise of the order passed by the learned single Judge in A.S. No. 796 of 1987 dated 11. 1999 is called in question. The order of the learned single Judge appears to have been passed on a preliminary objection raised by the respondents in the appeal.

.2. O.S. No. 247 of 1981 on the file of the Sub Court, Madurai, was filed by one Veerappan, the first respondent for specific performance of an agreement for sale dated 21. 1978. Respondents 2 to 9 were impleaded in the suit as owners of the property and it was alleged that the owners had entered into an agreement with him and as the agreement was not complied with, the suit was filed. After the decree was passed by the trial Court, the defendants through their power of attorney, sold large extent of properties including the subject matter of the suit in favour of certain other persons who are the present appellants. In the mean time, defendants 1 to 5 filed appeal in A.S. No. 796 of 1987 before this Court against the judgment and decree in O.S. No. 247 of 1981 and the appellants herein being subsequent purchasers filed C.M.P. No. 3707 of 1989 to implead themselves as appellants 6 to 9 in the appeal on the ground that the original appellants 1 to 5, the erstwhile owners, were trying to collude with the first respondent. Appellants I to 5 filed C.M.P. No. 4388 of 1990 to withdraw their power of attorney given in favour of one Chakrapani and Sethuraman. A learned single Judge, of this Court dismissed C.M.P. No. 3707 of 1989 filed by the appellants herein seeking impleadment and allowed C.M.P . No. 4388 of 1990 by order dated 26. 1990. The appellants filed L.P.A. No. 113 of 1990 against the order of dismissal of C.M.P. No. 3707 of 1989 and also sought for leave to file an appeal against the order allowing C.M.P. No. 4388 of 1990. Both the L.P.A. and C.M.P. No. 9570 of 1990 seeking leave to appeal were disposed of by a common order dated 23. 1990.L.P.A. No. 113 of 1990 was allowed and with the result the appellants were impleaded as appellants 6 to 9 in the appeal and A.S. No. 796 of 1987 was also directed to be disposed on merits.

3. Before the learned single Judge who took up the appeal for hearing, an objection was taken on behalf of the first respondent/plaintiff contending that having regard to the fact that the present appellants being only subsequent purchasers, they were not entitled to raise any ground other than the issue that they are bona fide purchasers for value without notice of the earlier agreement. For this proposition, reliance was placed upon the judgment of the Supreme Court in Jugraj Singh v. Raj Singh, A.I.R.1995 S.C. 945. On the strength of the said judgment it was contended that the appellants were not entitled to raise any other issue. The learned single Judge upheld the objection and held as a preliminary order that the appellants were not entitled to raise any point other than the issue as mentioned above. Hence the present appeal.

4. Mr.R.Muthukumarasamy, learned counsel for the appellants contends that the law laid down by the Supreme Court in Jugraj Singh’s Case, AIR 1995 S.C. 945 does not create any such bar as pleaded by the respondent and upheld by the learned single Judge. According to him, the judgment was rendered only in the context of Section 16(c) of the Specific Relief Act. At any rate, the decision will not apply to a case where they had pleaded collusion between the plaintiff and the original owners and in L.P.A. No. 1 13 of 1990 this Court had specifically upheld their allegation of collusion. He would also submit that the decision in L.P.A. No. 113 of 1990 being inter-parties was binding on both sides.

.5. Mr.T.R.Rajagopalan, learned Additional Advocate General, appearing for the respondents contends that the judgment of the Supreme Court would strictly cover the present case and the law laid down by the Supreme Court clearly held that it was not open to a s






















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