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1943 Supreme(Mad) 326

IN THE HIGH COURT OF MADRAS
Somayya, J.
T. Syed Fakruddin Saib and Ors.
Versus
Katta Ramayya Setti and Ors.
Decided On : 24.11.1943

The central legal point established in the judgment is the interpretation and application of Section 41, T. P. Act, particularly focusing on the conditions of good faith, reasonable care, and the requirement for the ostensible owner to be in possession with the consent of the real owner at the time of transfer.

Headnote:

Section 41 - Transfer of Property Act - 41 - Summary of Acts and Sections: Section 41, T. P. Act - The court discussed the provisions of Section 41, T. P. Act and its application to the case. It highlighted the conditions of good faith, reasonable care, and the requirement for the ostensible owner to be in possession with the consent of the real owner at the time of transfer. The court also referenced relevant case law to interpret and apply the legal provisions.

Fact of the Case:

The plaintiff took a mortgage from an ostensible owner who had purchased properties with funds advanced by the real owner. The real owner later filed a suit to establish his title to the property, leading to a dispute over the protection of the plaintiff under Section 41, T. P. Act.

Finding of the Court:

The court found that the plaintiff had fulfilled the conditions of good faith and reasonable care as per Section 41, T. P. Act. It also analyzed the possession of the ostensible owner and the consent of the real owner at the time of transfer.

Issues: The issues revolved around the protection of the plaintiff under Section 41, T. P. Act, the fulfillment of conditions of good faith and reasonable care, and the possession of the ostensible owner with the consent of the real owner.

Ratio Decidendi: The court's decision was based on the interpretation and application of Section 41, T. P. Act, and the fulfillment of its conditions by the plaintiff. It also considered the possession and consent aspects in determining the protection of the plaintiff.

Final Decision: The second appeal failed, and the court dismissed it with costs, indicating that the plaintiff was protected under Section 41, T. P. Act.

JUDGMENT

Somayya, J.

1. This second appeal raises an important question on the construction to be placed on the wording of Section 41, T. P. Act. The facts that led to this appeal are these.

2. The appellants are defendants 8 to 11,13 and 14 who are the sons and daughters of one Ahmed Sahib. Respondents 1 to 5 are the representatives of Katta Subbayya the plaintiff in the suit. The other respondents are the heirs of one Bhandigi Sahib. Ahmed Sahib and Bhandigi Sahib were brothers. Bhandigi Sahib was a police head constable and had retired from service and settled in his native village. The other brother Ahmed Sahib was in service as a Sub-Inspector of Police and it appears that he sent a large sum of money to his brother Bhandigi Sahib. With the moneys so sent by Ahmed Sahib, Bhandigi Sahib purchased properties in his own name. The plaintiff Katta Subbayya took a simple mortgage from Bhandigi Sahib (Ex. B) on 6th August 1928. This was in order to pay off a debt due to one Mr. M. G. Rameswara Rao who was a leading advocate of Anantapur and now dead. Later on the plaintiff obtained a usufructuary mortgage in discharge of the simple mortgage which he had obtained in 1928. Exhibit A is the usufructuary mortgage deed dated 12th September 1930. In between the simple mortgage and the usufructuary mortgage, Ahmed Sahib filed a suit in the District Munsifs Court of Anantapur to enforce his right to the property in suit on the ground that the property having been purchased with the funds advanced by him was really his own property and not that of Bhandigi Sahib. The plaint was returned to be presented to the proper Court as the value of the property exceeded the jurisdiction of the District Munsifs Court and thereupon it was presented to the higher Court. The order of returning the plaint to be presented to the proper Court was passed on 24th September 1930. Exhibit A the usufructuary mortgage was thus effected at a time when the suit was pending in the District Munsifs Court and a few days after the usufructuary mortgage, the order returning the plaint to the proper Court was passed. At the time when the simple mortgage was taken on 6th August 1928, the position was that Ahmed Sahib had unsuccessfully at-tempted to get possession of the properties in certain criminal proceedings. Those proceedings, however, were not effective and did not give Ahmed Sahib the relief that he wanted and it was for the reason that he failed to get relief in the criminal proceedings and also in certain other proceedings to be mentioned later that he filed the suit in the District Munsifs Court on 7th December 1928. The simple mortgage was executed four months earlier by Bhandigi Sahib in favour of Katta Subbayya. The suit filed by Ahmed Sahib in the District Munsifs Court which was later on re-presented in the higher Court ended ultimately in the title of Ahmed Sahib being established as against Bhandigi Sahib.

3. On these facts the question is whether the plaintiff is protected by Section 41, T. P. Act. In this suit the plaintiff did not challenge the title of Ahmed Sahib. He was apparently content to proceed upon the judgment of the High Court that Ahmed Sahib was the real owner of the property. He (the plaintiff) mainly rested his case on the fact that Bhandigi Sahib was an ostensible owner in possession of the property with the consent express or implied of the real owner Ahmed Sahib and that he (the plaintiff) took the transfer (first the simple mortgage and later the usufructuary mortgage) after taking reasonable care to ascertain that the transferor had power to make the transfer and acted in good faith. The contesting defendants are 8 to 11, 13 and 14 who are sons and daughters of Ahmed Sahib. They contend that the plaintiff is a resident of the same street as Ahmed Sahib and Bhandigi Sahib that he knew all the litigations between Ahmed Sahib and Bhandigi Sahib and that therefore he had notice of the claim of Ahmed Sahib as against Bhandigi Sahib. It wa









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