High Court of Judicature at Madras
THE HONOURABLE MR JUSTICE RAJU
Raghavan Alias Bhagavathikannu Pillai & Others
Versus
M. Krishnammal & Others
C.M.A. No. 210 of 1983
Decided On :Decided on : 07-09-1990
TRANSFER OF PROPERTY ACT - SECTION 51 AND 52 - LIS PENDENS - DOCTRINE OF LIS PENDENS - APPLICABILITY - RESTITUTION OF PROPERTY - CLAIM FOR VALUE OF IMPROVEMENTS - SECTION 52 OF THE TRANSFER OF PROPERTY ACT - SCOPE AND EFFECT - BONA FIDE PURCHASERS - RIGHTS AND LIABILITIES.
Fact of the Case:
The case involved a dispute over the possession of a property. The plaintiffs had obtained a decree for possession of the property from the trial court, but the defendants, who were lessees of the property, claimed protection under the Madras City Tenants Protection Act. The plaintiffs filed an execution petition for delivery of the property, but the executing court dismissed the petition on the ground that the amount for the value of the improvements had not been deposited within the time prescribed under section 4(4) of the Act. The plaintiffs filed a revision petition in the High Court, which allowed the revision and directed the executing court to deliver possession of the property to the plaintiffs. The defendants then filed an application for restitution of the property, claiming the value of the improvements made by them. The executing court rejected the claim and ordered restitution. The defendants appealed to the lower appellate court, which allowed the appeal and remanded the matter to the trial court for consideration of the claim for compensation for improvements.
Finding of the Court:
The High Court held that the lower appellate court erred in allowing the claim for compensation for improvements. The court held that the provisions of section 51 of the Transfer of Property Act, which allow a transferee to claim compensation for improvements made to the property, are controlled by the provisions of section 52 of the Act, which provide that a person who is in possession of property under a decree of court which is subsequently reversed is not entitled to be paid the value of improvements effected by him while in possession. The court also held that the defendants were not bona fide purchasers, as they had not produced any evidence to substantiate their claim.
Issues: 1. Whether the defendants were entitled to claim compensation for improvements made to the property under section 51 of the Transfer of Property Act? 2. Whether the defendants were bona fide purchasers?
Ratio Decidendi: 1. The court held that the provisions of section 51 of the Transfer of Property Act are controlled by the provisions of section 52 of the Act, which provide that a person who is in possession of property under a decree of court which is subsequently reversed is not entitled to be paid the value of improvements effected by him while in possession. 2. The court held that the defendants were not bona fide purchasers, as they had not produced any evidence to substantiate their claim.
Final Decision: The High Court allowed the appeal and set aside the order of the lower appellate court. The court held that the defendants were not entitled to claim compensation for improvements made to the property and that the plaintiffs were entitled to restitution of the property.
1. The above appeal has been filed against the order dated 20.1.1983 made in A.S. Nos. 138,139 and 140 of 1981 on the file of the District Judge, Kanyakumari at Nagercoil with in its turn came to be filed against the order dated 12-11-1981 in E.A. No. 598 of 1980 in O.S. No. 525 of 1970 on the file of the principal Listriet Munsif, Nagercoil.
2. O.S. No. 525 or 1980 was filed by Bagavathi Ammal and Krishnammal for recovery of the property from the lessees, namely, B. Vallinayagam and B. Velu Pillai and other defendants who claimed under defendants 1 and 2. The basis or the suit was that the lease of a vacant land was granted on 9.2.1109 M.E. which was executed in favour of the mother of the plaintiffs referred to above. Under the lease deed, the lessees were permitted to construct buildings on the vacant land there was a provision to receive the value of it while surrenderimg possession. The said suit was filed on the ground of arrears of rent and for own occupation. On 26.10.1972, the trial Court decreed the suit holding that the value of the building was Rs. 2,854/and recovery of possession was granted subject to the payment of the said value.
3. At that stage, the first defendant died and his legal representatives were brought on record in the suit. The second defendant and the legal representatives of the first defendant filed A.S. No. 112 of 1973 against the decree passed in the suit. The Appellate Court, while confirming the decree relegated the question of determining the value of the buildings to final decree proceedings by its judgment and decree dated 28.2.1974. In the final decree proceedings, the value of the buildings was fixed at Rs. 20,136.83 and time for deposit by two months was granted. The final decree was passed on 13.3.1976.
4. In the meanwhile, the Madras city Tenants Protection Act was extended to Nagercoil Municipality by Notification No. G.O.Ms. No. 1965 dated 10-11-1967 published in the Gazette dated 13-121967. Hence I.A. No. 942 of 1970 was filed by the lessees defendants in O.S. No. 525 of 1970 claiming bebefits under section 9 of the said Act. Since the lessees could not pay the value of the land the said application was dismissed. But at the same time, an issue was raised in the suit as issue No. 3 in the following t erms: Whether defendants are entitled to protecion of the Madras City Tenants Protection Act”?. The Court below held that the defendants were entitled to the value of improvements only. By then, the second defendant died and his legal representatives were brought on record as defendants 11 to 17.
5. While matters stood thus, the plaintiffs filed E.P. No. 215 of 1976 for delivery and they got delivery of the building belonging to the first defendant. The plaintifis in the suit then filed E.P. No.
223 of 1977 depositing Rs. 13,045.63 into Court for delivery in respect of the building of the second defendant. But the legal representatives of the second defendant, namely, defendants 11 to 17 resisted the execution petition. The plaintiffs deposited Rs. 9,304.45 on 27.4.1977 and Rs. 3,741.48 on 11.6.1977 amounting to Rs. 13,045.63 as referred to above and claimed delivery of the buildings bearing Nos. 28/11-12 and 13. The legal representatives of the second defendant raised an objection that under section 4(4) of the Act that the amount ought to have been deposited into court within three months from the date of the decree which was made on 13-8-1976 and the amount not having been paid within that time, the suit stood dismissed and no execution could be levied. The executing Court overuled the objections and allowed the execution petition on 12.9.1977 holding that the Act was not extended to Nagercoil then and since the same was extended during the pendency of the suit, the defendants are not entitled to the benefits of the Act.
6. The legal representatives of the second defendant filed C.M.A. No. 73 of 1977 on 20-9-1977 against the order dated 12-91977 before the lower appellate
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