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2010 Supreme(Mad) 2767

High Court of Judicature at Madras
THE HONOURABLE MRS. JUSTICE CHITRA VENKATARAMAN
D.K. Sekar
Versus
S.K. Natarajan & Others
C.M.A.No.1265 of 2009
Decided On : 12-07-2010

Advocates Appeared:
For the Appellant:M. Balasubramanian, Advocate.
For the Respondents:R1 & R2, R. Balakrishnan & R3 & R4, D. Rajasekar, Advocates.

The main legal point established in the judgment is that the relief of temporary injunction can be claimed by the plaintiff only on the basis of Section 53-A of the Transfer of Property Act, by way of an equitable relief under Section 53-A of the Transfer of Property Act.

Headnote:

specific performance - agreement for sale - Transfer of Property Act - Order 39 Rule 1 of the C.P.C. - [1995 (1) CTC 556, AIR 1981 Madras 310, 1993-1-L.W. 109] - The court discussed the legal provisions of specific performance, temporary injunction, and possession under the Transfer of Property Act. The court emphasized that possession in part performance of the contract shall not defeat any transfer to a third party who had no notice of the contract or of the part performance thereof. The court also highlighted that the relief of temporary injunction can be claimed by the plaintiff only on the basis of Section 53-A of the Transfer of Property Act, by way of an equitable relief under Section 53-A of the Transfer of Property Act. The court rejected the plea for injunction by a holder of an agreement based on the principles of equity and discretion within the bounds of law.

Fact of the Case:

The plaintiff sought specific performance of an agreement for sale and an injunction to restrain the defendants from interfering with the suit property. The defendants contended that the plaintiff was only an employee and had no right or interest in the property. The Court rejected the plea for an injunction based on the genuineness of the agreement for sale and the balance of convenience.

Finding of the Court:

The Court found that the plaintiff's possession was denied as one under the agreement for sale, and the defendants had purchased the property under a valid sale deed. The Court held that the balance of convenience was in favor of the defendants and rejected the plea for injunction pending disposal of the suit.

Issues: The issues revolved around the genuineness of the agreement for sale, the plaintiff's right or interest in the property, and the balance of convenience in granting the injunction.

Ratio Decidendi: The court emphasized that the relief of temporary injunction can be claimed by the plaintiff only on the basis of Section 53-A of the Transfer of Property Act, by way of an equitable relief under Section 53-A of the Transfer of Property Act. The court also highlighted that possession in part performance of the contract shall not defeat any transfer to a third party who had no notice of the contract or of the part performance thereof. Based on these principles, the court rejected the plea for injunction by a holder of an agreement.

Final Decision: The Court rejected the appeal, thereby confirming the order of the Court below dated 04.02.2009, and directed the trial Court to dispose of the suit within a period of four months from the date of receipt of a copy of this order.

Judgment :-

1. The plaintiff is the appellant herein, questioning the order of the Court below dated 4.2.2009 made in I.A.No.244 of 2005 in O.S.No.66 of 2005, rejecting the plea for an injunction to restrain the respondents herein from disturbing his possession of the suit property.

2. The plaintiff/appellant claims that under a deed executed by the first defendant as evident from the materials, in the month of Adi, 2000, the plaintiff was put in possession of the suit property on an annual lease rental of 6 bags of paddy or its value per acre. The plaintiff had been paying the above annual rent regularly. Thereafter, respondents-1 and 2 agreed to sell the property to him for a consideration of Rs.6,44,000/-. Respondents-1 and 2 had already received an advance of Rs.4,30,000/-on 18.11.2002. They had agreed to receive the balance amount of Rs.2,14,000/-within a period of one year and have the sale deed executed at his costs. An agreement was duly executed in this regard between the parties. The appellant is in possession of the suit property.

3. It is stated that the appellant had expended on digging up a borewell in January, 2003, spending a sum of Rs.70,000/- and again in January, 2004 to a depth of 190 feet and has improved on the land. In spite of requests made to respondents-1 and 2 to receive the balance amount, respondents-1 and 2 showed no interest to receive the balance consideration and execute the sale deed. On the other hand, the plaintiff learnt that respondents-1 and 2 have created a sham and nominal document by executing sale deed dated 11.10.2004 in favour of respondents-3 and 4.

In the circumstances, a suit for specific performance was laid seeking a direction to the first and second respondents to execute the sale deed in favour of the appellant herein in respect of the suit property on receipt of the balance amount, failing which, the Court to execute the same for and on behalf of the first and second respondents, and to direct the respondents to pay a sum of Rs.5,80,000/-as damages with subsequent interest on Rs.4,30,000/- at 12% per annum from the date of the suit till the date of realisation. The claim was resisted by the third and fourth respondents that the agreement stated to have been entered into by defendants-1 and 2 with the plaintiff was only an imaginary one. Denying the allegation of the plaintiff as to the payment of part consideration of the plaintiff being in possession of the suit property pursuant to the alleged agreement for sale, the defendants contended that the plaintiff was only an agent looking after the lands of defendants-1 and 2 and the plaintiff has no means to carry on any cultivation. Apart from that, the written statement also contains further allegation on the plaintiffs brother Kasinathan who had the design to purchase the suit lands and when the defendants refused to that course, the said Kasinathan had turned the plaintiff against the defendants and hence, the allegation did not merit consideration.

4. Pending disposal of the suit, the plaintiff sought for an injunction to restrain the defendants from interfering with the suit property and the defendants filed a counter affidavit that the plaintiff was only an employee to take care of the lands. There was never an understanding to convey the land in favour of the plaintiff/appellant. Questioning the correctness of the claim that the first respondent had agreed to execute the sale deed, it was contended on their behalf that under a valid sale deed registered on 11.10.2004, for a valuable consideration, sale had been effected; as such, the petition for injunction does not lie.

5. The respondents contended that the appellant did not have any right or interest in the suit property. As no prima facie case was made out, they sought for rejection of the interim application.

6. On hearing both sides, the Court below pointed out that the sale deed executed in favour of the third and fourth respondents was marked as Exs.D1 and D2. Apar













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