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2012 Supreme(Mad) 4638

High Court of Judicature at Madras
R.S. RAMANATHAN
N. Debora Indira Jaba Priya & Another
Versus
Ibrahim Sha & Others
Appeal Suit No.195 of 2010
Decided on : 19-11-2012

Advocates appeared:
For the Appellants:T.V. Ramanujan, Senior Counsel for D. Ashok Kumar, Advocate.
For the Respondents:R1 & R2, S. Parthasarathy, Senior Counsel for M. Basker, R3 & R4, D. Muneeswaran, R5, V. Anandakrishnan, R6, A. Vadivel, Advocate.

Headnote:Transfer of Property Act, 1882, Section 69 – Sale of Mortgaged Property – A property was auctioned for sale as the mortgaged money has not been paid. The purchaser who bought the property filed suit for recovery of possession and supply of original title deeds. The appeal was allowed against the mortgager who defaulted in the payment of mortgage money and was unsuccessful in proving that they tendered the amount but was refused by the mortgagees. However, the right to execute the sale deed was bestowed on the mortgagees. Thus, there is no need to file the execution petition for decree when the mortgagee is willing to execute the sale deed in favour of the purchaser. However, there was no commitment of fraud & thus the purchase title cannot be challenged. Moreover, the person who alleges the fraud, the onus is on him to prove the occurrence & in this case the claimant/petitioner failed to prove it. So, the appeal get’s dismissed & the purchaser gets full and complete title over the property as the sale u/s 69 is declared valid.

Judgment :-

The defendants 1 and 2 are the appellants herein.

2. The respondents 1 and 2 herein filed the suit in O.S.No.2557 of 2007, on the file of the IV Additional Judge, City Civil Court, Chennai, for recovery of possession and to handover all the original title deeds in respect of the property and for costs of the suit.

3. That suit was decreed, as prayed for. Aggrieved by the same, this Appeal has been filed by the appellants/defendants 1 & 2.

4. The case of the plaintiffs, as seen from the plaint is as follows:-

i) The suit property originally belonged to the first defendant and her mother Mrs.Lilly Williams, who had a life estate in that property. Both of them borrowed a sum of Rs.1,00,000/- from the Chintadripet Co-operative Bank Ltd., and executed a registered mortgage, dated 19.06.1996, for the said sum. After the death of the first defendant's mother, with a view to discharge the mortgage debt, the first defendant along with the second defendant, mortgaged the property in favour of the defendants 3 & 4, for a sum of Rs.2,00,000/-, on 09.01.2002, and further borrowed a sum of Rs.2,00,000/-. Thus, the defendants 1 and 2 were liable to pay Rs.4,00,000/-, to the defendants 3 and 4.

ii) As per the terms of the mortgage, the mortgagees, viz., the defendants 3 and 4 are entitled to bring the property to sale. As the defendants 1 and 2, failed to repay the amount, the defendants 3 and 4 brought the property to auction sale by invoking the provisions of Section 69 of the Transfer of property Act ( hereinafter referred to as 'the Act') through the fifth defendant. The auction was fixed, on 11.07.2002. On coming to know of the same, the defendants 1 and 2 filed the suit in O.S.No.3632 of 2002 and obtained an order of interim injunction. As per the injunction order, the defendants 1 and 2 have to pay Rs.25,000/- to the defendants 3 and 4, on or before, 17.09.2002. As the amount was not paid by the defendants 1 and 2, the injunction order was vacated. Later, an auction was conducted, on 19.09.2002, by the fifth defendant, in which, the sixth defendant was the successful auction purchaser of the property, for a sum of Rs.6,00,000/-

iii) Thereafter, the defendants 1 and 2 filed the suit in O.S.No.5308 of 2002, on the file of the Second Additional Judge, City Civil Court, Chennai, for redemption of the mortgage, for declaration that no auction was conducted, on 19.09.2002, and for permanent injunction, restraining the defendants 3 4 and 5 from executing the sale deed in favour of the sixth defendant. In that suit, a compromise was entered into between the parties and as per the compromise, a decree was passed, by which, the defendants 1 and 2 should pay Rs.4,00,000/-to the defendants 3 and 4, on or before, 28.02.2005, failing which, the sale in favour of the auction purchaser/sixth defendant would be confirmed and the defendants 3 and 4 shall execute and register the sale deed in favour of the sixth defendant in respect of the suit property.

iv) The defendants 1 and 2 failed to comply with the terms of the compromise decree. Hence, the sale in favour of the sixth defendant was confirmed and on 08.09.2005, the defendants 3 and 4 executed a registered sale deed in favour of the sixth defendant and symbolic possession was given to the sixth defendant and the sixth defendant became the absolute owner of the property. On the same date, the sixth defendant conveyed the suit property to the plaintiffs, for a sum of Rs.7,00,000/- under a registered sale deed and also gave symbolic possession.

v) As per the sale deed, the plaintiffs are directed to initiate proceedings for recovery of possession as well as for original documents and despite repeated demands made to the defendants 1 and 2, they failed to deliver vacant possession of the suit property and also failed to handover the original documents. Therefore, a notice, dated 02.04.2007, was given to defendants 1 and 2, calling upon them to deliver vacant possession. Even after the




















































































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