IN THE HIGH COURT OF JUDICATURE AT MADRAS
Krishnan Ramasamy, J.
Deenadayalan - Appellant
Versus
N.Sathish Kumar and ors. – Respondents
S.A.Nos.1022, 1055 of 2019, 160, 161 of 2021 and Cross Appeal No.54 of 2020 and C.M.P.Nos.21997 & 22772 of 2019
Decided On : 30-03-2021
Constitution of India,1950 – Articles 226 and 227 - Recovery of Debt dues to Banks and Financial Institution Act, 1993 - Section 18 and 17 - SARFAESI Act - Section 34 - Hindu Succession Act, 1956 - Section 6 - Transfer of Property Act - legal heirs entered into an oral partition - possession and enjoyment of their respective shares obtained - Executed a sale deed - Whether suit as framed is maintainable in view of the Section 18 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 - Whether mere deposit of copy of the title deed by L.Srikantiah would create a valid equitable mortgage in absence of any document evidencing such deposit is with intention to create an equitable mortgage - Whether Appellate Court was right in granting a decree for partition in favour of appellant having held that sale itself is bad - Whether a valid mortgage by deposit of title deed can be created by depositing Xerox copy of the documents when original is not available with depositor/mortgagor - Whether the Courts below are right in restricting suit claim to 2/3rd especially after holding auction sale and same certificate under Exhibit B6 are null and void - Whether mere deposit of copy of the title deed by Srikantiaya would create a valid equitable mortgage in absence of any document evidencing such deposit is with intention to create an equitable mortgage - Whether the Court below are right in restricting suit claim to 2/3rd especially after holding auction sale and possession certificate under Exhibit B6 are null and void - Whether mere deposit copy of the title deed would create a valid equitable mortgage in the absence of any document evidencing such deposit is with intention to create an equitable mortgage - Whether a valid mortgage by deposit of title deed can be created by depositing Xerox Copy of the documents when original is not available with the depositor/mortgagor - Originally the suit schedule property was owned by one Lakkay Gowder. The said Lakkay Gowder died intestate - Long after the demise of C.Lakkay Gowder, in the year 1968, his legal heirs entered into an oral partition and they were in possession and enjoyment of their respective shares obtained through the said partition. Thereafter, the terms and conditions of the oral partition was drawn up in writing among legal heirs by virtue of an Unregistered Family Arrangement dated 11.10.1999. By virtue of the said family arrangement one of the son of with the suit schedule mentioned property as his share - plaintiff entered into a sale agreement with and his two sons to purchase 1.05 acres of agricultural land out of 1.16 ¼ acres along with his two son delivered the possession of the said land to the plaintiff. Subsequently, they have also executed a sale deed – Held, cross examination had stated that L.Srikantiah was passed away on 13.04.2003 and the suit was filed in the Month of June 2003. Further, he admitted the fact that the suit was filed against the dead person. He also admitted the fact that the sale was conducted against the dead person and the sale against the dead person is null and void. In the present case, on perusal of documents would show that the entire auction proceedings were initiated from time to time against the dead person - D.R.C.No. was issued against the dead person and legal heirs of the dead person have not been served any notice. Thus, the finding of the Lower Court to recognise the auction sale said to have held on 31.12.2008 under Ex.B4 after coming to the conclusion that the decree and the sale was made against the dead person, is not proper and the said finding is set aside. Accordingly, both the substantial question of law are answered in favour of the plaintiff - Cross Appeal No.54 of 2020 is allowed - S.A.Nos.1022 of 2019 is dismissed
JUDGMENT :
S.A.No.1022 of 2019 has been filed by the 4th defendant/Auction Purchaser in the suit challenging the common judgment and decree dated 11.04.2018 made in A.S.No.5 of 2017 on the file of the District Judge, Udhagamandalam, The Nilgiris.
2. The plaintiff in the suit has filed the Cross Appeal No.54 of 2020 in S.A.No.1022 of 2019 challenging the common judgment and decree dated 11.04.2018 made in A.S.No.5 of 2017 on the file of the District Judge, Udhagamandalam, The Nilgiris, in restricting the suit claim of the plaintiff to 2/3rd and in modifying the judgment and decree dated 09.11.2016 made in O.S.35 of 2010 on the file of the Sub-Judge, Udhagamandalam.
3. S.A.No.1055 of 2019 has been filed by the 4th defendant challenging the common judgment and decree dated 11.04.2018 made in the Cross Appeal No.5 of 2017 on the file of the District Judge, Udhagamandalam, The Nilgiris.
4. S.A.Nos.160 & 161 of 2021 has been filed by the 5th defendant in the suit challenging the common judgment and decree dated 11.04.2018 made in Cross Appeal No.5 of 2017 and in A.S.No.5 of 2017 on the file of the District Judge, Udhagamandalam, The Nilgiris.
5.There are four appeals and one cross appeal have been filed by either of the parties to the suit against the common judgment and decree passed in A.S.No.5 of 2017 and Cross Appeal No.5 of 2017 by the District Judge, Udhagamandalam. Therefore, this Court would like to take up S.A.No.1022 of 2018 and Cross Appeal No.54 of 2020 first and dispose of the same.
6.The appellant in S.A.No.1022 of 2019 and S.A.No.1055 of 2019 would be referred herein after as appellant or 4th defendant. The cross objector in Cross Appeal No.54 of 2020 would be referred herein after as plaintiff or cross objector.
7.The appellant in S.A.Nos. 160 & 161 of 2021, would be referred herein after as 5th defendant or the 5th respondent or the Bank. All other parties to these second appeals would be referred with the same status as referred in the suit before the Trial Court.
8.Before dealing with the main issue, it would be appropriate to narrate the fact of the case, briefly as follows:
8.1.Originally the suit schedule property was owned by one Lakkay Gowder. The said Lakkay Gowder died intestate. Long after the demise of C.Lakkay Gowder, in the year 1968, his legal heirs entered into an oral partition and they were in possession and enjoyment of their respective shares obtained through the said partition. Thereafter, the terms and conditions of the oral partition was drawn up in writing among the legal heirs by virtue of an Unregistered Family Arrangement dated 11.10.1999. By virtue of the said family arrangement, Thiru L.Srikantiah, one of the son of Lakkay Gowder was alloted with the suit schedule mentioned property as his share.
8.2.On 17.10.2002, the plaintiff entered into a sale agreement with L.Srikantiah and his two sons to purchase 1.05 acres of agricultural land out of the 1.16 ¼ acres. On 21.10.2002, L.Srikantiah along with his two son delivered the possession of the said land to the plaintiff. Subsequently, they have also executed a sale deed dated 17.02.2003, in favour of the plaintiff. Thereafter, L.Srikantiah along with his sons, defendants 1 and 2 sold 4 ¾ cent of land to the 3rd defendant and L.Srikantiah retained the balance 6.5 cents with himself.
8.3.After the purchase of the suit schedule property, the plaintiff has been cultivating the land continuously. The plaintiff used to cultivate, carrot, potato, beetroot etc.
8.4.When the matter stand thus, the 4th defendant in the suit who is an utter stranger to the property had come to Adasholai on 28.02.2010 claiming to have purchased the suit 2nd schedule property by virtue of the public auction sale conducted by the 6th defendant, Recovery Officer. According to the 4th defendant, the auction was conducted by the 6th defendant and through the said auction, the 2nd suit schedule property was purchased by the 4th defendant. Thus, he claimed the right over the property and
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