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2022 Supreme(Mad) 815

IN THE HIGH COURT OF JUDICATURE AT MADRAS
C.V. KARTHIKEYAN, J.
Kuppuswamy Pillai – Appellant
Versus
Ramamurthi Pillai & Others – Respondents
S.A. No. 1686 of 2003
Decided on : 20-07-2022

Advocates:
Advocate Appeared:
For the Appellant :S. Balasubramanian, Advocate.
For the Respondents:J. Ramakrishnan, Advocate

An agreement of sale does not create any interest or charge on the property, and sale is a transfer of ownership.

Headnote:

Property - Agreement of Sale - Ex.A-1 - Sections 47, 54 of the Registration Act - Sections 3, 40 of the Transfer of Property Act - AIR 1977 SC 774 (or) (1977) 3 SCC 247 [Narandas Karsondas Vs. S.A. Kamtam and Anothers]

Fact of the Case:

The plaintiff filed a suit seeking specific performance of an agreement of sale for a property. The trial court decreed the suit, but the first appellate court set aside the decree and passed a decree for the return of the advance amount. The plaintiff filed a Second Appeal challenging the first appellate court's decision.

Finding of the Court:

The court found that the agreement of sale (Ex.A-1) was not valid as the property had already been sold to the second defendant by a registered sale deed (Ex.B-1) before the agreement was entered into. The court also held that the sale deed in favor of the second defendant was valid and binding.

Issues: The issues included the validity of the agreement of sale, the ownership of the property, the validity of the sale deed in favor of the second defendant, and the possession of the property.

Ratio Decidendi: The court held that the agreement of sale (Ex.A-1) was not valid as the property had already been sold to the second defendant by a registered sale deed (Ex.B-1) before the agreement was entered into. The court also emphasized that an agreement of sale does not create any interest or charge on the property, and sale is a transfer of ownership.

Final Decision: The Second Appeal was dismissed, and the Judgment and Decree of the first appellate court were confirmed.

JUDGMENT :

(Prayer: This Second Appeal is filed under Section 100 of Civil Procedure Code, against the Decree and Judgment passed in A.S.No. 138 of 2002 on the file of Additional District Fast Track Court No.1, Tindivanam on 07.03.2003 by which it has reversed the decree and Judgment passed in O.S.No. 784 of 1995 on the file of District Munsif cum Judicial Magistrate Court, Vanur, on 30.07.1999.)

1. The plaintiff in O.S.No. 784 of 1995 on the file of the District Munsif Court, Vanur, is the appellant herein.

2. The suit in O.S.No. 784 of 1995 was originally filed before the Sub Court at Tindivanam and numbered as O.S.No. 188 of 1995 and had then been transferred to the District Munsif Court at Vanur was renumbered as O.S.No. 784 of 1995. It was filed by the plaintiff Kuppuswamy Pillai against two defendants Swaminatha Thanthiriyar and Ramamurthi Pillai, seeking a Judgment and Decree directing the first defendant to execute a sale deed in favour of the plaintiff after receiving the balance sale consideration of Rs.22,300/- and in default for the Court to execute the sale deed on behalf of the first defendant and in the alternate to direct the first defendant to pay a sum of Rs.5,000/- being the earnest money received under the suit sale agreement from the plaintiff and also for permanent injunction restraining the second defendant from interfering with the plaintiff's peaceful possession of the suit property under the guise of any sham and nominal document and for costs of the suit. By Judgment dated 30.07.1999, the suit was decreed for the relief of specific performance.

3. The defendants then filed A.S.No. 69 of 1999 before the Sub Court at Tindivanam, which appeal suit was then transferred to the Additional District Court/Fast Track Court No.1, Tindivanam and renumbered as A.S.No. 138 of 2002. By Judgement dated 07.03.2003, the Appeal was allowed and the grant of relief of specific performance by the trial Court was set aside and in the alternate, a decree was passed for return of the advance amount of Rs.5,000/- together with interest.

4. Questioning that Judgment, the plaintiff had filed the present Second Appeal.

5. The Second Appeal had been admitted on the following two substantial questions of law:-

    “1. Whether the finding of the first Appellate Court that the agreement of sale Ex.A-1 is not valid is legally sustainable in as much as it has failed to note that the property has been allotted to the share of the 1st respondent and as such it is his absolute property?

2. Whether the finding of the 1st appellate Court that Ex.B-1 is valid and binding is legally sustainable in as much as it has not considered that Ex.B-1 has been created only to defeat the rights under Ex.A- 1?”

6. During the pendency of the Second Appeal, the second respondent/first defendant died and his legal representatives were brought on record as 3rd to 7th respondents.

O.S.No. 784 of 1995 – District Munsif Court, Vanur:

7. The plaintiff Kuppuswamy Pillai claimed that the suit schedule property belonged to the first defendant Swaminatha Thanthiriyar. He offered to sell the property to the plaintiff for Rs.27,300/- and had received an advance of Rs.5,000/-. A sale agreement was also entered into on 01.09.1995. The balance sale consideration was to be paid within three months and the sale deed was to be executed on receipt thereof. It was stated that the first defendant had however executed a sale deed in favour of the second defendant Ramamurthi Pillai. It was stated that the plaintiff was ready and willing to perform his part of the agreement and had also demanded the first defendant to execute the sale deed in his favour on 07.09.1995. The plaintiff claimed to be in possession of the suit property. In view of aforesaid circumstances, the suit had been filed for the reliefs stated.

8. The suit property was situated in Vanur in Nesal Village, Vanur, Villupuram District, in dry S.No. 106/2 measuring 0.55 cents out of a total area of 1.74 acres.

9. The second defen

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