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2023 Supreme(Mad) 683

HIGH COURT OF JUDICATURE AT MADRAS
S.M. SUBRAMANIAM, J.
Akilandeswari Real Estate (P) Ltd., Represented through the Managing Director, K. Sankara Subramanian, Trichy & Another - Appellantss
Versus
The Inspector General of Registration, Chennai & Others - Respondents
W.P. Nos. 14469 to 14479 of 2016 & W.M.P. Nos. 12646 to 12667 of 2016
Decided On : 21-03-2023

Advocates appeared:
For the Petitioners:R. Narayanan, Advocate. For the Respondents:R1 & R2, T. Arun Kumar, Additional Government Pleader, R4, K. Mohana Murali, R5, B. Sundar, R6, K. Mohana Murali, Advocates, R3, No Appearance.

Disputes related to the misuse of power of attorney and property transactions in a real estate business fall under the jurisdiction of the civil court and cannot be adjudicated in a writ proceeding before the High Court.

Headnote:

Power of Attorney - Real Estate Dispute - The court held that the dispute regarding the misuse of power of attorney and fraudulent utilization of sale deeds in a real estate business falls under the jurisdiction of the civil court and cannot be adjudicated in a writ proceeding before the High Court.

Fact of the Case:

The petitioner, a real estate company, alleged that the power of attorney had been misused and fraudulently utilized for registering sale deeds, resulting in loss to the company.

Finding of the Court:

The court found that the issues raised were civil in nature and involved property transactions, and therefore, the petitioner should approach the competent civil court for redressal.

Issues: The main issue was the misuse of power of attorney and fraudulent utilization of sale deeds in a real estate business, which the petitioner alleged resulted in loss to the company.

Ratio Decidendi: The court held that disputes related to immovable property and property transactions are to be adjudicated in the civil court, and not through a writ proceeding before the High Court.

Final Decision: The writ petitions were disposed of with the direction for the petitioner to approach the competent civil court for redressal, and the period during which the writ petitions were pending before the High Court was to be considered for condoning any delay in filing civil proceedings. No costs were awarded, and connected miscellaneous petitions were closed.

JUDGMENT

Common Order:

1. These writ petitions have been instituted to call for the records of the 2nd respondent culminated in the Power of Attorney Deed dated 13.03.2013, which has been registered in the Document No.2060/2013 in Book No.1 and consequently, direct the 2nd respondent to remove the entries made as Document No.2060/2013 in Book No.1 dated 13.03.2013.

2. The petitioner is Akilandeswari Real Estate Private Limited. The petitioner states that the company has been registered under the Companies Act, 1956. The company is engaged in real estate business in various districts across the State of Tamil. In order to develop the business, the 3rd respondent was appointed as Power Agent as well as the Manager of the company through Board resolution dated 07.03.2008. Based on the resolution, the petitioner / company had executed the Power of Attorney Deed in Document No.93 of 2009 dated 12.03.2009.

3. The grievance of the writ petitioner is that the Power of Attorney registered by the petitioner / company had been abused and fraudulently utilised in collusion with the authorities for the purpose of registering the Sale Deeds.

4. The learned counsel for the petitioner mainly contended that the Power of Attorney has been misused and the Sale Deed was fraudulently utilised by the another Power of Attorney, who is the 4th respondent herein. The 4th respondent had further misused the Power of Attorney, which resulted loss to the petitioner / company.

5. The nature of the dispute and the challenge made is with reference to the real estate business and more so, relating to immovable properties. All such issues are to be adjudicated with reference to the original documents and evidences and more so, oral evidences become necessary for the purpose of resolving the issues. High Court in a writ proceeding cannot undertake such elaborate adjudication, which is to be done through trial natured proceedings. Civil Rights are to be ascertained in respect of immovable property through the Civil Court Competent to adjudicate the issues raised between the parties.

6. Since the issues are civil in nature and involves property transactions between the writ petitioner / company and the respondents, this Court is of an opinion that the petitioner has to approach the Competent Civil Court for the purpose of redressing its grievance. If at all, the petitioner has chosen to file a Civil Proceedings before the appropriate Court of Law, the period during which the writ petitions were pending before the High Court is to be taken into consideration for the purpose of condoning the delay if any.

7. With this liberty, the Writ Petitions are disposed of. No costs. Consequently, connected Miscellaneous Petitions are closed.

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