IN THE HIGH COURT OF JUDICATURE AT MADRAS
D. Bharatha Chakravarthy, J.
Renganayaki and ors. - Appellants
Versus
K.R. Renganathan Mudaliyar (Deceased) and ors. – Respondents
A.S.No.185 of 1989
Decided On : 21-12-2022
Civil Procedure Code, 1908 – Section 96 – Indian Contract Act, 1872 – Sections 13, 19 – Court framed – Enjoyment of suit property – Case of parties in their plaint in their respective suits and in written statement in counter suit is identical – Since both are cross suits in respect of same transaction and between same parties in respect of same suit schedule properties, same was taken up by way of joint trial and was disposed of by a judgment – Held, Therefore, considering over all facts and circumstance of case, reliefs have to be moulded in accordance to above findings of this Court – Therefore, in view of my above findings, legal heirs of Vendors, appellants herein, will be entitled for property, as they are in physical possession of property and in possession of parent and title deeds of property – Compulsory registration of Ex.A-1, sale deed is declared as illegal and as such, title would vest with appellants. Purchaser will be entitled to a sum being advance amount had to Vendor and cost of stamp paper, being with further interest at rate of 12% per annum till date of payment – There shall be a charge on suit property for due re-payment of above sum – Accordingly, parties will be entitled for reliefs – Appeal Suit allowed.
JUDGMENT :
Prayer: Appeal Suit is filed under Section 96 of C.P.C., against the judgment and decree of the Sub-ordinate Judge, Arani, North Arcot District in O.S.No.27 of 1985 dated 29.11.1988.
A. The Appeal Suit :
This Appeal Suit arises out of the common judgment and decree dated 29.11.1988, passed by the Subordinate Judge, Arani in O.S.No.27 of 1985 and O.S.No.20 of 1986.
1.1. O.S.No.27 of 1985 is filed by one K.R.Renganatha Mudaliar against Ranganeyagi and her husband Rajamanicka Gounder, praying that the defendants should handover the possession of the suit schedule properties to the plaintiff. O.S.No.20 of 1986 is filed by Ranganeyagi Ammal against the said K.R.Renganatha Mudaliar, to declare the sale deed dated 19.05.1983 as null and void and for a permanent injunction restraining the defendants from interfering with the plaintiff's peaceful possession and enjoyment of the suit property. For the sake of convenience, the parties namely, Ranganeyagi, is referred to in this judgment as “the Vendor” and K.R.Renganatha Mudaliar as “the Purchaser”.
1.2. The case of the parties in their plaint in their respective suits and in the written statement in the counter suit is identical. Since both are cross suits in respect of the same transaction and between the same parties in respect of the same suit schedule properties, the same was taken up by way of joint trial and was disposed of by a judgment. This appeal suit was initially dismissed on the ground that a single Appeal Suit against the common judgments in two suits is not maintainable. Upon filing Letters Patent Appeal a Division Bench ruled that a single Appeal is maintainable and remanded the Appeal Suit to be heard on merits and accordingly the matter is now taken up for disposal on merits.
B. The Case of the Purchaser :
2. The case of the Purchaser is that the suit property belonged to the Vendor. The Vendor and her husband sold the property to the Purchaser for a total sale consideration of Rs.47,000/-. On 19.05.1983, the sale deed was duly executed by the Vendor and it was witnessed by her husband. It is mentioned in the sale deed that an advance of Rs.30,000/- was received for payment of loans. After receiving the said advance amount and signing the sale deed, the Vendor did not discharge the loan amount and did not come forward to get the document registered. After the exchange of legal notices, the Purchaser, therefore, sought compulsory registration of the sale deed under Section 74 of the Registration Act. The said petition in O.P.No.2 of 1984 was ordered by the Sub Registrar, Kannamangalam, who had the powers of the District Registrar under the Act, after a detailed enquiry. Thus, the said sale deed dated 19.05.1983 was duly registered. After the sale, the defendant was bound to quit and deliver the vacant possession to the Purchaser and therefore, the Purchaser filed O.S.No.27 of 1985 to direct the defendants to deliver possession of the suit property and to award the costs of the suit.
C. The Case of the Vendor:
3. The case of the Vendor is that she is the owner of the property and is in possession and enjoyment of the same. The Purchaser agreed to purchase the house property for a total sale consideration of Rs.75,000/- and paid an advance of Rs.10,000/- and a balance amount of Rs.65,000/- had to be paid. The Vendor had to discharge the debts namely pro-note debt of due to one Lakshmanan S/o Thandavaraya Gounder of Nellore, mortgage debt due to one Hameed Sahib of Kannamangalam, and the debt due to Co-Operative Housing Bank, Arni. The Purchaser had insisted that the sale deed can be written for a sum of Rs.20,000/- stating that the stamp duty for Rs.75,000/- will be more and if the value is more than Rs.50,000/- , the procedure of income tax clearance will also arise. The Vendor did not object to the said course of action. The Purchaser got stamp papers required for the value of Rs.20,000/- and had written the document with the help of a scribe. In the said document, th
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(1) A registered document carries with it presumption of correctness unless proved otherwise.(2) Agreement to Sell – Doctrine of bona fide purchaser does not protect a subsequent purchaser if vendor ....
The distinction between signing and executing a document is crucial; mere signature admission does not equate to execution, impacting the validity of registration.
The burden of proof in a property dispute lies on the person claiming the title, and strict compliance with the provisions of the Registration Act is necessary for the validity of a sale deed and reg....
The plaintiff must establish how fraud was committed and the relevance of consensus ad idem in executing the sale deed in a property dispute.
Authentic execution and full consideration are essential for the registration of a sale deed, and mere signature on a blank paper does not suffice to validate execution.
The validity of a registered sale deed is presumed and the burden of proving its invalidity due to fraud lies on the challengers.
An unregistered sale deed is invalid for specific performance claims, and the burden of proof lies with the plaintiff to establish the validity of the transaction.
A sale deed is void if no consideration was paid; registration does not validate it, and its improper registration does not confer title.
Fraud must be established by clear evidence; a sale deed executed for valid consideration is valid and cannot be canceled without substantial proof of misrepresentation.
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