BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
R. Vijayakumar, J.
V. Kavurajan and ors. – Appellants
Versus
K.N. Perumal (died) and ors. – Respondents
C.M.A(MD)No.175 of 2018 and C.M.P(MD) No.2608 of 2018
Decided On : 06-04-2023
Transfer of Property Act - Section 52 - Any alienation made pending suit is subject to the result of the suit.
Fact of the Case:
The plaintiffs filed a suit for specific performance based on an agreement and cash receipt. The defendants claimed that the receipt was for a loan and not sale consideration. The trial court dismissed the plaintiffs' application for interim injunction. The plaintiffs appealed, arguing that the property was being alienated and that the defendants did not dispute this fact. The defendants argued that the plaintiffs had not established a prima facie case. The court held that any alienation made pending suit is subject to the result of the suit, as per Section 52 of the Transfer of Property Act. The court directed the defendants to maintain status quo until the disposal of the suit.
Finding of the Court:
Ratio Decidendi:
Result: The appeal is disposed of with a direction to the trial court to dispose of the suit by a specified date. Both parties are directed to cooperate for early disposal of the suit. No costs are awarded.
JUDGMENT :
PRAYER: Civil Miscellaneous Appeal filed under Order 43, Rule 1 (r) of C.P.C, against the order made in I.A.No.249 of 2016 in O.S.No.59 of 2016, dated 09.02.2018 on the file of the Principal District and Sessions Judge, Virudhunagar District at Srivilliputhur.
The present Civil Miscellaneous Appeal has been filed by the plaintiffs in a suit for specific performance challenging the order of dismissal of his application seeking interim injunction not to alienate the suit property pending suit.
2. The appellants herein had filed O.S.No.59 of 2016 on the file of the Principal District and Sessions Court, Virudhunagar District at Srivilliputhur, for the relief of specific performance of an agreement, dated 26.01.2008 and the cash receipt, dated 07.03.2008 said to have been executed by the defendants in the suit along with the suit. The plaintiffs had filed I.A.No.249 of 2016 seeking prayer for interim injunction as against the defendants not to alienate the property pending suit. In the said application, the plaintiffs had contended that the defendants had attempted to alienate the property through real estate brokers.
3. The defendants have filed a counter contending that the receipt of the amount is not towards sale consideration and the document was not executed as a sale agreement. The plaintiffs by playing fraud upon the defendants, managed to obtain the said sale agreement and the cash receipt.
4. The Trial Court without going into the issue whether the defendants are attempting to alienate the property or not, had considered the dispute and found that the plaintiffs have not made out a prima facie case for grant of interim injunction and dismissed the said application. Challenging the said order, the present appeal has been filed by the plaintiffs.
5. According to the learned counsel appearing for the plaintiffs, the property is alienated pending suit, and the third party interest would cause great prejudice to the plaintiffs. The said aspect was not at all considered by the trial Court while dismissing the application of the interim injunction. The learned counsel appearing for the appellants had further contended that nowhere the defendants have disputed the fact that they are attempting to alienate the property. Therefore, the allegation of the plaintiffs remains uncontroverted and the trial Court ought to have granted the prayer for interim injunction.
6. Per contra, the learned counsel appearing for the respondents/defendants had contended that unless the plaintiffs make out a prima facie case, the balance of convenience and irreparable injury would be caused in case of non-granting of interim order and the trial Court cannot grant interim injunction in favour of the plaintiffs. In the present case, the trial Court after considering the pleadings and submissions made on either side, has arrived at a finding that the plaintiffs have not established the prima facie case in their favour or balance of convenience in their favour. Therefore, there is no infirmity in the order passed by the trial Court.
7. I have carefully considered the submissions made by the learned counsel on either side.
8. The plaintiffs had filed a suit for specific performance relying upon an agreement, dated 26.01.2008 and the cash receipt, dated 07.03.2008. These two documents, though the defendants admitted the receipt of the amount, it is the contention of the defendants that it is the loan amount and it was not received towards sale consideration. He further contends that the said loan amount was also repaid and the sale agreement was executed only as security for the loan amount.
9. It is settled position of law that any alienation that is effected pending suit, is always subject to the result of the suit. Therefore, the subject the result of the said suit is hit by Section 52 of the Transfer of Property Act. Therefore, even without any order of interim injunction, any alienation made by the defendants would always be subject to the result of t
AI
The respondent's establishment of a prima facie case for the grant of injunction based on the existence of the agreement and the balance of convenience.
The court emphasized the importance of considering objections as mixed questions of facts and law and highlighted the need to prevent multiplicity and complicity of proceedings in the interest of jus....
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