IN THE HIGH COURT OF JUDICATURE AT MADRAS
THE HONOURABLE MR.JUSTICE V.LAKSHMINARAYANAN
Sowbakkiam Ammal and ors. - Appellants
Versus
Gunasekaran – Respondent
Second Appeal No.1419 of 2013 and M.P.No.1 of 2013
Decided On : 20-02-2024
LIS PENDENS - PROPERTY DISPUTE - C.P.C. Section 100, Transfer of Property Act Section 52, Specific Relief Act Section 19 - The court discussed the doctrine of lis pendens under Section 52 of the Transfer of Property Act, which prevents a purchaser from acquiring rights in property that is the subject of ongoing litigation. The court emphasized that the sale to the plaintiff occurred during the pendency of a suit, thus binding the plaintiff to the outcome of that suit. The court also addressed the implications of Sections 19 of the Specific Relief Act, clarifying that it does not apply when a purchase is made after the presentation of a plaint. The interpretations of these sections were pivotal in determining the validity of the plaintiff's title.
Fact of the Case:
The plaintiff, Gunasekaran, purchased property from a previous owner and sought a declaration of title and permanent injunction against the defendants, who claimed the property was sold at auction due to the original owner's debts. The defendants had previously entered into an agreement to purchase the property from the original owner's heirs, which led to a decree in their favor. The plaintiff's purchase occurred during the pendency of this earlier suit.
Finding of the Court:
The court found that the plaintiff's purchase was hit by the doctrine of lis pendens, as it occurred while the earlier suit was ongoing. The court ruled that the plaintiff was bound by the decree from the earlier suit, which had granted specific performance to the defendants.
Issues: 1. Whether the plaintiff is entitled to relief regarding the suit property? 2. Whether the sale deed in favor of the plaintiff is valid? 3. Whether the suit is affected by non-joinder of necessary parties? 4. Whether the decree in the earlier suit is binding on the plaintiff?
Ratio Decidendi: The court held that the doctrine of lis pendens applies to prevent the plaintiff from claiming rights to the property purchased during the pendency of the earlier suit. The court emphasized that a purchaser cannot claim to be a bona fide purchaser for value without notice if the purchase occurs after the presentation of the plaint in an ongoing suit.
Final Decision: The Second Appeal was allowed, the judgment of the Principal District Judge was set aside, and the decree of the II Additional District Munsif was restored, resulting in the dismissal of the plaintiff's suit.
JUDGMENT :
Prayer : Second Appeal under Section 100 of C.P.C., against the judgment and decree dated 29.07.2013 made in A.S.No.40 of 2010 on the file of the learned Principal District Judge, Villupuram reversing the judgment and decree dated 07.09.2009 made in O.S.No.35 of 2007 on the file of the learned II Additional District Munsif, Ulundurpet.
This appeal has a checkered history. The defendants appeal before me seeking for acceptance of their appeal filed against A.S.No.40 of 2010 on the file of the Principal District Judge, Villupuram dated 29.07.2013. By the said judgment, the learned Principal District Judge allowed the appeal against the judgment and decree in O.S.No.35 of 2007 dated 07.09.2009 on the file of the II Additional District Munsif at Ulundurpet.
For the sake of convenience, the parties are referred to as per their rank in the suit.
2. O.S.No.35 of 2007 is a suit for declaration of title and for permanent injunction. One Gunasekaran is the plaintiff. He claims to have purchased the property under Ex.A1 dated 08.07.2004. He would state that on the basis of Ex.A1 he mutated the property in his favour under Ex.A2 and has been in possession and enjoyment of the property by paying kist under Exs.A3 and A4. He would state that the defendants are seeking to interfere with his possession and as he has purchased the property from the previous owner as a bonafide purchaser for value without notice of any defect in title, he is entitled to the decree.
3. On service of summons, the defendants entered appearance and pleaded that the property originally belonged to one Vijayarama Reddiar. They would allege that Vijayarama Reddiyar was a defaulter in payment of Government dues and therefore his property was brought for auction by the Government. In the auction sale, the Government itself purchased the property and converted the land into "Tharisu" or waste lands. Vijayarama Reddiar had four sons by name Arunachalam, Rajasundaram, Lakshminarayanan and Venkatesh. Arunachalam, on his behalf and on behalf of the other legal heirs of Vijayaramareddiar approached the District Revenue Officer for cancellation of the sale. Arunachalam was successful in his endeavour and the sale which had been held, was cancelled by the District Revenue Officer by his proceedings dated 12.10.1999. Arunachalam, in order to restore the property to the family, approached the second defendant for financial assistance. The second defendant readily offered to pay sums of money to retrieve the property. He had given in all a sum of Rs.80,000/- by 12.10.1999.
4. As nothing comes free, on 30.12.1999 the second defendant entered into an agreement of sale with Arunachalam, his mother and his brothers for the purchase of the property retrieved from the Government for a sum of Rs.1,00,000/-. As they had already received Rs.80,000/- on the date of agreement ie., on 30.12.1999, he had paid a sum of Rs.18,000/- leaving a balance of Rs.2,000/- for the purpose of the sale.
5. As Arunachalam and his siblings did not execute the sale deed as per their undertaking dated 30.12.1999, the second defendant was constrained to file a suit for specific performance of the agreement of sale. This suit was taken on file as O.S.No.61 of 2000 on the file of the learned Subordinate Judge at Villupuram. The suit schedule mentioned properties in O.S.No.61 of 2000 were items 14 and 15 in that suit. On account of the enhancement of pecuniary jurisdiction, the suit which was laid before the Subordinate Court at Villupuram was transferred to the file of the learned II Additional District Munsif Court at Ulundurpet. It was renumbered as O.S.No.142 of 2004. The suit had been presented on 27.03.2000. It was transferred and renumbered before the II Additional District Munsif Court in 2004.
6. Arunachalam and his brothers entered appearance in O.S.No.142 of 2004 and filed their written statement. Though the written statement runs into a few pages, the gist of it is, they conceded to a decree being pa
M.P.Kanoi and Four Others Vs. Palani, Prop
AI
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Subsequent purchasers will be bound by lis pendens.
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