IN THE HIGH COURT OF JUDICATURE AT MADRAS
V.SIVAGNANAM, J.
G.janaki – Appellant
Versus
Rajeswari – Respondent
JUDGMENT :
Aggrieved over the Judgment and Decree dated 31.07.2017, passed in O.S.No. 26 of 2012, by the Principal District Judge, Thiruvarur, the defendants have preferred the appeal suit.
2.For the sake of convenience, the parties are referred to as per their rankings in the trial Court.
3.The plaintiff's case is that the first defendant is the owner of the suit property. The second defendant is the husband of the first defendant. The first defendant borrowed a sum of Rs.22,00,000/- from the plaintiff's husband on 27.06.2011 and agreed to give 12 % interest for the borrowed amount. The first defendant had also executed an unregistered mortgage deed and other deeds and agreed to return the borrowed amount within one year. For security purposes, the first defendant had executed a power of attorney in favour of the plaintiff's husband. As per the terms of the mortgage deed, the first defendant has to repay the borrowed amount with interest within 26.06.2012, but she failed to do so. Thereafter, in pursuance of the power of attorney deed executed by the first defendant, the plaintiff's husband executed a sale deed in favour of the plaintiff on 06.07.2012. In pursuance of the sale deed,
The court affirmed the validity of a sale deed executed by an agent holding a power of attorney, finding no grounds for alleging misuse of authority when the primary agreements were not duly referenc....
The burden of proof lies with the plaintiff to establish fraud in the execution of registered documents, which carry a presumption of validity.
The plaintiff must establish how fraud was committed and the relevance of consensus ad idem in executing the sale deed in a property dispute.
The registered sale deed carries a presumption of genuineness, and the burden of proof lies on the defendants to establish it as a sham, which they failed to do.
The main legal point established in the judgment is that the Power of Attorney was executed as a security for a loan and the sale deed was executed without consideration, making it void.
A usufructuary mortgage must be in writing and registered to be valid; failure to establish such a mortgage negates the right to seek redemption.
A power of attorney does not confer title to property; fraudulent sales executed by an agent without the principal's consent are invalid under the Benami Transactions Act.
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