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2025 Supreme(Mad) 3954

IN THE HIGH COURT OF JUDICATURE AT MADRAS
R.N.Manjula, J.
Sri.Sundaramoorthy - Appellant
Versus
Muthusamy and ors. - Respondents
S.A. No. 1155 of 2012 and M.P. No. 1 of 2012 
Decided On : 20-01-2025


Advocates:
Advocate Appeared:
For the Appellant : Mr. C.Vigneswaran
For the Respondent: Mr. A.Tamilvanan

The sale deed executed without valid payment consideration is deemed sham, preventing any title transfer, establishing that property ownership remains with original heirs under the valid Will.

Headnote:(A) Transfer of Property Act - Section 54 and 55 - Declaratory relief and ownership dispute - The suit filed for declaration and permanent injunction regarding property ownership. Trial Court decreed in plaintiffs' favor; defendants' counter-claim dismissed. The sale deed was ruled as a sham and nominal, failing to effectuate valid title transfer. (Paras 12, 32, 34)

(B) Will - Validity of Will executed by testator and its implications on property ownership examined. (Paras 6, 36)

Facts of the case:
The plaintiffs are related to Nataraja Mudaliar, who had dubious dealings regarding property ownership, including the disputed sale deed dated 04.01.1970, deemed sham. They sought to assert their claim through the deceased's Will and the alleged fraud in property transfers. (Paras 3.1, 3.5)

Findings of Court:
Title and possession remained with Nataraja Mudaliar's heirs; original sale deed not executed validly, and counter-claims dismissed. (Paras 35, 36)

Issues: Ownership determination based on the legitimacy of transfer documents, and whether the sale deed is genuine or sham. (Paras 4, 9)

Ratio Decidendi: The court held that without valid title, ownership cannot pass, reinforcing property law principles regarding consideration and possession under the Transfer of Property Act. (Paras 34, 36)

Result: Appeal dismissed; trial court's judgment confirmed.

Table of Content
1. plaintiffs seek declaration and injunction. (Para 1 , 2 , 3)
2. defendants claim ownership based on sale deeds. (Para 4)
3. overview of claims regarding wrongful transactions. (Para 5 , 7)
4. issues framed for trial consideration. (Para 6)
5. trial court verdict and appeal context. (Para 8)
6. appellant questions legitimacy of evidence. (Para 9 , 10 , 11 , 12)
7. disputes concerning validity of sale deeds. (Para 13 , 14)
8. court's evaluation of evidence regarding agreements. (Para 15 , 16)
9. legal obligations resulting from sale transactions. (Para 17)
10. legal examination of claims under transfer of property act. (Para 18 , 19 , 20 , 21)
11. conditions for proving ownership under property law. (Para 22 , 23)
12. recognition of title based on historical possession. (Para 24 , 25 , 26 , 27)
13. court's findings on conflicting documentation. (Para 28 , 29)
14. sale deed validity judged against obligations. (Para 30 , 31 , 32)
15. final conclusions on the substantive legal questions. (Para 33)
16. overall verdict and legal implications. (Para 34)
17. plaintiffs confirmed entitled to relief. (Para 35 , 36)
18. conclusion and order dismissing appeal. (Para 37)

JUDGMENT :

R.N.Manjula, J.

The first defendant is the appellant. The suit has been filed by the plaintiff for declaration and permanent injunction in respect of the suit schedules 'A', 'B' and 'C' along with future damages and recovery of possession in favour of the second plaintiff.

2. The trial Court has decreed the suit as prayed for. The defendants 1 to 4 have filed their counter-claim in respect of 'C' Schedule property and the same has been dismissed. The plaintiffs are required to file a separate petition to claim the future damages. The appeal preferred by the first defendant before the first appellate Court was also by confirming the judgment and decree of the trial Court. Now the first defendant has filed the second appeal by challenging the judgment of the first appellate Court.

3. The short facts pleaded in the plaint by the plaintiffs in brief:-

The plaintiffs 1 and 3 are the sons of one Nataraja Mudaliar through his legally wedded wife Pattu Ammal. The second plaintiff is the daughter of the first plaintiff. The Nataraja Mudaliar has been living with one Dhanalakshmi by having physical relationship outside of his marriage and the first defendant is the son born through the Dhanalakshmi. The second defendant is the younger brother of the plaintiff's mother Pattu Ammal.

3.2. The property in Survey No. 123/B/1 measuring 36 feet East to West and 96 feet South to North in Kumarappanaickenpettai belonged to the Nataraja Mudaliar. The suit property has been set out in three schedules under 'A', 'B' and 'C'. The Nataraja Mudaliar has executed a mortgage deed on 26.10.1957 in favour of one Chidambara Chettiar for raising money to celebrate the marriage of his daughter. He was also cultivating some agricultural lands which belonged to one Devanathaswamy Devasthanam, Thiruvahindrapuram under an agreement of lease. The Devasthanam has obtained a decree in S.C. No.99/1957 on the file of the District Munsif's Court, Cuddalore for arrears of lease.

3.3. As Nataraja Mudaliar had incurred heavy debts due to his improper way of living. He apprehended that the house site, i.e., the suit property would be lost to his creditors and hence, he created a sham and nominal sale deed dated in favour of the second defendant dated 04.01.1970. No transfer of title had taken place in pursuant to the said sale deed. Though the recitals of the sale deed states to discharge an existing mortgage, the second defendant did not discharge the same and the debt has been discharged only by the plaintiffs. The possession was also never handed over to the second defendant and it continued to be in possession of Nataraja Mudaliar. The plaintiffs and their predecessors are therefore prescribed title to the property and they continued to be in possession. To avoid the claim in the suit property either by the s

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