A sale deed executed under coercion, influenced by government circulars limiting sales, is void, affirming the right to property under Article 300A.

JUDGMENT :

N.SENTHILKUMAR, J.

The appellant is the defendant in the suit who had last before the Trial Court and the First Appellate Court. For the sake of convenience, the parties are referred as plaintiffs and defendant as mentioned in the suit.

2. The plaintiffs had filed a suit against the defendant who is Cuddalore Power Company Limited represented by its Manager/Authorized Signatory.

3. The brief facts of the case are as follows:

(i) The suit property is situated in new S.No.196/1 measuring an extent of2.27.0 hectares out of 6.06.0 hectares and patta No.747 related to old S.Nos.394 and 395/2 in Kudikkadu village in Cuddalore District. The plaintiffs had filed the suit for declaration of their right and title over the suit property and for permanent injunction restraining the defendant from interfering with their peaceful possession and enjoyment of the suit property. The plaintiff contended that they are in possession and they have absolute title over the suit property whereas the defendant is the registered company under the Companies Act, 1956 having their Head Office at Chennai.

(ii).The defendant had proposed to construct Electricity Production Unit at Cuddalore Taluk for which they were in need of large extent of land at Thiyagavalli and Kudikkadu Villages at Cuddalore Taluk.

4. The plaintiffs contended that when the lands are acquired for a company, more specifically for production of electricity, the respective State Governments will acquire the land by following land acquisition law and by following due procedures as contemplated under the Land Acquisition Act, 1894.

5. The plaintiffs contended that the Government of Tamil Nadu had issued G.O.Ms.No.1986, Public Works Department, dated 08.08.1986 declaring the lands in Thiyagavalli and Kudikkadu Villages measuring an extent of 800 acres to be acquired for the establishment of Thermal Power Station by the Tamil Nadu Electricity Board. However, the said lands were not acquired. The Inspector General of Registration had issued instructions to the District Registrar and the Joint-II Sub Registrar, Cuddalore not to register the documents in the aforesaid two Villages except in favour of the defendant. The said notification was displayed in the notice board of the Joint-II Sub Registrar, and there was another Circular compelling the land owners not to sell the properties to anyone except the defendant.

6. The plaintiffs contended that the Government Order, instructions and Circular issued by the Government of Tamil Nadu were illegal, ultra vires and null & void as against the protection of right to own a property guaranteed under the Constitution of India. Since the Government has issued such directions, the land owners were threatened and they sold the properties to the defendant. 7.The plaintiffs out of ignorance had believed that the properties could be sold only in favour of the defendant for the rates fixed by the defendant. Due to the compulsion and threat wielded by the defendant, the plaintiffs had sold the property for pittance in favour of the defendant. The plaintiffs contended that there was no necessity for the plaintiffs to sell the suit property. The defendant joined hands with the Government of Tamil Nadu and misrepresented by playing fraud and obtained the suit property. The suit property was sold in favour of the defendant by the plaintiffs on 21.08.2007 for a sale consideration of Rs.4,53,600/- which was unilaterally decided by the defendant.

8. The plaintiffs contended that the suit property was valued at Rs.81,000/- per acre by the defendant as sale consideration which was very low and the said amount was unilaterally fixed by the d