HIGH COURT OF ORISSA
B. K. Patra, J.
TRILOCHAN - Appellant
Versus
BAMADEV PRADHAN - Respondent
Second Appeal 94 Of 1968
Decided On : SEPTEMBER 24, 1971
TRANSFER OF PROPERTY ACT - SECTION 54 - SALE OF TANGIBLE IMMOVABLE PROPERTY - DELIVERY OF POSSESSION - USUFRUCTUARY MORTGAGEE - ORAL SALE - DECLARATION BY VENDOR - SUFFICIENT COMPLIANCE.
Fact of the Case:
Plaintiff claimed title to the disputed land based on an unregistered sale deed accompanied by delivery of possession, alleging that he was already in possession as a usufructuary mortgagee. The trial court dismissed the suit, but the appellate court reversed the decision, finding that the plaintiff had acquired title through the unregistered sale and had been in possession since 1951.
Finding of the Court:
The court held that the plaintiff had acquired title to a half share of the disputed property, as the sale of the other half share by defendants 1 to 7 to defendants 8 and 9 was valid. The court found that the plaintiff was already in possession of the land as a usufructuary mortgagee at the time of the sale, and that the declaration by defendant No. 1 before the settlement authorities that he had sold the land to the plaintiff was sufficient to constitute delivery of possession as contemplated in Section 54 of the Transfer of Property Act.
Issues: 1. Whether the sale of tangible immovable property to a usufructuary mortgagee for less than Rs. 100/- requires a registered instrument or can be effected by oral sale accompanied by delivery of possession. 2. Whether the declaration by the vendor that the vendee should keep the property as absolute owner amounts to delivery of possession within the meaning of Section 54 of the Transfer of Property Act.
Ratio Decidendi: 1. The court held that the sale of tangible immovable property to a usufructuary mortgagee for less than Rs. 100/- can be effected by oral sale accompanied by delivery of possession, provided that the vendor does all that is possible to indicate his intention to part with title. 2. The court held that a declaration by the vendor that the vendee should keep the property as absolute owner amounts to delivery of possession within the meaning of Section 54 of the Transfer of Property Act.
Final Decision: The court allowed the appeal in part, declaring the plaintiff's title in respect of a half share in the disputed property. The suit land was to be enjoyed jointly by the plaintiff and defendants 8 and 9, with the plaintiff having a half share and defendants 8 and 9 the other half share. Each party was to bear their own costs.
B. K. PATRA, J.
( 1 ) DEFENDANTS Nos. 8 and 9 in the, suit are the appellants against a reversing judgment of the Subordinate Judge, Dhenkanal. The suit was filed for a declaration of the plaintiffs title to plot No. 192 measuring 1. 97 acres comprised in holding No. 68 in mouza Baligerang, and for recovery of possession of the same after a further declaration that the registered sale deed Ex. A dated 13-1-64 executed in respect of the land by defendants Nos. 1 to 4 in favour of defendants Nos. 8 and 9 are null and void. There was also a claim for recovery of mesne profits amounting to Rs. 50/ -.
( 2 ) THE disputed land admittedly belonged to defendant No. 1 and Kesab, father of defendants Nos. 2 to 7 who acquired the same on Nayabadi basis in the year 1933. The case of the plaintiff Rama-dev Pradhan who is respondent No. 1 in this appeal is that in the year 1947 defendant No. 1 borrowed a sum of Rs. 26/-from him and gave the land on usufrauc-tury mortgage to him and that in the year 1951 defendant No. 1 sold the land to him for Rs. 98/-and executed a sale deed in his favour which however was not registered. Out of the consideration amount of Rs. 98/- Rs. 72/- was paid in cash at the time of sale and the balance was adjusted towards the mortgage dues. Plaintiff's further case is that in the settlement proceedings that took place some time later defendant No. 1 admitted having sold the land to him and therefore a note was made in the record of rights that the plaintiff was in possession of the land as a purchaser. The plaintiff then applied for mutation of his name in respect of the disputed land. But the mutation officer rejected his prayer on the ground that the sale was not evidenced by a registered instrument. The plaintiff therefore requested defendant no. 1 to get the sale deed registered and handed over to him the unregistered deed but defendant No. 1 failed to turn up for registration and on the other hand defendants Nos. 1 to 4 executed and registered a sale deed in respect of the disputed land in favour of defendants Nos. 8 and 9. Being armed with the registered sale deed defendants Nos. 8 and 9 trespassed into the land on 25-1-64 and dispossessed the plaintiff therefrom and this gave the cause of action to the plaintiff to institute the suit.
( 3 ) EXCEPTING defendant No. 6, the other defendants contested the suit. Defendants nos. 1 to 5 and 7 in the written statement denied the plaintiffs' case that the land was mortgaged to him for Rupees 26/-and was subsequently sold to him for Rs. 98/ -. Their case is that being in need of funds to go to Assam defendant No. 1 took Rs. 16/- from the plaintiff and let out the disputed land to him on bhag. After defendant No. 1 returned from Assam he got back possession of the land from the plaintiff and was cultivating the same and that in the year 1964 the defendants nos. 1 to 7 sold the land to defendants Nos. 8 and 9 for Rs. 400/-under a registered deed of sale. Practically to the same effect it is also the written statement filed by defendants Nos. 8 and 9.
( 4 ) THE learned Munsif who tried the suit did not believe the plaintiff's case that the land was ever sold to him by defendant No. 1 or that he was in possession of the same from 1951 to 1964. He therefore held that the plaintiff failed to prove his title to the disputed land and relying on the defendant's case that the registered sale deed Ex. A was executed by defendants Nos. 1 to 4 in favour of defendants nos. 8 and 9, he found title with the latter and accordingly dismissed the suit.
( 5 ) ON appeal, the learned Subordinate Judge reversed all these findings. He noticed that in the written statement filed by defendants Nos. 1 to 5 and 7, they did not specifically deny the plaintiff's case regarding the execution of the unregistered sale deed by defendant No. 1 in favour of the plaintiff and the subsequent handing over by the plaintiff of the unregistered deed to defendant No. 1 for the purpose of registration. He b
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