SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Article Pause Article
judgment-img

1992 Supreme(P&H) 538

PUNJAB & HARYANA HIGH COURT
V.K.Jhanji, J.
Chander Bhan, Postman
Versus
Jai Parkash
C.R. No. 1514 of 1987,
Decided On : JUNE 2, 1992

A tenant can challenge the validity of a sale deed executed by the landlord, even if the tenant was not a party to the sale deed.

Headnote:

EAST PUNJAB URBAN RENT RESTRICTION ACT, 1949 - SECTION 13 - SALE DEED - VALIDITY - TENANT'S RIGHT TO CHALLENGE - BONA FIDE NEED - FAMILY SETTLEMENT - VALIDITY.

Fact of the Case:

Tenant challenged the validity of the sale deed executed by the landlord, claiming it was a sham transaction to create grounds for ejectment. The Rent Controller dismissed the ejectment petition, finding the sale deed and memorandum of partition to be fake. The Appellate Authority allowed the appeal, holding that the tenant could not question the sale deed's validity. The tenant filed a revision petition.

Finding of the Court:

The court held that the Appellate Authority erred in not considering the tenant's plea that the sale was a sham transaction. The court set aside the Appellate Authority's finding on this issue and remanded the case for a finding on the validity of the sale deed.

Issues: 1. Whether the tenant can challenge the validity of the sale deed executed by the landlord? 2. Whether the sale deed and memorandum of partition were sham transactions? 3. Whether the landlord had a bona fide need for the premises?

Ratio Decidendi: 1. The court held that the tenant can challenge the validity of the sale deed executed by the landlord, as per the Supreme Court's decision in Devi Das v. Mohan Lal. The court reasoned that the tenant's right to challenge the sale deed is not barred merely because he was not a party to it. 2. The court found that the sale deed and memorandum of partition were not sham transactions. It considered the evidence on record, including the consideration paid for the house, the family settlement between the landlord and his sons, and the site plan of the landlord's ancestral house. The court concluded that the sale was genuine and that the landlord had a bona fide need for the premises.

Final Decision: The court dismissed the tenant's revision petition, holding that the Appellate Authority erred in not considering the tenant's plea that the sale was a sham transaction. The court remanded the case for a finding on the validity of the sale deed.

Judgment

V.K.Jhanji, J.

1. This is tenants revision petition.

2. Peshu Ram son of Kanhaiya Ram was the owner of the house built in plot No. 9, Block-B, Tripuri Town, Patiala, which consisted of two rooms, one verandah and an open site used as courtyard. He sold the aforesaid house to his son-in-law and daughter (respondent herein) by means of registered sale-deed dated 15.12.1983, for a total consideration of Rs. 10,500/-. The respondents after purchase of the house, filed a petition under Section 13 of the East Punjab Urban Rent Restriction Act, 1949 (briefly "the Act"), for ejectment of the tenant (petitioner herein) on the ground of personal necessity. In the petition, it was claimed that the accommodation, i.e. one room, in their possession was insufficient for their requirement and therefore, they require the demised premises for their personal necessity.

3. The petition was contested by the tenant who in his written statement took up the plea that the sale-deed is a sham and paper transaction, just to create a ground for ejectment. The tenant also denied that the accommodation in possession of the respondent is insufficient for their requirement.

4. The Rent Controller dismissed the ejectment petition after finding that the sale-deed was executed by Peshu Ram in order to enable the respondents to create a ground for ejectment. Memorandum of petition was also found to be sham and paper transaction. The respondents preferred an appeal before the Appellate Authority. The appeal of the respondents was allowed. The Appellate Authority took the view that the tenant is not entitled to question the validity of the sale deed. It also found that the respondents are in bona fide need of premises which consist of 2 rooms, one verandah and an open site used as courtyard. Before the Appellate Authority, the respondents also filed an application under Order 41, Rule 27, Code of Civil Procedure, wherein permission was sought to produce additional evidence in order to show that the tenant who is in the employment of Post and Telegraph Department had been allotted a government accommodation. This application was dismissed by the Appellate Authority on the ground that the availability of other accommodation to the tenant cannot provide a ground for ejectment to the landlord. However, the tenant was allowed two months time to vacate the premises. This order is now being challenged by the tenant by way of present revision petition.

5. Learned counsel for the petitioner placing reliance upon a judgment of the Supreme Court in Devi Das v. Mohan Lal, AIR 1982 S.C. 1213, submitted that the Appellate Authority ought to have considered the plea of the tenant that the sale was a sham transaction. In order to show that the sale was a sham transaction, he submitted that the sale-deed was executed only for a consideration of Rs. 10,500/- whereas it has come on record that the price of the house was much more than what is shown to have been paid to the previous owner.

6. On the other hand learned counsel for the respondents submitted that the sale is not a sham transaction.

7. After hearing the learned counsel for the parties, I am of the view that the finding of the Appellate Authority that the tenant cannot question that validity of the sale-deed cannot be sustained in view of the decision of the Supreme Court in Devi Dass case (supra), wherein it was held as under :-

"Where the order of eviction of the tenant in the eviction petition filed by the purchaser of the building was passed by-passing the plea of the tenant that in fact there was no sale of the said building and the sale-deed was a paper transaction, the order of eviction would be invalid. The view that the tenant could not challenge the validity of the sale-deed executed in favour of the purchaser because the tenant was not a party to it, would not be proper. Since the Court failed to record the finding on this point the case was remitted to the trial Court to record finding on the question



Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
whatsapp-icon Back to top