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1990 Supreme(P&H) 829

PUNJAB & HARYANA HIGH COURT
Ashok Bhan, J.
Kuldip Singh
Versus
Balwant Kaur
Regular First Appeal No. 637 of 1978,
Decided On : NOVEMBER 21, 1990

Headnote:

Registration Act - Property Dispute - S.23, S.47, S.48 - The court held that the sale deed executed in favor of the plaintiff-appellant on 3rd of November, 1971, though registered on 14th of May, 1975, shall come into operation with effect from 3rd of Nov. 1971. The plaintiff has, thus, become owner of the property in dispute and shall be entitled to take possession of the portion of the property which was not under the tenancy of defendants Nos.1 to 11, on the date sale deed Exhibit P-1 (dated 3-11-1971) was executed in favor of the plaintiff-appellant. So far as the portion of the property which was under the tenancy of defendants Nos. 1 to 11 or their predecessor-in-interest, the same shall be subject to the tenancy rights of these defendants and the plaintiff would be at liberty to obtain possession of this portion of the property in accordance with law. Plaintiff-appellant shall also be entitled to mesne profits to the extent the same was granted by the trial Court, under issue No.8.

Fact of the Case:

Plaintiff-appellant filed a suit for recovery of possession of a building and for recovery of rent and mesne profits. The defendants contested the suit, alleging that they were bona fide purchasers of the property and raised technical objections. The trial court dismissed the suit based on its findings on various issues.

Finding of the Court:

The court found that the plaintiff-appellant was entitled to possession of the property and mesne profits, and that the defendants were not bona fide purchasers without notice of the earlier sale deed executed in favor of the plaintiff-appellant. The court also held that the tenancy rights of the defendants were heritable.

Issues: The issues included the valuation of the suit, maintainability, bona fide purchase, tenancy rights, improvements made by the defendants, payment of court fees, entitlement to interest on improvements, limitation of the claim for mesne profits, and non-joinder and misjoinder of parties and causes of actions.

Ratio Decidendi: The court applied S.23, S.47, and S.48 of the Registration Act, and relevant case law to establish the priority of the sale deed executed in favor of the plaintiff-appellant. It also considered the heritability of tenancy rights and the impact of denial of tenancy by the defendants.

Final Decision: The appeal was accepted, and the plaintiff's suit was decreed with costs.

Judgment

1. Plaintiff-appellant has filed this appeal which arises out of a suit filed by the plaintiff-appellant for recovery of possession of two-storeyed building bearing municipal No. 226/1-1, situated at Katra Ghanayan, Amritsar, and for recovery of Rs. 8600/ - as rent and / or mesne profits of the building w.e.f. 3-11-1971 till the filing of the suit in September 1976.

2. The main facts of the case are that Lal Singh defendant No.12, agreed to sell the property in dispute to the plaintiff-appellant on 3rd of October, 1971 vide agreement to sell Exhibit P-3. In pursuance of this agreement, sale deed Exhibit P.1 was executed on 3rd of November, 1971, but the same could not be registered. Consideration was Rs.13,000.00, out of which Rs. 1300.00 were paid at the time of agreement to sell and the rest of the amount was to be paid at the time of registration. The document was presented for registration on 2nd of March, 1972, i.e., within four months of its execution, as provided under S.23 of the Indian Registration Act, 1908 . The Sub-Registrar refused the registration of the document on 17th of July, 1972, on the ground that the property in dispute had already been sold vide sale deed dated 29/11/1971 (Exhibit DM3/l), in favour of defendants Nos.1 to 11. An appeal was preferred by the plaintiff before the Registrar, who remanded the case to the Sub-Registrar on 30/04/1973, with certain directions. The Sub-Registrar, again refused registration and the plaintiff-appellant again went in appeal, which was accepted by the Registrar, with directions to the Sub-Registrar to register the sale and the parties were directed to appear before the Sub-Registrar, on 12th of May, 1975, on which date the plaintiff-appellant appeared with the remaining amount of Rs.11,700/ -, for payment to the vendor but the vend or Lal Singh did not appear. The sale deed which was executed on 3rd of November, 1971, in favour of the plaintiff-appellant was ultimately registered on 14th of May, 1975. On the basis of this document, plaintiff-appellant became absolute owner of the property in dispute w.e.f. 3-11-1971, i.e., the date on which the sale deed was executed in his favour. In the sale deed, it was recited that Attar Singh was a tenant on the ground floor of the building and the vendor was to get the lease deed executed from Attar Singh in favour of the plaintiff-appellant. Atter Singh was a statutory tenant. He died and the defendants Nos.1 to 11 are stated to be his heirs and legal representatives. The plaintiff had further alleged that after the death of Attar Singh they did not derive any title and right and they are only trespassers in the eye of law and instead of delivering the possession of the shop, they forcibly occupied the first floor of the building and were in unlawful possession of the property in dispute. It was further alleged that defendants Nos.1 to 11 are claiming to have become the owners of the property in dispute by virtue of sale deed, which was executed in their favour by defendant No.12, subsequent to the sale deed which was executed in favour of the plaintiff-appellant. It was further alleged that Lal Singh defendant could not sell the property in dispute to the defendants Nos.1 to 11, as he had no right or title in the property in dispute because he had already transferred the same in favour of the plaintiff on 3rd of November, 1971. Since defendants Nos.1 to 11 refused to hand over the possession in spite of repeated requests, the plaintiff was forced to file the present suit for recovery of possession of the property in dispute and for recovery of an amount of Rs. 8600.00 as mesne profits for use and occupation of the property in dispute.

3. The defendants contested the suit and alleged inter alia, that no valid sale deed was executed in favour of the plaintiff by Lal Singh defendant No.12 and that the plaintiff had never become the absolute owner of the property and that the defendants were the bona fide purchasers of the



























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