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2016 Supreme(P&H) 2473

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
AMOL RATTAN SINGH, J.
Kiran Dev Singh Sarang and Another – Appellants
Versus
Lt. Col. (Retd.) Piara Singh and Another – Respondents
RSA No. 678 of 2016
Decided On : 14-12-2016

Advocates Appeared:
For the Appellant : Mr. V.K. Sachdeva.
For the Respondents: Mr. Arvinder Arora and Mr. Vishal Sodhi.

Headnote:

CANCELLATION OF POWER OF ATTORNEY - COMMUNICATION - EFFECT OF NON-COMMUNICATION TO ESTATE OFFICER - SECTION 204 OF THE INDIAN CONTRACT ACT 1872 - SECTION 215 AND 216 OF THE CONTRACT ACT - Held, the transfer of the property thereafter to appellant no. 1, showed the mala-fide intention of the appellants.

Fact of the Case:

The plaintiff is stated to be a retired Army Officer, more than 88 years of age on the date of filing of the suit, i.e. on 03.05.2008. (As per his date of birth given, i.e. 05.04.1918, he would be 90 years old then). He was allotted plot no. 1028, Sector 27-B, Chandigarh, measuring 1333 sq. yards, on 20.05.1958, by the respondent-Estate Officer, in lieu of property stated to have been left behind by him in Lahore, Pakistan and possession of the said property was taken by him on 24.11.1958. (The aforesaid house is actually the bone of contention, and is hereinafter referred to as the suit property).

Finding of the Court:

Thus, there is no manner of doubt in the mind of this Court, that the very advanced stage of the plaintiff was taken advantage of by the appellants and it was actually never his intention to empower appellant no. 2 to transfer the property in favour of appellant no. 1, which is an act that he could have done himself in any case.

Issues: None

Ratio Decidendi: Hence, in the opinion of this Court with the agent/attorney, dealing with the suit property in her own interest (it not being different to that of her husband), she was bound to obtain the consent of the plaintiff to make any such transfer, and since she did not, it is obvious from the revocation of the power of attorney, and the entire circumstances of the case as already enumerated and discussed, the aforesaid provisions would very much come to the aid of the plaintiff for repudiation of the transfer, the attorney having misused the power given to her, in her own favour and that of her husband.

Final Decision: For all the reasons discussed herein above, finding no merit in this appeal, it is dismissed, with costs of Rs. 25,000/-.

Judgement Key Points

Facts

  • The plaintiff, a retired Army Officer aged over 88 (90 per DOB 05.04.1918) at suit filing on 03.05.2008, was allotted plot no. 1028, Sector 27-B, Chandigarh (suit property, house no. 1038), measuring 1333 sq. yards, on 20.05.1958 by Estate Officer in lieu of Lahore property left in Pakistan; possession taken 24.11.1958.[23000616680001] (!)
  • Plaintiff lived in suit property from 1965 with wife, two sons (including late appellant no.1 Kiran Dev Singh Sarang and late Dr. Daman Dev Singh Sarang), two daughters; first floor to Dr. Daman Dev Singh family; ground floor partly rented, partly with plaintiff, wife, appellant no.1's family (separate kitchen). (!) (!) (!) (!)
  • Theft incident 28.06.1994 led to police complaint and compromise between Dr. Daman Dev Singh and appellants.[23000616680002]
  • GPA executed 28.08.1997 to appellant no.2 (daughter-in-law) for ejectment of tenants; case dismissed 28.02.2001, appeal 15.04.2002, revision pending; cancelled 07.03.2001. (!) (!)
  • GPA 03.12.2004 to late appellant no.1 for bank loan (Rs.11.5L from Citi Financial); documents misplaced, DDR 27.05.2005, GPA cancelled later. (!)
  • GPA 26.11.2007 to appellant no.2 for pursuing revision (Civil Revision 3912/2002); instead, she applied 28.12.2007 (or 29.12.2007) to Estate Officer for NOC to transfer to husband (appellant no.1), submitted indemnity bond, GPA.[23000616680005] (!) (!) (!)
  • Estate Officer letter 07.01.2008 to late Dr. Daman Dev Singh (per his 16.09.1999 request for intimation) returned undelivered (he died 21.09.2006); also to plaintiff via GPA (appellant no.2); no intimation to plaintiff, wife, daughters. (!) (!) (!) (!)
  • NOC issued; affidavit 17.01.2008, submitted 22.01.2008 despite mortgage; transfer letter 08.02.2008, conveyance deed 31.01.2008. (!) [23000616680007] (!)
  • Plaintiff cancelled GPA 26.11.2007 via registered deed 28.01.2008 (Ex.PW4/17); orally informed appellants same day at home in presence of wife, PW6 Gurcharan Singh, PW7 Vinod Kumar; sent UPC letter (Ex.PW4/18, proved by PW2). (!) (!) (!) (!) [23000616680025][23000616680031]
  • Plaintiff learnt of transfer 15.04.2008 (or 05.04.2008) at Estate Office; suit filed 03.05.2008 for declaration of ownership, transfer void (fraud), injunctions. (!) [23000616680011] (!)
  • Appellants' WS: GPA broad, with plaintiff's consent for transfer to appellant no.1; common kitchen, love/affection; plaintiff influenced by grandson Vikram Dev Singh; Citi NOC 16.01.2008 (held forged Ex.PW4/15). (!) (!) [23000616680014][23000616680015] (!)
  • Trial court decreed for plaintiff; appeal dismissed.[23000616680029][23000616680034]

Ratio Decidendi

  • Cancellation of GPA 26.11.2007 registered 28.01.2008; communicated orally to appellant no.2 (attorney) same day (proved by PW4, PW6, PW7, PW2; common residence inferred knowledge); UPC letter posted; post-cancellation actions (file dealt 29.01.2008, indemnity 31.01.2008, conveyance 31.01.2008, transfer letter 08.02.2008) show mala fides, haste. (!) (!) (!) (!) (!) (!) (!) (!) [23000616680026][23000616680052][23000616680055] (!) (!)
  • Non-communication to Estate Officer not fatal; plaintiff unaware of transfer application till 04/05.2008; informed attorney sufficient as no third-party obligation created pre-cancellation; Estate Officer unaware but acted post-knowledge to attorney. (!) (!) (!) (!) [23000616680053]
  • Attorney (appellant no.2) dealt in own interest (transfer to husband, not distinct); bound to obtain principal's consent (S.215,216 Contract Act); no consent post-revocation; misuse aids repudiation; no estoppel under S.204 as no prior obligation to third party, acted for self-benefit.[23000616680061] (!) (!)
  • No intention to empower transfer solely to appellant no.1 (could have directly gifted); advanced age exploited; transfer void ab initio (fraud, cheating).[23000616680060][23000616680062]
  • Forged Citi NOC; no connivance proved against plaintiff. (!) (!)
  • Appeal dismissed, costs Rs.25,000/-; plaintiff owner in possession. (!)

JUDGMENT :

AMOL RATTAN SINGH, J.

1. This is the second appeal of the defendants in a suit filed by the respondent-plaintiff, seeking a decree of declaration to the effect that he is owner in possession of house no. 1038, Sector 27-B, Chandigarh and that the transfer made by the third defendant, i.e. the Estate Officer, Union Territory, Chandigarh, of the said property, in favour of the present appellant-defendant no. 1 (now represented by his legal representatives), on the basis of the General Power of Attorney executed by the plaintiff in favour of the second appellant- defendant, is an out come of fraud and cheating and is not binding upon the plaintiff.

A decree of permanent injunction was also prayed for by respondent no. 1-plaintiff (hereinafter referred to as the plaintiff), restraining the present appellants from alienating the suit property in any manner whatsoever. A decree of mandatory injunction was also prayed for, restraining the present appellants from making any unauthorized construction on the ground floor of the house of the suit property and “from disturbing the financial position, living and occupying the suit premises on the first floor.” The said first floor was stated to be occupied by the family of the other deceased son of the plaintiff, with the plaintiff and his wife living on the ground floor.

It needs to be stated at the outset that the plaintiff is the father of the first (now deceased) appellant-defendant and the father-in-law of the second defendant.

Presently, other than the plaintiff, the Estate Officer of the Union Territory, Chandigarh, has been impleaded as respondent no. 2, the said person having been impleaded as respondent no. 3 in the suit filed by respondent no. 1-plaintiff.

2. The plaintiff is stated to be a retired Army Officer, more than 88 years of age on the date of filing of the suit, i.e. on 03.05.2008. (As per his date of birth given, i.e. 05.04.1918, he would be 90 years old then). He was allotted plot no. 1028, Sector 27-B, Chandigarh, measuring 1333 sq. yards, on 20.05.1958, by the respondent-Estate Officer, in lieu of property stated to have been left behind by him in Lahore, Pakistan and possession of the said property was taken by him on 24.11.1958. (The aforesaid house is actually the bone of contention, and is hereinafter referred to as the suit property).

Thereafter, the plaintiff raised construction on the ground floor and first floor of the house and started living in the said house with his wife, two sons (including the late first appellant) and two daughters, from 1965. (Though it is stated that he was discharged from the Army on 05.04.1968).

It was further stated in the plaint that he gave the first floor of the house to his son, the late Dr. Daman Dev Singh Sarang and his family and had rented out two rooms, a kitchen, a store, a latrine, a bathroom and a common Baranda on the ground floor of the house, to one Shashi Kiran and Shiv Kumar Gupta.

The first appellant, i.e. the other son of the plaintiff, Kiran Dev Singh Sarang and his family were residing on the ground floor along with the plaintiff and his wife, but were stated to have a separate kitchen on the ground floor itself.

The daughters after their marriage were stated to be living in the house of their in-laws.

3. On 28.06.1994, some trouble arose on account of a theft in the house of Dr. Daman Dev Singh Sarang (on the first floor), due to which a complaint was made to the police and eventually a compromise was arrived at between the said son and the present appellants.

4. Thereafter, it was stated that as the tenants “were not having a good reputation” the plaintiff executed a power of attorney in respect of the suit property on 28.08.1997 in favour of the second appellant, i.e. his daughter-in-law, authorizing her to file an ejectment petition in respect of the tenanted part of the suit property, against the said tenants.

The second appellant is stated to have appeared as a witness in the ejectment petition filed, wh








































































































































































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