IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
CHALLA KODANDA RAM, J.
M/s Sree Laxmi Ganapathi Enclave – Appellant
Versus
Smt. Chandrakala Deshpande and 4 others - Respondents
Civil Revision Petition No.2432 of 2019
Decided on : 23-04-2021
Civil Procedure Code, 1908 - Order I Rule 10(2) r/w Section 151 - SARFAESI Act - Section 34 - Indian Trusts Act, 1882 - Section 91 - Specific Relief Act, 1877 - Section 3 and Section 27 - Transfer of Property Act - Section 40 - Recovery of Debts Due to Banks and Financial Institutions Act, 1993 - Section 2(d) - Partnership firm – Suit for specific performance of Agreement - Asserts - Mortgage and assignment deeds - In plaint, detailed description with respect to entering into a contract for purchase of land with an MoU in 2016 and subsequent documents alleged to have been executed between parties was mentioned - As per averments in affidavit filed in support of petition, petitioners found that employees of 5th respondent at suit are site claiming right over property and on further enquiry, petitioners came to learn that Defendants 1 and 2, to create multiplicity of proceedings and in order to avoid execution of Sale Deed pursuant to agreements e ntered into with petitioners in collusion and in connivance with the respondents 3 to 5, created a Deed of Mortgage purporting to mortgage suit schedule property along with other properties on behalf of respondent No.3 in favour of respondent No.4 vide Mortgage Deed bearing - Held, In present case, rights that are being claimed by the plaintiff arise on account of Agreement of Sale with defendants 1 and 2, and the rights which are being claimed by contesting respondents 4 and 5 in the trial Court and by the 5th respondent before this Court are admittedly based on the amounts lent to respondent No.3, on the strength of guarantees executed by respondent No.3 and other collateral guarantees executed by respondents 1 and 2 - Joining of proposed respondents would be virtually denying their rights and legal defences which they may be entitled to put forth, based on the mortgage obtained by them, and also the legal rights conferred under the Acts referred to in previous paragraphs whereunder a different fora and procedure is specified - On the other hand, in law, the decree that may be obtained by plaintiff/petitioners would be binding on subsequent acquirers of rights whatever they may be, subject to their rights. In that view of the matter, the dismissal of I.A. cannot be found fault - Civil Revision Petition is dismissed.
ORDER :
The civil revision petition is filed challenging the order in I.A.No.131 of 2017 in O.S.No.01 of 2013 by the petitioner/plaintiff. Petitioner is a registered partnership firm represented by its Managing Partner seeks specific performance of Agreement dated 03.02.2006 (wrongly typed as 03.02.2010 in paragraph 8 and 9 of the plaint) with respect to suit schedule property admeasuring Ac.4.07 guntas (equivalent to 20273 square yards in Survey No.194/1, G.L.R. Survey No.255 falling under Secunderabad Cantonment Area situated at Ramakrishnapuram (Gandhinagar), Secunderabad Cantonment, Malkajgiri village and mandal, Ranga Reddy District.
2. In the plaint, the detailed description with respect to the entering into a contract for purchase of land in Survey No.194/1 and also in Survey No.211 starting with an MoU in 2016 and subsequent documents alleged to have been executed between the parties was mentioned. For the purpose of resolving the controversy in the present CRP, the details with respect to the same are not necessary except to state that the plaintiffs alleged to have been delivered with the possession of the suit schedule property.
3. Invoking Order I Rule 10(2) read with Section 151 CPC, the plaintiff sought to implead respondents 3 to 5 in the suit as defendants 3 to 5. As per the averments in the affidavit filed in support of the petition, the petitioners found that employees of 5th respondent at the suit are site claiming right over the property and on further enquiry, the petitioners came to learn that the respondents 1 and 2 (Defendants 1 and 2), to create multiplicity of proceedings and in order to avoid the execution of Sale Deed pursuant to agreements entered into with the petitioners in collusion and in connivance with the respondents 3 to 5, created a Deed of Mortgage purporting to mortgage the suit schedule property along with the other properties on behalf of respondent No.3 in favour of respondent No.4 vide Mortgage Deed bearing No.1380/2015 dated 15.12.2015. The 4th respondent alleged to have assigned the debt owed and all its rights by assignment deed dated 28.03.2015 in favour of 5th respondent Asset Reconstruction Company. Petitioner also learnt that 5th respondent had initiated certain proceedings under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, “SARFAESI Act”). The creation of mortgage in favour of 4th respondent by the respondents 1 and 2 is nonest in law and the same is in violation of status quo orders dated 04.01.2013 in I.A.No.28 of 2013. Petitioner asserts that the mortgage and the assignment deeds executed are illegal, void and not binding on the plaintiff and as the said documents are creating cloud over the petitioner’s right over the suit schedule property and for effectual conveyance of property in their favour pursuant to the Agreement of Sale dated 03.02.2006, petitioner seeks to implead respondents 3 to 5 as defendants 3 to 5 in the suit. Petitioner asserts that respondents 3 to 5 are necessary and proper parties for effective adjudication of the dispute.
4. Respondent No.4 filed counter asserting that the petitioner be put to strict proof of respective averments in the affidavit. It is asserted that the creation of mortgage, assignment of debt and the mortgaged property in favour of the 5th respondent has been done strictly according to the rules; that the suit filed in 2013 with respect to alleged AGPA of the year 2006 and the petition filed after four years of mortgage and the same is collusive with defendants 1 and 2 and the delay is not explained; that they are not necessary or proper parties and hence prays for dismissal of the petition.
5. Respondent No.5 filed a separate counter denying the averments of the affidavit contending that the guarantee documents executed by the 3rd respondent in favour of 4th respon
Lala Durga Prasad v. Lala Deep Chand
Ramesh Hirachand Kundanmal v. Municipal Corporation of Greater Bombay
SupremeToday
The prior purchasers of the property are necessary and proper parties to a suit for specific performance.
The main legal point established in the judgment is that the impleadment of a party is not necessary if no legal right has been created in their favor, and their presence is not required to effective....
The court ruled that an auction purchaser, lacking a connection to the original agreement, cannot be impleaded in a specific performance suit, as their presence is neither necessary nor proper for ad....
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.