IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
M.G. PRIYADARSINI, J.
Mohammaed Nadeem Ullah Khan - Appellant
Versus
Mohammed Akber Ali and Others - Respondents
Appeal Suit No. 292 of 2023
Decided On : 29-04-2024
Legal Framework - Cancellation of Sale Deeds - Specific Relief Act - Sections 31, 34 - The court interpreted Sections 31 and 34 of the Specific Relief Act, emphasizing that a suit for cancellation can be maintained by a party affected by a deed, establishing the plaintiff's right to seek relief despite not being a party to the sale deeds.
Fact of the Case:
The plaintiff sought to cancel two sale deeds executed by the defendant, claiming ownership of the property based on historical possession and alleging fraud in the execution of the deeds during the pandemic.
Finding of the Court:
The court found that the trial court erred in rejecting the plaint under Order VII Rule 11, as the plaintiff had established a cause of action and sought appropriate reliefs, including a declaration that the sale deeds were not binding on him.
Issues: Whether the plaint was maintainable under Order VII Rule 11 of the Code of Civil Procedure and whether the plaintiff had a valid cause of action to seek cancellation of the sale deeds.
Ratio Decidendi: The court held that a plaintiff can seek cancellation of a deed even if not a party to it, provided they can demonstrate a legal interest in the property and a reasonable apprehension of injury from the deed.
Result: The appeal is allowed, and the trial court's order is set aside, restoring the original suit for further proceedings.
JUDGMENT :
M.G. Priyadarsini, J.
Aggrieved by the order and decree dated 08.06.2022 in I.A.No.505 of 2022 in O.S.No.34 of 2022 (hereinafter will be referred as ‘impugned order’) passed by the learned Senior Civil Judge – cum – Assistant Sessions Judge, Sangareddy (hereinafter will be referred as ‘trial Court’), the plaintiff preferred the present appeal to set aside the impugned order.
2. For the sake of convenience, the parties hereinafter are referred to as they are arrayed before the trial Court.
3. The brief facts of the case, which necessitated the plaintiff/appellant to file the present appeal, are that the plaintiff filed O.S.No.34 of 2022 against defendants seeking cancellation of two sale deeds dated 16.04.2021 executed by defendant No.1 in favour of defendant Nos.2 and 3 respectively and declaring them as null, void and not binding on the plaintiff and for a consequential perpetual injunction in respect of suit schedule properties. After receipt of summons, the defendant filed petition vide I.A.No.505 of 2022 under Order VII Rule 11 read with Section 151 of the Code of Civil Procedure to reject the plaint. The brief averments of the affidavit filed in support of the petition are as under :
(ii) A suit for cancellation of an instrument will be maintainable only when filed by the party, who has executed such a document. But the documents, which plaintiff is seeking to be cancelled were not executed by the plaintiffs. Hence, from the pleadings in the plaint, it is clear that the plaint is barred by law.
(iii) The suit is nothing but a vexatious suit initiated only to create hardships for the petitioner/defendant, who has obtained the work commencement letter from GHMC authorities. The real intention of the plaintiff is to stop the construction of the house in suit schedule house.
(b) In reply to the petition averments, the respondent/plaintiff filed counter, the brief averments of which are as under:
(i) In recitals of the documents, the defendant mentioned that he is the absolute owner of the schedule property but he did not mention as to how he acquired the title. This itself shows that the defendant played fraud during the Covid-19 pandemic, as the property was under lock and key, he executed the fictitious sale deeds that are liable to be cancelled by the Court. The defendant has approached the Court with unclean hands as he does not have any right to claim that the suit schedule property belongs to him.
(ii) Though it is contended by the defendant that there is no cause of action, it is very much evident that from the date of execution of fraudulent sale deeds i.e., 16.04.2021 the cause of action arose for filing the suit. The plaintiff is the absolute owner and filed suit for cancellation which is maintainable. In fact, the defendant is not having any right to claim that he is the absolute owner of the suit schedule property, hence, he is a third party to the suit proceedings.
(iii) It is stated that the permission by the GHMC authorities for construction will not give any right or title to the property. The officials of GHMC are in collusion with defendant. A proper enquiry in the suit proceedings is required to be conducted to decide the rightful owners of the suit schedule property. At this juncture the suit cannot be rejected, hence, the petition filed by the defendant is liable to be dismissed.
(c) The trial Court after considering the rival contentions, allowed the petition and thereby suit of the plaintiff was rejected. Aggrieved by the said order and decree, the plaintiff filed the present appeal to set aside the impugned order.
4. Heard both sides and perused the record including the grounds of appeal.
5. The two
A plaintiff can seek cancellation of a deed affecting their property rights even if not a party to the deed, provided they demonstrate a valid cause of action.
Unilateral cancellation of sale deeds is void; a suit for cancellation must follow legal procedures, and claims barred by limitation cannot be entertained.
The court ruled that both declaration of termination and specific performance can be sought together. The suit was within the limitation period as the cause of action arose from the cancellation noti....
A plaintiff's failure to seek explicit title declaration does not render the suit unmaintainable if sufficient evidence of ownership exists, especially when the trial is ongoing.
A plaint can be rejected under Order VII Rule 11 if it is barred by limitation or fails to disclose a cause of action, emphasizing the necessity for clear and truthful averments.
Subsequent purchasers cannot assert defenses of the original vendor without seeking leave under Order 22 Rule 10 of CPC, especially when the original sale deeds have been canceled.
Where khatedari rights are yet to be determined/declared, a party has to first approach Revenue Courts.
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