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2025 Supreme(Online)(Ker) 57987

IN THE HIGH COURT OF KERALA AT ERNAKULAM
MR. EASWARAN S., J
ROSILY, W/O.KODIYAN JOSEPH – Appellant
Versus
ALPHONSA W/O.PEENIKKAPARAMBIL THOMAS – Respondent
RSA NO. 848 OF 2012 | A.S NO. 415 OF 2004 | O.S NO. 373 OF 2000



Advocates:
For the Appellants/Petitioners: G.HARIHARAN, PRAVEEN.H, K.S.SMITHA, B.R.SINDU, V.R.SANJEEV KUMAR, AFNA V.P, V.ROHITH
For the Respondents: G.SREEKUMAR (CHELUR), RANJITH THAMPAN, P.R.REENA

A mere declaration that a sale deed is null and void is ineffectual; a plaintiff must seek to set aside the deed, which must be substantiated by evidence to oppose its presumptive validity.

Headnote:(A) Transfer of Property Act, 1882 - Section 52 - Specific Relief Act, 1963 - Section 34 - Registration Act, 1908 - Section 32 - Appeal against concurrent findings on the validity of a sale deed - Courts below erred in accepting evidences without Defendant signatures, concluding transactions were fraudulent due to absence of proper proof. (Paras 1, 10, 12, 16)

Facts of the case:
The plaintiff sought a declaration that a sale deed executed in favor of the 2nd defendant was null and void, asserting it was intended as a security deed. The 3rd defendant purchased the property later and contested the validity of this claim, arguing she was a bona fide purchaser. (Paras 2, 2.1)

Findings of Court:
The sale deed remained unchallenged as fraudulent, and the courts below failed to adequately interpret the nature of the deed. The trial court's conclusions on monetary claims lacked sufficient evidence as well. (Paras 12, 16)

Issues: The main issues included whether the sale deed was valid, the sufficiency of evidence regarding the loan transaction, and the procedural correctness of plaintiffs’ claims related to the deed. (Paras 8, 9)

Ratio Decidendi: The court reasoned that judicial relief under the Specific Relief Act requires proper claims and consequences for documents executed. A declaration alone for nullity is insufficient without seeking to set aside the sale deed. The court further highlighted the settled principle that registered documents hold presumptive value until sufficiently rebutted. (Paras 10, 16)

Result: The appeal is allowed and the judgment and decree of the lower courts are set aside; O.S.No.373/2000 is dismissed.

Table of Content
1. background of property dispute and motives (Para 1 , 2)
2. arguments on validity and intentions behind deed (Para 4 , 6)
3. court's evaluation of evidence in context (Para 9 , 10 , 11)
4. legal principles regarding registered documents (Para 12 , 13 , 14 , 15)
5. substantial questions of law regarding the deed (Para 16)

JUDGMENT

The 3rd defendant in O.S.No.373/2000, a suit before the Principal Sub Court, Irinjalakuda, for declaration that a sale deed executed by the plaintiff is sham and was only intended to operate as a security deed, along with a consequential prayer for recovery of possession, has come up in the present appeal aggrieved by the concurrent findings against her.

2. The brief facts necessary for the disposal of the appeal are as follows:

2.1. The plaintiff purchased the plaint schedule property through an assignment deed in the year 1997. The 1st defendant was conducting a money lending business in the name ‘Management Consultants’ and the 2nd defendant was the Manager under the 1st defendant. The 2nd defendant used to issue receipts on behalf of the 1st defendant and that the husband of the plaintiff approached the 1st defendant and borrowed a sum of Rs.1,00,000/-. At the time of granting the said loan, the 1st defendant insisted that a mortgage deed be executed with respect of the property of the plaintiff in the name of the 1st defendant or in the name of the persons, as suggested by him. He assured that once the mortgage debt was cleared off, a surrender deed would be executed. Accordingly, the plaintiff executed the Document No.2553/1997 in favour of the 2nd defendant believing that the same is a security for the debt due from her husband. The husband of the plaintiff cleared off an amount of Rs.40,780/- towards loan. Eventhough a registered document was executed in respect of the plaint schedule property, the possession was not parted. The plaintiff also gave the house in the property on lease to Louise and Varghese and they have executed a lease deed on 24.05.1997. Thereafter, the defendants threatened the tenants and attempted to forcefully evict them and take forceful possession of the building and hence, a complaint was lodged. Later, the plaintiff came to know that she had executed a sale deed in favour of the 2nd defendant. Since the defendants had no intention to convey the property back, the plaintiff is constrained to file the suit seeking for a declaration that the document executed by her on 16.05.1997 in favour of the 2nd defendant is null and void.

2.2. The defendants 1 and 2 filed a written statement contending that, they have sold the property to the 3rd defendant in the year 1999, just before the filing of the suit. It was also contended that the plaintiff with open eyes executed the document in favour of the 2nd defendant and therefore, she cannot resile back. The allegation that the document was a sham document was denied and that it was further contended that no act of fraud was perpetuated by them to get the sale deed executed. The document was executed by the plaintiff after fully understanding the nature and scope of the document. Consequent to the filing of the written statement, the 3rd defendant/appellant herein was impleaded in the year 2004 and an amendment was also sought for by seeking for recovery of possession and also for amending the schedule of the plaint. It is pertinent to mention that when the suit was originally instituted, the extent of property was not shown in the plaint schedule, whereas the building alone was shown. The 3rd defendant, by filing a written statement, resisted the suit and contended that, she had paid valuable consideration to the 2nd defendant and accordingly, the property was assigned to her and therefore, the relief against the 3rd defendant cannot be sustained.

2.3. On behalf of the plaintiff, Exts.A1 to A8 documents were produced and PW1 to PW5 were examined. On behalf of the defendants, Exts.B1 to B6 documents were produced and DW1 an

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