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2025 Supreme(Online)(Mad) 11364

IN THE HIGH COURT OF JUDICATURE AT MADRAS
R. Kalaimathi, J
Radhakrishnan – Appellant
Versus
Govindarasu – Respondent
Second Appeal|A.S.No.13 of 2010|O.S.No.299 of 2004|O.S.No.454 of 2000



Advocates:
For the Appellants/Petitioners: V. Srimathi
For the Respondents: V. Anand

An ex-parte decree does not operate as res judicata unless the issue was heard and finally decided on merits. Furthermore, under the Transfer of Property Act and Registration Act, any transfer of immovable property valued at one hundred rupees or more is invalid without a registered instrument.

Headnote:(A) Code of Civil Procedure, 1908 - Section 11 - Res Judicata - Principles of res judicata require that a matter directly and substantially in issue in a former suit between the same parties must have been heard and finally decided - An ex-parte decree, where the issue was not contested or adjudicated on its merits, does not operate as res judicata. (Paras 15, 17)

(B) Transfer of Property Act, 1882 - Sections 54 and 118 - Registration Act, 1908 - Section 17 - Oral exchange of immovable property - A transaction by way of exchange of immovable property valued at one hundred rupees or more compulsorily requires a registered instrument to be valid - Oral exchange is not permissible in law and cannot be relied upon to defeat title established through registered sale deeds. (Paras 24, 25, 26, 27)

Facts of the case:
The appellants (plaintiffs) filed a suit for declaration of title and recovery of possession regarding a portion of land, asserting their title through a registered sale deed. The respondents (defendants) contended that there was an oral exchange of properties between the parties years prior, and further argued that a previous ex-parte decree obtained by them against the plaintiffs regarding the same survey number rendered the current suit barred by the doctrine of res judicata. The trial court decreed the suit in favor of the plaintiffs, but the first appellate court reversed this decision, holding that the suit was barred by res judicata.

Findings of Court:
The court held that the first appellate court erred in applying the doctrine of res judicata as the previous suit was an ex-parte decree where merits were not adjudicated. Furthermore, the court found the claim of 'oral exchange' to be legally unsustainable under the Transfer of Property Act and the Registration Act, as any transfer of immovable property of such value must be effected through a registered instrument.

Issues: Whether the principle of res judicata applies to an ex-parte decree where issues were not contested, and whether an oral exchange of immovable property constitutes a valid transfer of title.

Ratio Decidendi: The court reasoned that for res judicata to apply, the matter must be heard and finally decided on merits, which is not satisfied by an ex-parte decree. Additionally, it held that compliance with the mandate of registration for the transfer of immovable property is imperative, and oral claims of exchange cannot supersede registered title documents.

Result: Second Appeal allowed. Judgment of the First Appellate Court set aside and trial court decree restored.

Table of Content
1. dispute over title and possession of 'b' schedule property. (Para 1 , 4 , 5 , 6)
2. trial and appellate procedural history including res judicata issues. (Para 7 , 8 , 9 , 10 , 14)
3. criteria and application of res judicata under section 11 cpc. (Para 15 , 16 , 17)
4. requirement of registered instruments for valid exchange of property. (Para 20 , 21 , 24 , 25 , 26 , 27 , 28)
5. final order allowing appeal and restoring trial court decree. (Para 29 , 30)

JUDGMENT

1.This Second Appeal has been preferred by the appellants/plaintiffs against the judgment and decree dated 25.10.2020 passed in A.S.No.13 of 2010 by the Principal Sub- Court, Vridhachalam, reversing the judgment and decree dated 21.12.2009 passed in O.S.No.299 of 2004 by the II Additional District Munsif Court, Vridhachalam.

2.Parties are referred to as per their litigative status and ranking before the trial Court.

3.Heard the arguments advanced by the learned counsel for the appellants/plaintiffs and the learned counsel for the respondents/defendants.

4.According to the appellants/plaintiffs, 'A' schedule property originally belonged to one Chidambaram Pillai from whom the 1st plaintiff's father and the 2nd plaintiff's husband Sollaimuthu Padayachi purchased on 06.08.1964. Sollaimuthu Padayachi had been in continuous possession and enjoyment of the purchased property. He died intestate 27 years before leaving behind the appellants/plaintiffs and daughters namely Kalaimani, Dhanalakshmi and Senthamilselvi, as his legal heirs. The said Kalaimani got married 30 years before and residing with her husband. Thereafter, the said Dhanalakshmi and Senthamilselvi died without any legal heirs. Patta was granted in favour of 2nd plaintiff/Neelambal in respect of the 'A' schedule property in Patta No.647. The plaintiffs are in continuous possession and enjoyment of the 'A' schedule property for more than 10 years and they have prescribed title to the property by adverse possession.

5.The 1st and 2nd defendants purchased 0.38 cents situated on the South of 'A' schedule property through two sale deeds dated 20.08.1985 from Govindasamy each 0.19 cents respectively. The 1st and 2nd defendants have been in possession and enjoyment of the purchased property respectively from the date of sale. The defendants have admitted in their sale deed that the 'A' schedule property is situated on the North of their purchased property. Therefore, the defendants are estopped from denying the title of the plaintiffs to the 'A' schedule property. While so, the 1st defendant in the Tamil month of Chithirai 1999 encroached into a portion of the Northern side of 'A' schedule property which is shown as 'B' schedule property. The 1st defendant had filed a suit in O.S.No.454 of 2000 against the appellants/plaintiffs contending that he is entitled to 3.04 acres in Survey No.456/3C and he is also entitled to 2.77 cents in the said survey number, and the said property was purchased by way of sale deed. The 1st plaintiff has exchanged the 'B' schedule property in favour of the 1st defendant and therefore, the 1st defendant is entitled to the 'B' schedule property. The plaintiffs have not orally exchanged and sold the 'B' schedule property to the 1st defendant. The plaintiffs were never in possession of the 0.38 cents situated on the South of 'A' schedule property. As the 1st defendant upon the request of the plaintiffs refused to hand over the possession of 'B' schedule property, it necessitated the plaintiffs to file the suit. From 1999 onwards the 1st defendant has been cultivating sugarcane in the 'B' schedule property and sent the same to Pennadam Sugar Mill and earned profits. Therefore, the mesne profits for Rs.10,000/- is also prayed for.

6.Per Contra, it was contented by the respondents/defendants that the appellants/plaintiffs have relinquished their right over the 'B' schedule property 30 years before. Though the father of the 1st plaintiff, Sollaimuthu Padayachi purchased 1.38 cents in the

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