SUPREME COURT OF INDIA
C.T. Ravikumar, S.V.N. Bhatti, JJ.
Thankamma George – Appellant
Versus
Lilly Thomas And Another – Respondents
Civil Appeal No. 6495 of 2023
Decided on : 09-07-2024
(A) Agreement to Sell – Suit for declaration of title and recovery of possession – Applicability of limitation has a different perspective – Starting point is when right to sue first accrued to Appellant – Suit is filed within three years from the date when right to sue first accrued to Appellant – Suit is not barred by limitation – Appellant is not successful in her claim for half share in house constructed in plaint schedule – It would be legal and equitable to direct Trial Court first to explore possibility of determining market value of Appellant’s half share in suit schedule property and subject to Respondents paying current market value to Appellant towards her half share, final decree be passed accordingly – If parties do not arrive at a consensus on current market value, operative portion in judgment and decree of Trial Court could be put to final decree proceedings and execution in accordance with law – In such an event, Appellant compensates Respondents for possessing constructed area along with her half share in plaint schedule. – [Limitation Act, 1963 – Article 58] (Paras 12 and 25.1)
(B) Contract Act, 1872 – Sections 207 and 208 – Revocation of agency – In absence of a particular mode suggested for revocation of authority of an agent, manner adopted by principal to revoke authority of agent must be one which clearly and unequivocally communicates to parties to be affected by such revocation, that agent’s authority has been withdrawn – In a case where Principal chooses to act for himself, particularly to agent’s knowledge and a person to be affected, then it can be held that Section 207 of Act is attracted – Two stages of revocation are, firstly, one dealing with agent, and secondly, one which applies to third parties – For attracting consequence of revocation to either of situations, revocation of agent's authority is made by Principal in a manner that clearly implies that Principal has withdrawn authority to act on his or her behalf by agent. (Paras 21 and 22)
Facts of the case:
Trial Court, on examination of oral and documentary evidence, rejected the claim of Appellant for declaration as the owner of the entire suit schedule property but accepted the alternate prayer for partition and decreed the suit accordingly. High Court, in the impugned judgment, noted what (i) would be effect of a registered power of attorney authorising the agent to execute and transfer immoveable property; (ii) whether unilateral cancellation after exercise of right of alienation given under power of attorney is available; (iii) what would be effect of sale executed by the power holder with respect to an immoveable property; (iv) what amounts to a document void ab initio or void document; (v) whether Trial Court is justified in decreeing suit of Appellant.
Findings of Court:
Impugned judgment excerpted a slew of unavailable questions and answered them in an axiomatic way. impugned judgment is unsustainable, and consequently, the appeal succeeds and is allowed. Judgment and the decree of the Trial Court are confirmed.
Result : Civil Appeal allowed.
JUDGMENT :
S.V.N. Bhatti, J.
I. Factual Matrix
1. Thankamma George/Appellant, and Lilly Thomas/Respondent No. 1, are sisters, and the daughters of one late George. P.M. Thomas/Respondent No. 2 is the husband of Respondent No. 1. The Appellant filed O.S. No. 139 of 2011 dated 11.05.2011 before the Court of Senior Civil Judge, Pathanamthitta for the relief of declaration that the Appellant is the sole title holder of the suit schedule property and for recovery of possession from the Respondents. The Appellant prayed that she be declared as the exclusive and sole owner of one-half of the plaint schedule property, sale deed no. 345/2008 dated 16.04.2008 (Ex. A-5) of Enathu Sub-Registrar office as void ab initio, for consequential relief of perpetual injunction restraining the Respondents from alienating and from encumbering the suit schedule property in any manner. The frame of the suit is for more than one relief and the suit schedule consists of an extent of 8.47 ares (1013 sq. yds.) in Re-Sy. No. 216/6, Block No. 19 of Village Ezhamkulam. The suit schedule reads thus:
2. The Appellant and Respondent No. 1, on 16.01.1991, through sale deed no. 61/1991 purchased 11.50 ares of open plot from one Sivadasan Pillai. On 04.12.2003, the Appellant, since had been working abroad, executed Power of Attorney No. 44/2003 (Ex. A-4) concerning the property covered by the sale deed dated 16.01.1991, in favour of Respondent No. 1. The Power of Attorney authorized Respondent No. 1 to execute appropriate deeds, if necessary, sale deeds, and receive sale consideration for and on behalf of the Appellant. The Power of Attorney (Ex. A-4) creates the relationship of the principal and the agent between the Appellant and Respondent No. 1. Ex. A-4 recites that sale can be effected, subject to necessity and accounting for sale proceeds. On 18.01.2008, the Appellant and Respondent No. 1, contrary to the principal and agent relationship, executed a sale deed in favour of one Joemon and his wife. Thus, upon the sale of a portion of the open plot, the Appellant/Plaintiff retained an extent of 8.47 ares as described in the suit schedule. On 16.04.2008, Respondent No. 1, by way of sale, transferred the suit schedule in favour of her husband/Respondent No. 2 vide sale deed no. 345/2008 (Ex. A-5). On 26.02.2009, the Appellant filed a petition before the Taluk Legal Services Authority for redressal of the dispute, i.e., the alienation of the Appellant's half share in the suit schedule in favour of Respondent No. 2. The Appellant did not get any relief from the Legal Services Authority; hence, on 11.05.2011, the Appellant filed the Suit for the reliefs noted above.
II. Plaint Averments:
3. The Appellant has resided abroad since 1966 and worked as a Nurse in Bahrain, the U.K. and the U.S.A.. She claims to have remained as a spinster. From the earnings as a Nurse, the Appellant has supported Respondent No. 1 in more than one sense. The plaint refers to a few circumstances claiming exclusive ownership of the property purchased through sale deed nos. 61 and 877 of 1991. We are not referring to these averments for the appeal, which is confined to the relief granted by the Trial Court, i.e., half share in the suit schedule property. Having regard to the Appellant working overseas, Respondent No. 1 was authorised to act as the Appellant's agent, depending upon necessity. Contrary to the Power of Attorney dated 04.12.2003 (Ex. A-4), the Appellant in her capacity as the owner of the property, sold an extent of 3.03 ares in favour of Joemon and his wife. Thereafter, Respondent No. 1, through Ex. A-5, i.e., sale deed dated 16.04.2008, sold the property retained by the sisters to Respondent No.
(1) Revocation of agency – In absence of a particular mode suggested for revocation of authority of an agent, manner adopted by principal to revoke authority of agent must be one which clearly and un....
(1) Partition of property – It is not always necessary for a plaintiff in a suit for partition to seek cancellation of alienations.(2) Power of Attorney – Ordinarily, a Power of Attorney is to be con....
Ratification of a void transaction cannot be inferred from mere silence; Power of Attorney must be strictly construed.
The burden of proving fraud concerning registered instruments rests upon the party alleging it. A principal who authorizes an agent to alienate property cannot invalidate the agent's actions without ....
Point of law: stoic silence on the part of the plaintiffs for more than 2 years after executing the power of attorney and their own sister being the party to all the subsequent transactions, the thir....
In a suit for declaration of title, the burden lies on the plaintiff to establish their title, and failure to do so results in dismissal, regardless of the defendants' claims.
A minor can be a transferee of property, and a sale deed executed in their favor is valid despite their incapacity to contract.
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