Supreme Court Dismisses Civil Appeal in Property Dispute, Upholding Decree Setting Aside Sale Deeds and Granting Relief to Executor. Title to Property Was Acquired Through Court Auction Sale, Making Subsequent Sale Deeds Void, and Relief Was Moulded in Favor of Executor to Execute Terms of Probated Will Under Indian Succession Act, 1925.

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Case Note & Summary

The Civil Appeal arose from a confirming judgment and decree dated 08.09.2016 in O.S.A. No. 230 of 2007 of the High Court of Judicature at Madras, at the instance of defendants 3 to 6 in C.S. No. 504 of 1998. The dispute centered on the plaint schedule property, originally purchased by Somasundaram Chettiar in 1929. In 1952, Padmini Chandrasekaran filed a suit to resolve rights to her father's property, leading to a decree in her favor. Somasundaram Chettiar offered the plaint schedule as security, and a court auction sale was held on 04.05.1962, with Padmini Chandrasekaran becoming the auction purchaser. The Advocate Commissioner executed a sale deed on 25.09.1963 in her favor. Somasundaram Chettiar executed a will on 30.05.1962 in favor of defendant no. 1, his adopted son, and died on 14.06.1962. Padmini Chandrasekaran executed a will on 30.09.1975, bequeathing properties to a trust and individuals, including a clause for the plaint schedule property. She died on 07.06.1980, and the will was probated in 1995. In 1992, defendant no. 2, as power of agent of defendant no. 1, executed sale deeds in favor of defendants 3 to 6. In 1998, the trust filed C.S. No. 504 of 1998 seeking declaration that the sale deeds were void, possession, and permanent injunction. The learned Single Judge framed issues including title of Padmini Chandrasekaran and entitlement of the trust. The court held that Padmini Chandrasekaran acquired absolute title through the court auction sale and sale deed, and defendant no. 1 had no right to convey the property. The relief was moulded in favor of the executor, Mr. H.B.N. Shetty, to set aside the sale deeds, grant injunction, and execute the will's terms. The Division Bench dismissed the appeal, confirming these findings. The Supreme Court granted leave and considered the challenge. The core legal issues were the validity of the sale deeds based on title derived from court auction and the appropriateness of moulding relief for the executor. Arguments included the plaintiff's claim of title through Padmini Chandrasekaran and the defendants' assertion of title through Somasundaram Chettiar's will. The court analyzed that the court auction sale and sale deed vested title in Padmini Chandrasekaran, making subsequent sale deeds void. It reasoned that the executor, as per the probated will, had the right to administer the estate, and moulding relief was necessary to avoid multiplicity of suits and given the circumstances of aged executors. The decision upheld the impugned judgment, dismissing the civil appeal and affirming the decree in favor of the executor.

Headnote

A) Property Law - Title and Ownership - Court Auction Sale - Code of Civil Procedure, 1908 - The court held that Padmini Chandrasekaran acquired absolute title to the plaint schedule property through a court auction sale held on 04.05.1962 and the subsequent sale deed executed by the Advocate Commissioner on 25.09.1963, which became final. The sale deeds dated 24.02.1992 executed by the first defendant through the second defendant in favour of defendants 3 to 6 were declared void as the first defendant had no saleable right over the property without challenging the court auction sale. Held that the right and title to the property stood transferred and vested with Padmini Chandrasekaran (Paras 6, 11, 14).

B) Property Law - Will and Testament - Executor's Rights - Indian Succession Act, 1925 - The court noted that Padmini Chandrasekaran executed a will dated 30.09.1975, which was probated, bequeathing properties to a trust and individuals, including a clause directing the executors to sell the plaint schedule property and deposit proceeds for the benefit of Vinayagamurthy and his children. The court moulded relief in favour of the executor, Mr. H.B.N. Shetty, to set aside the sale deeds and execute the terms of the will, as the trust had no right, title, or interest over the property. Held that the executor, as the arm of the testatrix, had substantial right to deal with the property (Paras 3, 6, 11, 12, 14).

C) Civil Procedure - Moulding of Relief - Code of Civil Procedure, 1908 - The court affirmed the moulding of relief by the learned Single Judge, granting a decree in favour of the executor instead of the plaintiff trust, considering that executors had passed away or were aged, and to avoid multiplicity of suits. The relief included setting aside sale deeds, permanent injunction, and direction to execute the will's terms. Held that such course was permissible in the peculiar circumstances of the case (Paras 11, 12, 14).

D) Property Law - Adverse Possession - Possession Follows Title - Not mentioned - The court rejected the contention of adverse possession, holding that for a vacant plot of land, possession follows title, and thus adverse possession was untenable and did not arise in the circumstances (Para 12).

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Issue of Consideration

Whether the sale deeds executed by the first defendant through the second defendant in favour of defendants 3 to 6 are void and whether the relief should be moulded in favour of the executor of the will of Padmini Chandrasekaran

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Final Decision

The Supreme Court granted leave, considered the appeal, and upheld the impugned judgment and decree dated 08.09.2016, dismissing the civil appeal and affirming the decree in favor of the executor, Mr. H.B.N. Shetty, to set aside sale deeds, grant permanent injunction, and execute the terms of the will.

Law Points

  • Title by court auction sale
  • validity of sale deeds
  • moulding of relief
  • executor's rights
  • adverse possession
  • possession follows title
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Case Details

2025 LawText (SC) (3) 252

Civil Appeal arising from O.S.A. No. 230 of 2007

2025-03-25

S.V.N. Bhatti, J.

Defendant Nos. 3 to 6 in C.S. No. 504 of 1998

M/s N. Selvarajalou Chetty Trust represented by its Trustees (1) Mr. H.B.N. Chetty, I.A.S.(Retd.), (2) Shri N.C. Raghavachari and (3) Shri R. Krishnamoorthy

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Nature of Litigation

Property dispute involving title, sale deeds, and will

Remedy Sought

Plaintiff trust sought declaration that sale deeds are void, possession, and permanent injunction

Filing Reason

To assert title to plaint schedule property and challenge sale deeds executed by defendant no. 1 through defendant no. 2 in favor of defendants 3 to 6

Previous Decisions

Learned Single Judge decreed in favor of executor to set aside sale deeds, grant injunction, and execute will terms; Division Bench dismissed appeal confirming the judgment

Issues

Whether Padmini Chandrasekaran has got title to the suit property? Whether the 1st defendant had inherited the property in accordance with law? Whether the 1st defendant's forefather has got any title to the suit property? Whether the Trust is entitled to the property in order to have the relief asked for? Whether the plaintiff is entitled to the relief prayed for?

Submissions/Arguments

Plaintiff's case: Padmini Chandrasekaran acquired absolute title through court auction sale and sale deed; sale deeds by defendant no. 1 are void; trust claims right through will Defendants' case: Somasundaram Chettiar purchased property and willed it to defendant no. 1; defendants 3 to 6 are unaware of encumbrances; sale deed does not convey title to Padmini Chandrasekaran

Ratio Decidendi

Title to property acquired through court auction sale and subsequent sale deed vests absolutely in the auction purchaser, making any subsequent sale deeds by parties without challenging the court sale void; relief can be moulded in favor of the executor of a probated will to administer the estate and avoid multiplicity of suits, especially in circumstances where executors are aged or have passed away.

Judgment Excerpts

The court sale of the Plaint Schedule was held on 04.05.1962 in favour of the late Padmini Chandrasekaran. Thus, the right and title to the Plaint Schedule through the process of court and law stood transferred and vested with the late Padmini Chandrasekaran. The learned Single Judge holds that the Plaint Schedule being a vacant plot of land, the possession follows the title, and the contention of adverse possession is untenable and does not arise. Plaintiff Trust is not entitled to any decree. But the remedy is moulded for reasons mentioned supra, in passing a decree in favour of Mr. H.B.N.Shetty in his capacity as executor of Will.

Procedural History

1929: Somasundaram Chettiar purchased property; 1952: Padmini Chandrasekaran filed C.S. No. 329 of 1952; 1962: Court auction sale held on 04.05.1962; 1963: Sale deed executed on 25.09.1963; 1962: Will executed by Somasundaram Chettiar on 30.05.1962; 1975: Will executed by Padmini Chandrasekaran on 30.09.1975; 1980: Padmini Chandrasekaran died; 1992: Sale deeds executed on 24.02.1992; 1995: Will probated; 1998: C.S. No. 504 of 1998 filed; 2006: Judgment by learned Single Judge; 2007: O.S.A. No. 230 of 2007 filed; 2016: Impugned judgment by Division Bench; Supreme Court appeal.

Acts & Sections

  • Code of Civil Procedure, 1908:
  • Indian Succession Act, 1925:
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