Bombay High Court Dismisses Second Appeals Against Concurrent Findings in Suit for Declaration and Injunction Over Land Sale Deed Priority. Earlier Registered Sale Deed in Favor of Respondent-Plaintiff Conferred Good Title, and Appellant’s Later Sale Deed Was Invalid Without Cancellation of Prior Deed; No Explanation for Delay in Filing Suit After Gaining Knowledge of Prior Sale.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The dispute involved competing claims over agricultural land bearing Gat No. 319 admeasuring 6 acres 25 gunthas at village Bondre, Taluka Chalisgaon, District Jalgaon. The original owner, Digambar Ahire, had agreed to sell the land to Chagan Dipa Rathod (appellant herein) under an agreement of sale dated 07.07.1975 for Rs. 2,250. An earnest amount of Rs. 2,100 was paid and possession was handed over via a ‘Kabje Pavati’ on 08.07.1975. However, before a sale deed could be executed in favor of Chagan, Digambar executed a registered sale deed in favor of his sister Shantabai on 17.08.1977 for Rs. 1,000. Subsequently, Digambar executed another sale deed in favor of Chagan on 18.11.1977. Chagan learnt about the sale to Shantabai on 22.09.1977 when he obtained a certified copy of Index No. II. Despite this knowledge, he filed Regular Civil Suit No. 93 of 1979 on 19.05.1979 seeking a declaration that Shantabai’s sale deed was not binding on him and for a perpetual injunction. Shantabai filed Regular Civil Suit No. 169 of 1979 for declaration of ownership and possession. The trial court, by common judgment dated 10.02.1983, held that Shantabai’s earlier sale deed conferred good title, and therefore decreed her suit and dismissed Chagan’s suit. Chagan’s two appeals (Civil Appeal Nos. 387 and 379 of 1983) were dismissed by the Additional District Judge, Jalgaon on 11.10.1989, confirming the trial court’s findings. The High Court, in the second appeals, considered whether the first appellate court’s finding was perverse or based on inadmissible evidence. It noted that Chagan’s plaint did not seek cancellation or setting aside of Shantabai’s sale deed and contained no allegation that the transaction was sham, fraudulent, or void. The court observed that since Shantabai’s sale deed was prior in time, Digambar had no transferable title when he later executed a deed in favor of Chagan. The court also highlighted that Chagan, having learnt of the earlier sale on 22.09.1977, filed suit with unexplained delay and did not seek specific performance of the agreement to sell, but instead obtained a sale deed after title had already passed. In the absence of necessary pleadings and given the delay, the High Court found no perversity in the concurrent findings and dismissed both second appeals, with no order as to costs.

Headnote

A) Civil Procedure - Pleadings - Necessity of seeking cancellation of prior registered sale deed - Not mentioned - The appellant sought only a declaration that the sale deed in favor of respondent was not binding on him, without pleading that it was sham, fraudulent, or void; the courts below held that such a prayer was insufficient to challenge a registered deed and the suit was liable to be dismissed. (Paras 7, 10)

B) Transfer of Property - Priority of rights - Earlier registered sale deed prevails - Not mentioned - The respondent’s sale deed was executed and registered earlier than the appellant’s; the original owner lost title upon executing the earlier deed, so the later sale deed conveyed no title to the appellant; the concurrent findings of fact confirmed this. (Paras 8, 10)

C) Civil Procedure - Limitation and delay - Unexplained delay in filing suit after knowledge of adverse interest - Not mentioned - The appellant admitted knowledge of the earlier sale on 22.09.1977 but filed suit only on 19.05.1979 with no explanation; this delay, along with failure to seek specific performance of the agreement to sell which was breached by the vendor, was fatal to the appellant’s case. (Paras 10, 11)

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Issue of Consideration

Whether the finding on point No.1 by the District Court is perverse and not based on evidence or is based on inadmissible evidence?

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Final Decision

Both second appeals dismissed. No order as to costs.

Law Points

  • Priority of registered sale deeds
  • necessity of pleading and praying for cancellation of prior registered deed
  • a later transferee cannot claim title if transferor had no remaining title
  • suit for declaration without seeking cancellation of prior registered deed is not maintainable
  • unexplained delay after knowledge of adverse interest is fatal
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Case Details

2010 LawText (BOM) (01) 247

Second Appeal No. 214 of 1990 and Second Appeal No. 215 of 1990

2010-01-05

P.R. Borkar, J.

Shri K.M. Babulgaonkar, Advocate for appellants; Ms. Monica Purnapatre, Advocate for respondents

Chagan Dipa Rathod

Digamber Chatru Ahire, Sau.Shantabai w/o Shamrao More, Devchand Budha Ahire, Bhaurao Motiram Jadhav

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Nature of Litigation

Civil suits for declaration, injunction, and possession regarding competing sale deeds of agricultural land

Remedy Sought

Appellant sought declaration that the earlier sale deed was not binding and perpetual injunction; respondent Shantabai sought declaration of ownership and possession

Filing Reason

Appellant claimed ownership via a later sale deed after an agreement, but respondent had an earlier registered sale deed from the same owner

Previous Decisions

Trial court decreed respondent’s suit and dismissed appellant’s suit; first appellate court affirmed

Issues

Whether the finding on point No.1 by the District Court is perverse and not based on evidence or is based on inadmissible evidence?

Submissions/Arguments

Appellant’s counsel argued that respondent Shantabai was not examined and her husband gave evidence on power of attorney; thus the finding was perverse Respondent’s counsel supported the lower courts’ findings, emphasizing that pleadings lacked prayer for cancellation and the earlier sale deed established title

Ratio Decidendi

A later transferee cannot claim title if the transferor had no title at the time of later transfer due to an earlier registered sale deed; a suit for declaration that a prior registered sale deed is not binding, without seeking its cancellation and without pleading fraud, sham, or voidness, is not maintainable; unexplained delay after knowledge of adverse interest can be fatal; concurrent findings of fact are not to be interfered in second appeal unless perverse.

Judgment Excerpts

One of the major reasons given by the District Court while dismissing the appeals is that pleadings of the appellant-plaintiff Chagan show that he has not prayed for setting aside or cancellation of the sale deed in favour of Shantabai, but he simply prayed for decree of declaration that the said sale deed is not binding on him. It is not averred that the said sale deed was nominal or it was fake transaction or was executed as a fraud on the appellant-plaintiff. So, for want of such pleadings, necessary prayers and evidence, the two appeals before the District Court by present appellant were dismissed. The learned Additional District Judge ... it is admitted position that the sale deed in favour of Shantabai was prior in point of time than the sale deed in favour of present appellant Chagan. In other words, original owner Digambar had no transferable title when he executed sale deed in favour of the present appellant Chagan and, therefore, he could not have transferred the title of land in favour of the present appellant. it was admitted by the appellant Chagan that he learnt about the sale transaction between Digambar and Shantabai on 22.9.1977 on which date he obtained certified copy of Index No. II. In spite of that, he filed suit on 19.5.1979 which is long after getting knowledge on 22.9.1977 about the sale deed ... and there is no explanation whatsoever for approaching the court after such a long delay.

Procedural History

Regular Civil Suit No. 93 of 1979 filed by appellant Chagan for declaration and injunction; Regular Civil Suit No. 169 of 1979 filed by respondent Shantabai for declaration and injunction/possession. The trial court by common judgment dated 10.02.1983 decreed Shantabai’s suit and dismissed Chagan’s suit. Two regular civil appeals (Nos. 387 and 379 of 1983) filed by Chagan were dismissed by the Additional District Judge, Jalgaon on 11.10.1989. Present second appeals (Nos. 214 and 215 of 1990) arise from that appellate judgment.

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