Case Note & Summary
The case involves a property dispute where the original plaintiff (now represented by legal heirs) filed a suit for possession based on an agreement to sell executed by the original defendant No.1 (now represented by appellants). The defendant No.1 had agreed to sell the suit property to the plaintiff but later executed a registered sale deed in favor of defendant No.2 on 23/06/1975. The plaintiff claimed that he was in possession of the property and that the sale deed was illegal. The trial court and first appellate court dismissed the suit, holding that it was barred by limitation as the period of limitation commenced from the date of registration of the sale deed. The plaintiff's legal heirs filed a second appeal before the Bombay High Court. The High Court admitted the appeal on two substantial questions of law: (i) whether the suit was barred by limitation and whether the period of limitation commenced from the date of registration of the sale deed or from the date of service of notice of eviction on the plaintiff; and (ii) whether the impugned sale deed dated 23/06/1975 is illegal. The High Court held that the suit was not barred by limitation because the plaintiff's possession became adverse only after he received a notice of eviction from the defendant No.2, and the suit was filed within 12 years from that date. The court further held that the sale deed executed in violation of the prior agreement to sell was illegal and void as against the plaintiff's rights. Consequently, the High Court allowed the second appeal, set aside the judgments of the lower courts, and decreed the suit in favor of the plaintiff.
Headnote
A) Limitation Act, 1963 - Article 65 - Suit for Possession - Commencement of Limitation - Suit for possession based on prior agreement to sell - Limitation period commences from the date of notice of eviction served on the plaintiff, not from the date of registration of the sale deed - Held that the plaintiff's possession became adverse only after notice of eviction, and suit filed within 12 years from such notice is within limitation (Paras 2-3). B) Transfer of Property Act, 1882 - Section 54 - Sale Deed - Validity - Sale deed executed in violation of prior agreement to sell is illegal - Where defendant agreed to sell property to plaintiff but later sold to another, the sale deed is void as against the plaintiff's rights - Held that the impugned sale deed dated 23/06/1975 is illegal and cannot defeat the plaintiff's claim (Paras 2-3).
Issue of Consideration
Whether the suit was barred by limitation and whether the period of limitation commenced from the date of registration of the sale deed or from the date of service of notice of eviction on the plaintiff; Whether the impugned sale deed dated 23/06/1975 is illegal.
Final Decision
Second appeal allowed. The judgments and decrees of the trial court and first appellate court are set aside. The suit is decreed in favor of the plaintiff (respondents herein) for possession of the suit property. The impugned sale deed dated 23/06/1975 is declared illegal.
Law Points
- Limitation for suit for possession based on agreement to sell commences from date of notice of eviction
- not from date of registration of sale deed
- Sale deed executed in violation of prior agreement to sell is illegal and void
