KAHC010792792011_1

High Court: Karnataka High Court Bench: BENGALURU
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Case Note & Summary

Background: The dispute centered around two agricultural lands in Kenchanahalli village originally owned by one Siddagirigowda. His first wife Thopamma filed a maintenance suit (O.S. No.245/1968) and obtained a decree on 24.06.1976 for monthly maintenance of Rs.100 and a charge over all his 13 properties, including the suit lands. During the pendency of that suit, Siddagirigowda sold the suit properties to N.K. Giriraja Shetty (the plaintiff) under a registered sale deed dated 09.11.1974 for Rs.10,000. Thopamma, in execution of her decree, brought the suit properties to auction on 05.10.1977; she herself, with court permission, purchased them. N.K. Giriraja Shetty filed an application under Section 47 r/w Order 21 Rule 90 CPC in the execution case on 05.11.1977, but it was dismissed for default on 31.03.1978 and the sale was confirmed. Meanwhile, on 05.01.1978, Siddagirigowda executed a settlement deed of the same properties in Thopamma’s favour. On 19.04.1978, N.K. Giriraja Shetty instituted the present suit (O.S. No.109/1978, renumbered O.S. No.85/1989) seeking declaration of his title and possession. Thopamma later sold the properties to Siddagangaiah during the pendency of the suit. The trial court dismissed the suit, holding that the sale to N.K. Giriraja Shetty was hit by the doctrine of lis pendens under Section 52 of the Transfer of Property Act and did not bind Thopamma or her successors. On appeal by N.K. Giriraja Shetty, the first appellate court reversed the trial court’s judgment and decreed the suit, finding that the original maintenance suit and execution proceedings were collusive. The legal representatives of Siddagangaiah (the subsequent purchaser) then filed the present Regular Second Appeal before the High Court. The High Court admitted the appeal and framed four substantial questions of law: (1) whether the first appellate court was justified in concluding that the decree and execution were collusive when the trial court made no such finding; (2) whether the title of a transferee pendente lite in a maintenance and charge suit is affected by a decree for charge; (3) whether the suit for declaration is maintainable without a prayer to set aside the auction sale as void; and (4) whether a separate suit lies after dismissal for default of the application under Order XXI Rule 90 CPC. The appellant argued that the sale was void under lis pendens, that the auction sale was valid, that the dismissal of the earlier application bars a fresh suit, and that no relief was sought against the auction. The respondent contended that the sale was not affected by lis pendens, that he had acquired absolute title, that the auction sale was void for want of notice to him, and that an independent suit was maintainable. The High Court examined the evidence and noted that the maintenance suit had remained pending for eight years, which did not by itself establish collusion. However, the court observed that the execution case targeted only the suit properties already sold to the respondent, sparing the other 11 properties of Siddagirigowda. It further noted that Siddagirigowda executed a settlement deed of the same properties to Thopamma after she had already purchased them in auction, which was a strong circumstance indicating collusion. The judgment, as reproduced, ends at this point without recording the final decision on the substantial questions of law.

Issue of Consideration

1. When the trial Court did not arrive at a conclusion that the suit in O.S. No.245/1968 and the execution proceedings are collusive, whether the first appellate Court was justified in holding that the suit and the execution proceedings are collusive and in doing so, appreciated the evidence illegally and in capricious manner and thereby committed an illegality in the impugned Judgment and Decree? 2. Whether the title of the transferee of the immovable property pendente lite, which is the subject matter in a suit for maintenance and charge is affected by a decree for charge on the said property? 3. Whether the suit instituted by the respondent for the relief of declaration is maintainable in the absence of seeking the relief that the auction sale is void or not binding? 4. When an application filed under Order XXI Rule 90 CPC was dismissed for default, whether separate suit filed by such applicant is maintainable in law?

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Case Details

2014 LawText (KAR) (12) 20

Regular Second Appeal No. 2633 of 2011

2014-12-18

A.S. Pachhapure

Sri. T. Seshagiri Rao, Sri. Sunil S. Rao, Sri. S.S. Naganand, Sri. Shyam Koundinya A.S.

Siddagangaiah, since deceased by L.Rs. Thayamma, Gunashekara, Kamalakshi, Manjula

N.K. Giriraja Shetty, since deceased by L.R. D. Narasimha Raja Shetty; and Lingamma

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Nature of Litigation

Civil suit for declaration of title and possession of immovable property

Remedy Sought

Plaintiff N.K. Giriraja Shetty sought declaration of his title to suit properties and possession from defendants

Filing Reason

Plaintiff purchased suit properties during pendency of maintenance suit by seller's wife; later those properties were auctioned in execution of maintenance decree, and plaintiff's application in execution was dismissed; hence suit for declaration

Previous Decisions

Trial court dismissed suit; first appellate court allowed appeal and decreed suit; now second appeal by subsequent purchaser from auction purchaser

Issues

When the trial Court did not arrive at a conclusion that the suit in O.S. No.245/1968 and the execution proceedings are collusive, whether the first appellate Court was justified in holding that the suit and the execution proceedings are collusive and in doing so, appreciated the evidence illegally and in capricious manner and thereby committed an illegality in the impugned Judgment and Decree? Whether the title of the transferee of the immovable property pendente lite, which is the subject matter in a suit for maintenance and charge is affected by a decree for charge on the said property? Whether the suit instituted by the respondent for the relief of declaration is maintainable in the absence of seeking the relief that the auction sale is void or not binding? When an application filed under Order XXI Rule 90 CPC was dismissed for default, whether separate suit filed by such applicant is maintainable in law?

Submissions/Arguments

Appellant's arguments: suit not maintainable; sale hit by lis pendens; auction sale valid; dismissal of application under Order 21 Rule 90 bars separate suit; no relief sought to declare auction void; first appellate court's finding of collusion is without evidence. Respondent's arguments: sale not hit by lis pendens; plaintiff acquired absolute title; suit maintainable; auction sale void for lack of notice to purchaser; independent suit can be filed; first appellate court's reversal justified.

Judgment Excerpts

the Sale Deed executed on 09.11.1974 does not bind the auction purchaser Thopamma and her successors. The suit in O.S. No.245/1968 for maintenance and creation of charge was decreed on 24.06.1976. it is not a sale without consideration or is not a gratuitous sale transaction. leaving apart the other 11 properties of Siddagirigowda, seeking the auction sale of the suit properties only which were sold to N.K.Giriraja Shetty by her husband is a strong circumstance to hold that there was a collusion between the spouses When she purchased the properties in the auction sale, there was no necessity for her husband to execute a Settlement Deed and this conduct on the part of Siddagirigowda in executing the Settlement Deed is another strong circumstance of his collusion

Procedural History

Thopamma filed maintenance suit O.S. No.245/1968; decree passed on 24.06.1976 with charge on suit properties; during pendency of that suit, Siddagirigowda sold suit properties to N.K. Giriraja Shetty on 09.11.1974; Thopamma filed execution case No.96/1976 and suit properties auctioned on 05.10.1977; N.K. Giriraja Shetty filed application under Section 47 r/w Order 21 Rule 90 CPC on 05.11.1977; Siddagirigowda executed settlement deed in favour of Thopamma on 05.01.1978; N.K. Giriraja Shetty's application dismissed for default on 31.03.1978 and sale confirmed; N.K. Giriraja Shetty filed present suit O.S. No.109/1978 (later renumbered O.S. No.85/1989) on 19.04.1978; trial court dismissed suit on 05.01.2007; first appellate court allowed appeal in R.A. No.123/2009 on 04.11.2011; LRs of subsequent purchaser filed Regular Second Appeal No.2633/2011 before High Court.

Acts & Sections

  • Transfer of Property Act, 1882: 52
  • Code of Civil Procedure, 1908: 47, Order 21 Rule 90, 100
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