Citation : 2022 Latest Caselaw 1458 Chatt
Judgement Date : 22 March, 2022
1
AFR
HIGH COURT OF CHHATTISGARH, BILASPUR
FA No. 436 of 2019
(Judgment reserved on 23.02.2022)
(Judgment delivered on 22.03.2022)
Dr. (Smt.) Surjit Behl W/o Gurdeep Singh Behl, Aged About 75 Years
Presently Residing At107 Victoria Urbane, 12 Park Road, Indore,
Madhya Pradesh (Through In The Impugned Order Old Residential
Address R/o 66, Silver S.T.U.D.-07, Race-course Road, PS Civil Line,
Indore (M.P.) Is Mentioned )............. --- Petitioner
Versus
1. Smt. Jaspal Kaur Bhatia (Through Legal Heir)
1 (A) Shri Sardar Gulbir Singh Bhatiya S/o Late Shri Sardar Gulab
Singh Bhatiya Aged About 70 Years R/o Infront Of Rajbhav, Civil
Lines, Raipur District Raipur Chhattisgarh......................Defendant.
1(B) Smt. Arvinder Kaur W/o Shri Mahendra Pal Singh Bhatiya Aged
About 47 Years R/o Near Shyam Plaza, Pandari, Raipur
Chhattisgarh............ Defendant
1(C) Smt. Arjinder Kaur W/o Shri Avnit Singh Oberoy Aged About 48
Years R/o Near Batal House, Shankar Nagar, Raipur, District Raipur,
Chhattisgarh.............Defendant.
1 (D) Smt. Sarbjit Kaur W/o Shri Ravi Singh Bhatiya Aged About 45
Years R/o Beguniya Tower, Bistapur, Jamshedpur District :
Jamshedpur (Jharkhand).............Defendant.
1(E) Smt. Harprit Kaur W/o Shri Gurubakshish Singh Bhatiya Aged
About 43 Years R/o 6a, Sandesh Apartment, Union Park, Khar West
Mumbai Distt. Mumbai (Maharashtra).............Defendant.
2. Shri Satpal Singh Bhatiya S/o Shri Gulbir Singh Bhatiya Aged About
44 Years R/o In front of Raj Bhavan, Civil Lines, Raipur Distt. Raip[ur
(Chhattisgarh)................Defendant.
3. State of Chhattisgarh through the Collector, Raipur District Raipur,
Chhattisgarh...............Defendant
--- Respondents
For the Appellant : Mr. Ashish Surana, Advocate
For Respondent No.1 : Mr. H. B. Agrawal, Senior Advocate with Ms. Swati Agrawal & Ms. Richa Dwivedi, Advocates
For Respondent No.2 : Mr. Manoj Paranjpe, Advocate
For Respondent No.3 : Ms. M. Asha Panel Lawyer
DB : Hon'ble Shri Justice Goutam Bhaduri, Judge & Hon'ble Shri Justice Sanjay S. Agrawal, Judge
C.A.V. JUDGMENT
Per Goutam Bhaduri, J
1. This appeal is directed against the judgment and decree
dated 25.07.2019 passed by the learned II Additional Judge
to the Court of 1st Additional District Judge, Raipur in Civil
Suit No.91-A/2014 whereby the suit was partly allowed.
2. The facts of the case are that the appellant plaintiff filed a
suit for cancellation of sale deed and declaration of title
along-with injunction against the respondents. As per the
plaintiff, the land of 0.094 hectares bearing Kh.No.20/34
equivalent to 10115 sqft which was earlier numbered as
20/31 20/18 in revenue records was purchased by the
appellant by sale deed dated 25.04.1982 and since then the
plaintiff claimed that he is in possession and ownership of
the said land. It was pleaded that in the year 2003 two
persons tried to disturb the possession for which a Civil Suit
No.2-A/2009 was filed against Ravindra Kaur and others,
which is pending. The plaintiff contended that she is an old
lady residing at Indore and since she was tired of litigation as
such in respect of sale of remaining of land of Kh.No. 20/34
admeasuring 7800 sqft, she gave a power of attorney to
defendant No.2 Satpal Singh Bhatia by registered general
power of attorney dated 06.09.2008. During the course of
litigation of Civil Suit No.2-A/2009 (Surjieet Kaur Versus
Ravinder Kaur & others) a direction was issued for
demarcation in respect of part of other land and accordingly
when the commissioner's report was filed along-with the
copy of sale deed 31.03.2010, for the first time she came to
know that defendant/respondent no.2 herein Satpal Singh
Bhatia has sold the entire land of 10115 sqft to his mother
Smt. Jaspal Kaur Bhatia (since deceased). Thereafter certain
police reports were made and cancellation of sale deed was
agreed to be done but eventually it was not done.
Eventually on 29.05.2014 a notice was served for
cancellation of the sale deed. It was further contended that
the sale consideration was not paid to the plaintiff /appellant
and by the Power of Attorney dated 6.09.2008 only 7800 sqft
of land was entitled to be sold whereas the defendant has
sold the entire land of 10115 sqft by sale deed dated
31.03.2010, which is void. It was further contended that the
Power of Attorney was confined only to sell 7800 sqft
whereas the remaining 2315 sqft of land was not authorised
to be sold or partitioned. Therefore, the entire sale of land of
10115 sqft is a nullity. Consequently the suit was filed for
cancellation of the sale deed dated 31.3.2010 and for
declaration that the plaintiff is in possession and ownership
of land bearing Kh. No.20/34 admeasuring 10115 sqft of
land. Further permanent injunction was also sought for.
3. The respondents filed the written statement wherein it was
stated that the land bearing Kh.No.20/34 was sold in its
entirety on 31.03.2010 and the demarcation was carried out
by the plaintiffs itself in 2003, 2008 & 2012 which shows that
0.073 hectares equivalent to 7800 sqft exists at the spot
and on rest of land, litigation was pending. It is further
stated that the plaintiff had knowledge that no land is
available to the extent of 10115 sqft., as described in the
map and part of it is under litigation, as such, under the
circumstances, the registered power of attorney was
executed. Further it was stated that after executing the sale
deed dt. 31.03.2010, the defendant was put into possession
and she is holding the possession of the land. It was
contended that by misrepresentation and suppression of
such fact, the suit was filed. It was further pleaded that at
the request of the plaintiff itself, the actual available land on
the spot i.e., 7800 sqft was agreed to be sold and it was
agreed that at the time of registry, the sale deed of the
entire land of 10115 sqft would be executed. It was stated
that the entire sale consideration was paid to the plaintiff. It
is further pleaded that when the power of attorney was
executed in 2008, the entire right to manage the sale
transaction was conferred to the defendant and the plaintiff
had received sale consideration in its entirety. It was further
pleaded that the power of attorney was never cancelled at
any point of time, which still exists. It was pleaded that the
sale consideration of Rs.18,80,000/- was paid to the plaintiff
by way of Cheque which was received by the
plaintiff/appellant in her Bank Account. Therefore, the
plaintiff was in know of the fact that the sale-deed was
executed on 31.03.2010. It was further pleaded that another
case was pending in between Appellant Surjit Kaur and
Ravindra Kaur wherein an application was also filed by the
defendant to make him a party. Therefore, the plaintiff has
knowledge about the sale. With respect to the Cheque, it
was further pleaded that the cheque was received without
any objection on 30.03.2010. Since the Cheque was not
en-cashed in time as such the date was changed by making
initials and on 21.10.2010 Cheque bearing no. 385321 was
given to the plaintiff. The defendants further pleaded that
the plaintiff has knowledge about the sale deed dated
31.03.2010 and the pleading to the effect that she came to
know of the sale deed on 24.09.2012 is wrong. In respect of
the power of attorney to sell the land to the extent of 7800
sqft, it was pleaded that only that much of land was
available, therefore, the power of attorney was given to that
extent and as per the request of the plaintiff, the defendant
agreed to take-over the litigation which was pending and
consequently the power of attorney was given to defendant
no.2 Satpal Singh. It was stated that the husband of the
plaintiff namely Gurudeep Singh who is power of attorney
holder of the plaintiff being husband requested for purchase
of land of 10155 sqft, therefore, at his request instead of
7800 sqft sale deed was executed for 10115 sqft of land. It
was further pleaded that the suit was beyond period of
limitation and it is not tenable.
4. On the basis of the facts and pleadings of parties, the
learned trial Court framed 5 issues and passed a decree and
instead of cancelling the entire sale deed of 10115 sqft, the
sale deed to the extent of land admeasuring 2315 sqft of
Kh.No.21/30 was cancelled which was beyond the power
conferred by power of attorney and the defendant was
restrained permanently from transferring the property more
than their part of purchase of 7800 sqft of land. Hence the
appeal by the plaintiff appellant.
5. (i) Learned counsel for the appellant would submit that
defendant No.2 Satpal Singh Bhatia was the Power of
Attorney Holder of the plaintiff Smt. Surjit Behl and he
executed the sale in favour of defendant no.1 on 03.10.2010
and despite he was given power to manage the sale
transaction only to the extent of 7800 sqft of land, he sold
the entire land of 10115 sqft in favour of his mother. He
would further submit that the sale consideration was not
paid. Referring to the contents of the sale deed he would
submit that by the sale deed that by Cheque dated
30.03.2010 the amount of Rs.18,80,000 was alleged to be
paid but the sale deed also contained the amount paid in
cash. Therefore, a contradiction exists about the proper
payment of sale consideration.
5(ii). He would submit that in written statement, the amount
is said to have been paid on 20.10.2010. He would submit
that the bank account Ex.D-4 shows that the amount so paid
was reverted back to the seller. Referring to bank account of
defendant no.1 Smt. Jaspal Kaur Bhatia (since deceased) he
would submit that bank statement of Jaspal Kaur Bhatia also
do not reflect the payment of sale consideration. He further
submits that admittedly for a part of 2585 sqft, a different
civil suit is pending with Ravinder Kaur for which a separate
sale deed has been filed, therefore, the power of attorney
was given only to manage the sale transaction of 7800 sqft
whereas exceeding his right, 10115 sqft of land was sold. He
would submit that the Pass Book (Ex.D-1) of plaintiff Surjit
Behl does not reflect the receipt of sale consideration. He
further submits that this contradicts the account-statement
of Jashpa Kaur Bhatia which is filed as Ex.D-2 which would
show that no consideration was paid. Referring to the
statement of D.W.1, he would submit that the admission was
made that the amount of sale consideration of Rs.18,80,000/-
was returned by the plaintiff.
5(iii). He would further submit that the learned trial Court
failed to take note of this fact and passed the decree of
cancellation of the sale deed in part only to the extent of sale
of 2315 sqft., which otherwise ought not to have been done.
He would submit that the identity of property itself is also in
dispute and only part of 2315 sqft of land which is made in
excess of 7800 sqft has wrongly been annulled. Referring to
the terms of power of attorney, he placed reliance in Church
of Christ Charitable Trust & Educational Charitable
Society Vs. Ponniamman Educational Trust (2012) 8
SCC 706 (Paras 19, 20) and Anantha Pillai Versus
Rathnasabapathy Mudaliar 1968 (2) MLJ 574 Para 10
and would submit that the intention of power of attorney is
required to be strictly construed and if excess sale has been
made beyond the power given, the entire sale would be
cancelled. He further referred to 2021 SCC OnLine 1097,
(2011) 6 SCC 555 & (2009) 4 SCC 193 and would
submit that the intention of the parties in sale consideration
is required to be adjudged and in the instant case, the
intention of the plaintiff was that the sale-consideration was
material and therefore for want of the payment of
consideration, the entire sale would be void. He further
submits that there cannot be partial cancellation of
instrument according to section 31 of the Specific Relief Act
and consequently the part cancellation of the sale deed
cannot be ordered for.
6. (i) Per contra, Mr. H.B. Agrawal, learned Senior Advocate
assisted by Ms. Swati Agrawal and Ms. Richa Dwivedi
appearing on behalf of legal heirs from respondents 1(A) to
1(E) and Mr. Manoj Paranjpe, appearing on behalf of
respondent no.2 would submit that the pleading in the
written statement about the return of sale consideration is
completely missing. They would submit that in absence of
any pleading of like nature, the evidence cannot be looked
into which is placed by the plaintiff. It is further contended
that the suit was filed simplicitor for cancellation of sale deed
without claiming any possession. Referring to section 34 of
the Specific Relief Act, they would submit that the suit of like
nature would not be maintainable. They would further submit
that it is a fit case where the Court may invoke the power
under Order 41 Rule 33 of the Civil Procedure Code and the
correctness of the decree can be seen by the appellate
Court. They would submit that the admission on the part of
the plaintiff exists that she is not in possession. Referring to
the case laws relied on by the learned counsel for the
appellant, they would submit that in respect of the sale
consideration, it is not clear in whose account the amount
paid and the transaction took place. They would submit that
only the plaintiff examined herself and no personnel from
the Bank were examined. Therefore, the authenticity of
Bank Account on which the reliance has been place is also
not proved.
6(ii). They would further submit that even if it is held
that the consideration has not been paid then in such a case
merely non-payment of consideration would not render the
sale deed invalid. Relying on decision in Dahiben Vs.
Arvindbhai Kalyanji Bhansushali (Gajra) through
L.Rs. (2020) 7 SCC 366 it is contended that even if the
averments of the plaintiff are taken to be true that the entire
sale consideration is not paid, it could not be a ground for
cancellation of the sale deed. Referring to the decision of the
M.P. High Court in Jabalpur Bus Operators Association
2003 (1) MPLJ 513 it is further contended that in case of
conflict between two decisions of the Apex Court, Benches
comprising of equal number of Judges, the decision of earlier
Bench prevails.
6(iii) He would further submit that section 32 of the
Specific Relief Act in the likewise cases would come into play
and the identity of property when is admitted with the fact
that part of it is under litigation and separate suit is filed in
respect of remaining part of the land, the same can be
cancelled to give effect to the sale. It is further submitted
that the power of attorney having not been cancelled, the
principle i.e., the plaintiff Smt. Surjit Behl would be bound by
the act of the power of attorney holder especially when the
instrument was executed in presence of her husband
Gurudeep Singh Behl being a witness and in absence of any
evidence by Surjeet Behl herself, the hearsay evidence
cannot be accepted. It is contended that the foundation of
cancellation of sale deed is pleaded predominantly on the
ground that sale deed dated 31.03.2010 (Ex.P-3) was
executed for sale of land bearing Kh.20/34 ad-measuring
10115 sqft, which had exceeded the limit of Power of
Attorney General wherein the power was given to manage
the sale transaction of 7800 sqft., therefore, in absence of
other pleading about return of sale consideration, the
evidence could not be looked into. Therefore, the judgment
and decree of the court below is well merited, which do not
call for any interference.
7. We have heard learned counsel for the parties at length and
have also perused the documents. Reading of the plaint
shows that the suit was filed for cancellation of sale deed
valued @ Rs.18,80,000/-, as also declaration of title and
permanent injunction. A perusal of record shows that initially
the land was bearing Khasra 20/18, then it was renumbered
as 20/21 and lastly it was 20/34. The said purchase was
made on 25.03.1982 (Ex. P-1). The sale deed was in the
name of Surjit Behl, wife of Gurudeep Singh Behl, the plaintiff
(appellant herein).
8. The Power of Attorney is proved and marked as Ex.P-2. A
perusal of Ex.P-2 would show that the plaintiff/appellant gave
power to Satpal Singh Bhatia, defendant/respondent no.2
herein, to manage the entire transaction of land bearing
Kh.No.20/34 in respect of 7800 sqft and also the power was
given to sell and to effect the registration. It is a registered
power of Attorney dated 06.09.2008. It appears that the
husband of the plaintiff itself namely Gurudeep Singh Bhell is
one of the witness to the instrument.
9. Ex.P.3 is the sale deed whereby the sale was made by
Surjeet Behl through Power of Attorney Satpal Bhatia,
defendant no.2 in favour of Jaspal Kaur Bhatia (since
deceased). The sale deed is in respect of land bearing
Khasra No.20/34 for which the power was given and the
boundaries of the land are shown as follows :
In the north - others land;
In the south - land of purchaser;
In the east - others land and In the west - surrounded by road.
10. Reading of the averments of the plaint shows that in respect
of the land, it was alleged that one Smt. Ravinder Kaur had
tried to take over the possession over the part of land for
which a civil suit was filed in the year 2003 which is pending
bearing Civil Suit No.2-A/2009 against Ravinder Kaur. It is
further pleaded that Ravinder Kaur gave an undertaking in
the appellate court that she would remove the construction
so raised, if the plaintiff succeeds. Therefore, it appears that
the power of attorney was given to Satpal Singh Bhatia to
manage the remaining part of land i.e.,7800 sqft out of
10115 sqft of total land comprising in Kh. No.20/34. With
respect to the sale, it is alleged that initially the police report
was made when she came to know that the sale deed dated
31.03.2010 has been executed in respect of the entire land
of 10115 sqft. The pleading is made that the sale
consideration was not paid to the plaintiff and the sale
exceeds the power conferred to sell the area of 7800 sqft,
therefore, the sale deed is void for non-consideration. The
plaintiff herself examined alone in the case.
11. Reading of the statement under Order 18 Rule 4 from paras
1 to Para 10 would show the same averments are made as
have been made in the plaint. There is no averment in the
plaint and evidence that the amount of sale consideration
was paid and thereafter was returned though it was sought
to be proved by details of entry dt. 20.10.2010 sent by SBI,
Indore (Ex.P-4). Reading of Ex.P-4 would show that it is a
reply by the SBI, Indore which was supplied under Right to
Information Act on reference of Plaintiff's query dated
9.06.2014. The letter purports that Rs.18,80,000/- was
received from Axis Bank by RTGS for credit into account
No.53013561719 on 20.10.2010 and the statement of
account for the month of October was enclosed. The plaintiff
appellant heavily relied on such statement of account. The
attached page is the statement of account. Though it shows
the amount of Rs.18,80,000 was deposited but according to
the plaintiff, it was reversed on 25.10.2010. This statement
is not proved by any Bank Officers as to which bank the
account belongs or whether the entry contained in the
account was maintained in usual course of banking business
or not. It is also not certified under the Bankers Books of
Evidence Act. Therefore when a correspondence which has
been made by the Plaintiff with the State Bank, the author of
such letter was required to be examined before the trial
Court on which the plaintiff has placed heavy reliance.
12. On the contrary, the defendant has raised serious objection
about such account in their submission. Simply by placing a
document and marking it as Exhibit, which is otherwise
required to be proved as per the Evidence Act by comparing
it with the original copy of Account and its author, the burden
has not been discharged by plaintiff to prove such account.
The document Ex.D-1, the copy of Pass Book of plaintiff has
also not been proved by calling the original Ledger from the
Bank. As such the copy of Pass Book having not been proved
by comparing it with original ledger of Bank, the entry made
thereunder in Pass Book cannot be said to be legally proved.
13. Apart from the aforesaid fact, the factum of receipt of sale
consideration and thereafter its reversal with a particular
date has not been pleaded. It is only general omnibus
submissions were made in the plaint that the sale
consideration has not been paid. The plaintiff in her evidence
and submission before this court tried to develop that there
is a discrepancy about the date of sale consideration
inasmuch as in the sale deed Ex.P-3, the sale consideration is
shown to be paid by a Cheque No.385321 of Axis Bank and in
the description of sale consideration, it is stated that the
plaintiff has received the amount in cash for which the
acknowledgement is made and particulars of payment of the
cheque has been shown. Therefore, when there is a
statement in sale deed that the amount is paid by cash,
whether any oral evidence to contradict the same against
section 92 of the Indian Evidence Act to what extent
admissible would be a query, which was required to be
established by the plaintiff. The plaintiff has filed copy of
Bank Pass-Book (Ex.D-1) entry of which shows that
Rs.18,80,000/- was deposited on 20.10.2010 and further
tried to prove that the amount was reversed on 25.10.2010.
The copy of pass book, though not proved by comparing it
with original, shows that on 25.10.2010 by a Cheque No.
725095 the RTGS was made to account number of SBI
NHI029834726. Nothing is placed on record to establish as to
whom the said SBI Account belongs whether to the
defendant alone or someone-else. When the plaintiff claims
that amount of sale consideration paid to her by Axis Bank
from the defendant was returned, then it should have been
specifically pleaded and proved. On the contrary, Ex.D-2
which is proved by D.W.1 i.e., account of defendant, which
too is not verified with original Ledger, shows that on
21.01.2010 an amount of Rs.18,80,000/- was withdrawn but
depositing it back is not proved.
14. A perusal of the Bank Account, though not proved as per the
Evidence Act, shows that the amount of sale consideration
was received in the account of plaintiff, but subsequently
was transferred by her. To whose account the same was
returned or to whom the same was transferred is not proved.
There is no pleading to this effect that the amount of sale
consideration though was initially paid was asked to return at
the instance of purchaser defendant. The defendant in his
cross-examination has denied about any knowledge of
particulars of that S.B.I. Account, which is shown in Ex.D-1
from 'B' to 'B'. If the plaintiff was sanguine of the fact that a
particular account wherein the amount was transferred as
shown in B to B belongs to the defendant, it could have been
proved by calling the Bank Official with documents. A mere
ambiguous statement of defendant without much clarity of
fact cannot be solely acted upon. A reading of the plaint
does not disclose the pleading to explain such discrepancies
of the transaction. When the issue pertains to non-payment
of consideration and/or consideration received and returned,
is projected which smacks of allegation of fraud or undue
influence, such allegations were required to be proved and
pleaded particularly in the plaint. The court will be reluctant
to go into the fact finding on general and omnibus allegation
that the sale consideration was not paid in absence of the
pleading of like nature. The tenor of the evidence led would
show that the parties are inter-se related with each other
and the nature of transaction as per deposition speaks about
undue-influence and fraud. When the allegations of undue
influence and fraud are projected then this requires specific
pleading in plaint.
15. The Supreme Court way back in Ladli Prashad Jaiswal v.
Karnal Distillery Co. Ltd. AIR 1963 SC 1279, held that
when a pleading of undue influence is being set up, the
burden lies on the party raising it. Those averments requires
a special pleading and proof. Paras 19 & 25 of the Judgment
are relevant and quoted below :
(19). Whether a particular transaction was vitiated on the ground of undue influence is primarily a decision on a question of fact. In Satgur Prasad v.
Har Narain Das, 59 Ind App 147 : (AIR 1932 PC 89) the Privy Council held that in a suit to set aside a deed on the ground that it was procured by undue influence and fraud, the finding that it was so procured is fa finding of fact and is not liable to be reopened if fairly tried. Under the Civil Procedure Code, a second appeal does not lie to the High Court, except on the grounds specified in the relevant provisions of the Code, prescribing the right to prefer a second appeal, and the High Court
has not jurisdiction to entertain a second appeal "on the ground of an erroneous finding of fact however gross or inexcusable the error may seem to be" (Mt. Durga Choudharian v. Jawahir Singh Choudhari, 17 Ind App 122 (PC). But the challenge before Bishan Narain J., to the decision of the District Judge was founded not on the plea that appreciation of evidence was erroneous, but that there were no adequate particulars of the plea of undue influence, that the particulars of facts on which undue influence was held established by the District Judge were never set up, that there was no evidence in support of the finding of the District Judge and that burden of proof on a misconception of the real nature of the dispute was wrongly placed on the plaintiff. A decision of the first appellate Court reached after after placing the onus wrongfully or based on no evidence, or where there has been substantial error or defect in the procedure, producing error or defect in the decision of the case on the merits, is not conclusive and a second appeal lies to the High Court against that decision."
(25). The doctrine of undue influence under the common law was evolved by the Courts in England for granting protection against transactions procured by the exercise of insidious forms of influence spiritual and temporal. The doctrine applies to acts of bounty as well as to other transactions in which one party by exercising his position of dominance obtains an unfair advantage over another. The Indian enactment is founded substantially on the rules of English common law. The first sub-section of S. 16 lays down the principle in general terms. By sub- section (2) a presumption arises that a person shall be deemed to be in a position to dominate the will of another if the conditions set out therein
are fulfilled. Sub-section (3) lays down the conditions for raising a rebuttable presumption that a transaction is procured by the exercise of undue influence. The reason for the rule in the third sub-section is that a person who has obtained an advantage over another by dominating his will, may also remain in a position to suppress the requisite evidence in support of the plea of undue influence."
In the instant case, the plaintiff tried to project that unfair
advantage was being taken by the defendant and since she
was posted outside Raipur at a far off place in Indore, the
defendant has used his position to obtain an unfair
advantage and the sale transaction was effected, but
particulars of such pleadings are absent, which points out a
fraud.
16. When such factum of "fraud" is projected, the Supreme
Court in Ramesh B. Desai Vs. Bipin Vadilal Mehta
(2006) 5 SCC 638 has held that specific pleadings are
required. At paras 22 & 24 the Court held as under:
"22. Undoubtedly, Order 6 Rule 4 CPC requires that complete particulars of fraud shall be stated in the pleadings. The particulars of alleged fraud, which are required to be stated in the plaint, will depend upon the facts of each particular case and no abstract principle can be laid down in this regard. Where some transaction of money takes place to which 'A', 'B' and 'C' are parties and payment is made by cheques, in normal circumstances a third party 'X' may not get knowledge of the said transaction unless he is informed about it by someone who has knowledge of the transaction or he gets an opportunity to see the accounts of the parties concerned in the Bank.
In such a case an assertion by 'X' that he got no
knowledge of the transaction when it took place and that he came to know about it subsequently through some proceedings in court cannot be said to be insufficient pleading for the purpose of Order 6 Rule 4 CPC. In such a case 'X' can only plead that he got no knowledge of the transaction and nothing more. Having regard to the circumstances of the case, we are of the opinion that the High Court was in error in holding that there was no proper pleading of fraud.
24. Mr. Iqbal Chagla, learned counsel for the respondents, has submitted that the full particulars of fraud had not been given in the company petition and as such there was no compliance with Order 6 Rule 4 CPC in the Company petition and the learned Company Judge has rightly dismissed the same. In support of this submission, he has placed reliance on Bishnudeo Narain v. Seogeni Rai AIR 1951 SC 280 : 1951 SCR 548 wherein it was held that : (SCR p. 556) "In cases of fraud, undue influence and coercion, the parties pleading it must set forth full particulars and the case can only be decided on the particulars as laid.
There can be no departure from them in evidence. General allegations are insufficient even to amount to an averment of fraud of which any court ought to take notice however strong the language in which they are couched may be...."
Reliance has also been placed on Bijendra Nath Srivastava v. Mayank Srivastava (1994) 6 SCC 117 and paras 208 and 228 of the report in Sangramsinh P. Gaekwad v. Shantadevi P.
Gaekwad (2005) 11 SCC 314 where the same principle has been reiterated. We have already considered this aspect of the matter and in our opinion in the facts and circumstances of the case the plea raised in the company petition cannot be
held to be wanting in compliance with Order 6 Rule 4 CPC."
17. Therefore when the question of such undue influence and
fraud was developed by the plaintiff, in absence of
particulars of such pleading only by way of leading evidence,
it will be unfair on the part of plaintiff to seek cancellation of
a registered sale deed only to fall back and impress upon the
statement of defendant.
18. Further, with respect to non-payment of sale consideration to
the plaintiff, the argument is raised that for want of sale
consideration, sale would be void. There is a finding of court
below which records that for want of sale consideration, the
sale deed cannot be annulled. Meaning thereby the sale
consideration still remains to be paid. There is no cross-
objection filed to such finding by the defendant. Though the
finding has been recorded that the sale consideration has not
been paid, this Court as a court of appeal in absence of any
cross-objection leaves the question open for the plaintiff to
further pursue any claim for the sale consideration. This
observation is made pursuant to the finding of learned court
below wherein it is held that the sale consideration has not
been proved to be paid by the defendant. In absence of any
cross-appeal, we are not inclined to deliberate on this issue.
19. For cancellation of sale-deed for non-payment of sale
consideration, the appellant/plaintiff has relied on a decision
in Kewal Krishan Vs. Rajesh Kumar 2021 SCC OnLine
SC 1097 and would submit that in absence of sale
consideration, the sale would be void. At Paras 16 & 17 the
Supreme Court held thus :
"16. Section 54 of the Transfer of Property Act, 1882
(for short "the TP Act") reads thus :
"54. "Sale" defined.- "Sale" is a transfer of ownership in exchange for a price paid or promised or part paid and part-promised.
Sale how made . - such transfer, in the case of tangible immovable property of the value of one hundred rupees and upwards, or in the case of a reversion or other intangible thing, can be made only by a registered instrument.
In the case of a tangible immovable property of a value less than one hundred rupees, such transfer may be made either by a registered instrument or by delivery of the property.
Delivery of tangible immovable property takes place when the seller places the buyer, or such person as he directs, in possession of the property.
Contract for sale - A contract for sale of immovable property is a contract that a sale of such property shall take place on terms settled between the parties. "It does not, of itself, create any interest in or charge on such property."
17. Hence, a sale of an immovable property has to be for a price. The price may be payable in future. It may be partly paid and the remaining part can be made payable in future. The payment of price is an essential part of a sale covered by section 54 of the TP Act. If a sale deed in respect of an immovable property is executed without payment of price and if it does not provide for the payment of price at a future date, it is not a sale at all in the eyes of law. It is of no legal effect. Therefore, such a sale will be void. It will not effect the transfer of the immovable property."
20. The respondents have placed reliance on equal strength of
Supreme Court Judgment rendered in Dahiben Versus
Arvindbhai Kalyanji Bhanusali (Gajra) (2020) 7 SCC
366 wherein the Supreme Court at paras 29.7 held that if
the sale consideration has not been paid, it could not be a
ground for cancellation of sale deed. Paras 29.7 & 29.9 are
relevant here and quoted below :
29.7. Section 54 of the Transfer of Property Act, 1882 provides as under:
"54. "Sale defined.--"Sale" is a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised."
The definition of "sale" indicates that there must be a transfer of ownership from one person to another i.e., transfer of all rights and interest in the property, which was possessed by the transferor to the transferee. The transferor cannot retain any part of the interest or right in the property, or else it would not be a sale. The definition further indicates that the transfer of ownership has to be made for a "price paid or promised or part-paid and part-promised". Price thus constitutes an essential ingredient of the transaction of sale.
29.9 In view of the law laid down by this Court , even if the averments of the plaintiffs are taken to be true, that the entire sale consideration had not in fact been paid, it could not be a ground for cancellation of the sale deed. The plaintiffs may have other remedies in law for recovery of the balance consideration, but could not be granted the relief of cancellation of registered sale deed. We find that the suit filed by the plaintiffs is vexatious, merit-less, and does not disclose a right to sue. The plaint is liable to be rejected under Order 7 Rule 11(a).
21. A perusal of Kewal Kishan Vs. Rajesh Kumar 2021 SCC
OnLine SC 1097 would show that the earlier judgment of
the equal strength of the Supreme Court Bench rendered in
Dahiben's case (2020) 7 SCC 366 (supra) was not under
consideration while the subsequent judgment of Kewal
Kishan's case (supra) is passed. Under the circumstances we
would follow the judgment of Madhya Pradesh High Court in
J.B.O. Association vs. State of M.P. in 2003 (1) MPLJ
513 wherein the High Curt held that in case of conflict
between two decisions of the Apex Court Benches
comprising of equal number of judges, decision of earlier
bench is binding unless explained by the latter bench of
equal strength in which case the later decision is binding.
Therefore, it was held that the decision of the earlier Division
Bench unless distinguished by the decision of latter Division
Bench, would be binding on the High Court and the
subordinate courts. Paragraph 9 is relevant and quoted
hereinbelow:
"9. Having considered the matter with broader dimensions, we find that various High Courts have given different opinion on the question involved. Some hold that in case of conflict between two judgments on a point of law, later decision should be followed; while others say that the Courts should follow the decision which is correct and accurate whether it is earlier or later. There are High Courts which hold that decision of earlier Bench is binding because of the theory of binding precedent and Article 141 of the Constitution of India. There are also decisions which hold that single Judge differing from another single Judge decision should refer the case to larger Bench, otherwise he is bound by it.
Decisions which are rendered without considering the decisions expressing contrary view have no
value as a precedent. But in our considered opinion, the position may be stated thus -
With regard to the High Court, a single Bench is bound by the decision of another single Bench. In case, he does not agree with the view of the other single Bench, he should refer the matter to the larger Bench. Similarly, Division Bench is bound by the Judgment of earlier Division Bench. In case, it does not agree with the view of the earlier Division Bench, it should refer the matter to larger Bench. In case of conflict between judgments of two Division Benches of equal strength, the decision of earlier Division Bench shall be followed except when it is explained by the latter Division Bench in which case the decision of latter Division Bench shall be binding. The decision of larger Bench is binding on smaller Benches.
In case of conflict between two decisions of the Apex Court, Benches comprising of equal number of Judges, decision of earlier Bench is binding unless explained by the latter Bench of equal strength, in which case the later decision is binding. Decision of a larger Bench is binding on smaller Benches. Therefore, the decision of earlier Division Bench unless distinguished by latter Division Bench is binding on the High Courts and the Subordinate Courts. Similarly, in presence of Division Bench decisions and larger Bench decisions, the decisions of larger Bench are binding on the High Courts and subordinate Courts. No decision of Apex Court has been brought to our notice which holds that in case of conflict between the two decisions by equal number of Judges, the later decision is binding in all circumstances, or the High Courts and Subnordinate Courts can follow any decision which is found correct and accurate to the case under consideration. High Courts and subordinate Courts should lack competence to interpret decisions of
Apex Court since that would not only defeat what is envisaged under Article 141 of the Constitution of India but also militate The common thread which runs through various decisions of apex Court seems to be that great value has to be attached to precedent which has taken the shape of rule being followed by it for the purpose of consistency and exactness in decisions of Court, unless the Court can clearly distinguish the decision put up as a precedent or is per incuriam, having been rendered without noticing some earlier precedents with which the Court agrees. Full Bench decision in Balbir Singh's case (supra) which holds that if there is conflict of views between the two co-equal Benches of the Apex Court, the High Court has to follow the Judgment which appears to it to state the law more elaborately and more accurately and in conformity with the scheme of the Act, in our considered opinion, for reasons recorded in preceding paragraphs of this judgment, does not lay down the correct law as to application of precedent and is, therefore, overruled on this point."
(Emphasis supplied)
22. Though counsel for the appellant tried to develop an
argument that the intention of the parties is to be seen,
however, the same proposition can be interpreted in both
ways on facts of particular case and the intention can be
inferred. The evidence in the case would show that in part of
land over 2315 sqft litigation is pending with Ravinder Kaur.
So for the remaining land of 7800 sqft, power of attorney to
manage the transaction including sale was given to
defendant no.2. Consequent to such power of attorney, sale
deed was executed in favour of Smt. Jaspal Kaur Bhatia. The
demarcation report Ex.P-6 shows that Jaspal Kaur Bhatia is in
possession of subject land barring certain part. Therefore,
the intention of seller can also be inferred especially when
the power of attorney was not annulled at any point of time.
23. Therefore, in view of the principles laid down by Hon'ble the
Supreme Court and the High Court in absence of any cross-
objection filed by the respondent, keeping the issue open the
finding of learned court below that for want of sale-
consideration, the sale cannot be annulled is upheld in its
entirety.
24. According to the power of attorney dated 06.09.2008, the
intention of the seller was to sell the land only to the extent
of 7800 sqft. The sale deed shows that the sale was done in
respect of 10115 sqft of land bearing Kh.No. 20/34. The
document Ex.P-6 which is a demarcation report proved by
the plaintiff shows that order for demarcation was passed in
another case bearing Civil Suit No.2-A/2009 filed by Surjeet
Behl, the plaintiff, against Ravinder Kaur. When this
document is minutely seen, it shows that demarcation of
land bearing Kh.No.20/34 was measured in presence of
Gurdeep Singh Behl, who is the husband of Surjit Behl, the
plaintiff. The demarcation report along with map shows
Khasra No.20/34 admeasuring 0.094 hectares is recorded in
the name of Jaspal Kaur Bhatia (since deceased), the
purchaser herein. The report further purports that on the
spot possession of only 7500 sqft was found. It further
shows that as per map, 1000 sqft of land is shown to be part
of Kh.No.20/8-9-10 and is land of Revinder Kaur, which was
marked in red. On the spot of demarcation i.e., Kh.No.20/34,
2583 sqft of land was found in possession of G.T.Homes
(Ravindra Kaur), which forms part of Kh.No.20/34 & 20/18.
Rest of the land is recorded in the name of Jaspal Kaur. The
map attached with demarcation report shows the land of
Kh.No.20/34 is in possession of Jaspal Kaur and not in
possession of the plaintiff.
25. In the statement of plaintiff at Para 29, the oral submission
is made that upon land, the plaintiff is in possession. Since
the learned trial Court has held that in part of land, the
plaintiff is in possession and such finding has not been
assailed by the defendants by cross objection, we are not
inclined to further go into such issue.
26. Further, the learned trial Court has cancelled the sale deed
beyond the extent of 7800 sqft of land which was authorized
under the power of attorney. In order to find out the answer
to the question whether the trial Court was justified in
partially cancelling the deed, the principles law laid down in
Murugan Vs. Kesava Gounder (dead) through legal
representatives (2019) 20 SCC 633 is followed wherein
the Supreme Court has quoted excerpts of Salmonds on
Jurisprudence, 12th Edn., at Para 15 which reads thus:
15. Salmonds on Jurisprudence, 12th Edn., has noticed the distinction between valid, void and voidable in the following passage :
"...... A valid agreement is one which is fully operative in accordance with the intent of parties. A void agreement is one which entirely fails to receive legal recognition or sanction, the declared will of the parties being wholly destitute of legal efficacy. A voidable agreement stands midway between these two cases. It is not a nullity, but its operation is
conditional and not absolute."
27. As has been held in preceding paras that the sale deed is not
void to say that it is out come of fraud, what would be
validity of sale-deed when it exceeded the area given under
power of attorney. The principle would be governed like that
of sale of property of minor. The disposal of immovable
property of minor made by the natural guardian is voidable,
it is valid till it is avoided in accordance with law. The rights
conferred by a registered sale deed are good enough against
the whole world and the sale can be avoided in case the
property sold is of a minor by a natural guardian at the
instance of minor or any person claiming under him. A
document which is voidable has to be actually set aside
before taking its legal effect. A distinction can be made
between cases where a document is wholly or partially
invalid so that it can be disregarded by any court or authority
and one where it has to be actually set aside before it can
cease to have legal effect. Therefore, the alienation made in
excess of power to transfer would be, to the extent of the
excess of power, invalid. Para 24 is relevant here and
quoted below :
24. We have noticed above that sub-
section (3) of Section 8 refers to a disposal of immovable property by a natural guardian in contravention of sub-section (1) or sub-section (2) as voidable. When a registered sale deed is voidable, it is valid till it is avoided in accordance with law. The rights conferred by a registered sale deed are good enough against the whole world and the sale can be avoided in case the property sold is of a minor by a natural guardian at the instance of the minor or any person claiming under him. A document which is
voidable has to be actually set aside before taking its legal effect. This Court in Gorakh Nath Dube v. Hari Narain Singh 1973 2 SCC 535 while making distinction between void and voidable document held : (SCCp.538, Para 5) -
"5. ... We think that a distinction can be made between cases where a document is wholly or partially invalid so that it can be disregarded by any court or authority and one where it has to be actually set aside before it can cease to have legal effect. An alienation made in excess of power to transfer would be, to the extent of the excess of power, invalid. An adjudication on the effect of such a purported alienation would be necessarily implied in the decision of a dispute involving conflicting claims to rights or interests in land which are the subject-matter of consolidation proceedings. ..."
(Emphasis supplied)
28. Reading of the facts and evidence would show the identity
of property was certain as per map Ex.P-6 proved by the
plaintiff. After the part of the land was encroached by a third
party Ravinder Kaur, for which, a civil suit was pending the
subject sale was made wherein 4 boundaries are shown.
Under section 32 of the Specific Relief Act, the Court is
empowered to cancel the sale in part or allow it where an
instrument is evidence of different rights or different
obligations. Section 32 of the Act reads as under :
"32. What instruments may be partially cancelled. - Where an instrument is evidence of different rights or different obligations, the court may, in a proper case, cancel it in part and allow it to stand for the residue."
29. The intention of the seller to sell the land of 7800 sqft by
power of attorney is undisputed. It appears that because of
the part of property was in possession of the Ravinder Kaur,
the power to sell the remaining part was given to the present
respondent no.2. Consequently the cancellation of part of
sale deed in excess of 7800 sqft by the trial Court also
appears to be justified in the given facts of this case.
Therefore, after careful examination of the facts and
evidence, we are not inclined to interfere with the finding of
the trial Court. Accordingly, the appeal is dismissed. No
order as to costs.
Sd/- Sd/-
GOUTAM BHADURI SANJAY S. AGRAWAL
JUDGE JUDGE
Rao
HEAD-NOTES
(1) The alienation of property made in excess of
power to transfer would be, to the extent of the
excess of power, invalid.
(2) In case of conflict between two decisions of
Apex Court, Benches comprising of equal number of judges, decision of earlier bench prevails unless explained by the later bench.
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