Citation : 2025 Latest Caselaw 6406 Guj
Judgement Date : 9 September, 2025
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C/SA/366/2025 JUDGMENT DATED: 09/09/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SECOND APPEAL NO. 366 of 2025
With
CIVIL APPLICATION (FOR STAY) NO. 1 of 2025
In R/SECOND APPEAL NO. 366 of 2025
FOR APPROVAL AND SIGNATURE:
HONOURABLE MR.JUSTICE SANJEEV J.THAKER Sd/-
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Approved for Reporting Yes No
No
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VINODBHAI LAGHUBHAI VAGHESHWARI
Versus
STATE OF GUJARAT & ANR.
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Appearance:
MR MAHESH K POOJARA(5879) for the Appellant(s) No. 1
MR NIRAV C SANGHAVI(5950) for the Appellant(s) No. 1
MS. HEMALI D. SONI, AGPfor the Respondent(s) No. 1
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CORAM:HONOURABLE MR.JUSTICE SANJEEV J.THAKER
Date : 09/09/2025
ORAL JUDGMENT
1. The present Second Appeal is filed under Section 100 of the Code of Civil Procedure, 1908 (hereinafter referred to as "CPC") challenging the judgment and decree passed by Additional District Judge, Ahmedabad (Rural) at Dholka in Regular Civil Appeal No.9 of 2024 decided on 29.3.2025, whereby the judgment and decree passed by Trial Court in Special Civil Suit No.14 of 2020 decided on 19.10.2024 has been confirmed .
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2. For the sake of brevity, the parties are referred to as per their original status as plaintiff and defendant.
3. The brief facts arising in the present Second Appeal are that, the plaintiff instituted Special Civil Suit No.14 of 2020, for cancellation of sale deed executed by the plaintiff in favour of the defendant dated 24.09.2018, on the ground that at the time when the sale deed executed, the plaintiff was under the impression that the same is pertaining to an agreement to sell and the same was not a sale deed. It was the case of the plaintiff that the suit property was to be sold for an amount of Rs.1,00,00,000/- and all throughout the plaintiff was under the impression that the document that has been executed is an agreement to sell. The plaintiff signed the said document before the Sub-Register Office, and an amount of Rs.39,00,000/- was paid to the plaintiff. Therefore, the entire suit is based on the fact that the defendant has to pay a further amount of Rs.61,00,000/-, and the defendant had agreed to pay the said amount at the time of execution of sale deed. It is only recently that the plaintiff came to know that in the guise of executing an agreement to sell, the defendant has got the sale deed executed, and therefore, the plaintiff has filed the suit for cancellation of said sale deed. The defendant has appeared in the said suit and filed application vide Exhibit 17 under the provisions of Order 7, Rule 11 of the CPC that the suit is
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required to be rejected as the same is barred by law. The Trial Court after considering the plaint and the documents annexed with the plaint rejected the said plaint. Aggrieved by the said judgment and decree passed by the Trial Court, the plaintiff filed Regular Civil Appeal No.9 of 2024, and after reappreciating the judgment and decree passed by the Trial Court and considering the plaint and documents annexed with the plaint, the First Appellate Court dismissed the said appeal and confirmed the judgment and decree passed by the Trial Court. Hence, the present Second Appeal.
4. The learned advocate for the plaintiff has argued that while deciding an application under the provisions of Order 7, Rule 11 of the CPC, the Trial Court has gone into the merits of the case. While deciding an application under the provisions of Order 7, Rule 11 of the CPC, the Court can only look at the plaint and the documents annexed with the plaint. And therefore, the Trial Court could not have rejected the plaint as the plaint specifically states that a cause of actions have arisen to the plaintiff to file the present suit. Moreover, it has been argued by the learned advocate for the plaintiff that, it is the case of the plaintiff that in the guise of agreement to sell, the defendant has got the sale deed executed and got the same registered. Therefore, as the fraud has been committed with the plaintiff, the plaintiff has challenged
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the said sale deed, in view of the fact that it was specifically agreed between the plaintiff and the defendant that the sale consideration of the suit property, shall be Rs.1,00,00,000/- and initially an amount Rs.39,00,000/- will be paid by the defendant to the plaintiff, and therefore, the plaintiff has executed the document dated 24.09.2018, only on the assurance and promises made by the defendant that the same is actually an agreement to sell and not a registered sale deed. And therefore, the Trial Court could not have rejected the plaint and allowed the application filed by the defendant under the provisions of Order 7, Rule 11 of the CPC and the First Appellate Court could not have dismissed the said appeal filed by the plaintiff. Therefore, it has been argued that there are substantial question of law involved in the present appeal. Therefore, the Second Appeal be admitted on following substantial question of law:
1. Whether both Hon'ble Courts have committed an error of law by dismissing the suit where disputed questions of facts are involved, by exercising the power available under Order 7 Rule 11 of the CPC?
2. Whether both Hon'ble Courts have committed an error of law by entering into the merits of the case while exercising the power available under Order 7 Rule 11 of the CPC?
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3. Whether both Hon'ble Courts have committed an error of law by deciding the legality and validity of the sale deed dated 24.09.2018 in the proceeding of Order 7 Rule 11 of the CPC?
4. Whether Hon'ble Appellate Court has committed an error of law by not properly framing the points for determination as per provision of CPC?
5. Having heard learned advocate for the plaintiff and having gone through plaint and documents annexed to the plaint and considering the judgment and decree passed by the Trial Court and confirmed by the Appellate Court, the following are the admitted facts:
(a) The plaintiff was the owner of the suit property.
(b) The plaintiff has admitted that the sale deed dated 24.09.2018 has been executed by the plaintiff.
(c) It is the case of the plaintiff that though the said sale deed has been executed and signed by the plaintiff, the plaintiff was under the impression that the same is not a sale deed, but a registered agreement to sell.
(d) The plaintiff has admitted of receiving an amount of Rs.39,00,000/- lakhs at the time of executing the said registered sale deed dated 24.09.2018.
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(e) It is the case of the plaintiff that the total sale consideration was Rs.1,00,00,000/- and that the defendant has to pay an amount of Rs.61,00,000/- at the time of execution of sale deed.
(f) In the registered sale deed dated 24.09.2018, the sale consideration amount of Rs.39,00,000/- is mentioned.
(g) In the said sale deed executed on 24.09.2018, there is no whisper about the fact that the same being agreement to sell and the fact of further payment of Rs.61,00,000/- and that the said sale deed is subject to further payment of Rs.61,00,000/-.
(h) Therefore, the sale deed executed on 24.09.2018, does not mention that the sale deed is subject to payment of further amount of Rs.61,00,000/- and in the said sale deed, sale consideration is mentioned and acknowledged by the plaintiff.
(i) The entire case of the plaintiff is based on the fact that the plaintiff has executed the sale deed, but in fact, the plaintiff was under the impression that the same is an agreement to sell.
6. If the provisions of Section 92 of the Evidence Act, 1872, are taken into consideration, which reads as under:
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"92. Exclusion of evidence of oral agreement. -- When the terms of any such contract, grant or other disposition of property, or any matter required by law to be reduced to the form of a document, have been proved according to the last section, no evidence of any oral agreement or statement shall be admitted, as between the parties to any such instrument or their representatives in interest, for the purpose of contradicting, varying, adding to, or subtracting from, its terms."
Therefore, the said version of the plaintiff that the document that will be executed on 24.09.2018, was actually an agreement to sell cannot be believed. As per the provisions of Section 92 of the Evidence Act, 1872, when the terms of any contract has been reduced to the form of a document, and when the said document specifically mentions of payment of sale consideration, and the fact that the said document is actually the sale deed and that the sale consideration is Rs.39,00,000/-, no evidence of any oral agreement or statement shall be admitted as between the parties for any such instrument for the purpose of contradicting, varying, adding to or subtracting from its term. The Courts have recorded concurrent findings rejecting the plaint of the plaintiff that the plaint is barred by law. Moreover, in view of Section 92 of the Evidence Act, 1872, there is no illegality in the order that has been passed by the Trial Court and confirm by
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the First Appellate Court.
7. On bare perusal of the sale deed produced on record, the said sale deed specifically states that the sale consideration is Rs.39,00,000/- and that the said document is registered sale deed. In view of the said fact, the plaintiff did not have any cause of action to file the present suit.
8. Moreover, as per the provisions of law, there is a presumption that a registered document is validly executed and therefore, the said registered document prima facie would be valid in law and the onus of proof would be on a person who leads evidence to rebut the presumption. In the present case the plaintiff has not been able to rebut the said presumption.
9. In the facts of the present case, there is no substantial questions of law involved and the fact that plaintiff is claiming declaration to cancel the sale deed, on the ground that the sale consideration as decided between the parties is not paid to the plaintiff cannot be entertained and on the factual aspect also there are concurrent finding of the Trial Court and the Appellate Court and even as per the settled law the sale deed cannot be cancelled on the grounds mentioned in the plaint.
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10. The law is well settled that even if the entire sale consideration has not in fact been paid, the same could not be a ground for cancellation of the sale deed. The law is also very clear that the definition of sale indicates that there must be a transfer of ownership from one person to another, which includes transfer of all rights and interest in the property which was possessed by the transferor to the transferee and that the transferor cannot retain any part of interest or right in the property and the definition of sale as per provisions of Section 54 of the Transfer of Property Act, 1882 indicates that the transfer of the ownership has to be made for a price paid or promised or part paid and part promised, therefore the price thus constitutes an essential ingredient of transaction of sale and therefore, the actual payment of the whole of the price at the time of execution of sale deed is not a sine qua non for completion of sale. In the present case, the sale consideration as mentioned in the sale deed has been stated to have been received by the plaintiff and in the sale deed itself the plaintiff has given acknowledgment of the receipt of the said amount but even otherwise, even if the whole of the price is not paid but the sale deed is executed, the sale would be complete and the title would pass on the defendant under the transaction, and even if the version of the plaintiff is to believed, the non-payment of a part of the sale price would not affect the validity of the sale as the title in the property having already been
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passed and even if the balance sale consideration is not paid, the said sale deed could not be invalidated on this ground. In order to constitute a sale, the plaintiff must intent to transfer the ownership of the property on the agreement to pay the price either in the present time or in future and from the recital of the sale deed, it is very clear that the plaintiff has transferred all his right, title, interest in the suit property by executing registered sale deed.
11. In the present case, the conclusion which has been reached by both the Trial Court and the First Appellate Court cannot be interfered as the judgment and decree of the Courts below are not perverse, arbitrary so as to warrant interference. Moreover, as per the well settled decisions of this Court as well as the Hon'ble Apex Court, the Court ordinary will not interfere with concurrent findings of fact except in exceptional cases where the findings are such that it shocks the conscious of the Court or may disrespect to the forms of legal process or some violation or some principle of natural justice or otherwise substantial and great injustice has been done.
12. It is required to be noted that in Second Appeal, the scope is very limited and the Court cannot re-appreciate the evidence. In the case of Navaneethammal v. Arjuna Chetty reported in 1996 (6) SCC 177, the Hon'ble Apex Court has observed as under:-
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"11. This Court, time without number, pointed out that interference with the concurrent findings of the courts below by the High Court under Section 100 CPC must be avoided unless warranted by compelling reasons. In any case, the High Court is not expected to reappreciate the evidence just to replace the findings of the lower courts."
13. In the case of Jaichand (Dead) through Lrs and Other v. Sahnulal and Another reported in 2024 SCC OnLine SC 3864, the Hon'ble Apex Court has observed as under:-
"28. It is thus clear that under Section 100 CPC, the High Court cannot interfere with the findings of fact arrived at by the first Appellate Court which is the final Court of facts except in such cases where such findings were erroneous being contrary to the mandatory provisions of law, or its settled position on the basis of the pronouncement made by the Apex Court or based upon inadmissible evidence or without evidence."
14. Therefore, also the plaintiff has miserably failed to show that there are any substantial question of law involved in the present appeal and the substantial question of law which has been formulated in the memo of appeal are also not substantial question of law and on facts and the said factual aspect has well been considered by the Trial Court and the First Appellate Court.
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15. Under the circumstances, this Second Appeal is devoid of any substantial question of law. Both the learned Trial Court and first Appellate Court have rightly decided the issue between the parties in the right perspective and as stated above no substantial question of law arises in the present appeal. The plaintiff has failed to prove his case before the learned Trial Court as well as before the first Appellate Court. This Court does not find any substance in the present Second Appeal as the same is devoid of any merit both on facts and law and the same is dismissed at admission stage. In view of the order passed in the Second Appeal, the Civil Application does not survive and the same is accordingly disposed of.
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(SANJEEV J.THAKER,J) NITIN MAKWANA
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