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Venkatasamy (Died) vs Kalia Perumal
2023 Latest Caselaw 6388 Mad

Citation : 2023 Latest Caselaw 6388 Mad
Judgement Date : 16 June, 2023

Madras High Court
Venkatasamy (Died) vs Kalia Perumal on 16 June, 2023
                                                                                  S.A.No.81 of 2002
                                                                           and C.M.P.No.522 of 2002


                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                              DATED :     16.06.2023

                                                     CORAM

                                  THE HONOURABLE MRS. JUSTICE R.HEMALATHA
                                               S.A.No.81 of 2002
                                            and C.M.P.No.522 of 2002


                     Venkatasamy (Died)
                     2.Marimuthu
                     3.Sarabalan
                     4.Sumathi
                     5.Malarvizhi
                     6.Muthamizh                                              ...Appellants
                                                        Vs.

                     1.Kalia Perumal
                     2.Jayamurthy
                     3.Kannan
                     4.Suseela                                                ... Respondents

                     (Appellants 2 to 6 brought on records as LRs of the deceased sole
                     appellant vide order of Court dated 20.02.2023 made in
                     C.M.P.Nos.2381, 2382 & 2385/2020 in S.A.No.81/2002)

                     Prayer : Second Appeal filed under Section 100 CPC, 1908 against the
                     decree and judgment dated 06.07.2001 passed in A.S. No.67 of 1993, on
                     the file of the Principal Sub Court, Villupuram, upholding the decree and
                     judgment dated 13.02.1992 passed in O.S. No.1351 of 1984, on the file

                     Page 1 of 15

https://www.mhc.tn.gov.in/judis
                                                                                     S.A.No.81 of 2002
                                                                              and C.M.P.No.522 of 2002


                     of the Additional District Munsif, Villupuram.


                                  For Appellants           : Mr. T.S.Baskaran
                                  For RR1 to 3             : Mr. M.Krishnappan, Sr. Counsel
                                                             for Mr.S.Ravichandran


                                                      JUDGMENT

The second defendant (since deceased) who failed before both

the courts below has filed this present Second Appeal.

2. During the pendency of the second appeal the appellant died

and therefore, his legal heirs were impleaded as appellants 2 to 6. One

Duraisamy Gounder (since deceased) filed the suit in O.S. No.1351 of

1984, before the Additional District Munsif, Villupuram, for specific

performance of contract dated 05.06.1984 between him and the first

defendant (Meenambal Ammal) or in the alterative directing the second

defendant to pay a sum of Rs.6,000/- to him towards compensation. The

suit was decreed by the learned District Munsif, Villupuram, vide his

decree and judgment dated 13.02.1992, as against which the second

https://www.mhc.tn.gov.in/judis S.A.No.81 of 2002 and C.M.P.No.522 of 2002

defendant (Venkatasamy) who is the purchaser of the suit property from

the first defendant, Meenambal Ammal filed an appeal in A.S. No.67 of

1993, on the file of the Principal Sub Court, Villupuram. During the

pendency of the first appeal the plaintiff, Duraisamy Gounder died and

his legal heirs were impleaded as respondents 1 to 3 in the present second

appeal. The first respondent ( Meenambal Ammal ) also died and her

legal heir is the fourth respondent.

3. For the sake of convenience, the parties are referred to as

per their ranking in the trial court and at appropriate places, their rank in

the present appeal would also be indicated.

4. The brief facts of the case of the plaintiff are as follows:

The suit property originally belonged to the first

defendant/Meenambal Ammal. On 05.06.1984, Meenambal Ammal

offered to sell the suit property in favour of the plaintiff for sale

consideration of Rs.6,277.50/-. They entered into a sale agreement

(Ex.A1) on the same day. A sum of Rs.1,000/- was paid by the plaintiff

https://www.mhc.tn.gov.in/judis S.A.No.81 of 2002 and C.M.P.No.522 of 2002

towards advance. The time for performance of contract was fixed as three

months. The first defendant did not come forward to receive the balance

sale consideration from the plaintiff and to execute the sale deed in his

favour. On the contrary, she executed a sale deed dated 30.06.1984

(Ex.B1) in favour of the second defendant in respect of the suit property.

The plaintiff issued a lawyer's notice dated 22.07.1984 (Ex.A2) to both

the defendants. In the said notice, the plaintiff had specifically contended

that the sale in favour of the second defendant is not bonafide. The first

defendant did not send any reply notice. On the contrary, the second

defendant issued a reply notice dated 25.07.1984 (Ex.A3) which

contained false allegations. The sale deed in favour of the second

defendant was created only to defeat the lawful claim of the plaintiff and

hence, the suit for specific performance of contract or in the alternative

directing defendants to pay a sum of Rs.6,000/- towards compensation.

The first defendant remained absent before both the Courts below.

5. The suit was resisted by the second defendant on the

following grounds.

https://www.mhc.tn.gov.in/judis S.A.No.81 of 2002 and C.M.P.No.522 of 2002

i. All the allegations contained in the plaint are false.

ii. There was no agreement of sale in existence on the date when the

first defendant sold the suit property in favour of the second

defendant.

iii. Even if the agreement is true it should have been created

subsequent to the sale in favour of the second defendant by

antedating the same. In any event, the plaintiff has not performed

his part of the contract as he has not deposited the balance sale

consideration in to Court. He therefore, prayed for dismissal of the

suit.

6. On the basis of the above pleadings, the trial Court framed

the following issues :

i. "Whether the sale agreement dated 05.06.1984 is true and valid?

ii. Whether the second defendant is a bonafide purchaser for value?

iii. Whether the plaintiff is entitled for a decree as prayed for by him?

iv. To what relief, the plaintiff is entitled?"

https://www.mhc.tn.gov.in/judis S.A.No.81 of 2002 and C.M.P.No.522 of 2002

7. In the trial Court, the plaintiff examined himself and two

other witnesses and marked Ex.A1 to Ex.A3. The second defendant

examined himself and marked Ex.B1.

8. After full contest, the learned Additional District Munsif,

Villupuram decreed the suit vide his decree and judgment dated

13.02.1992 filed by the plaintiff on the following grounds :

i. Thiru.Rajendran (PW3) had deposed the sale agreement dated

05.06.1984 (Ex.A1) was executed and that the husband of the first

defendant and one Dhanapal Gounder attested the said agreement.

His evidence is trustworthy. The discrepancies found in the

evidence of PW1 & PW3 are all minor in nature and do not go into

the root of the case. Moreover, DW1 (second defendant) had

admitted that there is no prior enmity between him and PW3. The

second defendant (DW1) also did not examine the husband of his

vendor (first defendant) as a witness.

ii. PW2 (Thiru.Venkatasamy Reddiar) in his deposition had

contended that there was a panchayat in the village between the

https://www.mhc.tn.gov.in/judis S.A.No.81 of 2002 and C.M.P.No.522 of 2002

plaintiff and the defendants 1 & 2 in respect of the suit property in

which the second defendant agreed to pay a sum of Rs.3,000/-

towards compensation to the plaintiff and that though PW2

received the said amount from the second defendant, the plaintiff

refused to receive the same. Since the second defendant knew the

existence of the sale agreement between the plaintiff and the first

defendant prior to his sale deed, he cannot be said to be a bonafide

purchaser for value.

9. Aggrieved over the decree and judgment passed by the trial

Court Judge, the second defendant filed an appeal in A.S. No.67 of 1993,

on the file of the Principal Sub Court, Villupuram. The learned Principal

Subordinate Judge, Villupuram, after analysing the oral and documentary

evidence adduced on both sides upheld the findings of the trial court vide

his decree and judgment dated 06.07.2001.

10. Now the present Second Appeal is filed by the second

defendant and the following substantial questions of law were framed by

https://www.mhc.tn.gov.in/judis S.A.No.81 of 2002 and C.M.P.No.522 of 2002

my learned predecessor.

i. "Whether the Courts below were correct in holding that the second

defendant was not a bonafide purchaser for value without notice

when there was absolutely no evidence to show that he was put on

notice about the suit agreement prior to his sale under Ex.B1?

ii. Whether the Courts below erred in not appreciating the

contradictions with reference to the recitals in Ex.A1 and evidenc

of PW1 which goes to show that the claim of the plaintiff was

false?

11. Heard Mr.T.S.Baskaran, learned counsel for the appellants

and Mr.M.Krishnappan, learned senior counsel assisted by

Mr.S.Ravichandran, counsel for the respondents 1 to 3.

12. Mr.T.S.Baskaran, learned counsel for the appellants

contended that both the courts below committed an error by holding that

(a) the sale agreement (Ex.A1) is true and valid.

(b) The second defendant is not a bonafide purchaser for value.

https://www.mhc.tn.gov.in/judis S.A.No.81 of 2002 and C.M.P.No.522 of 2002

(c) The second defendant knew the existence of the sale agreement

(Ex.A1) prior to his sale deed (Ex.B1).

He drew the attention of this Court to the judgment of the First Appellate

Court wherein the First Appellate Court had mainly relied on the evidence

of PW2 who had deposed that there was a panchayat between the

plaintiff and the defendants 1 & 2 in the village and that in the panchayat,

it was agreed between the parties that the second defendant should pay a

compensation of Rs.3,000/- to the plaintiff. He had further deposed that

though he received the said amount from the second defendant, the

plaintiff (PW1) refused to receive the same. The learned counsel's specific

contention is that when there are no pleadings with regard to the

panchayat in the plaint, both the Courts below had mainly based on the

evidence of PW2, had held that the second defendant is not a bonafide

purchaser for value as he already knew the existence of Ex.A1 by

participating in the panchayat. Even if it is admitted, for the sake of

arguments, that there was a panchayat in the village and the plaintiff

agreed to received Rs.3,000/- towards compensation from the second

defendant, the whole case of the plaintiff for specific performance of

https://www.mhc.tn.gov.in/judis S.A.No.81 of 2002 and C.M.P.No.522 of 2002

contract fails as he was not ready and willing to perform his part of the

contract.

13. Per contra, Mr.M.Krishnappan, learned senior counsel for

the respondents 1 to 3 contended that both the courts below, after

analysing the oral and documentary evidence adduced on both sides had

decreed the suit in favour of the plaintiff and as per Section 100 CPC this

Court cannot interfere with the findings of facts recorded by both the

Courts below unless they are perverse. He therefore, prayed for dismissal

of the present second appeal.

14. At the outset, it may be observed that the plaintiff has filed

the suit for specific performance of contract or in the alternative to pay a

sum of Rs.6,000/- towards compensation by the defendants 1 & 2. His

specific contention is that the first defendant, Meenambal Ammal

executed a sale agreement dated 05.06.1984 (Ex.A1) agreeing to sell the

suit property in his favour and also received a sum of Rs.1,000/- from

him towards advance. The time for performance of contract was fixed as

https://www.mhc.tn.gov.in/judis S.A.No.81 of 2002 and C.M.P.No.522 of 2002

three months and that though he was always ready and willing to perform

his part of the contract, the defendant was evading and subsequently, the

latter sold the suit property in favour of the second defendant on

30.06.1984. Thereafter, the plaintiff issued a notice to the defendants 1 &

2 and the first defendant did not send any reply to the plaintiff. The

second defendant had issued a reply notice and contended that he is a

bonafide purchaser for value and also contended that the sale agreement

between the plaintiff and the first defendant is not genuine.

15. In order to prove the execution of the sale agreement the

plaintiff relied on his evidence as well as the evidence of the scribe

Venkatasamy Reddiar (PW2). It is pertinent to point out that the first

defendant who is said to have executed the sale agreement (Ex.A1)

remained absent and was set ex parte. Her husband is one of the attestors

to Ex.A1. While, sale agreement is dated 05.06.1984 and the time fixed

for completing the contract was three months, the first defendant had sold

the suit property in favour of the second defendant through a registered

sale deed dated 30.06.1984 (Ex.B1). The second defendant in his written

statement as well as in his oral evidence had contended that he is a

https://www.mhc.tn.gov.in/judis S.A.No.81 of 2002 and C.M.P.No.522 of 2002

bonafide purchaser for value and that the sale agreement (Ex.A1) has

been created for the purpose of filing the present suit. Both the Courts

below had held that the sale agreement (Ex.A1) is true and valid and that

the second defendant is not a bonafide purchaser for value. For arriving at

this conclusion, both the Courts below had mainly relied on the evidence

of Venkatasamy Reddiar (PW2) who had deposed that there was a

panchayat in the village between the plaintiff and the defendants 1 & 2 in

which the plaintiff agreed to receive a sum of Rs.3,000/- towards

compensation from the defendants 1 & 2. During the course of cross

examination, PW2 had admitted that the plaintiff agreed to receive the

compensation as per the decision of the panchayat and that he (PW2)

received the said amount from the second defendant. His further

deposition is that when he handed over the same to the plaintiff, the

plaintiff refused to receive the said amount. Merely based on the evidence

of PW2, both the Courts below had concurrently and wrongly held that

the second defendant already knew the sale agreement between the

plaintiff and the first defendant. It is also intriguing to note that there is

absolutely no pleadings in the plaint with regard to the panchayat

https://www.mhc.tn.gov.in/judis S.A.No.81 of 2002 and C.M.P.No.522 of 2002

between the plaintiff and the defendants 1 & 2. It is settled position of

law that no amount of oral evidence can be looked into in the absence of a

specific pleading. The trial Court had not only recorded the evidence

without pleadings in the plaint, but also relied upon the same and held

that the second defendant already knew the existence of the sale

agreement between the plaintiff and the first defendant through the said

panchayat and therefore, he cannot be termed as a bonafide purchaser for

value. This observation of the trial Court was upheld by the First

Appellate Court. Even assuming that there was a panchayat as contended

by PW2 between the plaintiff and the defendants 1 & 2 and that in the

panchayat it was agreed between the parties that the defendants 1 & 2

should pay the compensation of Rs.3,000/- to the plaintiff and the

plaintiff agreed to receive the same, the plaintiff now cannot contend that

he was ready and willing to perform his part of the contract. The property

has been sold out in the year 1984 through a registered sale deed dated

30.06.1984 (Ex.B1) by the first defendant in favour of the second

defendant. The approach made by both the Courts below in analysing the

oral and documentary evidence is totally perverse and therefore, the same

https://www.mhc.tn.gov.in/judis S.A.No.81 of 2002 and C.M.P.No.522 of 2002

warrant interference by this Court. Moreover, there are contradictions

with regard to the recitals in Ex.A1 and the evidence of PW1 and this

aspect has not at all been looked into by both the Courts below. In view

of the same, substantial questions of law 1 & 2 are answered in favour of

the appellants and therefore, the appeal is allowed.

16. In the result,

i. the Second Appeal is allowed. No costs. Consequently, connected

Civil Miscellaneous Petition is closed.

ii. The decree and judgment dated 06.07.2001 passed in A.S. No.67

of 1993, on the file of the Principal Sub Court, Villupuram, is set

aside.

iii. The suit in O.S. No.1351 of 1984, on the file of the Additional

District Munsif, Villupuram, is dismissed with costs.

16.06.2023 Index: Yes/No Internet: Yes/No Speaking/Non-Speaking order mtl

https://www.mhc.tn.gov.in/judis S.A.No.81 of 2002 and C.M.P.No.522 of 2002

R. HEMALATHA, J.

mtl

To

1. The Principal Sub Court, Villupuram.

2. The Additional District Munsif, Villupuram.

3. The Section Officer, VR Section, High Court, Madras.

S.A.No.81 of 2002 and C.M.P.No.522 of 2002

16.06.2023

https://www.mhc.tn.gov.in/judis

 
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