Citation : 2022 Latest Caselaw 4840 Tel
Judgement Date : 22 September, 2022
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HONOURABLE SRI JUSTICE P. NAVEEN RAO
AND
HONOURABLE SRI JUSTICE J. SREENIVAS RAO.
CCCA.No. 108 OF 2014.
JUDGMENT : { Per the Hon'ble Sri Justice J. Sreenivas Rao }
Challenging the judgment and decree dated 24-06-2014 passed
in O.S.No. 516 of 2009 by the II-Additional Chief Judge, City Civil
Court, Hyderabad, dismissing the suit filed by the plaintiffs seeking
the relief of declaration that the sale deed executed by the defendant
No.1 in favour of defendant No.2 dated 17-10-2008 as null and void
and not enforceable and for recovery of possession of the suit
schedule property and seeking injunction restraining defendant No.2
from alienating the suit schedule property, the plaintiffs filed this
appeal.
2. For the sake of convenience, hereinafter the parties will be
referred to as plaintiffs and defendants, as they were arrayed before
the trial court.
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3. Originally, the sole plaintiff No.1, has filed O.S.No.516 of 2009
and during the pendency of the said suit she died. As per orders dated
15-03-2012 passed in I.A.No.224 of 2011 the legal representatives of
the deceased plaintiff No.1, who are plaintiff Nos.2 to 4 were
impleaded as legal representatives of the deceased plaintiff No.1,
vis-a-vis, plaintiff No.2 is the husband and plaintiffs 3 and 4 are the
son and daughter.
4. The plaintiffs averred in the plaint as follows :
4.1 The plaintiff No.1 is the absolute owner of the property
bearing Municipal No.16-8-677 (CIB.No.175 "A" Class), New Malakpet,
Hyderabad having purchased the same under a registered sale deed
bearing document No.2332/1973, dated 27-9-1973, admeasuring 144
sq.yards consisting of groundfloor portion of one bed room tenement
of 400 sq.ft from Lateefunnisa Begum for a valuable consideration. The
plaintiff averred that she is a doctor by profession and on 29-4-1974
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she has executed a General Power of Attorney in favour of defendant
No.1, who is no other than her brother, vide document bearing
No.125/1974 with powers to alienate the said property. The General
Power of Attorney executed by her in favour of defendant No.1 is in
respect of the property bearing Municipal No.16-8-677 of New
Malakpet, Hyderabad comprised of a groundfloor portion of one bed
room tenement admeasuring 400 sq.ft.
4.2 The plaintiff further stated that she abandoned her
decision to sell the property and she requested defendant No.1 to
make construction of a duplex house so that she can settle in
Hyderabad in her own house after retirement and accordingly obtained
permission from the Municipal Corporation, Hyderabad, vide permit
No.99/93 in file No.677/8/16/98, dated 28-1-1998 after spending huge
amounts. It is also stated that at the request of defendant No.1, she
sent Rs.1,20,000 US dollars, which would amount to more than
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Rs.50,00,000=00 for the purpose of construction of the house in proof
of which there is correspondence between the plaintiff and defendant
No.1 and thus she sent the said sum for construction of the house
consisting of ground plus three upper floors admeasuring 3,750 sq.ft.
4.3 The plaintiff No.1 further stated that she has not given any
powers to defendant No.1 to sell the property vis-a-vis to sell the
house consisting of ground plus three upper floors, admeasuring
3,750 sq.mts., but the General Power of Attorney was given only to the
old portion, which was demolished by the plaintiff and in view of
same, the powers granted to the defendant No.1 was to sell
the property are lapsed. The plaintiff No.1 further averred that she
has no intention to sell the property to third parties, she has executed
a registered will deed dated 12-12-1997 bearing document
No.101/1997 stating that the property should not be alienated to third
parties and the defendant No.1 and his wife, who are the beneficiaries
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under the will were also present at the time of registration of the will
deed and they and the husband of the plaintiff attested the registered
will deed.
4.4 The plaintiff further stated that earlier defendant No.1
volunteered not to act as power of attorney of the plaintiff and the
property was left in lurch for four years i.e., from 2003 to 2008 and
the plaintiff came to India and she got the property cleaned and
appointed her nephews by name Momin Ali and Shakir Ali to lock after
the property and at the same time she also cancelled the will deed
dated 12-12-1997. At the same time, she was informed that one Jabbar
was interested in purchasing the property for a sum of
Rs.82,00,000=00 but the plaintiff refused to sell the property. But
without her knowledge, the defendant No.1 sold the suit schedule
property to his brother-in-law i.e., defendant No.2 for a sum of
Rs.31,32,000=00 by creating the sale deed, dated 18-10-1998.
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4.5 The plaintiff No.1 further averred that the suit schedule
property is costing more than Rs.one crore and the defendant No.1
having made the plaintiff No.1 to spend Rs.50,00,000=00 for
construction, he cannot sell the property for a mere sum of
Rs.30,00,000=00 and odd which amounts to breach of trust and
misappropriation and the transaction is a fraudulent one. She further
averred that defendant No.1 was not legally entitled to enter into sale
transaction in favour of defendant No.2 under the General Power of
Attorney and he is not entitled to receive the sale consideration.
Defendant No.1 is not entitled to sell the suit schedule property under
the General Power of Attorney executed by her, as the three storied
building was not in existence at the time of executing the General
Power of Attorney on 29-4-1974 and the General Power of Attorney
executed for the old structure was already demolished by raising new
construction. The defendant No.1 created false documents to deprive
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the plaintiff No.1 of her property deliberately with dishonest intention
to cause wrongful loss to her and to have a wrongful gain for himself
and defendant No.2.
4.6 Plaintiff No.1 further averred that when she filed suit in
O.S.No.4144 of 2008 on the file of the Court of XIX Junior Civil Judge,
City Civil Court, Hyderabad for perpetual injunction restraining him
from alienating the property, on his filing counter in the injunction
petition, she came to know about defendant No.1 selling the schedule
property to defendant No.2 under the registered sale deed and when
she questioned the defendant No.1, then the defendant No.1
threatened her and her husband to eliminate. Though defendant No.1
was not authorised to sell the suit schedule property but he is in
collusion with defendant No.2 created a false sale deed by playing
fraud on the plaintiff No.1 causing her heavy loss and hence, the sale
deed is not a valid document. At the request of defendant No.1, she
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paid a sum of Rs.20,000/- for regularization of the third floor under
B.P.S. scheme. Though defendant No.1 executed the sale deed in favour
of defendant No.2 in respect of the suit schedule property, the
defendant No.1 is still in occupation of the property and leased the
upper floor and collecting the rents from the tenants. Therefore, the
sale deed executed by defendant No.1 in favour of defendant No.2
does not confer any right to defendant No.2 in respect of the suit
schedule property, as the said document is void, sham and brought
into existence for the purpose of depriving of her legitimate right over
the property.
4.7 The plaintiff No.1 further stated that the defendants, who
are in illegal possession of the suit schedule property are liable to be
evicted from the suit schedule property, as they have no right, title and
interest in the said property and hence, the sale deed executed by
defendant No.1 in favour of defendant No.2, dated 18-1-2008 is liable
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to be cancelled.. Hence, the plaintiff filed the suit seeking the relief of
declaration that the sale deed dated 18-10-2008 bearing document
No.5711/2008 executed by defendant No.1 in favour of defendant No.2
is illegal, null and void and not binding on the plaintiffs and for
recovery of possession of the suit schedule property and for injunction
restraining defendant No.2 from alienating the suit schedule property
to third parties and prayed to pass decree accordingly.
5. Defendants 1 and 2 filed their written statement and denied the
averments made in the plaint.
5.1 Inter alia contending that originally the plaintiff No.1 was
the owner of the property bearing Municipal Nol.16-8-677 (CIB.No.175
"A" class) situated at New Malakpet, Hyderabad but she has already
sold the said property to defendant No.2 through defendant No.1, who
is no other than her General Power of Attorney. Since the defendant
No.1 sold the suit schedule property to defendant No.2 with the
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consent of the plaintiff No.1, the defendant No.2 became the absolute
owner and possessor of the suit schedule property. The plaintiff No.1
appointed defendant No.1, who is her own brother, as her General
Power of Attorney under registered document No.125/1974 delegating
the powers to alienate the suit schedule property and the said general
power of attorney is still subsisting. For the reasons best known, later
she has filed a suit for permanent injunction against the defendants 1
and 2 in O.S.No. 4144 of 2008 on the file of the Court of XIX Junior
Civil Judge, City Civil Court, Hyderabad restraining the defendants
from causing interference in her alleged possession in respect of the
suit schedule property, wherein the defendants have filed their written
statement stating that defendant No.1 as per the instructions of the
plaintiff has sold the suit schedule property to defendant No.2 under a
registered sale deed, dated 17-10-2008 and he was inducted in
possession of the property and the plaintiff No.1 is not entitle to any
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relief in the said suit and she is not in possession of the suit schedule
property.
5.2 The defendants further stated that as per the GPA only the
1st defendant has made an application and obtained the construction
permission No.99/33 in file No.677/8/16/98 dated 28-1-1998 for
construction of the suit house in the suit schedule property and
defendant No.1 as per the request of the plaintiff carried on the
construction of the suit house with his own funds on the assurance
that she will repay the same to him and he further contended that he
spent about Rs.18,00,000-00 to Rs.20,00,000-00 for the purpose of
construction, which is still payable by the plaintiff and when the
defendant No.1 demanded the plaintiff for payment of the same, she
told him that she will repay the said amount to him out of the sale
consideration received for the suit house. The defendants denied that
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the plaintiff has sent a sum of Rs.1,20,000 US Dollars to defendant
No.1 for the said purpose to meet the cost of construction.
5.3 Defendants denied that the plaintiff came to know about
the execution of the sale deed in favour of defendant No.2, when she
filed the suit in O.S.No.4144 of 2008 on the file of XIX Junior Civil
Judge, City Civil Court, Hyderabad. The defendants further stated that
the GPA executed by her in favour of defendant No.1 is still in force
and under the said GPA with her consent, defendant No.1 sold the suit
schedule property to defendant No.2 under a registered sale deed and
accordingly, defendant No.2 under a registered sale deed and
accordingly, defendant No.2 is in in possession of the suit property
and the plaintiff is not entitled to any relief as claimed in the suit and
prayed to dismiss the same with costs.
6. On the pleadings of both parties, the trial court framed the
following issues for trial :
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1.
whether the plaintiff is entitled for declaration that the sale deed dated 18-10-2008 executed by the first defendant in favour of second defendant is illegal, null and void and is not binding on the plaintiff ?
2. whether the plaintiff is entitled for recovery of possession of the plaint schedule property as prayed for ?
3. whether the plaintiff is entitled for perpetual injunction restraining the second defendant from alienating, mortgaging or leasing the plaint schedule property as prayed for ?
4. To what relief ?
7. To substantiate their case, the plaintiffs examined PW-2 and
Exs.A-1 to A-10 were marked. On behalf of the defendants, DWs 1 and
2 were examined and no document was marked on their behalf.
8. After considering the pleadings of the respective parties and
also the oral and documentary evidence placed on record, the court
below dismissed the suit by assigning cogent and clinching findings on
all the issues by holding that there is no dispute that the deceased
plaintiff No.1 had executed General Power of Attorney, dated 29-4-
1974 under Ex.A-2 in favour of defendant No.1 with all rights including
to sell the suit schedule property and that the plaintiff has admitted
that in pursuance of Ex.A-2, the defendant No.1 has obtained
permission and demolished the old structure and he made new
construction consisting of ground floor and three upper floors after
obtaining necessary permission from the municipal corporation and
the court below further held that the plaintiffs have failed to establish
that plaintiff No.1 sent a sum of Rs.50,00,000-00 towards construction
cost and that PW-2 has not filed any acknowledgement/receipt to
prove the said payment transaction. The entire recitals mentioned
under Ex.A-2 clearly enunciates that the first defendant is having
power of alienation and sell the suit schedule property and in
pursuance of the said GPA the first defendant executed sale deed
dated 18-10-2008 in favour of defendant No.2 and further held that in
the event defendant No.1 has not remitted/paid the sale consideration
in favour of the plaintiffs, they are liberty to file a suit for recovery of
the sale consideration by filing appropriate proceedings. But, on the
ground not receiving the sale consideration from the defendant No.1,
the plaintiffs are not entitled to seek the relief of declaration, declaring
the sale deed executed by the defendant No.1 in favour of defendant
No.2 dated 17-10-2008 is null and void and not enforceable and
recovery of possession of the suit schedule property. The court below
further held that the plaintiffs are not entitled to seek the relief of
injunction restraining the second defendant from alienating the suit
schedule property in favour of third parties.
9. Aggrieved by judgment and decree dated 24-06-2014 passed in
O.S.No. 516 of 2009 by the II-Additional Chief Judge, City Civil Court,
Hyderabad, the plaintiffs filed this appeal.
10. The learned counsel for the plaintiffs vehemently contended that
the plaintiff No.1 has not given any power to alienate the suit schedule
property, the General Power of Attorney executed in favour of the
defendant No.1, who is none other than her brother, to safe guard the
suit schedule property and further contended that Ex.A2 executed in
favour of defendant No.1 is only in respect of old structure. When once
the old structure was demolished and new construction was made and
basing on the Ex.A-2 the defendant No.1 is not entitled to alienate the
said property in favour of defendant No.2 and Ex.A-2 has not
conferred any right upon the defendant No.1 to alienate the suit
schedule property. He further contended that the plaintiff No.1 has
executed Ex.A-4 will deed, dated 07-12-2012 under which it was
expressly mentioned that the suit schedule property should not be
sold to third parties and the defendant No.1 and his wife are the
witnesses to the said document and they are well aware of the
intention of the plaintiff No.1 that the plaintiff No.1 is not interested
to sell the suit schedule property and by virtue of Ex.A-4 the earlier
GPA Ex.A-2 stands revoked. He also contended that without any prior
permission or consent of the plaintiff No.1, the first defendant is not
having any right to alienate/execute the sale deed Ex.A-1 and the same
is not binding upon her. In spite of the same the defendant No.1
without the knowledge of the plaintiff No.1 sold the suit schedule
property to the defendant No.2, who is none other than his brother- in-
law with nominal amount and the alleged sale consideration is
collusive in nature with an intention to defeat and defraud the rights
of the plaintiff No.1 and lastly contended that there is no recital under
GPA/Ex.A2 that defendant No.1 is having power to receive the sale
consideration from the purchaser/Defendant No.2 and the entire
transaction between the defendant No.1 and defendant No.2 is
collusive one.
11. In support of his contention, the learned counsel for the
plaintiffs relied upon the following decisions of the Hon'ble Supreme
Court. They are :
i) In DEB RATAN BISWAS AND ORS. V/s. ANAND MOYI DEVI AND ORS1.,
wherein it was held at para No.12 as hereunder:
1 ) MANU/SC/0420/2011 > 2011 (102) AIC-129, AIR 2011 SC-1653
12. The High Court has also held that if Dr. Sanjeev Kumar Mishra was not willing to sign the compromise petition his unwillingness should have been mentioned in the compromise petition. This also is a strange reasoning. It is well-settled that even after execution of a power of attorney the principal can act independently and does not have to take the consent of the attorney. The attorney is after all only an agent of the principal.
Even after executing a power of attorney the principal can act on his own.
12. The learned counsel for the plaintiffs relied on the decision of
the High Court of Andhra Pradesh in AZAM KHAO V/s. S. SATTAR2,
wherein it was held at para No.5 as follows :
5. Mr. Mazhar Hussain, the learned counsel for the petitioner relies upon a decision of a learned single Judge of Calcutta High Court reported in Exekiel v. Carew and Co., AIR 1938 Cal 423, support of his contention that the language of the nature employed in the power of attorney concerned herein does not automatically put an end to the power of attorney on the return of the Principal to India and that in any event, the power revives as and when the Principal against goes out of India. But it may be noticed that in the very Calcutta decision, the learned Judge refers to the statement of Law in Halsbury's Laws of England, 2nd Edition Volume 1, P. 314 which is to the same effect as the decision in Danby v. Coutts & Co. (1885) 29 Ch D 500 (supra), which saying that the statement of law in Danby. Coutts & Co. (supra) is too wide, the learned Judge observed as follows:---
"I am willing to concede that the authority of the attorney could not have been exercised during the periods that David was in Calcutta or
2 ) MANU/AP/0112/1978 > AIR 1978 AP-442
possibly in India, but I see nothing in the document to support the contention that the authority of the attorney terminated absolutely upon the return of the donor and that from that date the document was a ineffective as if it had been expressly revoked."
From the above observation it is clear that during Principal's presence in India, the power of attorney is not empowered to act for him. May be if the Principal again goes out of India, the power may revive. But when the matter was considered by the lower Court, it was not suggested that at the time of the institution of the suit, the plaintiff in this case had again gone out of India. Mr. Mazhar Hussain, however, argues that this aspect was never put in issue in the Court below and that this aspect was raised only at the time of argument in the Court below, and therefore the plaintiff may be given an opportunity to prove that he was not in India on the date of suit. There is no material not to accept this assertion of the learned counsel. In this view of the matter, the case is remitted to the Court below for investigating into the limited question, viz., whether on the date of institution of the suit, the plaintiff was in India or not. If it is held that the plaintiff was in India on that date, the suit will have to be dismissed. But if it is proved that the plaintiff was not in India on the date of institution of the suit, then the suit may be held maintainable. The Court below may send notices to the parties again and dispose of the said question according to law. The parties may be allowed to lead evidence on the said question. The C. R. P. is allowed accordingly, No costs.
13. The learned counsel for the plaintiffs further relied on the
decisions of the High Court of Madras (Madurai Bench) in G.
MUNIRATNAM AND ORS. V/s. THE DISTRICT COLLECTOR, TUTICORIN
AND ORS3, wherein it was held at para Nos.8 and 19 are as hereunder :
8.The genesis for the above three suits are i)The power of attorney deed dated 15.07.2010 executed by G.Muniratnam (the first revision petitioner) in favour of Tmt.Sumathi ( Power Agent) and the settlement deed dated 25.10.2010 executed by the first revision petitioner in favour of his minor daughter Sakthi Maheshwari (the second revision petitioner) and ii)two sale deeds dated 18.05.2011 and 23.05.2011 executed by the Power Agent in respect of the properties already settled by the principal in the name of his minor daughter. The registration of these two sale deeds happen to be cancelled by the District Registrar nullifying the alienation.
19.The points for consideration before this Court are (i)whether the principal can deal with the property after executing power of attorney and appointing an agent to act on his behalf; (ii)whether the settlement of the property in favour of the second revision petitioner impliedly revokes the power of attorney executed in favour of Tmt.Sumathi and (iii)under what circumstances, the Court can interfere in the pending trial under Article 227 to reject the plaint or strike off the plaint.
23.In Deb Ratan Biswas vs. Anand Moyi Devi, reported in AIR 2011 SC 1653, the Hon'ble Supreme Court has held as under ''It is well settled that even after execution of a power of attorney the principal can act independently and does not have to take the consent of the attorney. The attorney is after all only an agent of the principal. Even after executing a power of attorney the principal can act on his own.''
31.The specific case of the plaintiffs in O.S.No.374/11 and 390/11 is that the settlement deed executed by the first revision petitioner in favour of his minor daughter who is the second revision petitioner is null and void.
3 ) MANU/TN/1589/2017 > 2017 (5) CTC-311, (2017) 5 MLJ -568
As pointed out by the learned counsel for the revision petitioners, the plaintiffs in these two suits have no privity of contract with the revision petitioners on the alleged date of sale. So, they are nowhere concern with the settlement deed of the first revision petitioner. If somebody is aggrieved by that can only be Tmt.Sumathi in whose favour the power of attorney was given by Muniratnam. By settling the property in favour of the second revision petitioner, the power of attorney given in favour of Tmt.Sumathi is impliedly superseded. Being aggrieved by that, she has already approached the police and given complaint. Without pursuing the legal course, she has created documents in favour of her sons and daughter as if the power deed is in force. The most appropriate person to challenge the settlement deed can be Tmt.Sumathi, but she is not the dominant litus in O.S.Nos.374 and 390/11. The cause of action as framed by the plaintiffs in O.S.Nos.374 and 390/11 are only an illusionary cause of action. The plaintiffs do not have any privity of contract in so far as the document which they challenge and seek declaration as null and void since they trace their right through their mother Tmt.Sumathi who acted as power agent of the principal Muniratnam but on the date of said sale, the principal himself had no title over the property. The circumstances under which the settlement deed executed by Muniratnam in favour of his daughter and thereafter creation of sale deeds by Tmt.Sumathi in favour of her own kith and kin obviously make their case frivolous and vexatious.
14. The learned counsel for the plaintiffs further relied upon a
decision of the High Court of Madras in P. PERIATHAMBI AND ORS.
V/s. P. KALIAPPAN AND ORS .,
(19) It is admitted therein that the 1st defendant father had sold the Suit property in favour of the 2nd defendant under a registered Sale Deed
dated 01.01.1992. The Sale Deed was executed by the 1st defendant for himself and also on behalf of the plaintiff. Since the plaintiff was eo nominee party to the Sale Deed it was contended by the defendant in the Suit that the Suit for partition without setting aside the earlier Sale Deed dated 01.01.1992 in favour of the appellant is not maintainable.
(21) The legal position settled by this Court in the judgment relied upon by the learned counsel appearing for the appellants has no application in the present case. In the present case, there was no alienation in favour of the 2nd defendant. The Power of Attorney Deed executed by the father in favour of the 2nd defendant does not convey any right in immovable property in favour of the 2nd defendant. Though the Power of Attorney Deed is in force, the principal does not lose his right as a owner of the property to deal with the same.
15. The learned counsel for the plaintiffs lastly relied upon a decision of
the Hon'ble Supreme Court in CHURCH OF CHRIST CHARITABLE TRUST
AND EDUCATIONAL CHARITABLE SOCIETY, Represented by its Chairman V/s.
PONNIMMAN EDUCATIONAL TRUST, Represented by its
Chairperson/Managing Trustee4 ., wherein at para No.19 it was held as
follows :
4 ) (2012) 8 SUPREME COURT CASES - 706
Power of attorney
19.Next, we have to consider the power of attorney. It is settled that a power of attorney has to be strictly construed. In order to agree to sell or effect a sale by a power of attorney, the power should also expressly authorise the power to agent to execute the sale agreement/sale deed i.e.,
(a) to present the document before the Registrar; and
(b) to admit execution of the document before the Registrar.
A perusal of the power of attorney, in the present case, shows that it only authorises certain specified acts but not any act authorising entering into an agreement of sale or to execute sale deed or admit execution before the Registrar.
16. Per Contra, the learned counsel for the defendants vehemently
contended that the plaintiff No.1 executed Ex.A-2 GPA and as per the said
GPA the defendant No.1 is having all rights powers including right to
alienate the suit schedule property and execute respective deeds including
sale deed in respect of the suit schedule property. In pursuance of the said
document only the defendant No.1 demolished the old structure and
constructed new building after obtaining necessary permission from the
municipal corporation by investing huge amount and when the defendant
No.1 requested and demanded for payment of the said amount, which was
invested by him, the plaintiff No.1 failed to return the said amount with a
malafide intention and evade payment. In such circumstances, the
defendant No.1 having left with no other option left over for him, he
alienated the suit schedule property and executed registered sale deed in
favour of the defendant No.2 under Ex.A-1 sale deed dated 18-10-2008.
Therefore, Ex.A-1 registered sale deed executed by defendant No.1 in
favour of the defendant No.2 holds good and it is valid under law.
17. The alleged will deed executed by the plaintiff No.1 was cancelled by
her own and at no point of time, the plaintiff No.1 has not cancelled GPA
executed in favour of defendant No.1 and the same is subsisting as on the
date of execution of registered sale deed Ex.A-1 by the defendant No.1 in
favour of defendant No.2.
18. The learned counsel for the defendants further contended that there
is no recital in the will deed about the execution of General Power of
Attorney in favour of defendant No.1. On the other hand, the said will
deed was cancelled by the plaintiff No.1 herself and the said will deed
cannot be taken into consideration for any purpose. If the GPA holder
played fraud for non-payment of the sale consideration, the
principal/plaintiff No.1 ought to have taken steps to recover the amount
from the defendant No.1 by filing necessary proceedings but the plaintiff
no.1 is not entitled to seek declaration and recovery of possession of the
suit schedule property. Admittedly, the defendant No.1 purchased the
property by paying value sale consideration and he is a bonafide purchaser
of the suit schedule property.
19. The learned counsel for the defendants further contended that the
court below after considering the entire oral and documentary evidence
placed on record dismissed the suit by assigning specific findings on all the
issues and there are no grounds to interfere with the judgment and decree
passed by the court below.
20, In support of his contention, the learned counsel for the defendants
relied upon judgment in RAJNI TANDON V/s. DULAL RANJAN GHOSH
DASTIDAR AND ORS 5., wherein it was held at Para No.21 as hereunder :
21. Clause (a) of Section 32 specifies that a document can be presented for registration by
(i) by the person executing the document
(ii) any person claiming under the document presented for registration and
(iii) in the case the said document is a copy of a decree or order, any person claiming under the decree or order.
21. Heard both sides.
22. In view of the submissions made by the learned counsel for the
parties, the point that emerges for consideration in this appeal is :
Whether the judgment and decree passed by the court below is sustainable in law ?
5 ) AIR 2009 SCS 5416
23. Point : The relief sought by the plaintiff No.1 in the above suit is
for declaration, declaring the sale deed executed by the defendant No.1
in favour of defendant No.2 under Ex.A-1 and recovery of possession
and for seeking injunction restraining the defendant No.2 from
alienating the suit schedule property on the sole ground that the
defendant No.1 without her consent and without her knowledge
executed Sale Deed Ex.A-1 in favour of defendant No.2, though by the
GPA Ex.A-2, no such power was delegated to the defendant No.1 to
alienate the property to third parties and by virtue of the subsequent
execution of the Will Deed/Ex.A-4, the earlier GPA executed by the
plaintiff No.1 in favour of the defendant No.1 is no more in existence
and it has become redundant. But the entire oral and documentary
evidence placed on record, clearly establishes that the plaintiff No.1
executed irrevocable GPA in favour of defendant No.1 delegating all
the powers including alienation of the suit schedule property.
24. By virtue of the said GPA only, the defendant No.1 demolished
the old structure and made new construction after obtaining necessary
permission from the municipal corporation. The specific case of the
defendant No.1 that he spent entire amount for construction of the
building and in spite of several demands the Plaintiff No.1 has not
paid the said amount and as per the powers given to defendant No.1
through Ex.A-2 only he alienated the property in favour of defendant
No.2. The trial court gave specific finding that the plaintiffs failed to
produce piece of evidence that the plaintiff Nol.1 has given Rs.50,
00,000=00 to the Defendant No.1 to meet the construction cost. The
settled principles of law is that the entire burden is upon the plaintiffs
who approaches the court with particular relief to prove the case in all
respects by producing necessary evidence and then the burden shifts
upon the defendants to rebut the plaintiffs case. In this instant case,
the plaintiffs have failed to discharge their initial burden that the
Plaintiff No.1 has sent an amount of Rs.50,00,000=00 to the Defendant
No.1 to meet the construction cost and PW-2 in his evidence
specifically admitted that he has not filed any acknowledgement or
receipt to prove the above said payment. On the other hand, the
Defendant No.1 denied the allegation made by the Plaintiffs in respect
of payment of the above said amount. Hence, we are of the considered
view that the plaintiffs have not discharged their initial burden to
prove the entire case by producing any material evidence to that effect.
25. The trial court further gave specific finding that the plaintiffs are
not entitled to seek declaration to declare the sale deed/Ex.A-1 dated
18-10-2008 as null and void and for recovery of possession of the suit
schedule property, as the defendant No.2 purchased the suit schedule
property by paying valuable sale consideration and he is a bonafide
purchaser. It is the case of the plaintiffs that the defendant No.1 had
not paid sale consideration to the Plaintiff No.1, the plaintiffs are at
liberty to recover the sale consideration from the defendant No.1 by
filing appropriate proceedings but not entitled to seek the relief
sought for in the suit.
26. The decisions relied upon the counsel for the plaintiffs, referred
to supra, are not applicable to the facts and circumstances of this case.
In the instant case on hand, the entire evidence placed on record
clearly goes to show that the Plaintiff No.1 had executed General Power
of Attorney/Ex.A-2 in favour of defendant No.1 with all powers
including to sell the suit schedule property and by virtue of the same,
the defendant No.1 acted upon vis-a-vis demolishing old structure and
made new construction in the suit schedule property after obtaining
necessary permission from the competent authorities viz., GHMC. It
is the specific case of the defendant No.1 that he had invested huge
amount for demolishing the4 old structure and construction of new
building and the Plaintiff No.1 has not paid the said amount in spite of
demand made by him. In such circumstances, the defendant No.1 sold
the suit schedule property in favour of defendant No.2 through
registered sale deed under Ex.A-1 and the same is valid under law.
27. It is well-settled principle of law, as-long-as the registered GPA
executed by the principal is not cancelled or revoked, if the GPA holder
acted upon for any transaction in pursuant to the said GPA the same is
binding upon the principal unless and until the principal produces
evidence to the effect that the said transaction is contrary to the
recitals specified in the GPA or if the GPA holder/agent acted contrary
to law. In the instant case on hand, the plaintiff No.1 had executed
registered General Power of Attorney/Ex.A-2 in favour of Defendant
No.1 with all powers, which includes sale of the suit schedule property
and the same exists as on the date of execution of registered sale
deed/Ex.A-1 in favour of defendant No.2. Hence, the plaintiffs are not
entitled to seek the relief of declaration, declaring the sale deed/Ex.A-1
executed by the defendant No.1 in favour of the defendant No.2 as null
and void, when Ex.A-2/registered GPA is not cancelled or revoked, and
in view of the same, the trial court has rightly denied the relief sought
for by the plaintiffs in the suit.
28. For the foregoing reasons, we are, therefore, not inclined to
disturb the findings of the trial court and the trial court has not
committed any illegality or irregularity while dismissing the suit.
Hence, the appeal filed by the plaintiffs is devoid of merits and the
same is liable to be dismissed.
29. Thus, the appeal is accordingly dismissed without costs.
30. As a sequel, miscellaneous applications if any, pending shall
stand disposed of.
_____________________ JUSTICE P. NAVEEN RAO
_____________________ JUSTCE J. SREENIVAS RAO
22-09-2022 I S L (PD)
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