Search By Topic: Property Dispute Cases

60. (SC) 03-05-2024

A. Transfer of Property Act, 1882 (4 of 1882), Section 52 -- Doctrine of lis pendens -- Object underlying the doctrine of lis pendens is for maintaining status quo that cannot be affected by an act of any party in a pending litigation -- The objective is also to prevent multiple proceedings by parties in different forums -- The principle is based on equity and good conscience.

(Para 16)

B. Transfer of Property Act, 1882 (4 of 1882), Section 1, 52 -- Doctrine of lis pendens – Applicability of -- By virtue of Section 1 of the Transfer of Property Act, 1882 the provisions of the said Act are not applicable in the States of Punjab, Delhi or Bombay; subject, of course to certain exceptions -- In the case of Kanshi Ram v. Kesho Ram, AIR 1961 P&H 299 the Punjab and Haryana High Court has held that since the explanation to Section 52 is based on equity and good conscience this principle can be applicable -- Even if Section 52 of T.P Act is not applicable in its strict sense then too the principles of lis pendens, which are based on justice, equity and good conscience, would certainly be applicable.

(Para 17)

C. Transfer of Property Act, 1882 (4 of 1882), Section 52 -- Doctrine of lis pendens – Pendency of a suit shall be deemed to have commenced from the date on which the plaintiff presents the suit -- Such pendency would extend till a final decree is passed and such decree is realised.

(Para 18)

D. Transfer of Property Act, 1882 (4 of 1882), Section 52 -- Doctrine of lis pendens – Suit for permanent injunction was filed prior to the execution of release deed -- Since the release deed is executed after the suit for temporary injunction was filed by the appellant, the alienation made would be covered by the doctrine of lis pendens.

(Para 19)

E. Transfer of Property Act, 1882 (4 of 1882), Section 41, 52 -- Doctrine of lis pendens – Bonafide purchaser -- Once it has been held that the transactions executed by the respondents are illegal due to the doctrine of lis pendens the defence of the respondents 1-2 that they are bonafide purchasers for valuable consideration and thus, entitled to protection under Section 41 of the Act of 1882 is liable to be rejected.

(Para 21)

62. (HP HC) 29-04-2024

A. Code of Civil Procedure, 1908 (V of 1908), Section 39 Rule 1, 2 & 3 – Temporary injunction – Notice to opposite party – Requirement of -- It is mandatory for the Court to direct notice of the application filed under Rules 1 and 2 of Order 39 to be given to the opposite party except where it appears to the Court that object of granting injunction would be defeated by delay -- Notice mandated under Rule 3 cannot be a mere formality -- It has to be reasonable notice and the opposite party is entitled to make itself response within reasonable period.

(Para 26)

B. Code of Civil Procedure, 1908 (V of 1908), Section 39 Rule 1, 2 & 3 – Interim mandatory injunction – Installation of electric connection as interim relief -- Ld. trial Court hastened to pass an interim order in mandatory form which in fact is peri-materia to the prayer as made in the main suit -- Impugned order does not record any reason as to what urgency was seen by the learned trial Court in passing the impugned order on the same day on which the application was filed -- Thus, there is serious non-compliance of Rule 3, Order 39 of the CPC and the manner in which learned trial Court has conducted itself definitely is not confirming to the basis principles of judicial procedure and propriety -- Impugned order set aside with direction to the parties to maintain status quo ante as on the date of passing of the impugned order with respect to the installation of electricity connection.

(Para 10, 26, 27)

65. (P&H HC) 15-04-2024

A. Specific Relief Act, 1963 (47 of 1963), Section 20 – Specific performance of contract -- Discretion of court -- Necessary condition is that contract in itself must be legally valid and capable of enforcement, otherwise the Court’s discretion in granting or refusing its specific performance will not arise.

(Para 13)

B. Specific Relief Act, 1963 (47 of 1963), Section 20 – Contract by Guardian on behalf of the minor -- Specific performance of contract -- In order to specifically enforce a contract entered into by a guardian on behalf of the minor, it is necessary that:

(i) contract should be within the competence of the guardian to enter into on his behalf so as to bind him; and

(ii) it is for the benefit of the minor.

If either of these two conditions are not satisfied, the Contract cannot be specifically enforced at all.

(Para 16)

C. Hindu Minority and Guardianship Act, 1956 (32 of 1956), Section 6, 8, 12 – Contract by Guardian on behalf of the minor -- Minor’s undivided share in joint family property -- Permission from Guardianship court to execute sale deed – Permissibility  of -- Application u/s 8 of the Guardianship Act for appointment of guardian in itself was not maintainable -- As such, the mother of defendant No.1 was not competent to sell the share of the minor in the joint Hindu family property.

(Para 3, 17-21)

D. Specific Relief Act, 1963 (47 of 1963), Section 20 – Contract by Guardian on behalf of the minor -- Specific performance of contract – Price of property – Consideration of -- Price cannot be a reason to decline specific performance of the contract, but when the interest and benefit of the minor is involved, Court is certainly bound to see as to whether the proposed sale is in the interest and benefit of the minor or not.

(Para 24)

E. Specific Relief Act, 1963 (47 of 1963), Section 20 – Specific performance of contract -- Earnest money of agreement to sell adjusted in another property – Effect of -- Once the entire earnest money stands adjusted towards the sale consideration of part of the property agreed to be sold, the agreement of sale will not survive in respect of the remaining part of the property and will become redundant -- Specific performance of such remaining part cannot be allowed.

(Para 30)

F. Hindu Minority and Guardianship Act, 1956 (32 of 1956), Section 4, 5(b) – Majority Act, 1875 (9 of 1875), Section 3 – Repudiation of contract – Age of majority -- It is an undisputed legal proposition that a minor can repudiate the contract entered into by his guardian, on his attaining majority, as the agreement on behalf of minor is voidable -- In view of Section 5(b) of the Hindu Minority & Guardianship Act, it is held that the age of majority in this case shall be considered to be 18 years, as the contrary provision contained in Indian Majority Act, is inconsistent with Section 4 of Hindu Minority & Guardianship Act -- As such, defendant having repudiated the contract, plaintiffs-appellants cannot pray for enforcement of specific performance.

(Para 33-36)

74. (SC) 04-03-2024

A. Will – Health of testator – Suspicious circumstances -- From the evidence of the witnesses with reference to the health of the testator Court do not find that he was not in good senses and was unable to understand his welfare or take correct decisions -- Hence, the Will cannot be held to be suspicious on the ground of the alleged ill-health of the testator at the time of the execution of the Will.

(Para 9.5)

B. Will – Genuineness of -- Testator left behind about 8 acres of land and three houses -- Respondent is bequeathed merely 3.5 Acres of land -- Meaning thereby the balance property is in possession of widow and daughter -- This is how the interest of the natural legal heirs has been taken care of -- Expenses for his last rites were borne by the husband of the respondent who was taking care of the land of the testator -- Nothing on record to suggest that the appellants were taking care of the property left by the testator immediately after his death or that any steps were taken by them to get the same mutated in their favour – Will found to be genuine – Judgment upheld.

(Para 2, 15)

C. Code of Civil Procedure, 1908 (V of 1908), Order 8 Rule 3, 5 -- Pleadings – Admission and denial in written statement -- Order VIII Rules 3 and 5 CPC clearly provides for specific admission and denial of the pleadings in the plaint -- A general or evasive denial is not treated as sufficient -- Proviso to Order VIII Rule 5 CPC provides that even the admitted facts may not be treated to be admitted, still in its discretion the Court may require those facts to be proved -- This is an exception to the general rule --  General rule is that the facts admitted, are not required to be proved.

(Para 15.1)

77. (P&H HC) 30-01-2024

A. Punjab Courts Act, 1918 (6 of 1918), Section 41 – Code of Civil Procedure, 1908 (V of 1908), Section 100 – Regular Second Appeal – Interference in finding on facts – Sub-clause No.(c) of Section 41 (1) of the Punjab Courts Act, 1918, enables the High Court for the States of Punjab, Haryana and Union Territory, Chandigarh, to reappreciate the evidence, if the decision is suffering from substantial error or defect resulting in defect in the decision of the case -- Consequently, it is permissible for the Court while deciding second appeal to re-appreciate the evidence if the decisions of the Courts suffer from perversity --  However, it is not permissible to interfere if two views are possible -- Interference in the second appeal has to be restricted to rare and exceptional cases where the court finds that the findings of fact stand vitiated by erroneous approach based on miss application of evidence or reliance on inadmissible evidence.

(Para 14, 15)

B. Indian Evidence Act, 1872 (1 of 1872), Section 45, 73 – Agreement to sell – Handwriting expert -- It is well settled that invariably the Handwriting and Finger Print Expert gives a favourable opinion to the person who has engaged him – U/s 73 of the Indian Evidence Act, 1872, the Presiding Judge is not debarred from carefully comparing the signatures and finger prints on various documents -- Adverse inference could not be drawn against the defendants for failure to examine Handwriting and Fingerprint Expert.

(Para 27(17))

C. Indian Evidence Act, 1872 (1 of 1872), Section 32, 33 – Code of Criminal Procedure, 1973 (2 of 1974), Section 313 -- Statement u/s 313 Cr.P.C was neither relevant nor admissible in evidence as the plaintiff failed to fulfill the requirements of Section 32 and 33 of the Indian Evidence Act, 1872.

(Para 27(18))

D. Agreement to sell -- Examination of the regular scribe was important.

(Para 27(21))