Rajpal Singh vs Saroj (Deceased) Through LRs and Anr.

Rajpal Singh vs Saroj (Deceased) Through LRs and Anr.

Landmark Cases of India / सुप्रीम कोर्ट के ऐतिहासिक फैसले

REPORTABLE

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 3489 OF 2022

Rajpal Singh …Appellant

Versus

Saroj (Deceased) Through LRs and Anr. …Respondents

J U D G M E N T

M.R. SHAH, J.

1. Feeling aggrieved and dissatisfied with the impugned judgment

and order dated 29.09.2016 passed by the High Court of Punjab and

Haryana at Chandigarh in Second Appeal No. 4594 of 2009 by which the

High Court has allowed the said appeal preferred by the original plaintiff

and has quashed and set aside the judgment and order passed by the

First Appellate Court decreeing the suit for specific performance and

restoring the judgment and decree passed by the learned Trial Court

1

dismissing the suit for specific performance of the agreement to sell, the

original respondent No.1 has preferred the present appeal.

2. The facts leading to the present appeal in nutshell are as under:-

2.1 That the respondent No.2 herein – original defendant No.2 was the

owner of the property in question being in the nature of agricultural land.

The original owner – original defendant No.2 entered into one

Agreement to Sell dated 04.04.1993 with the appellant agreeing to sell

the property in question for a sale consideration of Rs. 115,000/-. The

time for executing the sale deed was extended twice in writing on

account of request by original defendant No.1 – executant of the sale

deed – original owner.

2.2 According to the case of the appellant herein – original defendant

No.1, the original defendant No. 2 and the original plaintiff (husband and

wife) hatched a conspiracy. The original plaintiff – wife of the executant

of the agreement to sell filed a collusive suit for declaration (without

seeking any consequential relief) against her husband - original

defendant no. 2 being Civil Suit No. 1643 of 1994. The said suit was filed

on the premise that as per some alleged family settlement, the property

in question fell to the share of the original plaintiff - wife. However, no

family settlement was placed on record.

2.3 In the said collusive suit, the husband - original defendant No. 2

(executant of the agreement to sell in favour of the appellant) filed

2

written statement admitting everything and praying for a decree in favour

of his wife – original plaintiff in the present case. Consequently, a

decree of declaration was passed on 01.02.1995. The said decree was

neither registered with Sub-Registrar’s Office, nor any entries were ever

mutated in the revenue records. Therefore, the appellant herein –

original defendant No.1 was kept in the dark as everything happened

behind his back.

2.4 On the strength of the Agreement to Sell dated 04.04.1993, the

original defendant No.2- original owner executed the registered Sale

Deed in favour of the appellant herein – original defendant No.1 on

19.04.1996. Necessary changes were consequently made in the

revenue records as well as entering the name of the appellant

immediately on 31.05.1996. The appellant herein – original defendant

No.1 remained in possession and cultivating the agricultural land in

question since then.

2.5 Almost after five years from the date of execution of the registered

sale deed in favour of the appellant, the original plaintiff (wife of the

original owner) filed the present suit being Civil Suit. No. 419/2007

seeking cancellation of Sale Deed dated 19.04.1996 and relief of

possession, claiming her title on the basis of the collusive decree dated

01.02.1995.

3

2.6 The suit was resisted by the appellant herein – original defendant

No.1. The original defendant No.2 – respondent No.2 herein – the

original executant of the registered Sale Deed dated 19.04.1996

deliberately chose not to appear or file any written statement. That

solely based on the collusive decree dated 01.02.1995 between the

original plaintiff (wife) and the original defendant No.2 (husband), the

learned Trial Court decreed the suit vide judgment and decree dated

20.04.2009 observing that in view of the decree dated 01.02.1995 in

Civil Suit No.1643 of 1994, the day on which the original defendant No.2

executed the registered Sale Deed dated 19.04.1996 in favour of the

appellant herein – the original defendant No.1, he had no title and

therefore, the subsequent registered Sale Deed dated 19.04.1996 in

favour of the appellant is illegal and a nullity.

2.7 Feeling aggrieved and dissatisfied with the judgment and decree

passed by the learned Trial Court, the appellant herein – original

defendant No.1 filed the appeal before the First Appellate Court. By a

detailed judgment and order dated 31.07.2009, the learned First

Appellate Court allowed the said appeal and set aside the judgment and

decree passed by the learned Trial Court on merits as well as on the

ground that the suit was barred by limitation. At this stage, it is required

to be noted that prior thereto and having come to know about the

cheating and fraud committed by the plaintiff and the original defendant

4

No.2 (husband and wife), the appellant herein had filed a complaint case

for the offence under Section 420 and 120B IPC and the same is

reported to be pending.

2.8 Feeling aggrieved and dissatisfied with the judgment and order

passed by the First Appellate Court, the original plaintiff (wife) through

her legal heirs filed the present second appeal before the learned Single

Judge of the High Court. By the impugned judgment and order, the

learned Single Judge of the High Court has allowed the said appeal and

has quashed and set aside the judgment and order passed by the First

Appellate Court and consequently has restored the judgment and decree

passed by the learned Trial Court decreeing the suit preferred by the

original plaintiff and granting the declaration that the registered Sale

Deed dated 19.04.1996 in favour of the appellant executed by the

original defendant No.2 (original owner – husband) is null and void.

2.9 Feeling aggrieved and dissatisfied by the impugned judgment and

order passed by the High Court in allowing the second appeal and

quashing and setting aside the judgment and order passed by the

learned First Appellate Court and restoring the decree passed by the

learned Trial Court, the purchaser – the appellant herein - the original

defendant No.1 has preferred the present appeal.

3. Shri Ankur Mittal, learned counsel appearing on behalf of the

appellant has vehemently submitted that as such, the appellant is the

5

victim of the fraud played by the original plaintiff as well as the original

defendant No.2 (wife and husband).

3.1 It is vehemently submitted that after having obtained the collusive

decree in favour of the original plaintiff – wife, the original owner –

husband executed the registered sale deed in favour of the appellant by

taking the full sale consideration, i.e., Rs.1,15,000/- without disclosing

the appellant about any decree dated 01.02.1995 passed in Civil Suit

No.1643 of 1994.

3.2 It is submitted that both the learned Trial Court as well as the High

Court have not properly appreciated the fact that: -

(i) The appellant is the victim of fraud;

(ii) That the original plaintiff obtained a collusive decree in her

favour in Civil Suit No.1643 of 1994 and the decree was

without any contest by the original owner;

(iii) That the collusive decree in Civil Suit No.1643 of 1994 was

obtained on the basis of the so-called family settlement,

which never came on record;

(iv) That even after obtaining the original decree dated

01.02.1995 in Civil Suit No.1643 of 1994, neither the same

was registered before the Office of Sub-Registrar nor any

mutation entry in the revenue record was made. It is

submitted that thereafter the original owner – original

6

defendant No.2 – husband of the original plaintiff executed

the Sale Deed dated 19.04.1996 by accepting the full sale

consideration of Rs.1,15,000/-;

(v) That immediately the appellant was put in possession and

since then he has been in possession and cultivating the

land in question;

(vi) That immediately after the registered sale deed in favour of

the appellant, the same was mutated in the revenue record

on 31.05.1996 and despite the same, the present suit has

been filed after a period of five years, which is beyond the

period of limitation, i.e., three years.

3.3 It is submitted therefore that when on appreciation of evidence, the

First Appellate Court by a detailed judgment and order set aside the

judgment and decree passed by the learned Trial Court and

consequently dismissed the suit, the same was not required to be

interfered with by the High Court in exercise of the very limited

jurisdiction while deciding the second appeal.

3.4 Making above submissions, it is prayed to allow the present

appeal.

4. Present appeal is opposed by Shri Rudra Pratap, learned counsel

appearing on behalf of the respondents herein.

7

At this stage, it is required to be noted that the heirs of the original

plaintiff (wife) and the original defendant No.2 (husband) are represented

by the same counsel. At this stage, it is also required to be noted that as

such the original defendant No.2 never contested the suit and/or filed the

written statement.

4.1 Shri Rudra Pratap, learned counsel appearing on behalf of the

respondents has vehemently submitted that in the facts and

circumstances of the case, the High Court has not committed any error

in quashing and setting aside the judgment and order passed by the

First Appellate Court and restoring the judgment and decree passed by

the learned Trial Court.

4.2 It is vehemently submitted by learned counsel appearing for the

respondents that as rightly observed and held by the learned Trial Court

as well as the High Court in second appeal that at the time when the

original defendant No.2 executed the registered sale deed in favour of

the appellant, he had no valid title in view of the decree passed in favour

of the original plaintiff – wife in Civil Suit No. 1643 of 1994. It is

submitted that when it was found that the registered Sale Deed Dated

19.04.1996 in favour of the appellant was by a person, who had no title,

the same was a nullity and therefore, the learned Trial Court rightly

decreed the suit for declaration declaring the registered Sale Deed dated

19.04.1996 in favour of the appellant as null and void.

8

4.3 Now, so far as the submission on behalf of the appellant that the

suit was barred by limitation is concerned, it is submitted that in the suit,

the original plaintiff also prayed for the relief of possession. It is

contended that the suit for relief of possession can be filed within a

period of twelve years. Therefore, as the suit was filed within a period of

twelve years and the same cannot be said to be barred by limitation.

4.4 Making above submissions, it is prayed to dismiss the present

appeal.

5. We have heard learned counsel appearing on behalf of the

respective parties.

6. The original plaintiff instituted the Civil Suit No. 419/2007 claiming

cancellation of the Sale Deed dated 19.04.1996 in respect of the suit

property on the basis of the decree obtained by her in Civil Suit No.1643

of 1994 dated 01.02.1995. It is required to be noted that in the earlier

said suit filed by the original plaintiff being Civil Suit No.1643 of 1994,

which was filed against her husband – original defendant No.2, there

was no contest by the original defendant No.2 – original landowner and

in the written statement, he admitted everything averred in the plaint and

on the basis of which the decree came to be passed in favour of the

original plaintiff on 01.02.1995. It is also required to be noted that the

case on behalf of the original plaintiff in the earlier Civil Suit No.1643 of

9

1994 was based on an alleged family arrangement, which was never

produced before the court and/or even thereafter also. At this stage, it is

required to be noted that prior thereto, there was already an agreement

to sell executed by the original defendant No.2 – husband of the original

plaintiff dated 04.04.1993 in favour of the Appellant herein and the time

for executing the sale deed was extended twice in writing on requests

made by the original defendant No.2 – original owner on 02.04.1994 and

01.04.1995. After the aforesaid agreement to sell dated 04.04.1993 and

after the first extension, the original plaintiff filed the aforesaid collusive

suit being Civil Suit No.1643 of 1994 and obtained the collusive decree

dated 01.02.1995.

Thereafter, on the strength of the agreement to sell dated

04.04.1993 and without disclosing the decree passed against him in Civil

Suit No.1643 of 1994 dated 01.02.1995, the original defendant No.2 –

husband of the original plaintiff – original landowner executed the

registered Sale Deed dated 19.04.1996 and accepted the balance sale

consideration. Necessary changes were consequently made in the

revenue records as well, entering the name of the original defendant

No.1 – appellant herein in the year 1996 itself. At this stage, it is to be

noted that there was no mutation in the revenue records pursuant to the

decree dated 01.02.1995 in Civil Suit No.1643 of 1994. It has also come

10

on record and even as admitted by the original plaintiff in the present

suit, the appellant herein - original defendant No.1 continued to be in

possession and cultivating the land from 1996 onwards and despite the

above she filed the suit for cancellation of the Sale Deed dated

19.04.1996, which was in favour of the appellant - original defendant

No.1 executed by her husband – original defendant No.2 in the year

2001.

Therefore, the subsequent present suit filed by the original plaintiff

in Civil Suit No. 419/2007 can be said to be clearly barred by the law of

limitation. The suit seeking cancellation of the sale deed was required to

be filed within a period of three years from the date of the knowledge of

the sale deed. Therefore, when the name of the appellant herein -

original defendant No.1 was mutated in the revenue records in the year

1996 on the basis of the registered Sale Deed dated 19.04.1996 and

when he was found to be in possession and cultivating the land since

then, the suit was required to be filed by the original plaintiff within a

period of three years from 1996. The submission on behalf of the

original plaintiff (now represented through her heirs) that the prayer in

the suit was also for recovery of the possession and therefore the said

suit was filed within the period of twelve years and therefore the suit has

been filed within the period of limitation, cannot be accepted. Relief for

possession is a consequential prayer and the substantive prayer was of

11

cancellation of the Sale Deed dated 19.04.1996 and therefore, the

limitation period is required to be considered with respect to the

substantive relief claimed and not the consequential relief. When a

composite suit is filed for cancellation of the sale deed as well as for

recovery of the possession, the limitation period is required to be

considered with respect to the substantive relief of cancellation of the

sale deed, which would be three years from the date of the knowledge of

the sale deed sought to be cancelled. Therefore, the suit, which was

filed by the original plaintiff for cancellation of the sale deed, can be said

to be a substantive therefore the same was clearly barred by limitation.

Hence, the learned Trial Court ought to have dismissed the suit on the

ground that the suit was barred by limitation. As such the learned First

Appellate Court was justified and right in setting aside the judgment and

decree passed by the learned Trial Court and consequently dismissing

the suit. The High Court has committed a grave error in quashing and

setting aside a well-reasoned and a detailed judgment and order passed

by the First Appellate Court dismissing the suit and consequently

restoring the judgment and decree passed by the Trial Court.

7. Even the High Court has also not properly appreciated and

considered the fact that the appellant herein - original defendant No.1

can be said to be a bona fide purchaser and that the decree obtained by

the original plaintiff in the earlier Civil Suit No.1643 of 1994 was a

12

collusive decree and everything was done behind the back of the

appellant herein - original defendant No.1. After pocketing the money

and receiving the full sale consideration, the original defendant No.2 as

such did not contest the present suit and now in the present appeal,

both, the heirs of the original plaintiff as well as the original defendant

No.2 are represented by the same Advocate contesting the present

appeal. Be that as it may, when the original plaintiff – wife of the original

defendant No.2 (original landowner) obtained the collusive decree dated

01.02.1995 in Civil Suit No.1643 of 1994, there was already an

agreement to sell in favour of the appellant herein – original defendant

No.1 by which the original owner – original defendant No.2 agreed to sell

the land in question and a sum of Rs.40,000/- was paid as earnest

money at the time of agreement and subsequently the appellant herein –

original defendant No.1 paid the entire balance sale consideration, which

was accepted by the original defendant No.2 – husband of the plaintiff,

the High Court has erred in allowing the Second Appeal. All these

aspects have not at all been considered by the High Court, which were

considered by the First Appellate Court. The High Court has also not at

all considered whether the suit was barred by limitation or not, which

ought to have been considered by the High Court. Under the

circumstances, the impugned judgment and order passed by the High

13

Court is unsustainable and the same deserves to be quashed and set

aside.

8. In view of the above and for the reasons stated above, the present

appeal succeeds. The impugned judgment and order passed by the

High Court dated 29.09.2016 passed in Second appeal No. 4594 of

2009 is hereby quashed and set aside. The judgment and order passed

by the First Appellate Court is hereby restored and consequently the suit

filed by the original plaintiff stands dismissed.

Present appeal is accordingly allowed. However, in the facts and

circumstances of the case, there shall be no order as to costs.

…………………………………..J.

[M.R. SHAH]

NEW DELHI; …………………………………..J.

MAY 18, 2022. [B.V. NAGARATHNA]

14