Skip to main content

Mere handing over of sale consideration by the plaintiff at the time of execution of sale deed will not in itself create a right

 Cause Title : K.S. Rama Rao vs Subbalakshmi, R.S.A No. 1092 OF 2018, Karnataka High Court, 

Date of Judgment/Order : 17 November, 2022

Corum : Sachin Shankar Magadum; J.

Citied: NA

Background

The Plaintiff had claimed that he and his elder brother (now deceased) had jointly purchased a property in the name of the elder brothers wife (also deceased) out of joint earnings in a hotel run by them. Plaintiff also claimed that he was in joint possession over the suit schedule property and that his brother acknowledging his contribution towards sale consideration, has made a bequeath under his will. This claim was disputed by the daughter of the elder brother.

The trial court rejected the claim stating that there is no mention in regard to the joint earning of plaintiff and his elder brother and there is no covenant indicating that the sale consideration was jointly pooled by plaintiff and his elder brother. As for the will, the trial court was of the view that the elder brother had no title over the suit schedule property and he could not have bequeathed the same.

Before the Appellate court, the plaintiff laid stress on the endorsement indicated in the sale deeds which stated that it was he the plaintiff who had handed over the sale consideration. Based on the said endorsement, he claimed that the same to proves him to have jointly invested in the property. This claim was also rejected by the Appellate court and the matter came up before the High court.

Judgment


The High Court observed that the Plaintiff has in fact placed heavy reliance on the endorsement found in all the registered sale deeds. By placing reliance on the endorsements in the sale deeds, plaintiff claims that he has equally contributed to the sale consideration. But on reading the endorsements, this Court would also find that the endorsement only indicates that the money that was paid by Rangamma was handed over by plaintiff to the vendor. The endorsement nowhere indicates that sale consideration was equally contributed by plaintiff. The properties are purchased at different point of time. 

Agreeing with the conclusions drawn by the lower courts, the HC said that if the endorsement reads as above, then it has to be inferred that the sale consideration was in fact paid by Rangamma through plaintiff who had only handed over the sale consideration. Mere handing over of sale considerations by the plaintiff at the time of execution of sale deed will not in itself create a right.

If really all the suit schedule properties were purchased through joint labour, then it was quite unnatural for an elder brother to purchase the property in the name of his wife. Obviously, if there was equal contribution, plaintiff would have never agreed to purchase the property in the name of his sister-in-law. Therefore, the theory that plaintiff has equally contributed by parting sale consideration appears to be unnatural and both the Courts have not accepted this contention. Both the Courts have concurrently held that sale consideration was paid by the sister-in-law and all the suit schedule properties are self acquired properties of the sister-in-law.


Comments

Most viewed this month

Deposit Of Minimum 20% Fine/Compensation U/s 148 NI Act Mandatory

In OP(Crl.).No.348 OF 2019, T.K.SAJEEVAN vs FRANCIS T.CHACKO, the appeal was filed against the order of the lower court to deposit 25% of the fine before filling of appeal. The appellant argued that the deposit introduced through the Section 148 of the NI Act after amendment was directory in nature as it used the term 'may' while mentioning the issue of deposit. The Kerala High Court however disagreeing held that in view of the object of the Legislature while incorporating Section 148 into N.I. Act, the word 'may' will have to be read as 'shall'. The imposition of payment contemplated under Section 148 N.I. Act cannot be restricted to some prosecutions and evaded in other prosecutions. Since the amount directed to be deposited being compensation, undoubtedly, it is liable to be ordered to be deposited irrespective of the nature of the prosecution. Therefore, the word 'may' can only be taken to have the colour and meaning of 'shall' and there

NCLT - Mere admission of receipt of money does not qualify as a financial debt

Cause Title : Meghna Devang Juthani Vs Ambe Securities Private Limited, National Company Law Tribunal, Mumbai, CP (IB) No. 974/MB-VI/2020 Date of Judgment/Order : 18.12.2023 Corum : Hon’ble Shri K. R. Saji Kumar, Member (Judicial) Hon’ble Shri Sanjiv Dutt, Member (Technical) Citied:  Carnoustie Management India Pvt. Ltd. Vs. CBS International Projects Private Limited, NCLT Swiss Ribbons Pvt. Ltd. & Anr vs. Union of India & Ors. (2019) Sanjay Kewalramani vs Sunil Parmanand Kewalramani & Ors. (2018) Pawan Kumar vs. Utsav Securities Pvt Ltd 2021 Background Application was filed under section 7 of the Insolvency and Bankruptcy Code, 2016 alleging loan of Rs, 1.70 cr is due. The Applicate identified herself as the widow and heir of the lender but could not produce any documents proving financial contract between her Late husband and the CD but claimed that the CD has accepted that money was received from her husband. The applicant subsequently filed rejoinder claiming the debt t

Vanishing promoters and languishing shareholders

Over Rs 60,000 crore of shareholders’ wealth is stuck in 1,450 companies suspended by the stock exchanges. More importantly, near 100 per cent pledging of promoter holding appears to be common in many of these companies. This, almost rules out any chance of the companies bouncing back. The suspension is for non-compliance of the listing norms. Vanishing Companies - Definition As per the definition stipulated by SEBI, any listed company, which raised moneythrough initial public offer and, thereafter, stopped operations, did not file returnseither with the RoC or SEBI and did not exist on the registered premises wastermed as vanishing.There are provisions under Companies Act under which companies are termedvanishing companies on satisfying certain conditions. it is provided a companywould be deemed to be a vanishing company, if it satisfies all the conditions given below : a) Failed to file returns with Registrar of Companies (ROC) for a period of two years; b) Failed to fil