Rajeev Miglani vs Urmil Gujral & Ors
- Court
- Delhi High Court
- Case type
- Regular First Appeal
- Decided on
- 27-03-2026
<div> <br /> $~ <br /> * <b>IN THE HIGH COURT OF DELHI AT NEW DELHI </b><br /> <b><i>th</i></b><br /> <b><i>Reserved on: 16</i></b> <b><i>December, 2025 </i></b><br /> <b><i>th</i></b><br /> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> Pronounced on: 27</i></b> <b><i> March, 2026</i></b> <i> </i><br /> + RFA 545/2016 <br /> RAJEEV MIGLANI .....Appellant <br /> Through: Mr. Ashim Vachher, Sr. Adv. with <br /> Ms. Saiba. M. Rajpal, Advocate <br /> (M:9910946849) <br /> versus <br /> <br /> URMIL GUJRAL & Anr. .....Respondents <br /> Through: Mr. Rajat Wadhwa, Mr. Gurpreet <br /> Singh, Ms. Anshika Juneja, <br /> Advocates for R-1 (M:9877135434) <br /> <b>CORAM: </b><br /> <b> </b> <b>HON'BLE MS. JUSTICE MINI PUSHKARNA </b><br /> <b> </b> <b> </b> <b> </b> <b> </b> <b>JUDGEMENT </b><br /> <b> </b><br /> <b>MINI PUSHKARNA, J. </b><br /> <b>Introduction: </b><br /> 1. The present appeal has been filed under Section 96 of the Code of <br /> nd<br /> Civil Procedure, 1908 <b>(“CPC”)</b> , against the judgment and decree dated 02 <br /> March, 2016 <b>(“impugned judgment”)</b> , passed by the Court of Additional <br /> District Judge <b>(“ADJ”)</b> – 09, Tis Hazari Courts, Delhi in <i>Suit No. 258/14</i> <br /> (Old <i>Suit No. 179/06</i> ), titled as <i>―Smt. Urmal Gujral Versus Sh. Som Nath & </i><br /> <i>Ors.‖</i> . <br /> 2. The aforesaid suit was instituted under Section 31 of the Specific <br /> Relief Act, 1963 <b>(“Specific Relief Act”) </b> by the plaintiff/respondent no. 1 <br /> herein, i.e., Smt. Urmil Gujral, <i>inter alia</i> , seeking a declaration that the <br /> <b><i>RFA 545/2016 Page 1 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> th<br /> Agreement to Sell dated 18 August, 2006 executed by the defendant no. <br /> 1/respondent no. 2, i.e., Shri Som Nath in favour of the defendant no. <br /> 2/appellant, i.e., Shri Rajeev Miglani, as null and void, and seeking <br /> cancellation of the same. There was further prayer seeking a decree of <br /> permanent injunction, restraining the appellant and respondent no. 2 from <br /> entering into any transaction in respect of the property, admeasuring 100 sq. <br /> yards, and <i> bearing No. 10/64, Tihar-I, Subhash Nagar, New Delhi– 110027 </i><br /> th <br /> <b>(“suit property”)</b> , on the basis of the Agreement to Sell dated 18 August, <br /> th <br /> 2006 and the Substitution Letter dated 08 August, 2006. <br /> 3. The Trial Court, <i>vide</i> the impugned judgment, decreed the suit and <br /> passed a decree of declaration in favour of the respondent no. 1 and against <br /> th <br /> the appellant to the effect that the Agreement to Sell dated 18 August, 2006 <br /> executed by respondent no. 2 in favour of the appellant, is null and void. The <br /> Trial Court also passed a decree of permanent injunction in favour of the <br /> respondent no. 1, thereby, restraining the appellant and respondent no. 2 <br /> from entering into any transaction of any nature in respect of the suit <br /> th <br /> property, on the basis of the Agreement to Sell dated 18 August, 2006, or <br /> th <br /> on the basis of Substitution Letter dated 08 August, 2006. <br /> 4. Before adverting to the facts of the present appeal, it is noted that this <br /> th <br /> Court, <i>vide</i> order dated 05 August, 2016, while issuing notice in the appeal, <br /> had also directed the parties to maintain <i>status quo</i> with regard to the right, <br /> title, interest and possession of the suit property. The said interim order had <br /> nd <br /> subsequently been made absolute on 02 August, 2018. <br /> st <br /> 5. By way of the order dated 01 February, 2017, this Court had recorded <br /> that respondent no. 2 had expired. Subsequently, the Legal Representatives <br /> th <br /> <b>(“LRs”) </b> of the respondent no. 2 were brought on record on 17 July, 2018. <br /> <b><i>RFA 545/2016 Page 2 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> 6. However, it is to be noted that though the LRs of respondent no. 2 <br /> were brought on record, there has been no appearance on behalf of the LRs <br /> of respondent no. 2 in the present proceedings. Thus, this Court, by way of <br /> th <br /> the order dated 08 September, 2025, recorded that the respondent no. 2 was <br /> proceeded <i>ex-parte </i> even before the Trial Court, and accordingly, the Court <br /> proceeded in the present matter in absence of the LRs of respondent no. 2. <br /> <br /> <b>Relevant Facts: </b><br /> 7. The facts, relevant for adjudication of the present appeal, as culled out <br /> from the pleadings and documents on record, are as follows: <br /> <b><i>Pre-Filing of Suit: </i></b><br /> <br /> 7.1. The present dispute pertains to the suit property, allotted to the father <br /> of the respondent no. 2, i.e., Shri Kanshi Ram, in the capacity of a lessee, by <br /> the Land and Development Office <b>(“L&DO”)</b> . <br /> 7.2. Pursuant to the death of Shri Kanshi Ram in the year 1977, <br /> respondent no. 2 and his mother, i.e., Smt. Bassi Devi, the legal heirs of Shri <br /> Kanshi Ram, got their names substituted in the records of the L&DO <i>vide</i> an <br /> th <br /> Office Letter bearing <i>No. L&DO/PS/III/370</i> , dated 15 March, 1988. <br /> 7.3. Smt. Bassi Devi and respondent no. 2 entered into negotiations with <br /> the respondent no. 1 for the sale of the suit property. In consequence thereof, <br /> the respondent no. 2 effected a total payment of Rs. 48,000/- by way of two <br /> cheques, in the following manner: <br /> rd <br /> i. Cheque bearing <i>No. 954326</i> dated 03 January, 1988, amounting to <br /> Rs. 20,000/-. <br /> nd <br /> <br /> ii. Cheque bearing <i>No. 623679/521/88</i> dated 22 March, 1988, <br /> amounting to Rs. 28,000/-. <br /> <b><i>RFA 545/2016 Page 3 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> 7.4. In <i>lieu</i> of the above payments, Smt. Bassi Devi and respondent no. 2 <br /> th <br /> issued a receipt dated 07 April, 1988 <i>(Ex. PW4/C)</i> , acknowledging the <br /> payments received from respondent no. 1. <br /> 7.5. Subsequently, Smt. Bassi Devi and the respondent no. 2 executed the <br /> th <br /> Agreement to Sell dated 07 April, 1988 <i>(Ex. PW4/A)</i> in favour of the <br /> respondent no. 1, and their respective Wills <i>(Ex. PW-1, Marks B and A)</i> , <br /> th <br /> both dated 07 April, 1988, in favour of the respondent no. 1. Further, Smt. <br /> Bassi Devi and the respondent no. 2 also executed a General Power of <br /> Attorney <b>(“GPA”)</b> of the even date <i>(Ex. PW-2/A)</i> , in favour of the husband <br /> of respondent no. 1, i.e., Shri Iqbal Singh. In addition to this, Smt. Bassi <br /> Devi and the respondent no. 2 had also executed an Affidavit <i>(Ex. PW-4/B)</i> , <br /> in January 1988 stating that they had sold the suit property to Shri Iqbal <br /> Singh, and appointed Shri Girish Kumar as the care taker of the suit <br /> th <br /> property. The two Wills as well as the GPA dated 07 April, 1988 were duly <br /> registered with the office of Sub – Registrar, Kashmere Gate. <br /> 7.6. In 1995, Smt. Bassi Devi demised, leaving behind her son Shri Som <br /> Nath, i.e., respondent no. 2 as her only legal heir. Thereafter, respondent no. <br /> th <br /> 2, by way of a letter dated 18 July, 2006, applied to the L&DO seeking <br /> substitution of his name with respect to the suit property. The said <br /> substitution in favour of respondent no. 2 was granted by the L&DO <i>vide</i> <br /> th <br /> Substitution Letter dated 08 August, 2006. <br /> 7.7. Thereafter, respondent no. 2 entered into negotiations with the <br /> appellant for the sale of the suit property and consequently, respondent no. 2 <br /> executed a registered Agreement to Sell, along with a GPA, Special Power <br /> th <br /> of Attorney <b>(“SPA”)</b> , and Will, all dated 18 August, 2006, in favour of the <br /> appellant herein, upon the appellant making a payment of Rs. 4.9 Lacs, in <br /> <b><i>RFA 545/2016 Page 4 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> cash. Respondent no. 2 also executed an undated Affidavit and a receipt in <br /> favour of the appellant. <br /> th <br /> 7.8. The husband of respondent no. 1 issued a letter dated 14 August, <br /> 2006 to the L&DO on the ground that he had information that respondent <br /> no. 2 had applied for conversion of the suit property as freehold, despite <br /> having sold the suit property to the respondent no. 1 in the year 1988. <br /> th <br /> 7.9. On receipt of the aforesaid letter, the L&DO issued a letter dated 19<br /> September, 2006 to respondent no. 2, to explain the reasons for applying for <br /> substitution of the suit property in his name, despite having executed the <br /> th <br /> Agreement to Sell dated 07 April, 1988 in favour of the respondent no. 1. <br /> th <br /> However, the said letter returned undelivered on 27 September, 2006. <br /> th <br /> 7.10. In the meantime, the L&DO also received a letter dated 07<br /> September, 2006 from the appellant, stating that he had purchased the suit <br /> th <br /> property from respondent no. 2 on 18 August, 2006 and that he would be <br /> applying for conversion of the suit property to freehold. <br /> th <br /> 7.11. Thereafter, a letter dated 18 September, 2006 was addressed by Shri <br /> Iqbal Singh to the L&DO requesting for cancellation of the Substitution <br /> th <br /> Letter dated 08 August, 2006. <br /> 7.12. The appellant applied to the L&DO for conversion of the suit <br /> th <br /> property, by way an application dated 25 September, 2006. <br /> th <br /> 7.13. The L&DO, <i>vide</i> its letter dated 28 December, 2006, cancelled the <br /> th <br /> substitution carried out on 08 August, 2006 in favour of the respondent no. <br /> 2 with respect to the suit property, on the ground that a fraud was being <br /> played by respondent no. 2 by executing two different Agreements to Sell <br /> and GPAs in respect of the suit property. Further, the conversion application <br /> th <br /> filed by the appellant was also rejected by the L&DO on 28 December, <br /> <b><i>RFA 545/2016 Page 5 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> 2006 on account of the fact that title of the property was disputed and the <br /> matter was <i>sub-judice</i> . <br /> 7.14. The husband of the respondent no. 1 also issued a legal notice dated <br /> nd<br /> 22 September, 2006 to the appellant and respondent no. 2, along with the <br /> th <br /> attesting witnesses of the Agreement to Sell, and GPA dated 18 August, <br /> 2006, namely, Shri Suresh Singh and Shri Sanjay Kumar, calling upon them <br /> th <br /> to get the Agreement to Sell dated 18 August, 2006, as well as the <br /> th <br /> Substitution Letter dated 08 August, 2006 cancelled, since the respondent <br /> no. 1 is the legal owner of the suit property. However, no reply was received <br /> by respondent no. 1 to the said notice. <br /> 7.15. Aggrieved thereby, the respondent no. 1 filed the <i>Suit No. 258/14</i> (Old <br /> <i>Suit No. 179/06</i> ) before the Trial Court. <br /> <b><i>Post-Filing of Suit: </i></b><br /> th <br /> 7.16. The Trial Court, by way of the order dated 07 February, 2007 deleted <br /> defendant no. 3, i.e., the L&DO from the array of parties, since the <br /> th <br /> Substitution Letter dated 08 August, 2006 already stood cancelled, thereby, <br /> rendering prayer no. (ii) of the suit against defendant no. 3, as infructuous. <br /> th <br /> 7.17. The Trial Court framed the following issues <i>vide</i> order dated 06<br /> March, 2007: <br /> <i>―xxx xxx xxx </i><br /> <i> </i><br /> <i>1. Whether the General Power of Attorney, agreement to sale and Will </i><br /> <i>dated 07/4/88 are forged documents? OPD1 </i><br /> <i>2. Whether the suit is without cause of action? OPD1 </i><br /> <i>3. Whether the agreement to sale dated 18/8/06 is a null and void </i><br /> <i>document? OPP </i><br /> <i>4. Whether the plaintiff is entitled to the decree of declaration as prayed </i><br /> <i>for? OPP </i><br /> <b><i>RFA 545/2016 Page 6 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <i>5. Whether the plaintiff is entitled to decree of permanent injunction as </i><br /> <i>prayed for? OPP </i><br /> <i>6. Relief. </i><br /> <i>xxx xxx xxx‖ </i><br /> <i> </i><br /> th <br /> 7.18. The Trial Court recorded by way of the order dated 12 October, 2007 <br /> that defendant no. 1, i.e., respondent no. 2 herein shall be proceeded <i>ex-</i><br /> <i>parte</i> and the right of respondent no. 2 to cross-examine was also closed. <br /> 7.19. The Trial Court recorded the statement of the respondent no. 1 herein <br /> th<br /> in the order dated 04 May, 2010 that the appellant herein had also filed a <br /> <i>Suit bearing No. 366/09 </i> with respect to the suit property and for cancellation <br /> of documents relied upon, in the present suit. Further, the plaintiff had <br /> sought time to move an appropriate application for consolidation of the two <br /> suits to avoid conflicting judgments by different Courts. <br /> 7.20. The suit filed by the appellant herein, being <i>CS No. 119/16 </i><br /> <i>(11842/16)</i> , titled as <i>―Rajeev Miglani Versus Smt. Urmil Gujral and </i><br /> <i>Another‖</i> , was dismissed by ADJ-01 (West), Tis Hazari Courts, Delhi <i>vide</i> <br /> rd <br /> judgment dated 23 November, 2016, as being barred by <i>res judicata</i> . <br /> nd <br /> 7.21. The Trial Court passed the impugned judgment and decree dated 02<br /> March, 2016, whereby, the suit was decreed in favour of respondent no. 1 to <br /> th <br /> the effect that the Agreement to Sell dated 18 August, 2006 executed by <br /> respondent no. 2 in favour of the appellant herein, is null and void. Thus, the <br /> present appeal has been filed by the appellant/defendant no. 2, seeking to set <br /> aside the impugned judgment and decree. <br /> <b>Submissions of the Parties: </b><br /> 8. Before this Court, the appellant has raised the following contentions <br /> for seeking setting aside of the impugned judgment: <br /> <b><i>RFA 545/2016 Page 7 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> 8.1. The suit filed before the Trial Court was not maintainable as <br /> th <br /> cancellation of the Agreement to Sell dated 18 August, 2006, could not <br /> have been sought by a non-executant/third-party to said document under <br /> Section 31 of the Specific Relief Act. It is a well settled proposition of law <br /> that for seeking declaration of a document as null and void, the non-<br /> executant can approach the Court only under Section 34 of the Specific <br /> Relief Act. <br /> 8.2. Had the suit been filed under Section 34 of Specific Relief Act, it <br /> would still not be maintainable, as a suit is maintainable under Section 34 of <br /> Specific Relief Act only when the person has an interest in the property. <br /> However, as the claim of the respondent no. 1 to the suit property is only <br /> th <br /> based upon an unregistered Agreement to Sell dated 07 April, 1988, there is <br /> no interest of the respondent no. 1 with respect to the suit property. <br /> 8.3. A suit under Section 34 of Specific Relief Act would also not be <br /> maintainable without seeking a relief of specific performance. In the present <br /> case, the respondent no. 1 was aware that the remedy to seek specific <br /> th <br /> performance of the unregistered Agreement to Sell dated 07 April, 1988, <br /> was already barred by limitation. To avoid the bar of limitation, respondent <br /> no. 1 is alleging ownership by virtue of an unregistered Agreement to Sell, <br /> which cannot be allowed. <b> </b><br /> 8.4. Further, the suit was not maintainable as respondent no. 1 should have <br /> sought title to the suit property, as well as possession of the entire suit <br /> property, in order to claim the consequential relief of specific performance. <br /> Respondent no. 1 does not have any <i>locus standi</i> to challenge the Agreement <br /> th <br /> to Sell dated 18 August, 2006, and the only relief, if any, that respondent <br /> <b><i>RFA 545/2016 Page 8 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> no. 1 could have sought was with respect to specific performance, on the <br /> th <br /> basis of the Agreement to Sell dated 07 April, 1988. <b> </b><br /> 8.5. A suit will not be maintainable under Section 34 of Specific Relief <br /> Act since relief of possession has not been sought by the respondent no. 1. <br /> th <br /> Mere reliance on the unregistered Agreement to Sell dated 07 April, 1988 is <br /> insufficient to prove possession of the plaintiff, particularly when, the <br /> plaintiff/respondent no. 1 herein has admitted in her cross-examination that <br /> the suit property was in possession of the tenants. <b> </b><br /> <br /> 8.6. In the absence of seeking relief of declaration of title, the suit seeking <br /> cancellation of documents was not maintainable, since respondent no. 1 is <br /> not the owner of the suit property. This is on account of absence of any Sale <br /> Deed in favour of respondent no. 1 and the absence of any intention on part <br /> of respondent no. 2 to sell the suit property to respondent no. 1. <b> </b><br /> 8.7. The respondent no. 1 has not produced any document on record <br /> showing acknowledgement of the two cheques by way of which, the alleged <br /> payment of Rs. 48,000/- was made from her account. Respondent no. 1, i.e., <br /> <i>PW-4</i> , has admitted in her testimony that she had no knowledge of the bank <br /> accounts of Smt. Bassi Devi and Shri Som Nath. Also, no confirmation has <br /> been put forth showing encashment of those cheques in their account. <b> </b><br /> th <br /> 8.8. All the documents dated 07 April, 1988 are forged. The Trial Court <br /> erred in clubbing the issue nos. 1 to 5 together, even though, issue no. 1, <br /> th <br /> which dealt with forgery of the documents dated 07 April, 1988 was an <br /> independent issue. <b> </b><br /> th <br /> 8.9. The documents dated 07 April, 1988 were never intended to sell the <br /> suit property and were therefore, never acted upon. The Trial Court erred in <br /> not considering that Smt. Bassi Devi was a maid servant of respondent no. 1. <br /> <b><i>RFA 545/2016 Page 9 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> Smt. Bassi Devi was given a loan by respondent no. 1, and some papers <br /> were executed in the form of security. However, the said security was not <br /> executed with the intent to sell the suit property. Further, the said security <br /> papers are not papers having the same content as Exhibits, i.e., <i>Ex.</i> <i>PW-4/A, </i><br /> <i>Ex. PW2/A, Ex. PW5/1, Ex. PW5/2</i> and <i>Ex.</i> <i>PW1/B</i> , respectively. <br /> 8.10. The Trial Court has erred in not considering the forged aspects of the <br /> documents of the year 1988 and has proceeded by assuming that the said <br /> documents are genuine. <br /> <br /> 8.11. The documents of the year 1988, are not only inconsistent to each <br /> other, but are also not capable of execution with respect to the content, as <br /> th <br /> mentioned therein. The Agreement to Sell dated 07 April, 1988, does not <br /> bear the signatures of <i>PW-5</i> , i.e., Shri Shiv Chander Talwar. Further, in his <br /> th <br /> cross-examination, <i>PW-5</i> admits that he only signed the GPA dated 07<br /> April, 1988 and thus, his signatures which appear on both the Wills dated <br /> th <br /> 07 April, 1988, as well as the receipt of the same date, are forged. <b> </b><br /> 8.12. The documents of the year 1988, although were executed on the same <br /> th <br /> date, differ in terms of their content. While the Agreement to Sell dated 07<br /> April, 1988, shows Shri Girish Gujral as a tenant in the suit property, the <br /> th <br /> Affidavit dated 07 April, 1988 shows Shri Girish Gujral to be a care taker <br /> th <br /> of the suit property. Moreover, the GPA dated 07 April, 1988 incorrectly <br /> records the address of respondent no. 2 as being <i>51/8, Ramesh Nagar, New </i><br /> <i>Delhi</i> . <b> </b><br /> th <br /> 8.13. Once there were discrepancies found in the documents dated 07<br /> April, 1988, the <i>onus</i> to explain the same ought to have been on respondent <br /> no. 1. However, there was no explanation by respondent no. 1 with regard <br /> thereto. <b> </b><br /> <b><i>RFA 545/2016 Page 10 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> 8.14. The respondent no. 1 failed to prove possession of the suit property. <br /> Respondent no. 1 has admitted that she was residing in the adjoining <br /> property, i.e., <i>10/128, Tihar – I, Subash Nagar, New Delhi – 110027</i> , and <br /> thereafter, shifted to another property bearing <i>No.</i> <i>F-73, Rajouri Garden, </i><br /> <i>New Delhi</i> . Therefore, respondent no. 1 never occupied the suit property <br /> herself. <b> </b><br /> 8.15. The Trial Court failed to consider the testimony of <i>PW-4</i> , i.e., <br /> respondent no. 1, wherein, she claimed possession of the suit property only <br /> through her son, i.e., Shri Girish Gujral, who was 19 years of age at that <br /> time, and was shown as a tenant, while he was living with respondent no. 1. <br /> Therefore, the respondent no. 1 has failed to prove any material showing <br /> that she acquired the possession of the suit property. <b> </b><br /> 8.16. It is an admitted fact that Shri Girish Gujral was in occupation of a <br /> single room and not the entire suit property. Therefore, the question of <br /> respondent no. 1 being in possession of the entire suit property does not <br /> arise. Further, neither any possession letter nor any rent agreement has been <br /> brought forth as proof of possession of Shri Girish Gujral, the alleged tenant, <br /> nor any receipt showing the tenancy at Rs. 150/- has been put forth. There is <br /> no deposition on record as to when the possession was taken away from Shri <br /> Girish Gujral and when he had vacated the suit property. <b> </b><br /> 8.17. Respondent no. 1 in her cross-examination has also stated that apart <br /> from the room allegedly in occupation of Shri Girish Gujral, the rest of the <br /> property was occupied by other tenants. However, respondent no. 1 failed to <br /> bring forward any tenant to show that the occupants acknowledged <br /> respondent no. 1 as a landlady. <br /> <b><i>RFA 545/2016 Page 11 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> 8.18. The testimony of <i>PW-4</i> , i.e., respondent no. 1 was materially <br /> contradicted in her cross-examination with respect to possession of the suit <br /> property. <br /> 8.19. The possessory rights are the essence of the set of document called the <br /> GPA. Since the GPA does not indicate that the possession of the suit <br /> property was delivered to respondent no. 1, and in addition to this, the <br /> respondent no. 1 has admitted to never having occupied the suit property <br /> th <br /> from 07 April, 1988 till the disposal of the suit property, therefore, the Trial <br /> Court failed to appreciate that respondent no. 1 was unable to prove <br /> possession of the suit property. <br /> 8.20. In the absence of any possessory rights being proved by the <br /> respondent no. 1, the Trial Court had no occasion to consider that the <br /> th <br /> document dated 07 April, 1988 conferred title in favour of respondent no. <br /> 1. <b> </b><br /> 8.21. The Trial Court erred in observing that the appellant failed to prove <br /> his possession over the suit property as it is an admitted case of the parties <br /> that the suit property was under the occupation of the tenants and the <br /> th th <br /> appellant has produced two Ration Cards dated 05 February, 2007 and 06<br /> March, 2007, in favour of the two tenants in the suit property. <br /> 8.22. The appellant conducted due diligence before purchasing the suit <br /> property, and is thus a <i>bona fide</i> purchaser of the suit property, protected <br /> under Section 53-A of the Transfer of Property Act, 1882 <b>(“TP Act”) </b> and <br /> Section 19(1) of Specific Relief Act. <br /> 8.23. Respondent no. 1 failed to inform the L&DO about the alleged <br /> th <br /> transactions dated 07 April, 1988 and have failed to provide any reason for <br /> it. Respondent no. 1 has also not carried out the exercise of mutation in the <br /> <b><i>RFA 545/2016 Page 12 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> th <br /> L&DO records, till date. Since the documents dated 07 April, 1988 are <br /> sham and void, respondent no. 1 never presented these documents for <br /> mutation before the authorities. <br /> 8.24. The house tax records have not been mutated in favour of respondent <br /> no. 1 from the year 1988 till date, and the suit property continues to be under <br /> the name of Smt. Bassi Devi and Shri Som Nath. Respondent no. 1 has <br /> claimed to have paid the property tax for the suit property on behalf of Shri <br /> Som Nath only for the last 3-4 years. The fact remains that Smt. Bassi Devi <br /> and Shri Som Nath have been paying the house tax from the year 1988 till <br /> the year 2004. <br /> th <br /> 8.25. The Agreement to Sell dated 18 August, 2006 was a registered <br /> document and the receipt of the consideration of Rs. 4.9 Lacs in cash was <br /> th <br /> never disputed by respondent no. 2. The documents dated 18 August, 2006 <br /> were executed only after due mutation of the suit property in favour of <br /> respondent no. 2. This shows that since all the ingredients of Sale Deed exist <br /> th <br /> in the document dated 18 August, 2006, therefore, even though the <br /> document is titled as an Agreement to Sell, it is in substance a Sale Deed <br /> itself. <br /> 8.26. Even if the respondent no. 1 has any other material document, the <br /> same stands barred by Section 19 of the Specific Relief Act, which clearly <br /> lays down that any previous transaction, including, Agreement to Sell, will <br /> not come in the way of a <i>bona fide</i> purchaser for consideration. This aspect <br /> of the matter was specifically argued and pleaded but has not been <br /> considered by the Trial Court. <br /> 8.27. The Trial Court failed to consider that the respondent no. 1 relied <br /> th<br /> upon the Agreement to Sell and GPA dated 07 April, 1988 before the <br /> <b><i>RFA 545/2016 Page 13 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> L&DO, however, in the suit, the respondent no. 1 has eventually relied upon <br /> th<br /> the documents, which also contain the two registered Wills dated 07 April, <br /> th<br /> 1988, as well as an Affidavit of January, 1988 and a receipt dated 07 April, <br /> 1988 to show the ownership. <br /> 8.28. It is a settled position of law, that unregistered documents cannot form <br /> the basis for transfer of title and the same cannot be read in evidence except <br /> for collateral purpose. <br /> 8.29. The Trial Court has observed that the appellant did not place on <br /> record the proof of payment of Rs. 4.9 Lacs, whereas, the respondent no. 1 <br /> has proved the payment of Rs. 48,000/- by way of submitting two cheques. <br /> However, perusal of the record proves the contrary. The appellant during the <br /> th <br /> course of cross-examination on 13 October, 2009 has brought on record <br /> that the amount of Rs. 4.9 Lacs was withdrawn from the Oriental Bank of <br /> Commerce having branch at <i>Pushpanjali Enclave, New Delhi- 110034.</i> The <br /> original copy of the Passbook was produced on the next date of hearing. <br /> Even otherwise, the payment of Rs. 4.9 Lacs stood acknowledged by <br /> respondent no. 2 in his written statement, already on record. <br /> 8.30. The reliance placed by the respondent no. 1 on Section 202 of the <br /> Indian Contract Act, 1872 <b>(“Contract Act”)</b> is misplaced. The registered <br /> th <br /> GPA dated 07 April, 1988 in favour of Shri Iqbal Singh, husband of the <br /> respondent no. 1, does not create any interest which cannot be revoked in <br /> th <br /> terms of Section 202 of the Contract Act. The GPA dated 07 April, 1988 is <br /> th <br /> silent with respect to the Agreement to Sell dated 07 April, 1988, as well as <br /> the alleged sale consideration of Rs. 48,000/-. The said GPA has been <br /> executed in favour of Shri Iqbal Singh, while the Agreement to Sell is in <br /> favour of respondent no. 1. Thus, the GPA only grants the right to Shri Iqbal <br /> <b><i>RFA 545/2016 Page 14 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> Singh to execute a Sale Deed on behalf of Smt. Bassi Devi and Shri Som <br /> Nath, which was admittedly never done. Hence, Section 202 of the Contract <br /> Act has no application to the present case. <b> </b><br /> th <br /> 8.31. The registered Wills dated 07 April, 1988 do not convey any title in <br /> favour of respondent no. 1 since respondent no. 2 was still alive when the <br /> th <br /> suit was filed. Additionally, the Wills dated 07 April, 1988 have also not <br /> been proved as per the provisions of Indian Succession Act, 1925 <br /> <b>(“Succession Act”)</b> . <b> </b><br /> <br /> 9. <i>Per contra</i> , the submissions put forth by respondent no. 1 are as follows: <br /> 9.1. It is the case of the respondent no. 1 that she became the owner of the <br /> suit property, having purchased the same from respondent no. 2, i.e., Shri <br /> th <br /> Som Nath and his mother, Smt. Bassi Devi on 07 April, 1988, through a <br /> registered Agreement to Sell, GPA, two Wills and Affidavit of the year 1988. <br /> 9.2. The respondent no. 1 claims that the possession of the suit property <br /> was already with her son, i.e., Shri Girish Gujral, at the time of execution of <br /> th <br /> the documents on 07 April, 1988. <br /> 9.3. After the demise of Smt. Bassi Devi in the year 1995, respondent no. <br /> 2 dishonestly got his name substituted in the records of the L&DO and <br /> executed false documents for selling the suit property in favour of the <br /> appellant, even though, respondent no. 2 had no right or title over the suit <br /> th <br /> property after the sale of the suit property on 07 April, 1988. <br /> 9.4. Respondent no. 2 was proceeded <i>ex-parte</i> before the Trial Court. <br /> Therefore, the witnesses were cross-examined only by counsel of the <br /> appellant. The appellant was neither a party, nor a witness, to the documents <br /> relied upon by respondent no. 1 in support of her claim of ownership over <br /> the suit property. <br /> <b><i>RFA 545/2016 Page 15 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> 9.5. The respondent no. 2 failed to appear in the witness box or lead any <br /> th <br /> evidence to prove that the documents dated 07 April, 1988 were forged and <br /> thus, the said documents, duly proved by respondent no. 1, remain <br /> uncontroverted. <br /> 9.6. The appellant, in his cross-examination, has stated that he cannot say <br /> th <br /> as to why respondent no. 2 executed the documents dated 07 April, 1988 in <br /> favour of respondent no. 1. In saying so, the appellant has admitted to the <br /> execution of these documents. Once these documents had been proved and <br /> admitted, Sections 91 and 92 of the Indian Evidence Act, 1872 <b>(“Evidence </b><br /> <b>Act”) </b> also come into play and no oral evidence could have been led to <br /> controvert the contents of such documents. <br /> 9.7. The Trial Court, upon appreciation of the pleadings and the evidence, <br /> th<br /> rightly came to the conclusion that the registered documents dated 07 <br /> April, 1988 executed by the respondent no. 2 and Smt. Bassi Devi in favour <br /> of respondent no. 1, stood duly proved and the appellant and respondent no. <br /> 2 failed to discharge the <i>onus </i> which was put upon them, as the respondent <br /> no. 2 failed to enter the witness box or lead any other evidence. <br /> 9.8. The respondent no. 1 has also become owner of the suit property by <br /> th <br /> virtue of the registered Wills dated 07 April, 1988, as during the pendency <br /> of the present appeal, Shri Som Nath had also left for his heavenly abode. <br /> th<br /> The Wills dated 07 April, 1988 of Shri Som Nath and Late Smt. Bassi <br /> Devi, have thus become fully operational after their death and the suit <br /> property has accordingly devolved upon respondent no. 1 on that count too. <br /> 9.9. The Trial Court correctly applied the rule of <i>preponderance of </i><br /> <i>probabilities</i> and came to the conclusion that respondent no. 1 had acquired <br /> rights over the suit property by virtue of registered documents executed in <br /> <b><i>RFA 545/2016 Page 16 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> the year 1988, and that after execution of the said documents, respondent no. <br /> th <br /> 2 had no authority to execute the documents dated 18 August, 2006 in <br /> favour of the appellant. The conclusions derived by the Trial Court are based <br /> on correct appreciation of facts and law, and hence, no fault can be found <br /> nd <br /> with the impugned judgment dated 02 March, 2016. <br /> <b>Findings and Analysis</b> : <b> </b><br /> 10. I have heard learned counsels for the parties, and perused the <br /> documents and evidence on record. <br /> <br /> 11. The Trial Court has decreed the suit in favour of respondent no. 1 by <br /> th <br /> holding that the Agreement to Sell dated 18 August, 2006, executed by <br /> respondent no. 2 in favour of the appellant, is null and void. The right of <br /> respondent no. 1 in the suit property has been recognized on the basis of the <br /> documents and possession of the suit property in favour of respondent no. 1. <br /> 12. In the present appeal, the appellant has primarily contended that no <br /> right, title, or interest passed in favour of the respondent no. 1 based on the <br /> th <br /> set of the documents dated 07 April, 1988. The appellant has asserted right <br /> over the suit property on the basis of subsequent documents executed in his <br /> favour. Thus, in essence, the moot question before this Court is as to who <br /> has right and interest over the suit property. <br /> 13. Both the appellant as well as respondent no. 1, have Agreements to <br /> Sell in their favour, and it is an admitted and undisputed position that there <br /> exists no registered Sale Deed in favour of either the appellant or the <br /> respondent no. 1. In the present case, the respondent no. 2, had earlier <br /> th <br /> executed a set of documents dated 07 April, 1988 in favour of respondent <br /> no. 1, along with the other co-owner, i.e., his mother, Late Smt. Bassi Devi. <br /> <b><i>RFA 545/2016 Page 17 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> Subsequently, after the death of his mother, the respondent no. 2 executed <br /> th <br /> another set of documents dated 18 August, 2006 in favour of the appellant. <br /> 14. It is to be noted that respondent no. 2 was proceeded <i>ex-parte</i> in the <br /> suit proceedings. The LRs of the respondent no. 2, though impleaded before <br /> this Court, never entered appearance and noting said fact, as well as the fact <br /> that the respondent no. 2 had been proceeded <i>ex-parte</i> even in the Trial <br /> Court, this Court proceeded to hear the present matter in the absence of <br /> respondent no. 2. <br /> <b>Maintainability of the Suit</b> : <b> </b><br /> 15. At the outset, this Court shall deal with the contention of the appellant <br /> that the suit filed by respondent no. 1, as plaintiff, was not maintainable on <br /> the ground that the respondent no. 1, being a non-executant to the <br /> th <br /> Agreement to Sell dated 18 August, 2006, could not have filed a suit <br /> seeking cancellation thereof under Section 31 of the Specific Relief Act. <br /> 16. It is to be noted that the respondent no. 1 had filed the suit under <br /> Section 31 of the Specific Relief Act, <i>inter alia</i> , seeking a declaration that <br /> th <br /> the Agreement to Sell dated 18 August, 2006, executed by respondent no. 2 <br /> in favour of the appellant, was null and void, and thereby, sought its <br /> cancellation. <br /> 17. In this regard, it would be fruitful to refer to Section 31 of the Specific <br /> Relief Act, which reads as under: <br /> <i>―xxx xxx xxx </i><br /> <i> </i><br /> <b><i>31. When cancellation may be ordered.— </i></b><br /> <i>(1) </i> <b><i>Any person against whom a written instrument is void or </i></b><br /> <b><i>voidable, and who has reasonable apprehension that such </i></b><br /> <b><i>instrument, if left outstanding may cause him serious injury, may </i></b><br /> <b><i>sue to have it adjudged void or voidable; and the court may, in its </i></b><br /> <b><i>discretion, so adjudge it and order it to be delivered up and </i></b><br /> <b><i>cancelled</i></b> <i>. </i><br /> <b><i>RFA 545/2016 Page 18 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <i> </i><br /> <i>(2) If the instrument has been registered under the Indian Registration </i><br /> <i>Act, 1908 (16 of 1908), the court shall also send a copy of its decree </i><br /> <i>to the officer in whose office the instrument has been so registered; </i><br /> <i>and such officer shall note on the copy of the instrument contained in </i><br /> <i>his books the fact of its cancellation.‖ </i><br /> <i> </i><br /> <i>xxx xxx xxx‖ </i><br /> <i> </i> <i> </i> <i> </i> <i> </i> <i> </i> <i> </i> <i> (Emphasis Supplied) </i><br /> <i> </i><br /> 18. Reading of the aforesaid Section clearly demonstrates that a suit under <br /> Section 31 of the Specific Relief Act can be filed by any person with respect <br /> to a written instrument, against whom the instrument is void or voidable, <br /> and who has reasonable apprehension that if such instrument is left <br /> outstanding, the same may cause serious injury to such person. <br /> 19. The purport of Section 31 of the Specific Relief Act is that a person <br /> can resort to legal proceedings to have a written instrument declared as void <br /> or voidable against him, if such written instrument, if left pending, can cause <br /> adverse implications to the rights of such person. <br /> 20. The underlying principle behind Section 31 of the Specific Relief Act <br /> is that an instrument, if left outstanding and unresolved, may be a source of <br /> potential mischief, and operate as adversarial to the right of a person. Thus, <br /> the jurisdiction under Section 31 of the Specific Relief Act is a protective or <br /> preventive one. <br /> 21. A mere reading of the provision makes it abundantly clear that the <br /> relief under Section 31 of the Specific Relief Act is not restricted to only <br /> cases of fraud, mistake, or undue influence on the executant. The scope of <br /> Section 31 of the Specific Relief Act is wide enough to incorporate within <br /> its import a challenge to an instrument for being adversarial to the interest of <br /> a party against whom it may operate, in different circumstances. <br /> 22. The question raised before this Court by the appellant is as to the <br /> <b><i>RFA 545/2016 Page 19 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <i>locus</i> of a person who can file a suit under Section 31 of the Specific Relief <br /> Act. <br /> 23. In this regard, it is apposite to refer to the decision of the Supreme <br /> Court in the case of <b><i>Md. Noorul Hoda Versus Bibi Raifunnisa and Others, </i></b><br /> <b><i>(1996) 7 SCC 767</i></b> , wherein, the Supreme Court held that the words <i>―any </i><br /> <i>person‖</i> in Section 31 of the Specific Relief Act would include a person <br /> seeking derivative title from his seller, in the following manner: <br /> <i>―xxx xxx xxx </i><br /> <b><i>6.</i></b> <i> The question, therefore, is as to whether Article 59 or Article 113 of </i><br /> <i>the Schedule to the Act is applicable to the facts in this case. Article </i><br /> <i>59 of the Schedule to the Limitation Act, 1908 had provided inter alia </i><br /> <i>for suits to set aside decree obtained by fraud. There was no specific </i><br /> <i>article to set aside a decree on any other ground. In such a case, the </i><br /> <i>residuary Article 120 in Schedule III was attracted. The present </i><br /> <i>Article 59 of the Schedule to the Act will govern any suit to set aside a </i><br /> <i>decree either on fraud or any other ground. Therefore, Article 59 </i><br /> <i>would be applicable to any suit to set aside a decree either on fraud or </i><br /> <i>any other ground. It is true that Article 59 would be applicable if a </i><br /> <i>person affected is a party to a decree or an instrument or a contract. </i><br /> <i>There is no dispute that Article 59 would apply to set aside the </i><br /> <i>instrument, decree or contract between the inter se parties. The </i><br /> <i>question is whether in case of person claiming title through the party </i><br /> <i>to the decree or instrument or having knowledge of the instrument or </i><br /> <i>decree or contract and seeking to avoid the decree by a specific </i><br /> <i>declaration, whether Article 59 gets attracted? As stated earlier, </i><br /> <i>Article 59 is a general provision. In a suit to set aside or cancel an </i><br /> <i>instrument, a contract or a decree on the ground of fraud, Article 59 </i><br /> <i>is attracted. The starting point of limitation is the date of knowledge of </i><br /> <i>the alleged fraud. When the plaintiff seeks to establish his title to the </i><br /> <i>property which cannot be established without avoiding the decree or </i><br /> <i>an instrument that stands as an insurmountable obstacle in his way </i><br /> <i>which otherwise binds him, though not a party, the plaintiff </i><br /> <i>necessarily has to seek a declaration and have that decree, instrument </i><br /> <i>or contract cancelled or set aside or rescinded. </i> <b><i>Section 31 of the </i></b><br /> <b><i>Specific Relief Act, 1963 regulates suits for cancellation of an </i></b><br /> <b><i>instrument which lays down that any person against whom a written </i></b><br /> <b><i>instrument is void or voidable and who has a reasonable </i></b><br /> <b><i>apprehension that such instrument, if left outstanding, may cause </i></b><br /> <b><i>him serious injury, can sue to have it adjudged void or voidable and </i></b><br /> <b><i>RFA 545/2016 Page 20 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <b><i>the court may in its discretion so adjudge it and order it to be </i></b><br /> <b><i>delivered or cancelled. It would thus be clear that the word „person‟ </i></b><br /> <b><i>in Section 31 of the Specific Relief Act is wide enough to encompass </i></b><br /> <b><i>a person seeking derivative title from his seller.</i></b> <i> It would, therefore, </i><br /> <i>be clear that if he seeks avoidance of the instrument, decree or </i><br /> <i>contract and seeks a declaration to have the decrees set aside or </i><br /> <i>cancelled he is necessarily bound to lay the suit within three years </i><br /> <i>from the date when the facts entitling the plaintiff to have the decree </i><br /> <i>set aside, first became known to him. </i><br /> <i> </i><br /> <i>xxx xxx xxx‖ </i><br /> <i>(Emphasis Supplied) </i><br /> <i> </i><br /> 24. While elucidating the concept of <i>―any person‖</i> under Section 31 of <br /> the Specific Relief Act, the Supreme Court in the case of <b><i>Deccan Paper </i></b><br /> <b><i>Mills Company Limited Versus Regency Mahavir Properties and Others, </i></b><br /> <b><i>(2021) 4 SCC 786, </i></b> has held as follows: <br /> <i>―xxx xxx xxx </i><br /> <i> </i><br /> <b><i>21.</i></b> <i> A </i> <i>reading </i> <i>of </i> <i>the </i> <i>aforesaid </i> <i>judgment </i> <i>[Muppudathi </i><br /> <i>Pillai v. Krishaswami Pillai, 1959 SCC OnLine Mad 314 : (1959) 72 </i><br /> <i>LW 543] of the Full Bench would make the position in law crystal </i><br /> <i>clear. </i> <b><i>The expression “any person” does not include a third party, </i></b><br /> <b><i>but is restricted to a party to the written instrument or any person </i></b><br /> <b><i>who can bind such party. Importantly, relief under Section 39 of the </i></b><br /> <b><i>Specific Relief Act, 1877 would be granted only in respect of an </i></b><br /> <b><i>instrument likely to affect the title of the plaintiff, and not of an </i></b><br /> <b><i>instrument executed by a stranger to that title. The expression “any </i></b><br /> <b><i>person” in this section has been held by this Court to include a </i></b><br /> <b><i>person seeking derivative title from his seller</i></b> <i> [see Mohd. Noorul </i><br /> <i>Hoda v. Bibi Raifunnisa [Mohd. Noorul Hoda v. Bibi Raifunnisa, </i><br /> <i>(1996) 7 SCC 767] , at p. 771]. </i> <b><i>The principle behind the section is to </i></b><br /> <b><i>protect a party or a person having a derivative title to property from </i></b><br /> <b><i>such party from a prospective misuse of an instrument against him.</i></b> <i> </i><br /> <i>A reading of Section 31(1) then shows that when a written instrument </i><br /> <i>is adjudged void or voidable, the Court may then order it to be </i><br /> <i>delivered up to the plaintiff and cancelled—in exactly the same way as </i><br /> <i>a suit for rescission of a contract under Section 29. </i> <b><i>Thus far, it is </i></b><br /> <b><i>clear that the action under Section 31(1) is strictly an action inter </i></b><br /> <b><i>partes or by persons who obtained derivative title from the parties, </i></b><br /> <b><i>and is thus in personam</i></b> <i>. </i><br /> <i> </i><br /> <i>xxx xxx xxx‖ </i><br /> <i>(Emphasis Supplied) </i><br /> <b><i>RFA 545/2016 Page 21 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <br /> 25. Thus, from a perusal of the provision, as well as both the judgments <br /> referred hereinabove, it is evident that the language of Section 31 of the <br /> Specific Relief Act is clear and unambiguous, and has a wider connotation. <br /> The words <i>―any person‖ </i> cannot be given a restricted interpretation, to only <br /> include an executant of the instrument. <i>―Any person‖</i> who can file a suit <br /> under Section 31 of the Specific Relief Act would include not only the <br /> executant of the instrument, but also a person who can bind a party to such <br /> instrument, i.e., the executants of the instrument, with respect to the subject <br /> matter of the instrument. A party can file a suit under the said provision <br /> when his right is affected by the instrument sought to be cancelled, and he <br /> has the capacity to bind the parties to such instrument, on account of right <br /> asserted by such person over the subject matter of the instrument. <br /> 26. Thus, the term <i>―any person‖</i> includes every person whose right is <br /> affected by the instrument, and is not a third party or a stranger, who <br /> apprehends that serious injury would be caused to him, if the instrument is <br /> left outstanding and unresolved. Further, such person has the capacity to <br /> bind the parties to the instrument in question, which is sought to be <br /> challenged/ cancelled. <br /> 27. The only limitation under Section 31 of the Specific Relief Act is that <br /> no person can seek cancellation of a document executed by a complete <br /> stranger to his title. Therefore, a person can seek cancellation of an <br /> instrument, to which he is not a party, provided the instrument is executed <br /> by a person who is not a complete stranger to his title. In the present case, <br /> the executant of the instrument in question, i.e., respondent no. 2, who <br /> executed the subsequent Agreement to Sell in favour of the appellant, cannot <br /> <b><i>RFA 545/2016 Page 22 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> be said to be a stranger to the title asserted by respondent no. 1 in the subject <br /> matter of the instrument. This is for the reason that the respondent no. 1 has <br /> asserted his right over the suit property on the basis of a previous instrument <br /> executed by respondent no. 2 and seeks cancellation of a subsequent <br /> instrument executed by respondent no. 2 in favour of appellant, pertaining to <br /> the same property, i.e., the suit property. <br /> 28. Thus, the expression <i>―any person‖</i> in this Section would include a <br /> person seeking derivative title from his seller. For instance, a party obtains a <br /> derivative title from his seller with respect to a property. Subsequently, the <br /> seller executes another instrument with respect to the same title, in favour of <br /> a third party. In such a scenario, the former party can file a suit under <br /> Section 31 of the Specific Relief Act, to seek cancellation of the subsequent <br /> instrument, though not an executant to the same. This is exactly what has <br /> transpired in the present case. <br /> 29. In the present facts and circumstances, the subsequent instrument, i.e., <br /> Agreement to Sell of the year 2006 in favour of appellant, if left outstanding, <br /> would cause prejudice to the title of the former party, i.e., the respondent no. <br /> 1, since the former party, i.e., the respondent no. 1 and the appellant, in <br /> whose favour the subsequent instrument was executed, derive their interest <br /> from the same seller, i.e., respondent no. 2 in the present case. In such <br /> circumstances, a party, though not an executant of the instrument in <br /> question, may approach Court under Section 31 of the Specific Relief Act, <br /> seeking a <i>quia timet action </i> for cancellation of the said instrument. <br /> 30. In the present case, the respondent no. 2 and his mother, i.e., Smt. <br /> Bassi Devi, being the co-owners of the suit property, executed a set of <br /> th <br /> documents dated 07 April, 1988 in favour of the respondent no. 1 and her <br /> <b><i>RFA 545/2016 Page 23 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> husband, i.e., Shri Iqbal Singh. This includes an unregistered Agreement to <br /> Sell, two registered Wills executed by respondent no. 2 and his mother <br /> th <br /> respectively, registered GPA, and a receipt dated 07 April, 1988 towards <br /> consideration for purchase of the property, along with an Affidavit of <br /> January, 1988, executed by respondent no. 2 and his mother. <br /> 31. Respondent no. 1 is a person deriving interest/right in the suit <br /> property from the sellers, i.e., respondent no. 2 and his mother, namely, Smt. <br /> th <br /> Bassi Devi. The subsequent Agreement to Sell dated 18 August, 2006, has <br /> been executed by one of the sellers, i.e., the respondent no. 2, in favour of <br /> appellant with respect to the same property. Thus, the Agreement to Sell <br /> th <br /> dated 18 August, 2006, if left outstanding, would prejudice the interest of <br /> the respondent no. 1, as both the appellant and the respondent no. 1 derive <br /> their interest from the same seller. <br /> 32. Therefore, the respondent no. 1 would be encompassed within the <br /> meaning of the words <i>―any person‖</i> , as appearing in Section 31 of the <br /> Specific Relief Act. <br /> 33. Thus, the suit filed by the respondent no. 1 under Section 31 of the <br /> th <br /> Specific Relief Act to seek cancellation of the Agreement to Sell dated 18<br /> August, 2006 executed by the respondent no. 2 in favour of the appellant, <br /> with respect to the same property, to protect her right/interest in the suit <br /> property, would be maintainable. <br /> 34. The appellant has relied upon the judgment in the case of <b><i>Deccan </i></b><br /> <b><i>Paper Mills (Supra)</i></b> , in order to contend that only an executant of a <br /> document can seek declaration of the said document as null and void under <br /> Section 31 of the Specific Relief Act, and since the respondent no. 1 had not <br /> th<br /> executed the Agreement to Sell dated 18 August, 2006 in favour of the <br /> <b><i>RFA 545/2016 Page 24 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> appellant, the cancellation of the same could not be sought by the respondent <br /> no. 1. The said contention raised by the appellant is totally misplaced, as the <br /> aforesaid judgment has been misunderstood and misconstrued by the <br /> appellant. <br /> 35. The Supreme Court in the aforesaid case of <b><i>Deccan Paper Mills </i></b><br /> <b><i>(Supra) </i></b> dealt with the question of whether proceedings under Section 31 of <br /> the Specific Relief Act, are in <i>rem</i> or in <i>personam</i> . The Supreme Court in <br /> the aforesaid judgment, while citing the decision in the case of <b><i>Muppudathi </i></b><br /> <b><i>Pillai Versus Krishnaswami Pillai and Others, 1959 SCC Online Mad 314</i></b> , <br /> held that proceedings under Section 31 of the Specific Relief Act are <br /> proceedings in <i>personam</i> , in the following manner: <br /> <i>―xxx xxx xxx </i><br /> <i> </i><br /> <b><i>18.</i></b> <i> </i> <b><i>In an extremely important paragraph, the Full Bench </i></b><br /> <b><i>[Muppudathi Pillai v. Krishaswami Pillai, 1959 SCC OnLine Mad </i></b><br /> <b><i>314: (1959) 72 LW 543] then set out the principle behind Section </i></b><br /> <b><i>39(1) of the Specific Relief Act, 1877 as follows:</i></b> <i> (Muppudathi Pillai </i><br /> <i>case [Muppudathi Pillai v. Krishaswami Pillai, 1959 SCC OnLine </i><br /> <i>Mad 314 : (1959) 72 LW 543] , SCC OnLine Mad para 12) </i><br /> <i> </i><br /> <i>―12. </i> <b><i>The principle is that such document though not necessary </i></b><br /> <b><i>to be set aside may, if left outstanding, be a source of potential </i></b><br /> <b><i>mischief. The jurisdiction under Section 39 is, therefore, a </i></b><br /> <b><i>protective or a preventive one. It is not confined to a case of </i></b><br /> <b><i>fraud, mistake, undue influence, etc. and as it has been stated </i></b><br /> <b><i>it was to prevent a document to remain as a menace and </i></b><br /> <b><i>danger </i></b> <b><i>to </i></b> <b><i>the </i></b> <b><i>party </i></b> <b><i>against </i></b> <b><i>whom </i></b> <b><i>under </i></b> <b><i>different </i></b><br /> <b><i>circumstances it might have operated.</i></b> <i> A party against whom a </i><br /> <i>claim under a document might be made is not bound to wait till </i><br /> <i>the document is used against him. If that were so he might be in </i><br /> <i>a disadvantageous position if the impugned document is sought </i><br /> <i>to be used after the evidence attending its execution has </i><br /> <i>disappeared. </i> <b><i>Section 39 embodies the principle by which he is </i></b><br /> <b><i>allowed to anticipate the danger and institute a suit to cancel </i></b><br /> <b><i>the document and to deliver it up to him. The principle of the </i></b><br /> <b><i>relief is the same as in quia timet actions.</i></b> <i>‖ </i><br /> <i>(emphasis supplied) </i><br /> <i> </i><br /> <b><i>RFA 545/2016 Page 25 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <b><i>19.</i></b> <i> The Court then continued its discussion as follows: (Muppudathi </i><br /> <i>Pillai case [Muppudathi Pillai v. Krishaswami Pillai, 1959 SCC </i><br /> <i>OnLine Mad 314 : (1959) 72 LW 543] , SCC OnLine Mad paras 13-</i><br /> <i>16) </i><br /> <i>―13. … </i> <b><i>The provisions of Section 39 make it clear that </i></b><br /> <b><i>three conditions are requisite for the exercise of the </i></b><br /> <b><i>jurisdiction to cancel an instrument : (1) the instrument </i></b><br /> <b><i>is void or voidable against the plaintiff; (2) plaintiff may </i></b><br /> <b><i>reasonably apprehend serious injury by the instrument </i></b><br /> <b><i>being left outstanding; (3) in the circumstances of the </i></b><br /> <b><i>case the court considers it proper to grant this relief of </i></b><br /> <b><i>preventive justice.</i></b> <i> On the third aspect of the question the </i><br /> <i>English and American authorities hold that where the </i><br /> <i>document is void on its face the court would not exercise </i><br /> <i>its jurisdiction while it would if it were not so apparent. In </i><br /> <i>India it is a matter entirely for the discretion of the court. </i><br /> <i> </i><br /> <i>14. The question that has to be considered depends on the </i><br /> <i>first and second conditions set out above. </i> <b><i>As the principle </i></b><br /> <b><i>is one of potential mischief, by the document remaining </i></b><br /> <b><i>outstanding, it stands to reason the executant of the </i></b><br /> <b><i>document should be either the plaintiff or a person who </i></b><br /> <b><i>can in certain circumstances bind him. It is only then it </i></b><br /> <b><i>could be said that the instrument is voidable by or void </i></b><br /> <b><i>against him. The second aspect of the matter emphasises </i></b><br /> <b><i>that principle. For there can be no apprehension if a </i></b><br /> <b><i>mere third party asserting a hostile title creates a </i></b><br /> <b><i>document. Thus relief under Section 39 would be </i></b><br /> <b><i>granted only in respect of an instrument likely to affect </i></b><br /> <b><i>the title of the plaintiff and not of an instrument </i></b><br /> <b><i>executed by a stranger to that title.</i></b> <i> </i><br /> <i> </i><br /> <i>15. Let us take an example of a trespasser purporting to </i><br /> <i>convey the property in his own right and not in the right of </i><br /> <i>the owner. In such a case a mere cancellation of the </i><br /> <i>document would not remove the cloud occasioned by the </i><br /> <i>assertion of a hostile title, as such a document even if </i><br /> <i>cancelled would not remove the assertion of the hostile </i><br /> <i>title. In that case it would be the title that has got to be </i><br /> <i>judicially adjudicated and declared, and a mere </i><br /> <i>cancellation of an instrument would not achieve the </i><br /> <i>object. Section 42 of the Specific Relief Act would apply to </i><br /> <i>such a case. </i> <b><i>The remedy under Section 39 is to remove a </i></b><br /> <b><i>cloud upon the title, by removing a potential danger but </i></b><br /> <b><i>it does not envisage an adjudication between competing </i></b><br /> <b><i>titles. That can relate only to instruments executed or </i></b><br /> <b><i>RFA 545/2016 Page 26 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <b><i>purported to be executed by a party or by any person who </i></b><br /> <b><i>can bind him in certain circumstances. It is only in such </i></b><br /> <b><i>cases that it can be said there is a cloud on his title and </i></b><br /> <b><i>an apprehension that if the instrument is left outstanding </i></b><br /> <b><i>it may be a source of danger. </i></b> <i>Such cases may arise in the </i><br /> <i>following circumstances : A party executing the document, </i><br /> <i>or a principal in respect of a document executed by his </i><br /> <i>agent, or a minor in respect of a document executed by his </i><br /> <i>guardian de jure or de facto, a reversioner in respect of a </i><br /> <i>document executed by the holder of the anterior limited </i><br /> <i>estate, a real owner in respect of a document executed by </i><br /> <i>the benamidar, etc. This right has also been recognised in </i><br /> <i>respect of forged instruments which could be cancelled by </i><br /> <i>a party on whose behalf it is purported to be executed</i> <b><i>. In </i></b><br /> <b><i>all these cases there is no question of a document by a </i></b><br /> <b><i>stranger to the title. The title is the same. But in the case </i></b><br /> <b><i>of a person asserting hostile title, the source or claim of </i></b><br /> <b><i>title is different.</i></b> <i> It cannot be said to be void against the </i><br /> <i>plaintiff as the term void or voidable implies that but for </i><br /> <i>the vitiating factor it would be binding on him, that is, he </i><br /> <i>was a party to the contract. </i><br /> <i> </i><br /> <i>16. There is one other reason for this conclusion. Section </i><br /> <i>39 empowers the court after adjudicating the instrument to </i><br /> <i>be void to order the instrument to be delivered up and </i><br /> <i>cancelled. If the sale deed is or purported to have been </i><br /> <i>executed by a party, the instrument on cancellation could </i><br /> <i>be directed to be delivered over to the plaintiff. If on the </i><br /> <i>other hand such an instrument is executed by a trespasser </i><br /> <i>or a person claiming adversely to the plaintiff it is not </i><br /> <i>possible to conceive the instrument being delivered over </i><br /> <i>not to the executant but his rival, the plaintiff.‖ </i><br /> <i> </i><br /> <i>xxx xxx xxx </i><br /> <i> </i><br /> <b><i>21.</i></b> <i> </i> <b><i>A </i></b> <b><i>reading </i></b> <b><i>of </i></b> <b><i>the </i></b> <b><i>aforesaid </i></b> <b><i>judgment </i></b> <b><i>[Muppudathi </i></b><br /> <b><i>Pillai v. Krishaswami Pillai, 1959 SCC OnLine Mad 314 : (1959) 72 </i></b><br /> <b><i>LW 543] of the Full Bench would make the position in law crystal </i></b><br /> <b><i>clear. The expression “any person” does not include a third party, </i></b><br /> <b><i>but is restricted to a party to the written instrument or any person </i></b><br /> <b><i>who can bind such party. Importantly, relief under Section 39 of the </i></b><br /> <b><i>Specific Relief Act, 1877 would be granted only in respect of an </i></b><br /> <b><i>instrument likely to affect the title of the plaintiff, and not of an </i></b><br /> <b><i>instrument executed by a stranger to that title. The expression “any </i></b><br /> <b><i>person” in this section has been held by this Court to include a </i></b><br /> <b><i>person seeking derivative title from his seller</i></b> <i> [see Mohd. Noorul </i><br /> <i>Hoda v. Bibi Raifunnisa [Mohd. Noorul Hoda v. Bibi Raifunnisa, </i><br /> <b><i>RFA 545/2016 Page 27 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <i>(1996) 7 SCC 767] , at p. 771]. The principle behind the section is to </i><br /> <i>protect a party or a person having a derivative title to property from </i><br /> <i>such party from a prospective misuse of an instrument against him. A </i><br /> <i>reading of Section 31(1) then shows that when a written instrument is </i><br /> <i>adjudged void or voidable, the Court may then order it to be delivered </i><br /> <i>up to the plaintiff and cancelled—in exactly the same way as a suit for </i><br /> <i>rescission of a contract under Section 29. </i> <b><i>Thus far, it is clear that the </i></b><br /> <b><i>action under Section 31(1) is strictly an action inter partes or by </i></b><br /> <b><i>persons who obtained derivative title from the parties, and is thus in </i></b><br /> <b><i>personam.</i></b> <i> </i><br /> <i> </i><br /> <i>xxx xxx xxx </i><br /> <i> </i><br /> <b><i>27.</i></b> <i> Judged by these authorities, it is clear that </i> <b><i>the proceeding under </i></b><br /> <b><i>Section 31 is with reference to specific persons and not with </i></b><br /> <b><i>reference to all who may be concerned with the property underlying </i></b><br /> <b><i>the instrument, or “all the world”.</i></b> <i> Clearly, the cancellation of the </i><br /> <i>instrument under Section 31 is as between the parties to the action </i><br /> <i>and their privies and not against all persons generally, as the </i><br /> <i>instrument that is cancelled is to be delivered to the plaintiff in the </i><br /> <i>cancellation suit. A judgment delivered under Section 31 does not </i><br /> <i>bind all persons claiming an interest in the property inconsistent with </i><br /> <i>the judgment, even though pronounced in their absence. </i><br /> <i> </i><br /> <i>xxx xxx xxx‖ </i><br /> <i>(Emphasis Supplied) </i><br /> <i> </i><br /> 36. Thus, perusal of the aforesaid judgment makes it apparent that the <br /> Supreme Court, by affirming the decision of the Madras High Court in the <br /> case of <b><i>Muppudathi Pillai (Supra)</i></b> , held that proceedings under Section 31 <br /> of the Specific Relief Act are in <i>personam</i> , and <i>―any person‖</i> mentioned in <br /> Section 31 of the Specific Relief Act is either a party to the written <br /> instrument or any person who can bind a party to the instrument. Thus, <i>―any </i><br /> <i>person‖ </i> under Section 31 of the Specific Relief Act, would include a non-<br /> executant to an instrument, who can bind a party to the instrument in <br /> question, and would also include a person seeking derivative title from his <br /> seller, who is party to such instrument. <br /> 37. Furthermore, the embargo to file a suit under Section 31 of the <br /> Specific Relief Act, is only limited to a person seeking cancellation of an <br /> <b><i>RFA 545/2016 Page 28 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> instrument executed by a complete stranger or trespasser, asserting a hostile <br /> title. In such scenarios, the stranger or trespasser is asserting the same title, <br /> however, the source or claim of title is different. <br /> 38. Thus, where the original seller first executes an instrument in favour a <br /> person „A‟, and subsequently, the original seller executes a second <br /> instrument in favour of a person „B‟ with respect to the same right. In such <br /> cases, when „A‟ seeks cancellation of the second instrument executed by the <br /> original seller, it cannot be said that the said second instrument was executed <br /> by a stranger to the title of „A‟. Thus, person „A‟ would be within his right <br /> to file a suit for cancellation of the second instrument under Section 31 of <br /> the Specific Relief Act. <br /> 39. It is also to be noted that when the Supreme Court noted in the case of <br /> <b><i>Deccan Paper Mills (Supra)</i></b> that an executant of an instrument has to file a <br /> suit under Section 31 of the Specific Relief Act and a non-executant has to <br /> file a suit under Section 34 of the Specific Relief Act, the reference was in <br /> the context of an instrument executed by a stranger to the title of the <br /> executant. Law is settled that no suit can be filed under Section 31 of the <br /> Specific Relief Act, seeking cancellation of an instrument executed by a <br /> “third party” who is a complete stranger to the right or title of the plaintiff. <br /> However, the same is not the position in the present case, in view of the <br /> detailed discussion hereinabove. <br /> 40. It is also to be noted that the aforesaid finding in the case of <b><i>Deccan </i></b><br /> <b><i>Paper Mills (Supra)</i></b> with regard to filing of respective suits by executant <br /> and non-executant of an instrument, was given by relying upon the judgment <br /> in the case of <b><i>Suhrid Singh Versus Randhir Singh and Others, (2010) 12 </i></b><br /> <b><i>SCC 112</i></b> <i>. </i> It is pertinent to note that the judgment of Supreme Court in the <br /> <b><i>RFA 545/2016 Page 29 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> case of <b><i>Suhrid Singh (Supra)</i></b> was given in the context of Court Fees Act, <br /> 1870 <b>(“Court Fees Act”)</b> , as regards the right of an executant and non-<br /> executant, wherein, the Supreme Court, held as follows: <br /> <i>―xxx xxx xxx </i><br /> <i> </i><br /> <i>7. </i> <b><i>Where the executant of a deed wants it to be annulled, he has to </i></b><br /> <b><i>seek cancellation of the deed. But if a non-executant seeks </i></b><br /> <b><i>annulment of a deed, he has to seek a declaration that the deed is </i></b><br /> <b><i>invalid, or non est, or illegal or that it is not binding on him.</i></b> <i> The </i><br /> <i>difference between a prayer for cancellation and declaration in regard </i><br /> <i>to a deed of transfer/conveyance, can be brought out by the following </i><br /> <i>illustration relating to A and B, two brothers. A executes a sale deed in </i><br /> <i>favour of C. Subsequently A wants to avoid the sale. A has to sue for </i><br /> <i>cancellation of the deed. On the other hand, if B, who is not the </i><br /> <i>executant of the deed, wants to avoid it, he has to sue for a declaration </i><br /> <i>that the deed executed by A is invalid/void and non est/illegal and he </i><br /> <i>is not bound by it. In essence both may be suing to have the deed set </i><br /> <i>aside or declared as non-binding. But the form is different and court </i><br /> <i>fee is also different. </i> <b><i>If A, the executant of the deed, seeks </i></b><br /> <b><i>cancellation of the deed, he has to pay ad valorem court fee on the </i></b><br /> <b><i>consideration stated in the sale deed. If B, who is a non-executant, is </i></b><br /> <b><i>in possession and sues for a declaration that the deed is null or void </i></b><br /> <b><i>and does not bind him or his share, he has to merely pay a fixed </i></b><br /> <b><i>court fee of Rs. 19.50 under Article 17(iii) of the Second Schedule of </i></b><br /> <b><i>the Act. But if B, a non-executant, is not in possession, and he seeks </i></b><br /> <b><i>not only a declaration that the sale deed is invalid, but also the </i></b><br /> <b><i>consequential relief of possession, he has to pay an ad valorem court </i></b><br /> <b><i>fee as provided under Section 7(iv)(c) of the Act</i></b> <i>. </i><br /> <i> </i><br /> <i>xxx xxx xxx‖ </i><br /> <i>(Emphasis Supplied) </i><br /> <i> </i><br /> 41. It is further to be noted that the appellant has relied upon the case of <br /> <b><i>Muppudathi Pillai (Supra) </i></b> to contend that the respondent no. 1, being a <br /> non-executant, cannot seek cancellation of an instrument executed by third <br /> th <br /> parties, i.e., the Agreement to Sell dated 18 August, 2006 as executed <br /> <b><i>RFA 545/2016 Page 30 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> between the respondent no. 2 and the appellant. However, the appellant has <br /> again misunderstood and misconstrued the import of the said case. <br /> 42. The judgment in the case of <b><i>Muppudathi Pillai (Supra) </i></b> holds that a <br /> suit under Section 39 of the Specific Relief Act, 1877 (“ <b>Earlier Act</b> ”) which <br /> is <i>pari materia</i> to Section 31 of Specific Relief Act, can be filed <i>qua</i> an <br /> instrument which is likely to affect the title of the plaintiff. Further, while <br /> referring to Section 39 of the Earlier Act, it was held as follows: <br /> <i>―xxx xxx xxx </i><br /> <b><i>The provisions of S. 39 make it clear that three conditions are </i></b><br /> <b><i>requisite for the exercise of the jurisdiction to cancel an instrument : </i></b><br /> <b><i>(1) the instrument is void or voidable against the plaintiff; (2) </i></b><br /> <b><i>plaintiff may reasonably apprehend serious injury by the instrument </i></b><br /> <b><i>being left outstanding; (3) in the circumstances of the case the Court </i></b><br /> <b><i>considers it proper to grant this relief of preventive justice.</i></b> <i> On the </i><br /> <i>third aspect of the question the English and American authorities held </i><br /> <i>that where the document is void on its face the Court would not </i><br /> <i>exercise its jurisdiction while it would if it were not so apparent. In </i><br /> <i>India it is a matter entirely for the discretion of the Court. </i><br /> <i> The question that has to be considered depends on the first and </i><br /> <i>second conditions set out above. </i> <b><i>As the principle is one of potential </i></b><br /> <b><i>mischief, by the document remaining outstanding, it stands to </i></b><br /> <b><i>reason the executant of the document should be either the plaintiff </i></b><br /> <b><i>or a person who can in certain circumstances bind him. It is only </i></b><br /> <b><i>then it could be said that the instrument is voidable by or void </i></b><br /> <b><i>against him</i></b> <i>. The second aspect of the matter emphasises that </i><br /> <i>principle.</i> <b><i> For there can be no apprehension if a mere third party, </i></b><br /> <b><i>asserting a hostile title creates a document. Thus relief under S. 39 </i></b><br /> <b><i>would be granted only in respect of an instrument likely to affect the </i></b><br /> <b><i>title of the plaintiff and not of an instrument executed by a stranger </i></b><br /> <b><i>to that title</i></b> <i>. </i><br /> <i> Let us take an example a trespasser purporting to convey the </i><br /> <i>property in his own right and not in the right of the owner. In such a </i><br /> <i>case a mere cancellation of the document would not remove the cloud </i><br /> <i>occasioned by the assertion of a hostile title, as such a document even </i><br /> <i>if cancelled would not remove the assertion of the hostile title. In that </i><br /> <i>case it would be the title that has got to be judicially adjudicated and </i><br /> <i>declared, and a mere cancellation of an instrument would not achieve </i><br /> <i>the object. S. 42 of the Specific Relief Act would apply to such a case. </i><br /> <b><i>RFA 545/2016 Page 31 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /></div><table><thead><tr><th>The remedy under S. 39 is to remove a cloud upon the title, by</th><th></th><th></th><th></th><th></th><th></th></tr></thead><tbody><tr><td>removing a potential danger but it does not envisage an adjudication</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>between competing titles. That can relate only to instruments</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>executed or purported to be executed by a party or by any person</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>who can bind him in certain circumstances. It is only in such cases</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>that it can be said there is a cloud on his title and an apprehension</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>that if the instrument is left out-standing</td><td></td><td></td><td></td><td>it may be a source of</td><td></td></tr><tr><td>danger. Such cases may arise in the following circumstances : A party</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>executing the document, or a principal in respect of a document</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>executed by his agent, or a minor in respect of a document executed</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>by his guardian de jure or de facto, a reversioner in respect of a</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>document executed by the holder of the anterior limited estate, a real</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>owner in respect of a document executed by the benamidar etc. This</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>right has also been recognised in respect of forged instruments which</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>could be cancelled by a party on whose behalf it is purported to be</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>executed. In all these cases there is no question of a document by a</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>stranger to the title. The title is the same. But in the case of a person</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>asserting hostile title, the source or claim of title is different. It cannot</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>be said to be void against the plaintiff as the term void or voidable</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>implies that but for the vitiating factor it would be binding on him,</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>that is, he was a party to the contract.</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>xxx xxx xxx</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>In Ammani Ammal v. Ramaswami Naidu , Napier J. after referring</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>to the provisions of Ss. 39 and 41 of the Specific Relief Act observed at</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>page 121:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td></td><td>―To my mind it is clear that there is no necessity to have this</td><td></td><td></td><td></td><td></td></tr><tr><td></td><td>document cancelled. The illustration to S. 39 indicates that it</td><td></td><td></td><td></td><td></td></tr><tr><td></td><td>is only where a party cannot get his legal remedy without</td><td></td><td></td><td></td><td></td></tr><tr><td></td><td>first having the document set aside that he comes within the</td><td></td><td></td><td></td><td></td></tr><tr><td></td><td>section. This is a suit by the true owner to recover possession</td><td></td><td></td><td></td><td></td></tr><tr><td></td><td>of the property. The title adverse to him is not one procured</td><td></td><td></td><td></td><td></td></tr><tr><td></td><td>from him or from any one under whom he claims or from</td><td></td><td></td><td></td><td></td></tr><tr><td></td><td>anyone who purported to convey an interest of his. It seems</td><td></td><td></td><td></td><td></td></tr><tr><td></td><td>to me therefore that there can be no necessity for him to</td><td></td><td></td><td></td><td></td></tr><tr><td></td><td>apply to have the document cancelled and further that the</td><td></td><td></td><td></td><td></td></tr><tr><td></td><td>Court would have no jurisdiction to do so.‖</td><td></td><td></td><td></td><td></td></tr><tr><td>We accept this statement of the law. We already referred to a passage</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>in the judgement of Viswanatha Sastri J. in Venkama Naidu v. Sayed</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Vilijan Chisty . There the learned Judge referred to the fact that</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>illustrations (b) and (c) to S. 39 refer to cases where the person</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>seeking cancellation need not himself be a party to the instrument.</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>But it may be noticed that in the cases referred to in those</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>illustrations the title is the same. Illustration (b) refers to a case of</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>forged instrument. That would be a case where the instrument is</td><td></td><td></td><td></td><td></td><td></td></tr></tbody></table><div><br /> <b><i>RFA 545/2016 Page 32 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <i>purported to be executed on behalf of the plaintiff, and if that </i><br /> <i>instrument were kept outstanding, it may be a case of danger to his </i><br /> <i>title. </i> <b><i>Illustration (c) is again a case where the vendor after parting </i></b><br /> <b><i>with the property grants a lease. In such a case the purchaser would </i></b><br /> <b><i>be entitled to have the lease cancelled, Those cases are only </i></b><br /> <b><i>illustrations of the proposition that the Court has the power to </i></b><br /> <b><i>cancel the sale deed executed or purported to be executed by the </i></b><br /> <b><i>plaintiff or persons who could otherwise bind him</i></b> <i>. The decision </i><br /> <i>in Venkama Naidu v. Sayed Vilijan Chisty , is a case where the sale </i><br /> <i>was executed by a de facto guardian of a Muhammadan minor. Such a </i><br /> <i>conveyance would be void in law. But nevertheless the de </i><br /> <i>facto guardian purported to act on his behalf, and the deed if left </i><br /> <i>outstanding could cast a cloud upon the title of the plaintiff. The case </i><br /> <i>would obviously come under S. 39. The learned Judges in that case </i><br /> <i>have exhaustively referred to the various cases on the subject in </i><br /> <i>support of their conclusion. It is unnecessary to deal with them here </i><br /> <i>beyond stating that all those cases were cases of documents executed </i><br /> <i>either by the minor alleging himself to be a major or by his </i><br /> <i>guardian, de jure or de facto, but always purporting to act on his </i><br /> <i>behalf. That case would be entirely different from a case of sale by a </i><br /> <i>person asserting a title hostile to that of the plaintiff, as in the cases </i><br /> <i>referred </i> <i>to </i> <i>above, </i> <i>namely, Nathu v. Balwantraoand Ammani </i><br /> <i>Ammal v. Ramaswami Naidu. </i> <b><i>It is true that S. 39 may apply to </i></b><br /> <b><i>persons other than the actual party to the instrument, for instance, </i></b><br /> <b><i>to the case of an agent selling without authority, or a case where the </i></b><br /> <b><i>person commits forgery purporting to sell on behalf of the plaintiff. </i></b><br /> <b><i>It is even possible to conceive that a creditor can in certain </i></b><br /> <b><i>circumstances impugn the document created by his debtor. In all </i></b><br /> <b><i>those cases as pointed out already the title which is sought to be </i></b><br /> <b><i>protected is the title of the plaintiff, and not an adjudication as </i></b><br /> <b><i>against any rival claimant.</i></b> <i> Venkama Naidu v. Sayed Vilijan Chisty, </i><br /> <i>relates to a case where a document was executed purporting to bind </i><br /> <i>the plaintiff. Ammani Ammal v. Ramaswami Naidu, is a case of the </i><br /> <i>latter category, that is, where a document is executed by a person </i><br /> <i>claiming hostile title. That would not be comprehended by S. 39. </i><br /> <i>There is, therefore, no conflict between the decision in Ammani </i><br /> <i>Ammal v. Ramaswami Naidu, and that in Venkama Naidu v. Sayed </i><br /> <i>Vilijan Chisty. </i><br /> <i> </i><br /> <i>xxx xxx xxx‖ </i><br /> <i> </i> <i> </i> <i> </i> <i> </i> <i> </i> <i> (Emphasis Supplied) </i><br /> <i> </i><br /> 43. Perusal of the aforesaid shows that the said judgment of the Madras <br /> High Court holds that since the principle under Section 39 of the Earlier Act, <br /> <b><i>RFA 545/2016 Page 33 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> which is <i>pari materia</i> to Section 31 of Specific Relief Act, is one of <br /> potential mischief by the instrument remaining outstanding, the plaintiff can <br /> be either executant of the instrument or a person who can, in certain <br /> circumstances, bind the plaintiff. It is in this context, that the Court held that <br /> relief under Section 39 of the Earlier Act would be granted only in respect of <br /> an instrument likely to affect the title of the plaintiff, and not of an <br /> instrument executed by a stranger to that title. <br /> 44. In the present case, the instrument sought to be cancelled has not been <br /> executed by a stranger to the title as asserted by the plaintiff. Further, the <br /> plaintiff/respondent no. 1 herein, on account of Agreement to Sell executed <br /> in her favour by a party to the instrument, can bind such party to the <br /> instrument by asserting right on the basis of a prior instrument executed by <br /> such party in her favour. Thus, the interpretation of the judgment of the <br /> Madras High Court as given by the appellant, is totally flawed, and does not <br /> help the case of the appellant in any manner. <br /> 45. The Madras High Court gave the example of a trespasser purporting <br /> to convey the title in his own right, and not in the right of the true owner. By <br /> using the said example, the Court held that a mere cancellation of the <br /> document would not remove the cloud occasioned by the assertion of a <br /> hostile title, and the title would have to be judicially adjudicated under <br /> Section 42 of the Earlier Act. <br /> 46. Thus, the Madras High Court in <b><i>Muppudathi Pillai (Supra) </i></b> observed <br /> that a person cannot file a suit under Section 31 of the Specific Relief Act <br /> seeking cancellation of an instrument executed by a “third party” who is a <br /> complete stranger to the right or title of the plaintiff, for instance, a <br /> trespasser asserting a hostile title. However, as explained in the preceding <br /> <b><i>RFA 545/2016 Page 34 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> paragraphs, the plaintiff/respondent no. 1 in the present case derived her title <br /> from respondent no. 2 herein, a party to the instrument, which was sought to <br /> be cancelled. Further, on account of a previous document executed in her <br /> favour by a party to the instrument in question, the plaintiff/respondent no. 1 <br /> could bind such party to the instrument by asserting her right on the basis of <br /> a previous document executed by such party to the instrument. <br /> 47. In the present case, the respondent no. 1 is claiming her right in the <br /> suit property from respondent no. 2, and is therefore a person seeking <br /> derivative interest from the seller/respondent no. 2. Since the respondent no. <br /> th <br /> 2 has executed the subsequent Agreement to Sell dated 18 August, 2006 in <br /> favour of the appellant, the respondent no. 1 by asserting her right on the <br /> basis of a previous instrument executed in her favour by respondent no. 2, <br /> can bind respondent no. 2, who is a party to the said instrument. Thus, <br /> respondent no. 1/plaintiff in the suit, had every right and authority to file suit <br /> under Section 31 of the Specific Relief Act. The judgments relied by the <br /> appellant, have been misread and misapplied by the appellant. The said <br /> judgments relied by the appellant, do not support the contentions raised by <br /> the appellant. <br /> 48. Reading of the aforesaid judgments clearly demonstrates that there is <br /> no bar as such that a suit under Section 31 of the Specific Relief Act, for <br /> cancellation of an instrument cannot be filed by a person, who is not <br /> signatory/executant to the said instrument. In the present context, the <br /> respondent no. 1 sought to derive the title from the seller/owner of the suit <br /> property, i.e., respondent no. 2 herein. Thus, clearly, the suit filed by <br /> respondent no. 1 under Section 31 of the Specific Relief Act is maintainable. <br /> <b><i>RFA 545/2016 Page 35 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> 49. Therefore, the submissions made by the appellant with regard to non-<br /> maintainability of the present suit, cannot be accepted. <br /> 50. Furthermore, it is pertinent to note that no such objection, as regards <br /> the suit not being maintainable under Section 31 of the Specific Relief Act, <br /> was taken by either the appellant or respondent no. 2 in the Trial Court. This <br /> objection has been taken for the first time by the appellant, only before this <br /> Court. <br /> 51. In this regard, decision of the Supreme Court in the case of <b><i>Bachhaj </i></b><br /> <b><i>Nahar Versus Nilima Mandal and Another, (2008) 17 SCC 491</i></b> , may be <br /> referred to, wherein, the Supreme Court has held that: <br /> <i>―xxx xxx xxx </i><br /> <i> </i><br /> <i> </i><br /> <i>10. The High Court, in this case, in its obvious zeal to cut delay and </i><br /> <i>hardship that may ensue by relegating the plaintiffs to one more round </i><br /> <i>of litigation, has rendered a judgment which violates several </i><br /> <i>fundamental rules of civil procedure. The rules breached are: </i><br /> <i> </i><br /> <i>(i) </i> <b><i>No amount of evidence can be looked into, upon a plea </i></b><br /> <b><i>which was never put forward in the pleadings. A question </i></b><br /> <b><i>which did arise from the pleadings and which was not the </i></b><br /> <b><i>subject-matter of an issue, cannot be decided by the court. </i></b><br /> <b><i>(ii) A court cannot make out a case not pleaded. The court </i></b><br /> <b><i>should confine its decision to the question raised in pleadings. </i></b><br /> <b><i>Nor can it grant a relief which is not claimed and which does </i></b><br /> <b><i>not flow from the facts and the cause of action alleged in the </i></b><br /> <b><i>plaint. </i></b><br /> <i>(iii) A factual issue cannot be raised or considered for the first </i><br /> <i>time in a second appeal. </i><br /> <i> </i><br /> <i>11. The Civil Procedure Code is an elaborate codification of the </i><br /> <i>principles of natural justice to be applied to civil litigation. The </i><br /> <i>provisions are so elaborate that many a time, fulfilment of the </i><br /> <i>procedural requirements of the Code may itself contribute to delay. </i><br /> <i>But any anxiety to cut the delay or further litigation should not be a </i><br /> <i>ground to flout the settled fundamental rules of civil procedure. Be </i><br /> <b><i>RFA 545/2016 Page 36 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <i>that as it may. We will briefly set out the reasons for the aforesaid </i><br /> <i>conclusions. </i><br /> <i> </i><br /> <b><i>12.The object and purpose of pleadings and issues is to ensure that </i></b><br /> <b><i>the litigants come to trial with all issues clearly defined and to </i></b><br /> <b><i>prevent cases being expanded or grounds being shifted during trial. </i></b><br /> <b><i>Its object is also to ensure that each side is fully alive to the </i></b><br /> <b><i>questions that are likely to be raised or considered so that they may </i></b><br /> <b><i>have an opportunity of placing the relevant evidence appropriate to </i></b><br /> <b><i>the issues before the court for its consideration. This Court has </i></b><br /> <b><i>repeatedly held that the pleadings are meant to give to each side </i></b><br /> <b><i>intimation of the case of the other so that it may be met, to enable </i></b><br /> <b><i>courts to determine what is really at issue between the parties, and to </i></b><br /> <b><i>prevent any deviation from the course which litigation on particular </i></b><br /> <b><i>causes must take. </i></b><br /> <i> </i><br /> <b><i>13. The object of issues is to identify from the pleadings the </i></b><br /> <b><i>questions or points required to be decided by the courts so as to </i></b><br /> <b><i>enable parties to let in evidence thereon. When the facts necessary to </i></b><br /> <b><i>make out a particular claim, or to seek a particular relief, are not </i></b><br /> <b><i>found in the plaint, the court cannot focus the attention of the </i></b><br /> <b><i>parties, or its own attention on that claim or relief, by framing an </i></b><br /> <b><i>appropriate issue.</i></b> <i> As a result the defendant does not get an </i><br /> <i>opportunity to place the facts and contentions necessary to repudiate </i><br /> <i>or challenge such a claim or relief. Therefore, the court cannot, on </i><br /> <i>finding that the plaintiff has not made out the case put forth by him, </i><br /> <i>grant some other relief. The question before a court is not whether </i><br /> <i>there is some material on the basis of which some relief can be </i><br /> <i>granted. </i> <b><i>The question is whether any relief can be granted, when the </i></b><br /> <b><i>defendant had no opportunity to show that the relief proposed by the </i></b><br /> <b><i>court could not be granted. When there is no prayer for a particular </i></b><br /> <b><i>relief and no pleadings to support such a relief, and when the </i></b><br /> <b><i>defendant has no opportunity to resist or oppose such a relief, if the </i></b><br /> <b><i>court considers and grants such a relief, it will lead to miscarriage </i></b><br /> <b><i>of justice. </i></b> <i>Thus it is said that no amount of evidence, on a plea that is </i><br /> <i>not put forward in the pleadings, can be looked into to grant any </i><br /> <i>relief. </i><br /> <i>xxx xxx xxx </i><br /> <i> </i><br /> <i>17. </i> <b><i>It is thus clear that a case not specifically pleaded can be </i></b><br /> <b><i>considered by the court only where the pleadings in substance, </i></b><br /> <b><i>RFA 545/2016 Page 37 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <b><i>though not in specific terms, contain the necessary averments to </i></b><br /> <b><i>make out a particular case and the issues framed also generally </i></b><br /> <b><i>cover the question involved and the parties proceed on the basis that </i></b><br /> <b><i>such case was at issue and had led evidence thereon. As the very </i></b><br /> <b><i>requirements indicate, this should be only in exceptional cases </i></b><br /> <b><i>where the court is fully satisfied that the pleadings and issues </i></b><br /> <b><i>generally cover the case subsequently put forward and that the </i></b><br /> <b><i>parties being conscious of the issue, had led evidence on such issue. </i></b><br /> <b><i>But where the court is not satisfied that such case was at issue, the </i></b><br /> <b><i>question of resorting to the exception to the general rule does not </i></b><br /> <b><i>arise.</i></b> <i> The principles laid down in Bhagwati Prasad [AIR 1966 SC </i><br /> <i>735] and Ram Sarup Gupta [(1987) 2 SCC 555 : AIR 1987 SC 1242] </i><br /> <i>referred to above and several other decisions of this Court following </i><br /> <i>the same cannot be construed as diluting </i> <b><i>the well-settled principle </i></b><br /> <b><i>that without pleadings and issues, evidence cannot be considered to </i></b><br /> <b><i>make out a new case which is not pleaded. Another aspect to be </i></b><br /> <b><i>noticed, is that the court can consider such a case not specifically </i></b><br /> <b><i>pleaded, only when one of the parties raises the same at the stage of </i></b><br /> <b><i>arguments by contending that the pleadings and issues are sufficient </i></b><br /> <b><i>to make out a particular case and that the parties proceeded on that </i></b><br /> <b><i>basis and had led evidence on that case. Where neither party puts </i></b><br /> <b><i>forth such a contention, the court cannot obviously make out such a </i></b><br /> <b><i>case not pleaded, suo motu. </i></b><br /> <i> </i><br /> <i>xxx xxx xxx </i><br /> <i> </i><br /> <i>23 It is fundamental that in a civil suit, relief to be granted can be only </i><br /> <i>with reference to the prayers made in the pleadings. That apart, in </i><br /> <i>civil suits, grant of relief is circumscribed by various factors like court </i><br /> <i>fee, limitation, parties to the suits, as also grounds barring relief, like </i><br /> <i>res judicata, estoppel, acquiescence, non-joinder of causes of action </i><br /> <i>or parties, etc., which require pleading and proof. Therefore, it would </i><br /> <i>be hazardous to hold that in a civil suit whatever be the relief that is </i><br /> <i>prayed, the court can on examination of facts grant any relief as it </i><br /> <i>thinks fit. </i> <b><i>In a suit for recovery of rupees one lakh, the court cannot </i></b><br /> <b><i>grant a decree for rupees ten lakhs. In a suit for recovery possession </i></b><br /> <b><i>of property „A‟, court cannot grant possession of property „B‟. In a </i></b><br /> <b><i>suit praying for permanent injunction, court cannot grant a relief of </i></b><br /> <b><i>declaration or possession. The jurisdiction to grant relief in a civil </i></b><br /> <b><i>RFA 545/2016 Page 38 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <b><i>suit necessarily depends on the pleadings, prayer, court fee paid, </i></b><br /> <b><i>evidence let in, etc. </i></b><br /> <i> </i><br /> <i>24. In the absence of a claim by the plaintiffs based on an </i><br /> <i>easementary right, the first defendant did not have an opportunity to </i><br /> <i>demonstrate that the plaintiffs had no easementary right. </i> <b><i>In the </i></b><br /> <b><i>absence of pleadings and an opportunity to the first defendant to </i></b><br /> <b><i>deny such claim, the High Court could not have converted a suit for </i></b><br /> <b><i>title into a suit for enforcement of an easementary right.</i></b> <i> The first </i><br /> <i>appellate court had recorded a finding of fact that the plaintiffs had </i><br /> <i>not made out title. The High Court in second appeal did not disturb </i><br /> <i>the said finding. As no question of law arose for consideration, the </i><br /> <i>High Court ought to have dismissed the second appeal. Even if the </i><br /> <i>High Court felt that a case for easement was made out, at best liberty </i><br /> <i>could have been reserved to the plaintiffs to file a separate suit for </i><br /> <i>easement. But the High Court could not, in a second appeal, while </i><br /> <i>rejecting the plea of the plaintiffs that they were owners of the suit </i><br /> <i>property, grant the relief of injunction in regard to an easementary </i><br /> <i>right by assuming that they had an easementary right to use the </i><br /> <i>schedule property as a passage. </i><br /> <i>xxx xxx xxx‖ </i><br /> <i>(Emphasis Supplied) </i><br /> <i> </i><br /> 52. Reference may also be made to the decision in the case of <b><i>A. </i></b><br /> <b><i>Kanthamani Versus Nasreen Ahmed, (2017) 4 SCC 654</i></b> <i>, </i> wherein the <br /> Supreme Court held that it is a well-settled principle of law that the plea <br /> regarding the maintainability of suit is required to be raised in the first <br /> instance in the pleading, and then only such plea can be adjudicated by the <br /> Trial Court. Further, once a finding is rendered on the plea, the same can <br /> then be examined by the first or/and second Appellate Court. Relevant <br /> paragraph of the said decision passed by the Supreme Court, in this regard, <br /> is reproduced as under: <br /> <i>―xxx xxx xxx </i><br /> <i> </i><br /> <i>30.3. </i> <b><i>Third, it is a well-settled principle of law that the plea </i></b><br /> <b><i>regarding the maintainability of suit is required to be raised in the </i></b><br /> <b><i>RFA 545/2016 Page 39 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <b><i>first instance in the pleading (written statement) then only such plea </i></b><br /> <b><i>can be adjudicated by the trial court on its merits as a preliminary </i></b><br /> <b><i>issue under Order 14 Rule 2 CPC. Once a finding is rendered on the </i></b><br /> <b><i>plea, the same can then be examined by the first or/and second </i></b><br /> <b><i>appellate court. </i></b> <i>It is only in appropriate cases, where the court prima </i><br /> <i>facie finds by mere perusal of plaint allegations that the suit is barred </i><br /> <i>by any express provision of law or is not legally maintainable due to </i><br /> <i>any legal provision; a judicial notice can be taken to avoid abuse of </i><br /> <i>judicial process in prosecuting such suit. Such is, however, not the </i><br /> <i>case here. </i><br /> <i>xxx xxx xxx‖ </i><br /> <i>(Emphasis Supplied) </i><br /> <i> </i><br /> 53. Therefore, considering the detailed discussion hereinabove, this Court <br /> is of the view that the suit filed by the respondent no. 1 under Section 31 of <br /> the Specific Relief Act was maintainable, in the facts and circumstances of <br /> the present case. <br /> 54. Furthermore, whether or not the respondent no. 1/plaintiff had a good <br /> case in order to entitle a decree in her favour on the basis of the set of <br /> documents of the year 1988 executed in her favour, was a subject matter of <br /> merits in the suit proceedings. However, it cannot be said that the suit filed <br /> by respondent no. 1 itself, was not maintainable on the basis of the question <br /> of any adequacy or inadequacy of the set of documents of the year 1988. <br /> <b>Validity of the Agreements to Sell of the Years 1988 and 2006</b> : <br /> 55. The next question which needs adjudication by this Court is regarding <br /> as to who has the right and interest in the suit property. <br /> 56. In this regard, it is not disputed that the original owner/lessee of the <br /> suit property was Shri Kanshi Ram, and upon his demise, the suit property <br /> devolved upon Smt. Bassi Devi and her son, i.e., Shri Som Nath, who is <br /> respondent no. 2 herein, as co-owners. Smt. Bassi Devi died in the year <br /> 1995. It is pertinent to note that the respondent no. 2 never asserted his right <br /> <b><i>RFA 545/2016 Page 40 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> over the suit property in any manner whatsoever, before the Trial Court. He <br /> did not enter into the witness box and no evidence has been led on his <br /> behalf. <br /> 57. The respondent no. 2 was proceeded <i>ex-parte</i> in the Trial Court. Even <br /> before this Court, the LRs of the respondent no. 2 did not cause appearance <br /> and this Court has proceeded with the present matter in the absence of any <br /> representation on behalf of LRs of the respondent no. 2. <br /> 58. It is further to be noted that no question/issue has been raised before <br /> this Court as to the right of respondent no. 2 in the suit property, as one of <br /> the original owners of the suit property. No right was ever claimed in the suit <br /> property by respondent no. 2 in the present suit proceedings. Therefore, this <br /> Court is only required to adjudicate on the respective claims of the appellant <br /> and respondent no. 1 as regards their right over the suit property, on the <br /> basis of documents and evidence on record. <br /> 59. The appellant seeks his right in the suit property on the basis of the <br /> th <br /> Agreement to Sell, GPA, SPA, etc., all dated 18 August, 2006, executed in <br /> his favour by respondent no. 2. He also places reliance on an undated <br /> affidavit and receipt to prove payment of consideration of Rs. 4.9 Lacs to <br /> respondent no. 2. <br /> 60. On the other hand, respondent no. 1 contends to have purchased the <br /> suit property on the basis of Agreement to Sell, Will executed by Smt. Bassi <br /> Devi, and Will executed by Shri Som Nath in favour of respondent no. 1. <br /> Respondent no. 1 also relies upon the GPA and an Affidavit , in favour of her <br /> th <br /> husband, all dated 07 April, 1988. The respondent no. 1 paid a <br /> consideration of Rs. 48,000/-, and receipt towards the same has been <br /> exhibited as <i>Ex. PW-4/C</i> . <br /> <b><i>RFA 545/2016 Page 41 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> 61. It is in this context, the appellant herein raised objections in the suit <br /> proceedings that the instruments in favour of the respondent no. 1 were <br /> forged documents, and that the respondent no. 1 had no cause of action. On <br /> the other hand, the respondent no. 1 sought to establish before the Trial <br /> th <br /> Court that the Agreement to Sell dated 18 August, 2006, executed by <br /> respondent no. 2 in favour of the appellant, was null and void, and that the <br /> respondent no. 1 was entitled to a decree of permanent injunction, as prayed <br /> for. <br /> <br /> 62. Admittedly, it is the case of both the parties, that there exists no <br /> registered Sale Deed in favour of either of the parties, i.e., the appellant and <br /> the respondent no. 1. <br /> 63. Nevertheless, in the peculiar facts and circumstances of the present <br /> case, where neither of the parties claiming right over the suit property, have <br /> a registered Sale Deed in their favour, this Court would proceed on the basis <br /> of the evidence and documents on record to adjudicate the issues before it, <br /> as regards the claims of the respective parties. <br /> 64. Though respondent no. 2, i.e., Shri Som Nath, filed a written <br /> statement as defendant no. 1 before the Trial Court to the effect that the <br /> documents of the year 1988, had been executed for repayment of a loan with <br /> no intention to sell the suit property, he did not enter into the witness box to <br /> establish any such facts as averred in the written statement. <br /> 65. Thus, the fact remains that the respondent no. 2 did not deny <br /> th <br /> execution of the documents dated 07 April, 1988, in favour of respondent <br /> no. 1, though he sought to justify the circumstances under which the said <br /> documents were executed in favour of respondent no. 1, in the written <br /> statement filed before the Trial Court. Therefore, in the absence of any <br /> <b><i>RFA 545/2016 Page 42 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> evidence to the contrary, the fact of execution of the documents of the year <br /> 1988 in favour of the respondent no. 1 stands established. <br /> 66. This Court also notes that during the course of the appellant‟s cross-<br /> examination, appearing as <i>DW-1</i> before the Trial Court, he stated that he did <br /> not know why respondent no. 2 and his family executed the documents of <br /> the year 1988 in favour of respondent no. 1. The deposition of the appellant <br /> in this regard, is reproduced as under: <br /> <i>―xxx xxx xxx </i><br /> <i> </i><br /> <i>Som Nath made a complaint to L&DO as well as Central Vigilence </i><br /> <i>Commission. </i> <b><i>I do not know why Som Nath and his family executed </i></b><br /> <b><i>the documents i.e. Agreement to sell, GPA, Will and power of </i></b><br /> <b><i>attorney in favour of Smt. Urmil Gujral. Only Som Nath can tell </i></b><br /> <b><i>about the fact as to why he executed these documents in favour of </i></b><br /> <b><i>Urmil Gujral</i></b> <i>… </i><br /> <i> </i><br /> <i>xxx xxx xxx‖ </i><br /> <i> </i> <i> </i> <i> </i> <i> </i> <i> </i> <i> (Emphasis Supplied) </i><br /> <i> </i><br /> 67. Thus, perusal of the aforesaid deposition makes it evident that the <br /> appellant has admitted to the execution of documents of the year 1988 in <br /> favour of respondent no. 1, though he has stated that he has no knowledge as <br /> to why those documents were executed by respondent no. 2 in favour of <br /> respondent no. 1. <br /> 68. The respondent no. 1 had also examined Shri S. K. Verma, UDC, <br /> office of Sub Registrar – II, Kashmere Gate, Delhi, as <i>PW-1</i> . The said <br /> th <br /> witness produced the records pertaining to the Wills dated 07 April, 1988 <br /> executed by Smt. Bassi Devi and Shri Som Nath. The originals of the said <br /> Wills were also before the Court as confirmed by <i>PW-1</i> . <br /> 69. The respondent no. 1 also examined Shri S. S. Panwar, Head Clerk, <br /> from the office of Sub-Registrar, Kashmere Gate, Delhi who produced the <br /> th <br /> GPA dated 07 April, 1988, executed by Smt. Bassi Devi and Shri Som <br /> <b><i>RFA 545/2016 Page 43 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> Nath. The original of the said GPA was also before the Court and marked as <br /> <i>Ex. PW-2/A</i> . <br /> th <br /> 70. Perusal of the Wills dated 07 April, 1988 executed by Smt. Bassi <br /> Devi and Shri Som Nath shows that there were two attesting witnesses to the <br /> said Wills, namely, Shri Chander Talwar and Shri Fakir Chand. <br /> 71. This Court further notes that in order to prove the execution of the <br /> th <br /> GPA, two Wills and receipt dated 07 April, 1988, the respondent no. 1 <br /> produced one of the attesting witness as <i>PW-5</i> , i.e., Shri Chander Talwar. In <br /> his Evidence Affidavit, i.e., <i>Ex. P-5</i> , he deposed as under: <b> </b><br /> <b> </b><br /> <b> </b><br /> <b><i>RFA 545/2016 Page 44 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <b> </b><br /> <i> </i><br /> <b><i>RFA 545/2016 Page 45 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <i> </i><br /> <i> </i><br /> <i>xxx xxx xxx </i><br /> <i> </i><br /> <b><i>RFA 545/2016 Page 46 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <i>‖ </i><br /> <br /> <br /> 72. Perusal of the aforesaid shows that <i>PW-5</i> has admitted to his <br /> signature, as well as the thumb impression of Smt. Bassi Devi on the Will <br /> th <br /> dated 07 April, 1988. Further, <i>PW-5</i> has admitted to his signature, as well <br /> th <br /> as the thumb impression of Shri Som Nath on the Will dated 07 April, <br /> 1988. <br /> 73. In his cross-examination, <i>PW-5</i> has categorically deposed that Smt. <br /> Bassi Devi had put her thumb impression on <i>Ex. PW-1/2</i> , i.e., the Will dated <br /> th <br /> 07 April, 1988 and Shri Som Nath had put his thumb impression on <i>Ex. </i><br /> th <br /> <i>PW1/3</i> , i.e., the Will dated 07 April, 1988, in his presence. <br /> 74. While this Court notes that there is no specific averment by <i>PW-5</i> to <br /> the effect that he had seen the other attesting witness, i.e., Shri Fakir Chand <br /> sign the Wills in the presence of the testators, <i>PW-5 </i> had stated that the <br /> th <br /> persons who were present in the office of the Sub-Registrar on 07 April, <br /> 1988, included Shri Fakir Chand. This statement by <i>PW-5,</i> by implication <br /> and inference, will have to be held as proving the required attestation by <br /> th <br /> Shri Fakir Chand as the other attesting witness to the Wills dated 07 April, <br /> th <br /> 1988. Further, the Wills dated 07 April, 1988 executed by Smt. Bassi Devi <br /> and Shri Som Nath respectively are registered documents, and have not been <br /> disputed, either by respondent no. 2 or by the appellant. Looking at the <br /> <b><i>RFA 545/2016 Page 47 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> th <br /> totality of the circumstances, it is evident that the Wills dated 07 April, <br /> 1988 executed by Smt. Bassi Devi and Shri Som Nath, have been duly <br /> proved. <br /> 75. In this regard, it would be apposite to refer to the decision in the case <br /> of <b><i>M.B. Ramesh Versus K.M. Veeraje Urs and Others, (2013) 7 SCC 490</i></b> , <br /> wherein, the Supreme Court, while dealing with the issue of validity of the <br /> Will, observed that the Court must satisfy its conscience having regard to the <br /> totality of circumstances, in the following manner: <br /> <i>―xxx xxx xxx </i><br /> <i>25</i> <b><i>.</i></b> <i> The issue of validity of the will in the present case will have to be </i><br /> <i>considered in the context of these facts. </i> <b><i>It is true that in the case at </i></b><br /> <b><i>hand, there is no specific statement by PW 2 that he had seen the </i></b><br /> <b><i>other attesting witness sign the will in the presence of the testatrix, </i></b><br /> <b><i>but he has stated that the other witness had also signed the </i></b><br /> <b><i>document. He has proved his signature, and on the top of it he has </i></b><br /> <b><i>also stated in the cross-examination that the other witness (Mr </i></b><br /> <b><i>Mallaraje Urs), Smt Nagammani, himself and one Sampat Iyanger </i></b><br /> <b><i>and the writer of the will were all present while writing the will on </i></b><br /> <b><i>24-10-1943 which was registered on the very next day. This </i></b><br /> <b><i>statement by implication and inference will have to be held as </i></b><br /> <b><i>proving the required attestation by the other witness. </i></b> <i>This statement </i><br /> <i>along with the attendant circumstances placed on record would </i><br /> <i>certainly constitute proving of the will by other evidence as permitted </i><br /> <i>by Section 71 of the Evidence Act. </i><br /> <i> </i><br /> <i>xxx xxx xxx </i><br /> <i> </i><br /> <i>28. As stated by this Court also in H. Venkatachala Iyengar [H. </i><br /> <i>Venkatachala Iyengar v. B.N. Thimmajamma, AIR 1959 SC 443 : </i><br /> <i>1959 Supp (1) SCR 426] and Jaswant Kaur [Jaswant Kaur v. Amrit </i><br /> <i>Kaur, (1977) 1 SCC 369 : AIR 1977 SC 74] , </i> <b><i>while arriving at the </i></b><br /> <b><i>finding as to whether the will was duly executed, the Court must </i></b><br /> <b><i>satisfy its conscience having regard to the totality of circumstances. </i></b><br /> <b><i>The Court's role in matters concerning wills is limited to examining </i></b><br /> <b><i>whether the instrument propounded as the last will of the deceased </i></b><br /> <b><i>is or is not that by the testator, and whether it is the product of the </i></b><br /> <b><i>free and sound disposing mind [as observed by this Court in para 77 </i></b><br /> <b><i>of Gurdev Kaur v. Kaki [(2007) 1 SCC 546] ]. In the present matter, </i></b><br /> <b><i>there is no dispute about these factors. </i></b><br /> <i> </i><br /> <b><i>RFA 545/2016 Page 48 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <i>xxx xxx xxx‖ </i><br /> <i>(Emphasis Supplied) </i><br /> <br /> 76. In his cross-examination, the <i>PW-5 </i> clearly deposed regarding signing <br /> th <br /> of the said documents dated 07 April, 1988 in favour of respondent no. 1 <br /> and her husband. <br /> 77. Perusal of the Evidence Affidavit as well as cross-examination of <i>PW-</i><br /> <i>5</i> makes it evident that <i>PW-5</i> clearly deposed to the signing of the GPA, two <br /> th <br /> Wills and the receipt dated 07 April, 1988 in favour of respondent no. 1 and <br /> her husband, as a witness. <br /> 78. He further deposed that in the office of the Sub-Registrar, he signed <br /> only the Power of Attorney <b>(“POA”)</b> . However, the deposition as aforesaid <br /> does not detract from the clear deposition of <i>PW-5 </i> that he had signed the <br /> two Wills and the receipt in favour of respondent no. 1, as a witness. The <br /> said witness has clearly admitted his signatures on the documents of the year <br /> 1988, executed in favour of respondent no. 1 and her husband. <br /> 79. Therefore, this Court finds no infirmity in the finding of the Trial <br /> Court that the testimony of <i>PW-5</i> remained unshaken during his entire cross-<br /> examination. <br /> 80. The contention of the appellant that the respondent no. 1 failed to <br /> prove the Wills of Smt. Bassi Devi and Shri Som Nath, is devoid of any <br /> merits. Reading of the cross-examination of <i>PW-5</i> , one of the attesting <br /> witnesses of the Wills of Smt. Bassi Devi and Shri Som Nath, clearly <br /> demonstrates that <i>PW-5 </i> categorically stated that he has executed the POA, <br /> two Wills and the receipt. The fact that he deposed that he remained in the <br /> Sub-Registrar‟s office only for five to six minutes, and signed only POA <br /> during those five to six minutes, only goes to show that the said witness <br /> <b><i>RFA 545/2016 Page 49 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> signed only the POA in the office of Sub-Registrar. The deposition of the <br /> said witness is very clear and has remained steadfast to the effect that the <br /> said witness signed the Wills of Smt. Bassi Devi and Shri Som Nath as one <br /> th <br /> of the attesting witnesses, as also the receipt dated 07 April, 1988. <br /> 81. On the other hand, the appellant has placed reliance on a registered <br /> th <br /> Agreement to Sell dated 18 August, 2006. In this regard, the respondent no. <br /> 1 had examined the Shri Yashpal, LDC, Sub-Registrar‟s office. Janak Puri, <br /> th <br /> Delhi, who produced the registered Agreement to Sell dated 18 August, <br /> 2006. <br /> 82. The appellant has also placed reliance on the Will, GPA, SPA all dated <br /> th <br /> 18 August, 2006, as well as undated affidavit and receipt. However, the <br /> appellant has not examined either the officers from the office of the Sub-<br /> Registrar or the attesting witnesses to these documents. <br /> 83. Thus, it is apparent that both the appellant and respondent no. 1, seek <br /> to derive their interest in the suit property on the basis of a set of documents, <br /> which do not include a registered Sale Deed. The law in this regard, as per <br /> Section 54 of TP Act, is very clear that only a Sale Deed, which is duly <br /> stamped and registered as required by law, amounts to a conveyance to <br /> confer proprietary rights and create an interest or charge in a property. <br /> 84. Holding that Section 54 of the TP Act expressly declares that a <br /> contract of sale, i.e., an Agreement to Sell, as well as a GPA does not, of <br /> itself, create any interest in or charge on a property, the Supreme Court in <br /> the seminal case of <b><i>Suraj Lamp and Industries Private Limited Versus </i></b><br /> <b><i>State of Haryana and Another, (2012) 1 SCC 656</i></b> , held as follows: <br /> <br /> <br /> <b><i>RFA 545/2016 Page 50 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <i>―xxx xxx xxx </i><br /></div><table><thead><tr><th>16. Section 54 of the TP Act makes it clear that a contract of sale, that</th><th></th><th></th></tr></thead><tbody><tr><td>is, an agreement of sale does not, of itself, create any interest in or</td><td></td><td></td></tr><tr><td>charge on such property. This Court in Narandas Karsondas v. S.A.</td><td></td><td></td></tr><tr><td>Kamtam [(1977) 3 SCC 247] observed: (SCC pp. 254-55, paras 32-33 &</td><td></td><td></td></tr><tr><td>37)</td><td></td><td></td></tr><tr><td></td><td>―32. A contract of sale does not of itself create any interest in,</td><td></td></tr><tr><td></td><td>or charge on, the property. This is expressly declared in</td><td></td></tr><tr><td></td><td>Section 54 of the Transfer of Property Act. (See Ram Baran</td><td></td></tr><tr><td></td><td>Prasad v. Ram Mohit Hazra [AIR 1967 SC 744 : (1967) 1 SCR</td><td></td></tr><tr><td></td><td>293] .) The fiduciary character of the personal obligation</td><td></td></tr><tr><td></td><td>created by a contract for sale is recognised in Section 3 of the</td><td></td></tr><tr><td></td><td>Specific Relief Act, 1963, and in Section 91 of the Trusts Act.</td><td></td></tr><tr><td></td><td>The personal obligation created by a contract of sale is</td><td></td></tr><tr><td></td><td>described in Section 40 of the Transfer of Property Act as an</td><td></td></tr><tr><td></td><td>obligation arising out of contract and annexed to the ownership</td><td></td></tr><tr><td></td><td>of property, but not amounting to an interest or easement</td><td></td></tr><tr><td></td><td>therein.</td><td></td></tr><tr><td></td><td>33. In India, the word ‗transfer‘ is defined with reference to the</td><td></td></tr><tr><td></td><td>word ‗convey‘. … The word ‗conveys‘ in Section 5 of the</td><td></td></tr><tr><td></td><td>Transfer of Property Act is used in the wider sense of conveying</td><td></td></tr><tr><td></td><td>ownership.</td><td></td></tr><tr><td></td><td>* * *</td><td></td></tr><tr><td></td><td>37. … that only on execution of conveyance, ownership passes</td><td></td></tr><tr><td></td><td>from one party to another….‖</td><td></td></tr></tbody></table><table><thead><tr><th>19. Any contract of sale (agreement to sell) which is not a registered</th><th></th></tr></thead><tbody><tr><td>deed of conveyance (deed of sale) would fall short of the requirements</td><td></td></tr><tr><td>of Sections 54 and 55 of the TP Act and will not confer any title nor</td><td></td></tr><tr><td>transfer any interest in an immovable property (except to the limited</td><td></td></tr><tr><td>right granted under Section 53-A of the TP Act). According to the TP</td><td></td></tr><tr><td>Act, an agreement of sale, whether with possession or without</td><td></td></tr><tr><td>possession, is not a conveyance. Section 54 of the TP Act enacts that</td><td></td></tr><tr><td>sale of immovable property can be made only by a registered</td><td></td></tr><tr><td>instrument and an agreement of sale does not create any interest or</td><td></td></tr><tr><td>charge on its subject-matter.</td><td></td></tr></tbody></table><div><br /> <i> </i><br /> <b><i>Scope of power of attorney </i></b><br /> <i> </i><br /> <b><i>20</i></b> <i>. </i> <b><i>A power of attorney is not an instrument of transfer in regard to </i></b><br /> <b><i>any right, title or interest in an immovable property.</i></b> <i> The power of </i><br /> <i>attorney is creation of an agency whereby the grantor authorises the </i><br /> <i>grantee to do the acts specified therein, on behalf of grantor, which when </i><br /> <i>executed will be binding on the grantor as if done by him (see Section 1-</i><br /> <b><i>RFA 545/2016 Page 51 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /></div><table><thead><tr><th>A and Section 2 of the Powers of Attorney Act, 1882). It is revocable or</th><th></th></tr></thead><tbody><tr><td>terminable at any time unless it is made irrevocable in a manner known</td><td></td></tr><tr><td>to law. Even an irrevocable attorney does not have the effect of</td><td></td></tr><tr><td>transferring title to the grantee.</td><td></td></tr></tbody></table><div><br /> <i> </i><br /> <i>xxx xxx xxx </i><br /> <i> </i><br /> <b><i>Scope of will </i></b><br /> <i> </i><br /> <b><i>22</i></b> <i>. </i> <b><i>A will is the testament of the testator. It is a posthumous disposition </i></b><br /> <b><i>of the estate of the testator directing distribution of his estate upon his </i></b><br /> <b><i>death. It is not a transfer inter vivos. The two essential characteristics </i></b><br /> <b><i>of a will are that it is intended to come into effect only after the death of </i></b><br /> <b><i>the testator and is revocable at any time during the lifetime of the </i></b><br /> <b><i>testator. It is said that so long as the testator is alive, a will is not worth </i></b><br /> <b><i>the paper on which it is written, as the testator can at any time revoke </i></b><br /> <b><i>it.</i></b> <i> If the testator, who is not married, marries after making the will, by </i><br /> <i>operation of law, the will stands revoked. (See Sections 69 and 70 of the </i><br /> <i>Succession Act, 1925.) Registration of a will does not make it any more </i><br /> <i>effective. </i><br /> <i> </i><br /> <b><i> Conclusion </i></b><br /></div><table><tbody><tr><td>23. Therefore, an SA/GPA/will transaction does not convey any title</td><td></td></tr><tr><td>nor creates any interest in an immovable property. The observations by</td><td></td></tr><tr><td>the Delhi High Court in Asha M. Jain v. Canara Bank [(2001) 94 DLT</td><td></td></tr><tr><td>841] , that the ―concept of power-of-attorney sales has been recognised</td><td></td></tr><tr><td>as a mode of transaction‖ when dealing with transactions by way of</td><td></td></tr><tr><td>SA/GPA/will are unwarranted and not justified, unintendedly misleading</td><td></td></tr><tr><td>the general public into thinking that SA/GPA/will transactions are some</td><td></td></tr><tr><td>kind of a recognised or accepted mode of transfer and that it can be a</td><td></td></tr><tr><td>valid substitute for a sale deed. Such decisions to the extent they</td><td></td></tr><tr><td>recognise or accept SA/GPA/will transactions as concluded transfers, as</td><td></td></tr><tr><td>contrasted from an agreement to transfer, are not good law.</td><td></td></tr></tbody></table><div><br /> <b><i>Suresh Chand and Another, 2025 SCC OnLine SC 1879 </i></b> has reiterated that <br /> Section 54 of the TP Act, in its definition of sale, does not include an <br /> Agreement to Sell as it neither confers any proprietary rights in favour of the <br /> transferee nor by itself create any interest or charge in the property. Further, <br /> <b><i>RFA 545/2016 Page 52 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> a GPA does not confer a valid title over a property. The relevant paragraphs, <br /> in this regard, have been reproduced as under: <br /> <i>―xxx xxx xxx </i><br /> <i> </i><br /> <i>15. </i> <b><i>There is a difference between a sale deed and an agreement for </i></b><br /> <b><i>sale, or a contract for sale. A contract for sale of immovable property is </i></b><br /> <b><i>a contract that a sale of such property shall take place on terms settled </i></b><br /> <b><i>between the parties. While a sale is a transfer of ownership; a contract </i></b><br /> <b><i>for sale is merely a document creating a right to obtain another </i></b><br /> <b><i>document, namely a registered sale deed to complete the transaction of </i></b><br /> <b><i>sale of an immovable property. Section 54 in its definition of sale does </i></b><br /> <b><i>not include an agreement of sale and neither confers any proprietary </i></b><br /> <b><i>rights in favour of the transferee nor by itself create any interest or </i></b><br /> <b><i>charge in the property</i></b> <i>. … </i><br /> <i> </i><br /> <i>xxx xxx xxx </i><br /> <i> </i><br /> <b><i>18. A power of attorney is a creation of an agency whereby the grantor </i></b><br /> <b><i>authorizes the grantee to do the acts specified therein, on behalf of </i></b><br /> <b><i>grantor, which when executed will be binding on the grantor as if done </i></b><br /> <b><i>by him.</i></b> <i> It is revocable or terminable at any time unless it is made </i><br /> <i>irrevocable in a manner known to law</i> <b><i>. A General Power of Attorney </i></b><br /> <b><i>does not ipso facto constitute an instrument of transfer of an </i></b><br /> <b><i>immovable property even where some clauses are introduced in it, </i></b><br /> <b><i>holding it to be irrevocable or authorizing the attorney holder to effect </i></b><br /> <b><i>sale of the immovable property on behalf of the grantor. It would not </i></b><br /> <b><i>ipso facto change the character of the document transforming it into a </i></b><br /> <b><i>4</i></b><br /> <b><i>conveyance deed.</i></b> <i>[</i> <i>Dr. Poonam Pradhan Saxena, Property Law, Third </i><br /> <i>Edition, 2017 (Lexis Nexis), p. 66] </i><br /> <i> </i><br /> <b><i>19. A power of attorney is not a sale. A sale involves transfer of all the </i></b><br /> <b><i>rights in the property in favour of the transferee but a power of </i></b><br /> <b><i>attorney simply authorises the grantee to do certain acts with respect to </i></b><br /> <b><i>the property including if the grantor permits to do certain acts with </i></b><br /> <b><i>5</i></b><br /> <b><i>respect to the property including an authority to sell the property.</i></b> <i> [Dr. </i><br /> <i>Poonam Pradhan Saxena, Property Law, Third Edition, 2017 (Lexis </i><br /> <i>Nexis), p. 301] </i><br /> <i> </i><br /> <i>xxx xxx xxx </i><br /> <i> </i><br /> <b><i>22. </i></b> <i>Having discussed the position of law, it is essential to peruse the </i><br /> <i>recitals of the General Power of Attorney, which is on record and pressed </i><br /> <i>into service by plaintiff. The said GPA merely authorises the grantee to </i><br /> <i>manage the affairs of the suit property, which includes the power to let </i><br /> <i>out the property on rent, and create a mortgage of the same, etc. </i><br /> <i>However, it is silent on the aspect of conveyance. Be that as it may. The </i><br /> <i>recitals of the power of attorney would indicate the intent of the grantor </i><br /> <b><i>RFA 545/2016 Page 53 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <i>is to limit the powers of the grantee to only manage the suit property, and </i><br /> <i>not to create any interest in his favour, which is inconsonance with the </i><br /> <i>settled position of law as discussed above that a power of attorney is an </i><br /> <i>agency by which the agent derives the authority or the right to enter into </i><br /> <i>transactions on behalf of the principal. </i> <b><i>Even if we accept the validity of </i></b><br /> <b><i>the Power of Attorney in favour of the plaintiff, still it does not confer a </i></b><br /> <b><i>valid title on him with respect to the suit property.</i></b> <i> </i><br /> <i> </i><br /> <i>xxx xxx xxx‖ </i><br /> <i> </i> <i> </i> <i> </i> <i> </i> <i> </i> <i> </i> <i> (Emphasis Supplied) </i><br /> <i> </i><br /> <i> </i><br /> 86. However, in the peculiar facts and circumstances of the present case, <br /> when the original owner has not asserted any right before the Court during <br /> the trial, the Court would decide upon the issue of right asserted by the <br /> appellant and respondent no. 1, on the basis of the documents in their favour <br /> executed by the original owner(s). <br /> <br /> 87. From the record, it is apparent that the respondent no. 1 relies on two <br /> th <br /> registered Wills dated 07 April, 1988, i.e., the Will executed by Smt. Bassi <br /> Devi in favuor of respondent no. 1, and the Will executed by respondent no. <br /> 2 in favour of respondent no. 1. As noted above, the aforesaid two registered <br /> Wills in favour of respondent no. 1, have been proved during the course of <br /> trial. <br /> 88. On the other hand, the appellant has also contended that respondent <br /> no. 2, has executed a Will in his favour. However, as discussed in the <br /> subsequent paragraphs, the said Will was neither produced by the appellant <br /> before the Trial Court, nor its execution ever proved. <br /> 89. At this juncture, this Court takes note of the admitted position that <br /> Smt. Bassi Devi died in the year 1995, and respondent no. 2 demised during <br /> the proceedings before the Trial Court. <br /> <br /> 90. In regard to the demise of Smt. Bassi Devi in the year 1995, the <br /> th <br /> execution of the Will dated 07 April, 1988 by Smt. Bassi Devi in favour of <br /> <b><i>RFA 545/2016 Page 54 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> respondent no. 1 was admitted by respondent no. 2, in his written statement <br /> as well as by the appellant in his Evidence Affidavit, before the Trial Court. <br /> The registration of the said Will was also proved by the respondent no. 1 by <br /> examination of <i>PW-1</i> . Even otherwise, the execution of the said Will <br /> executed by Smt. Bassi Devi in favour of respondent no. 1, was proved by <br /> respondent no. 1, by leading evidence of the attesting witness, i.e., <i>PW-5</i> . <br /> 91. Further, it is not the case of any party before this Court that the said <br /> th <br /> Will dated 07 April, 1988 executed by Smt. Bassi Devi in favour of <br /> respondent no. 1, was ever revoked or cancelled. <br /> 92. This Court also notes that it is not the case of the appellant that the <br /> said Will was not genuine, since he did not challenge the validity or <br /> subsistence of the Will. Accordingly, no issue was framed by the Trial Court <br /> as to the validity or genuineness of the said Will. <br /> 93. Accordingly, upon the demise of Smt. Bassi Devi in the year 1995, <br /> th <br /> the Will dated 07 April, 1988, in favour of respondent no. 1 came into <br /> effect, with respect to her share of 50% in the suit property. <br /> th <br /> 94. Likewise, as noted above, the registered Will dated 07 April, 1988 <br /> executed by respondent no. 2, as well as the registered GPA executed by <br /> respondent no. 2 and his mother, were duly proved during the course of trial. <br /> 95. It is to be noted that although the appellant has sought to place <br /> reliance on an alleged Will executed by respondent no. 2 in his favour, the <br /> said Will is not on record before this Court. <br /> 96. In this regard, this Court takes note of the fact that by way of the order <br /> th <br /> dated 16 May, 2011, the cross-examination of the appellant was deferred as <br /> the appellant had not brought the original documents. The said order passed <br /> by the Trial Court in the suit has been reproduced as under: <br /> <b><i>RFA 545/2016 Page 55 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <br /> <br /> <i>―xxx xxx xxx </i><br /> <i> </i><br /> <i>‖ </i><br /> th <br /> 97. However, on the next date of the cross-examination, i.e., 06 July, <br /> 2012, the appellant has only brought forth the originals of Agreement to <br /> Sell, GPA and SPA of the year 2006, and a receipt. It is manifest that the <br /> appellant failed to bring before the Trial Court the Will purported to have <br /> been executed by respondent no. 2 in his favour. The relevant extract of the <br /> th<br /> order dated 06 July, 2012, is reproduced as under: <br /> <i>― </i><br /> <b><i>RFA 545/2016 Page 56 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <br /> <i>xxx xxx xxx‖ </i><br /> 98. Further, neither any evidence, nor any attesting witness has been <br /> <b><i>RFA 545/2016 Page 57 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> produced by the appellant to prove any Will executed by respondent no. 2 in <br /> his favour. <br /> 99. Therefore, this Court in substance agrees with the finding of the Trial <br /> Court that upon demise of Smt. Bassi Devi in the year 1995, the Will dated <br /> th <br /> 07 April, 1988, in favour of respondent no. 1 came into operation, and Smt. <br /> Bassi Devi‟s 50% share in the suit property, devolved upon the respondent <br /> no. 1. <br /> 100. Consequently, the respondent no. 2 had no legal authority to execute <br /> any document in favour of the appellant in the year 2006 for the whole of <br /> the suit property. Accordingly, the execution of documents in the year 2006 <br /> in favour of appellant by respondent no. 2, are not valid, as the same were <br /> without any legal, or valid authority. <br /> <i> </i><br /> 101. In this regard, it would be apposite to refer to the decision in the case <br /> of <b><i>Umadevi Nambiar Versus Thamarasseri Roman Catholic Diocese, </i></b><br /> <b><i>(2022) 7 SCC 90</i></b> , where the Supreme Court held that no one can transfer a <br /> better title than what one possesses, in the following manner: <b><i> </i></b><br /> <i>―xxx xxx xxx </i><br /> <i> </i><br /> <b><i> </i></b><br /> <b><i>19. It is a fundamental principle of the law of transfer of property </i></b><br /> <b><i>that “no one can confer a better title than what he himself has” </i></b><br /> <b><i>(nemo dat quod non habet).</i></b> <i> The appellant's sister did not have the </i><br /> <i>power to sell the property to the vendors of the respondent. </i><br /> <i>Therefore, the vendors of the respondent could not have derived any </i><br /> <i>valid title to the property. </i> <b><i>If the vendors of the respondent </i></b><br /> <b><i>themselves did not have any title, they had nothing to convey to the </i></b><br /> <b><i>respondent, except perhaps the litigation. </i></b><br /> <i> </i><br /> <i>xxx xxx xxx‖ </i><br /> <i>(Emphasis Supplied) </i><br /> <b><i> </i></b><br /> 102. Thus, although neither the appellant nor respondent no. 1 have a <br /> <b><i>RFA 545/2016 Page 58 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> registered Sale Deed in their favour, in view of the peculiar facts and <br /> th <br /> circumstance of the present case, the Will dated 07 April, 1988 executed by <br /> Smt. Bassi Devi in favour of respondent no. 1 with respect to her 50% share <br /> th <br /> in the suit property, came into effect. The documents dated 18 August, <br /> 2006, executed by respondent no. 2 in favour of the appellant with respect to <br /> the whole of the suit property, was without authority, and therefore, null and <br /> void. <br /> 103. Reading of the impugned judgment shows that on the basis of the <br /> evidence led before the Trial Court, the Trial Court rightly came to a <br /> categorical conclusion that the respondent no. 1, had been able to prove the <br /> execution of the documents of the year 1988 in her favour, and that after the <br /> execution of such documents, the respondent no. 2 did not have any power <br /> th<br /> or authority to subsequently execute the documents dated 18 August, 2006 <br /> in favour of the appellant. <br /> 104. This Court also notes that in view of the dispute as regards the suit <br /> th <br /> property, the L&DO <i>vide</i> its letter dated 28 December, 2006, cancelled the <br /> substitution of the suit property that had earlier been granted in favour of <br /> th <br /> respondent no. 2, i.e., Shri Som Nath <i>vide </i> letter dated 08 August, 2006. <br /> <b>Issue of Possession of the Suit Property: </b><br /> 105. It is the case of the appellant that the respondent no. 1 never herself <br /> occupied the suit property, and only claims possession of the suit property <br /> through her son, i.e., Shri Girish Gujral. It is further contended by the <br /> appellant that the respondent no. 1 has failed to prove that the suit property <br /> was given by her on rent, as no rent agreement or rent receipts have been <br /> brought on record by the respondent no. 1. <br /> 106. On the other hand, the respondent no. 1 has contended that the <br /> <b><i>RFA 545/2016 Page 59 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> physical possession of the suit property was already with her son, Shri <br /> Girish Gujral, prior to the sale of the suit property in the year 1988. The <br /> legal possession of the suit property was transferred to respondent no. 1 <br /> upon execution of the documents of the year 1988. <br /> 107. As regards the possession of the suit property, the respondent no. 1, in <br /> her Evidence Affidavit, <i>Ex. P-4</i> , and her cross-examination, has stated that <br /> she had been in uninterrupted and peaceful possession of the suit property <br /> th <br /> since 07 April, 1988. Respondent no. 1 further deposed that the suit <br /> property comprises of one <i>pucca</i> room and one <i>kutcha</i> room only. <br /> 108. She has stated that her son, Shri Girish Gujral had taken a single room <br /> in the suit property on rent, in anticipation of some business proposal. After <br /> her son took the single room on rent, talks for sale of the suit property <br /> commenced. Once the sale concluded, the legal possession of the suit <br /> property had been transferred by respondent no. 1 and his mother, Smt. <br /> Bassi Devi, on the basis of the documents of the year 1988, to her. She <br /> further stated that the peaceful and vacant physical possession of the suit <br /> property was already with her son, Shri Girish Gujral, who was a tenant in <br /> the suit property. When she purchased the suit property, the tenancy rights <br /> lost significance as they came in possession of the suit property as owners. <br /> 109. Respondent no. 1 herein further stated that even the water connection <br /> in the suit property was obtained by her, as there was no existing water <br /> connection when she purchased the suit property. She has placed reliance on <br /> the water bills and the house tax records, to show that the possession of the <br /> suit property was with her. Additionally, though the electricity bills for the <br /> suit property were in the name of Late Shri Kanshi Ram, the same were <br /> being paid by her only. <br /> <b><i>RFA 545/2016 Page 60 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> 110. Respondent no. 1 has further deposed that it was only after 5-6 years <br /> of taking the vacant possession of the entire suit property, that she inducted <br /> one <i>subziwala</i> , by the name of Shri Deepak, in the <i>kutcha</i> portion of the suit <br /> property, while the <i>pucca</i> portion of the suit property has remained in her <br /> possession. Respondent no. 1 has admitted that she never issued any <br /> document to the tenants, nor maintained any account for receipt for such <br /> rent. The entire relationship with the tenants was oral, and based on trust. <br /> 111. She further stated that she along with her husband, Shri Iqbal Singh, <br /> have been residing at another property in <i>Rajouri Garden</i> , however, some of <br /> their luggage/goods remains in the suit property. <br /> 112. This Court further notes that respondent no. 1 was cross-examined by <br /> only the appellant, and was never cross-examined by respondent no. 2. <br /> 113. It is to be noted that the testimony of the respondent no. 1 is also <br /> corroborated by the documents on record. The house tax receipts with <br /> respect to the suit property for the years 2004, 2005 and 2006 have been <br /> exhibited by the respondent no. 1 as <i>Exhibit PW 4/D (3), Exhibit PW 4/D </i><br /> <i>(2), Exhibit PW 4/D (1),</i> respectively, and the same are in the name of the <br /> st th<br /> respondent no. 1. Likewise, the water bills dated 21 May, 1988, 10 March, <br /> rd<br /> 1999, and 23 December, 2006, issued by the Delhi Jal Board <b>(“DJB”)</b> , <br /> with respect to the suit property, are in the name of respondent no. 1, and <br /> have been exhibited as <i>Ex. PW 4/E (1), Ex. PW 4/E (2),</i> and <i>Ex. PW 4/E (3),</i> <br /> respectively. <br /> 114. Further, the testimony of the respondent no. 1 that her son was already <br /> in possession of the suit property prior to the sale, in the capacity of a tenant <br /> and that after the sale, the legal possession of the suit property was <br /> th <br /> transferred to her, is corroborated by the Agreement to Sell dated 07 April, <br /> <b><i>RFA 545/2016 Page 61 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> 1988, wherein, it is recorded as follows: <br /> <i>―xxx xxx xxx </i><br /> <i> </i><br /> <i>xxx xxx xxx</i> <i>‖ </i><br /> 115. It is also to be noted that <i>PW-5</i> had categorically stated in his <br /> Evidence Affidavit that the respondent no. 1 had remained in possession of <br /> the suit property since its purchase. However, no question in that regard was <br /> asked from the said witness during the cross-examination. <br /> 116. The respondent no. 1 also produced <i>PW-6</i> , i.e., Shri Vijay Nagpal, <br /> who resides near the suit property, at the property bearing no. <i>10/124, </i><br /> <i>Subhash Nagar, New Delhi – 110027</i> , to establish her possession of the suit <br /> property. <i>PW-6</i> , in his Evidence Affidavit, deposed that the respondent no. 1 <br /> has been in possession of the suit property, since the same was purchased by <br /> her from Smt. Bassi Devi and Shri Som Nath in April, 1988. <br /> 117. In his cross examination, <i>PW-6</i> further affirmed that the <i>pucca</i> room <br /> was in the occupation of respondent no. 1, and that he had seen Shri Iqbal <br /> Singh visiting the <i>pucca</i> portion sometimes. He further stated that, most <br /> probably, the <i>pucca</i> portion remained under lock and key. He further stated <br /> that the <i>kutcha</i> rooms in the suit property were invariably occupied by <br /> <b><i>RFA 545/2016 Page 62 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <i>subziwalas</i> . Further, he deposed that it is wrong to suggest that Smt. Bassi <br /> Devi never had the intention to sell the suit property to respondent no. 1. <br /> Thus, the testimony of <i>PW-6</i> remained uncontroverted in his cross- <br /> examination by the appellant and clearly established that the suit property <br /> was under the possession of the respondent no. 1. <br /> 118. Thus, the respondent no. 1 has examined <i>PW-6</i> as a neighbour, who is <br /> reasonably expected to be aware of the possession of the suit property, as it <br /> is logical that a person in possession of any particular immovable property <br /> for a long period of time, would be known by other persons in the locality. <br /> 119. Accordingly, on the basis of the evidence on record, such as, the <br /> water bills and house tax receipts in the name of respondent no. 1, the <br /> corroboration of the testimony of the respondent no. 1, the testimony of <i>PW-</i><br /> <i>6</i> as being the neighbour residing nearby the suit property, a presumption as <br /> to possession is raised in favour of the respondent no. 1. <b> </b><br /> 120. This Court further notes that the appellant failed to produce any <br /> evidence on record to controvert the assertion of respondent no. 1 that <br /> respondent no. 1 had the possession of the suit property. <b> </b><br /> 121. Pertinently, it is to be noted that the appellant in his cross-examination <br /> has stated that at the time of purchase of the suit property, the possession of <br /> the suit property was with the tenants. Additionally, the tenants sought time <br /> to vacate the suit property, however, he did not give any notice to the tenants <br /> to vacate the suit property. He has further deposed that he has not received <br /> any rent from the tenants, till date. The relevant portions of the cross-<br /> examination of the appellant are reproduced as under: <br /> <br /> <br /> <b><i>RFA 545/2016 Page 63 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <i>―xxx xxx xxx </i><br /> <i> </i><br /> <i> </i><br /> <i> </i><br /> <i>xxx xxx xxx‖ </i><br /> 122. From the aforesaid deposition, it is evident that when the appellant <br /> himself has admitted that he never received any rents from the tenants in the <br /> suit property till date, it cannot be said that he had any constructive <br /> possession of the suit property. The appellant has failed to bring on record <br /> any evidence or witness to show that the suit property was under his <br /> possession or the possession of respondent no. 2. <b><i> </i></b><br /> th <br /> 123. Interestingly, the Agreement to Sell dated 18 August, 2006 in favour <br /> of the appellant, does not mention the fact of the suit property being under <br /> the possession of any tenants. Rather, the Agreement to Sell in favour of the <br /> appellant states that physical possession of the suit property has been handed <br /> over to the appellant. The relevant paragraphs of the Agreement to Sell <br /> th <br /> dated 18 August, 2006, in this regard, are as follows: <b> </b><br /> <i>xxx xxx xxx</i><br /> <i>―</i> <i> </i><br /> <b> </b><br /> <b><i>RFA 545/2016 Page 64 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <i>xxx xxx xxx </i><br /> <b> </b><br /> <i>xxx xxx xxx‖ </i><br /> 124. Perusal of the aforementioned deposition of the appellant, as well as <br /> th <br /> the Agreement to Sell dated 18 August, 2006, demonstrates that the <br /> appellant was aware that the possession of the suit property was with the <br /> tenant(s), at the time of execution of Agreement to Sell in his favour. <br /> However, the Agreement to Sell in favour of the appellant does not mention <br /> the fact of possession of the suit property with the tenant(s), rather it <br /> wrongly mentions that physical possession of the suit property has been <br /> handed over to the tenant. Thus, the appellant has taken contradictory stand <br /> in his cross-examination, which is completely different from the narration <br /> given in the Agreement to Sell in his favour. This contradiction itself is a <br /> clear pointer to the fact that at the time of execution of Agreement to Sell in <br /> favour of the appellant, the possession of the suit property was with the <br /> tenant(s), and the appellant was in the knowledge of the same. The <br /> Agreement to Sell in favour of the appellant does not mention that the suit <br /> property has been handed over to the appellant with possession of the <br /> tenant(s). Thus, the admission of the appellant regarding possession of the <br /> suit property by the tenant(s) at the time of execution of Agreement to Sell <br /> in his favour, and the suppression of said fact in the Agreement to Sell in his <br /> favour, clearly establishes that no physical or constructive possession of the <br /> suit property was handed over to the appellant at the time of execution of the <br /> <b><i>RFA 545/2016 Page 65 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> th<br /> Agreement to Sell dated 18 August, 2006. <b><i> </i></b><br /> 125. Accordingly, in view of the evidence on record, such as the water bills <br /> and house tax receipts in the name of respondent no. 1, the oral testimony of <br /> the respondent no. 1 which stands corroborated by the documents on record, <br /> and the testimony of <i>PW-6</i> as the neighbour residing near the suit property, <br /> along with the admission of the appellant that he was not receiving any rent <br /> from the suit property, it is justified to hold that the <i>preponderance of </i><br /> <i>probability</i> tilts in favour of the case made out by the respondent no. <br /> 1/plaintiff in the suit. <b><i> </i></b><br /> 126. In this regard, it would be apposite to refer to the decision of this <br /> Court in the case of <b><i>Amrit Pal Kaur and Others Versus Harcharan Singh </i></b><br /> <b><i>Josh, 2024 SCC OnLine Del 7161</i></b> , wherein this Court, on the basis of <br /> electricity bills and tax receipts, amongst other things, decided the issue of <br /> possession on the basis of <i>preponderance of probabilities</i> , in the following <br /> manner: <b><i> </i></b><br /> <i>―xxx xxx xxx </i><br /> <b><i>58.</i></b> <i> The plaintiff, by way of oral and documentary pieces of evidence, </i><br /> <i>has proved that he himself, along with his family, stayed in the suit </i><br /> <i>premises and even otherwise, his constructive possession continued up </i><br /> <i>to 1999 and further till 27-6-2003, when the Fard Khana Talashi was </i><br /> <i>prepared by the IO based on the FIR by obtaining the keys of the </i><br /> <i>almirah from the plaintiff who facilitated the opening of the locks. </i><br /> <b><i>Even otherwise, the fact that the plaintiff paid the property tax on </i></b><br /> <b><i>11-2-2003, and the electricity connection was in the joint name </i></b><br /> <b><i>indicates that he may not have been in physical possession of the </i></b><br /> <b><i>suit property but his constructive possession cannot be denied. </i></b> <i>The </i><br /> <i>evidence adduced is sufficient to establish his right or ownership over </i><br /> <i>the property, and his right of possession, as has been extensively dealt </i><br /> <i>with in preceding paragraphs, cannot be denied as being dehors the </i><br /> <i>law. </i><br /> <b><i>RFA 545/2016 Page 66 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <b><i>59.</i></b> <i> </i> <b><i>The settled position in law qua standard of proof concerning </i></b><br /> <b><i>civil cases is the preponderance of probability, meaning thereby, that </i></b><br /> <b><i>the evidence which is of greater weightage or more convincing than </i></b><br /> <b><i>the evidence which is offered in opposition to it, is admitted and </i></b><br /> <b><i>preferred. Therefore, in view of the facts and circumstances of the </i></b><br /> <b><i>case at hand and on the examination of the oral and documentary </i></b><br /> <b><i>evidence adduced before the court, it is justified to hold that the </i></b><br /> <b><i>principle of preponderance of probability tilts in favour of the case </i></b><br /> <b><i>made out by the plaintiff.</i></b> <i> Thus, it leaves no doubt that the plaintiff is </i><br /> <i>rightly entitled to the relief granted to him by the trial court. </i><br /> <i>xxx xxx xxx‖ </i><br /> <i>(Emphasis Supplied) </i><br /> 127. Thus, applying the test of <i>preponderance of probabilities</i> , this Court <br /> is of the opinion that the possession of the suit property was with the <br /> respondent no. 1. In these circumstances, it cannot be said that the <br /> respondent no. 1 failed to prove her possession in the suit property. <br /> Therefore, this Court concurs with the finding of the Trial Court in relation <br /> to possession of the suit property having been better proved by the <br /> respondent no. 1. <b><i> </i></b><br /> 128. In this regard, reference may be made to the un-amended Section 53-<br /> A of TP Act, prior to the amendment of the year 2001, which deals with part <br /> performance, since the Agreement to Sell in favour of respondent no. 1 is of <br /> the year 1988, i.e., prior to the Amendment. The said provision reads as <br /> under: <br /> <i>―xxx xxx xxx </i><br /> <b><i>53-A. Part performance</i></b> <i>.— Where any person contracts to transfer for </i><br /> <i>consideration any immoveable property </i> <b><i>by writing</i></b> <i> signed by him or </i><br /> <i>on his behalf from which </i> <b><i>the terms necessary to constitute the </i></b><br /> <b><i>transfer can be ascertained with reasonable certainty</i></b> <i>, </i><br /> <i> </i><br /> <i>and </i> <b><i>the transferee has, in part performance of the contract, taken </i></b><br /> <b><i>possession of the property or any part thereof, or the transferee, </i></b><br /> <b><i>RFA 545/2016 Page 67 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <b><i>being already in possession, continues in possession in part </i></b><br /> <b><i>performance of the contract and has done some act in furtherance </i></b><br /> <b><i>of the contract</i></b> <i>, </i><br /> <i> </i><br /> <i>and </i> <b><i>the transferee has performed or is willing to perform his part of </i></b><br /> <b><i>the contract</i></b> <i>, </i><br /> <i> </i><br /> <b><i>then, notwithstanding that the contract, though required to be </i></b><br /> <b><i>registered, has not been registered, or, where there is an instrument </i></b><br /> <b><i>of transfer, that the transfer has not been completed in the manner </i></b><br /> <b><i>prescribed therefore by the law for the time being in force, the </i></b><br /> <b><i>transferor or any person claiming under him shall be debarred from </i></b><br /> <b><i>enforcing against the transferee and persons claiming under him </i></b><br /> <b><i>any right in respect of the property of which the transferee has taken </i></b><br /> <b><i>or continued in possession, other than a right expressly provided by </i></b><br /> <b><i>the terms of the contract: </i></b><br /> <b><i> </i></b><br /> <i>Provided that nothing in this section shall affect the rights of a </i><br /> <i>transferee for consideration who has no notice of the contract or of </i><br /> <i>the part performance thereof. </i><br /> <i> </i><br /> <i>xxx xxx xxx‖ </i><br /> <i>(Emphasis Supplied) </i><br /> 129. A perusal of the un-amended Section 53-A of the TP Act, which <br /> reflects the governing law at that point of time, protects the possession of the <br /> respondent no. 1, on the basis of the Agreement to Sell, and other documents <br /> like Will, GPA etc. executed in favour of respondent no. 1, coupled with <br /> proving the factum of possession of respondent no. 1 of the suit property. <br /> <b>Issue with regard to Better Right/Interest over the Suit Property: </b><br /> 130. As noted earlier, no right has been claimed in the suit property by <br /> respondent no. 2, as the previous owner of half of the suit property. The <br /> respondent no. 2 was proceeded <i>ex-parte</i> in the Trial Court, and he never <br /> entered into the witness box or led any evidence before the Trial Court. <br /> Even before this Court, the LRs of respondent no. 2, though impleaded, <br /> never caused any appearance or laid any claim over the suit property. In the <br /> <b><i>RFA 545/2016 Page 68 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> absence of any claim by the true owner, this Court is enjoined upon to <br /> adjudicate on the rival claims of the appellant and respondent no. 1 herein as <br /> regards right in the suit property. <b><i> </i></b><br /> 131. Thus, based on the above findings, as well as the documents and <br /> evidence on record, the respondent no. 1 has been able to establish her right <br /> over the suit property, over and above the right asserted by the appellant. <br /> Pertinently, both the appellant and respondent no. 1, claim their rights in <br /> relation to the suit property on the basis of documents, other than a <br /> registered Sale Deed. However, in the overall conspectus of the facts and <br /> circumstances of this particular case, it is apparent that the respondent no. 1 <br /> has a better right with respect to the suit property than the appellant. <br /> 132. While the appellant and respondent no. 2 have contended that the <br /> documents of the year 1988 had been executed by respondent no. 2 and Smt. <br /> Bassi Devi <i>in lieu of</i> an alleged loan taken from the respondent no. 1, this <br /> Court finds itself in accord with the findings of the Trial Court that the <br /> appellant was unable to prove such contentions. Additionally, the appellant <br /> has been unable to prove that the documents of year 1988 in favour of the <br /> respondent no. 1, were forged in any manner. <br /> 133. At this stage, it would be fruitful to refer to the judgment of the <br /> Supreme Court in the case of <b><i>Swadesh Ranjan Sinha Versus Haradeb </i></b><br /> <b><i>Banerjee, 1991 SCC OnLine SC 265</i></b> , wherein, delving on the aspect of <br /> ownership, the Supreme Court held that there are various rights or incidents <br /> of ownership, all of which need not necessarily be present in every case. It <br /> was held that all that a plaintiff in the suit needs to prove is that he has a <br /> better title than the defendant. His ownership is good against the whole <br /> world except the true owner. It was further held that the rights of an owner <br /> <b><i>RFA 545/2016 Page 69 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> are seldom absolute and the question is whether a party has a superior right <br /> or interest <i>vis-a-vis</i> the person challenging it. Thus, Supreme Court held as <br /> follows: <br /> <i>―xxx xxx xxx </i><br /></div><table><thead><tr><th>8. ―Ownership denotes the relation between a person and an object</th><th></th></tr></thead><tbody><tr><td>forming the subject matter of his ownership. It consists in a complex</td><td></td></tr><tr><td>of rights, all of which are rights in rem, being good against all the</td><td></td></tr><tr><td>world and not merely against specific persons.” (Salmond</td><td></td></tr><tr><td>on Jurisprudence, 12th edn., Ch. 8, p. 246 et seq). There are various</td><td></td></tr><tr><td>rights or incidents of ownership all of which need not necessarily be</td><td></td></tr><tr><td>present in every case. They may include a right to possess, use and</td><td></td></tr><tr><td>enjoy the thing owned; and a right to consume, destroy or alienate it.</td><td></td></tr><tr><td>Such a right may be indeterminate in duration and residuary in</td><td></td></tr><tr><td>character. A person has a right to possess the thing which he owns,</td><td></td></tr><tr><td>even when he is not in possession, but only retains a reversionary</td><td></td></tr><tr><td>interest, i.e. a right to repossess the thing on the termination of a</td><td></td></tr><tr><td>certain period or on the happening of a certain event.</td><td></td></tr></tbody></table><table><tbody><tr><td>9. All that a plaintiff needs to prove is that he has a better title than</td><td></td></tr><tr><td>the defendant. He has no burden to show that he has the best of all</td><td></td></tr><tr><td>possible titles. His ownership is good against all the world except the</td><td></td></tr><tr><td>true owner. The rights of an owner are seldom absolute, and often</td><td></td></tr><tr><td>are in many respects controlled and regulated by statute. The</td><td></td></tr><tr><td>question, however, is whether he has a superior right or interest vis-</td><td></td></tr><tr><td>a-vis the person challenging it.</td><td></td></tr></tbody></table><div><br /> <i> </i><br /> <i>xxx xxx xxx‖ </i><br /> <i> </i> <i> </i> <i> </i> <i> </i> <i> </i> <i> </i> <i> (Emphasis Supplied) </i><br /> <i> </i><br /> 134. Therefore, from the evidence and documents on record, it is manifest <br /> that the appellant failed to adduce any evidence which could raise any doubt <br /> on the valid execution of the documents of year 1988 in favour of <br /> respondent no. 1 by the respondent no. 2 and Smt. Bassi Devi. It is also to be <br /> noted that during cross-examination, the appellant herein admitted that no <br /> Sale Deed had been executed in his favour till date. Thus, the Trial Court, <br /> <b><i>RFA 545/2016 Page 70 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> upon appreciation of the evidence and documents on record, rightly came to <br /> th <br /> the conclusion that the documents dated 07 April, 1988 executed by <br /> respondent no. 2 and Smt. Bassi Devi in favour of respondent no. 1, stood <br /> duly proved. <br /> 135. At this stage, this Court deems it fit to refer to Section 48 of the TP <br /> Act, which embodies the rule of priority in successive transfers of <br /> immovable property, and reads as under: <br /> <i>―xxx xxx xxx </i><br /> <i> </i><br /> <b><i>48. Priority of rights created by transfer</i></b> <i>.—</i> <b><i>Where a person purports </i></b><br /> <b><i>to create by transfer at different times rights in or over the same </i></b><br /> <b><i>immoveable property, and such rights cannot all exist or be </i></b><br /> <b><i>exercised to their full extent together, each later created right shall, </i></b><br /> <b><i>in the absence of a special contract or reservation binding the </i></b><br /> <b><i>earlier transferees, be subject to the rights previously created.</i></b> <i> </i><br /> <i> </i><br /> <i>xxx xxx xxx‖ </i><br /> <i>(Emphasis Supplied) </i><br /> <i> </i><br /> 136. Thus, a reading of the aforesaid provision makes it evident that where <br /> two successive transfers of the same immovable property have been made, <br /> the one prior in time takes precedence in law over the transfer that is <br /> subsequent in time. The aforesaid provision encapsulates the maxim <i>―qui </i><br /> <i>prior est tempore potior est jure‖</i> , which means that he who is earlier and <br /> prior in time, is stronger in law and has a superior right in law. <br /> <br /> 137. In this regard, reference may be made to the <i>dictum</i> in the case of <br /> <b><i>Smt. Subudini Kar and Another Versus Smt. Sabitri Rani Deb, 2012 SCC </i></b><br /> <b><i>OnLine Gau 390</i></b> <b>, </b> wherein the Gauhati High Court, while delving into <br /> Section 48 of the TP Act, held that when similar rights are created in favour <br /> of two persons at different times, the one who has the advantage in time <br /> should also have the advantage in law, in the following manner: <br /> <b><i>RFA 545/2016 Page 71 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <i>―xxx xxx xxx </i><br /> <i> </i><br /> <i>19. </i> <b><i>When similar rights are created in favour of two persons at </i></b><br /> <b><i>different times, the one who has the advantage in time should also </i></b><br /> <b><i>have the advantage in law. This rule, however, applies only to cases </i></b><br /> <b><i>where the conflicting equities are otherwise equal. Section 48 of the </i></b><br /> <b><i>Transfer of Property Act, 1882 is founded upon the important </i></b><br /> <b><i>principles that no man can convey a title than what he has. If a </i></b><br /> <b><i>person has already effected a transfer, he cannot derogate from his </i></b><br /> <b><i>grant and deal with the property free from the rights created under </i></b><br /> <b><i>the earlier transaction. Section 48 is an absolute in its terms and </i></b><br /> <b><i>does not contain any protection or reservation in favour of a </i></b><br /> <b><i>subsequent transferee who has no knowledge of the prior transfer. </i></b><br /> <i> </i><br /> <i>20. </i> <b><i>Section 48 determines the priority when there are successive </i></b><br /> <b><i>transferee. It provides that where a person purports to create by </i></b><br /> <b><i>transfer at different times rights in or over the same immovable </i></b><br /> <b><i>property, and such rights cannot all exist or be exercised to their </i></b><br /> <b><i>fullest extent together, each later created right shall, in the absence </i></b><br /> <b><i>of a special contract or reservation binding the earlier transferee, be </i></b><br /> <b><i>subject to the rights previously created. </i></b><br /> <b><i> </i></b><br /> <i>xxx xxx xxx‖ </i><br /> <i>(Emphasis Supplied) </i><br /> <i> </i><br /> <i> </i><br /> 138. Drawing from the conspectus of the aforesaid, it is clear that in the <br /> present case, both the parties do not have a registered Sale Deed in their <br /> favour and have relied upon other documents to claim right and interest over <br /> the suit property. Considering, the evidence and documents on record, it is <br /> manifestly evident that the respondent no. 1 has a superior right over the suit <br /> property. <br /> <br /> <b>Appellant Not A </b> <b><i>Bona Fide</i></b> <b> Purchaser: </b><br /> <br /> 139. The appellant contends that he conducted due diligence by verifying <br /> all records, before purchasing the suit property, and is thus a <i>bona fide</i> <br /> purchaser of the suit property, protected under Section 53-A of the TP Act <br /> and Section 19(1) of Specific Relief Act. <br /> <b><i>RFA 545/2016 Page 72 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> 140. In this regard, it is pertinent to take note of Section 3 of the TP Act, <br /> i.e., interpretation clause, as per which a person is said to have notice when, <br /> but for wilful abstention from any enquiry or search that he ought to have <br /> made, he would have known it. The said Section reads as under: <br /> <i>―xxx xxx xxx </i><br /> <i>3.</i> <b><i> Interpretation clause</i></b> <i>.—In this Act, unless there is something </i><br /> <i>repugnant in the subject or context,— </i><br /> <i>xxx xxx xxx </i><br /> <b><i>“a person is said to have notice” of a fact when he actually knows </i></b><br /> <b><i>that fact, or when, but for wilful abstention from an enquiry or </i></b><br /> <b><i>search which he ought to have made, or gross negligence, he would </i></b><br /> <b><i>have known it. </i></b><br /> <b><i> </i></b><br /> <i>xxx xxx xxx </i><br /> <i> </i><br /> <i>Explanation II.—</i> <b><i>Any person acquiring any immoveable property or </i></b><br /> <b><i>any share or interest in any such property shall be deemed to have </i></b><br /> <b><i>notice of the title, if any, of any person who is for the time being in </i></b><br /> <b><i>actual possession thereof. </i></b><br /> <b><i> </i></b><br /> <i>Explanation III.—A person shall be deemed to have had notice of any </i><br /> <i>fact if his agent acquires notice thereof whilst acting on his behalf in </i><br /> <i>the course of business to which that fact is material: </i><br /> <i>xxx xxx xxx‖ </i><br /> <i>(Emphasis Supplied) </i><br /> <i> </i><br /> 141. The law with regard to <i>bona fide</i> purchasers was recently discussed <br /> by the Supreme Court in the case of <b><i>K.S. Manjunath and Others Versus </i></b><br /> <b><i>Moorasavirappa Muttanna Chennappa Batil and Others, 2025 SCC </i></b><br /> <b><i>OnLine SC 2378</i></b> , in the following manner: <br /> <i>―xxx xxx xxx </i><br /> <i>68. In such circumstances referred to above, the subsequent </i><br /> <i>purchasers are seeking to bring themselves within the status of a bona </i><br /> <i>fide purchaser under Section 19(b) of the Act of 1963. Section 19 </i><br /> <i>provides for the categories of persons against whom specific </i><br /> <i>performance of a contract may be enforced. Amidst all, Clause (b) of </i><br /> <i>Section 19 states that specific performance may be enforced against </i><br /> <i>any other person claiming under him by a title arising subsequently to </i><br /> <b><i>RFA 545/2016 Page 73 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <i>the contract except a transferee for value who has paid his money in </i><br /> <i>good faith and without notice of the original contract. Thus, a </i><br /> <i>transferee for value who has paid his money in good faith and without </i><br /> <i>notice of the original contract is excluded from the purview of the said </i><br /> <i>clause. </i> <b><i>In the case of Ram Niwas v. Bano, reported in (2000) 6 SCC </i></b><br /> <b><i>685, this Court had set out three factors that a subsequent transferee </i></b><br /> <b><i>must show to fall within the excluded class: (a) he has purchased for </i></b><br /> <b><i>value the property, which is the subject matter of the suit for specific </i></b><br /> <b><i>performance; (b) he has paid his money to the vendor in good faith; </i></b><br /> <b><i>and (c) he had no notice of the earlier contract for sale specific </i></b><br /> <b><i>performance of which is sought to be enforced against him. The </i></b><br /> <b><i>court observed that “notice” can be (i) actual notice or (ii) </i></b><br /> <b><i>constructive notice, or (iii) imputed notice.</i></b> <i> As per Section 3 of </i><br /> <i>Transfer of Property Act, 1882, a person is said to have notice of a </i><br /> <i>fact when he actually knows that fact or when but for wilful abstention </i><br /> <i>from inquiry or search which he ought to have made, or gross </i><br /> <i>negligence, he would have known it. The relevant observation is as </i><br /> <i>under: </i><br /> <i> </i><br /> <i>―3. Section 19 provides the categories of persons against whom </i><br /> <i>specific performance of a contract may be enforced. Among </i><br /> <i>them is included, under clause (b), any transferee claiming </i><br /> <i>under the vendor by a title arising subsequently to the contract </i><br /> <i>of which specific performance is sought. However, a transferee </i><br /> <i>for value, who has paid his money in good faith and without </i><br /> <i>notice of the original contract, is excluded from the purview of </i><br /> <i>the said clause. To fall within the excluded class, a transferee </i><br /> <i>must show that: (a) he has purchased for value the property </i><br /> <i>(which is the subject-matter of the suit for specific performance </i><br /> <i>of the contract); (b) he has paid his money to the vendor in good </i><br /> <i>faith; and (c) he had no notice of the earlier contract for sale </i><br /> <i>(specific performance of which is sought to be enforced against </i><br /> <i>him). </i><br /> <i> </i><br /> <i>4. The said provision is based on the principle of English law </i><br /> <i>which fixes priority between a legal right and an equitable right. </i><br /> <i>If 'A' purchases any property from 'B' and thereafter 'B' sells the </i><br /> <i>same to 'C' the sale in favour of 'A', being prior in time, prevails </i><br /> <i>over the sale in favour of 'C' as both 'A' and 'C' acquired legal </i><br /> <i>rights. But where one is a legal right and the other is an </i><br /> <i>equitable right </i><br /> <i>"a bona fide purchaser for valuable consideration who </i><br /> <i>obtains a legal estate at the time of his purchase without notice </i><br /> <i>of a prior equitable right is entitled to priority in equity as well </i><br /> <i>as at law". (Snell's Equity — 13th Edn., p. 48.) </i><br /> <i> </i><br /> <b><i>RFA 545/2016 Page 74 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <i>This principle is embodied in Section 19(b) of the Specific Relief </i><br /> <i>Act. </i><br /> <i> </i><br /> <i>5. It may be noted here that "notice" may be (i) actual, (ii) </i><br /> <i>constructive, or (iii) imputed.‖ </i><br /> <i>(Emphasis Supplied) </i><br /> <i>xxx xxx xxx </i><br /> <i> </i><br /> <i>70. </i> <b><i>The expression “wilful abstention from inquiry or search” </i></b><br /> <b><i>recalls the expression used by Sir James Wigram VC in the case of </i></b><br /> <b><i>Jones v. Smith, reported in (1841) 1 Hare 43, wherein the High </i></b><br /> <b><i>Court of Chancery of England & Wales had held that constructive </i></b><br /> <b><i>notice is basically a manifestation of equity which treats a man who </i></b><br /> <b><i>ought to have known a fact, as if he had actually known it.</i></b> <i> The court </i><br /> <i>noted that: </i><br /> <i> </i><br /> <i>―It is, indeed, scarcely possible to declare a priori what shall be </i><br /> <i>deemed constructive notice, because, unquestionably, that which </i><br /> <i>would not affect one man may be abundantly sufficient to affect </i><br /> <i>another. But I believe, I may, with sufficient accuracy for my </i><br /> <i>present purpose and without danger assert that the cases in </i><br /> <i>which constructive notice has been established resolve </i><br /> <i>themselves in two classes: </i><br /> <i> </i><br /> <b><i>First, cases in which the party charged has had actual notice </i></b><br /> <b><i>that the property in dispute was in fact charged, encumbered </i></b><br /> <b><i>or in some way affected, and the court has thereupon bound </i></b><br /> <b><i>him with constructive notice of facts and instruments, to a </i></b><br /> <b><i>knowledge of which he would have been (sic) led by an </i></b><br /> <b><i>enquiry after the charge, encumbrance or other circumstances </i></b><br /> <b><i>affecting the property of which he had actual notice</i></b> <i>; and </i><br /> <i>secondly, cases in which the court has been satisfied from the </i><br /> <i>evidence before it that the party charged had designedly </i><br /> <i>abstained from enquiry for the very purpose of avoiding notice </i><br /> <i>[...]‖ </i><br /> <i>(Emphasis Supplied) </i><br /> <i>xxx xxx xxx </i><br /> <i> </i><br /> <i>73. Therefore, in order to come to a conclusion that an act was done </i><br /> <i>in good faith it must have been done with (i) due care and attention, </i><br /> <i>and(ii) there should not be any dishonesty. This Court recently in case </i><br /> <i>of Manjit Singh v. Darshana Devi, reported in 2024 SCC OnLine SC </i><br /> <i>3431, wherein one of us, J.B. Pardiwala, J., forming a part of the </i><br /> <i>Bench, construed the usage of the term ―good faith‖ under Section </i><br /> <i>19(b) of the Act of 1963 in the above sense and held that each of the </i><br /> <i>abovementioned aspects is a complement to the other and not an </i><br /> <i>exclusion of the other. This Court observed that the definition of the </i><br /> <i>BNS emphasizes due care and attention whereas the definition of the </i><br /> <b><i>RFA 545/2016 Page 75 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <i>GC Act emphasizes honesty. The relevant observation is as under: </i><br /> <i> </i> <i> </i><br /> <i>―13. Section 3(2) of the General Clauses Act defines ‗good </i><br /> <i>faith‘ as follows:— </i><br /> <i> </i><br /> <i>3(22). A thing shall be deemed to be done in good faith </i><br /> <i>where it is in fact done honestly whether it is done </i><br /> <i>negligently or not. </i><br /> <i> </i><br /> <i>14. Section 2(11) of the Bhartiya Nyaya Sanhita, 2023defines </i><br /> <i>―good faith‖, as follows:— </i><br /> <i> </i><br /> <i>2(11). ―Good faith- Nothing is said to be done or </i><br /> <i>believed in ―good faith‖ which is done or believed </i><br /> <i>without due care and attention; </i><br /> <i> </i><br /> <i>15. The above said definitions and the meaning of the term </i><br /> <i>―good faith‖ indicate that in order to come to a conclusion </i><br /> <b><i>Special Civil Petition (C) Nos. 29405-29406 of 2017 Page 80 of </i></b><br /> <b><i>96 </i></b> <i>that an act was done in good faith it must have been done </i><br /> <i>with due care and attention and there should not be any </i><br /> <i>negligence or dishonesty. Each aspect is a complement to the </i><br /> <i>other and not an exclusion of the other. The definition of the </i><br /> <i>Penal Code, 1860 emphasises due care and attention whereas </i><br /> <i>General Clauses Act emphasises honesty. </i><br /> <i> </i><br /> <i>16. The effect of abstention on the part of a subsequent </i><br /> <i>purchaser, to make enquiries with regard to the possession of a </i><br /> <i>tenant, was considered in Ram Niwas v. Bano, (2000)6 SCC 685 </i><br /> <i>[…] </i><br /> <i> </i><br /> <i>17. In the case reported in Kailas Sizing, Works v. Municipality, </i><br /> <i>B. & N., reported in 1968 Bombay Law Reporter 554, the </i><br /> <i>Bombay High Court observed as follows:— </i><br /> <i> </i><br /> <i>A person cannot be said to act honestly unless he acts with </i><br /> <i>fairness and uprightness. A person who acts in a </i><br /> <i>particular manner in the discharge of his duties in spite of </i><br /> <i>the knowledge and consciousness that injury to someone </i><br /> <i>or group of persons is likely to result from his act or </i><br /> <i>omission or acts with wanton or wilful negligence in spite </i><br /> <i>of such knowledge or consciousness cannot be said to act </i><br /> <i>with fairness or uprightness and, therefore, he cannot be </i><br /> <i>said to act with honesty or in good faith. Whether in a </i><br /> <i>particular case a person acted with honesty or not will </i><br /> <i>depend on the facts of each case. Good faith implies </i><br /> <i>upright mental attitude and clear conscience. It </i><br /> <i>contemplates an honest effort to ascertain the facts upon </i><br /> <i>which the exercise of the power must rest. It is an honest </i><br /> <b><i>RFA 545/2016 Page 76 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <i>determination </i> <i>from </i> <i>ascertained facts. </i> <i>Good faith </i><br /> <i>precludes pretence, deceit or lack of fairness and </i><br /> <i>uprightness and also precludes wanton or wilful </i><br /> <i>negligence.‖ </i><br /> <i>(Emphasis Supplied) </i><br /> <i> </i><br /> <i>xxx xxx xxx </i><br /> <br /> <b><i>78</i></b> <i>. The language of the termination notice itself discloses the </i><br /> <i>unilateral and self-serving character of the so-called termination. A </i><br /> <i>bare reading of the notice of termination shows that the original </i><br /> <i>vendors had stated therein that due to the status quo order in effect </i><br /> <i>and the death of one of the original vendors, they were ―unable to </i><br /> <i>execute a regular sale deed in respect of land in question‖ and that </i><br /> <i>they ―cannot wait for an indefinite period‖. Thus, the original vendors </i><br /> <i>cited their own inability to execute a sale deed in view of the status </i><br /> <i>quo order operating in the Original Suit No. 30 of 2001 and the death </i><br /> <i>of one of the original vendors. Such grounds, as already discussed, </i><br /> <i>were matters of inconvenience very much personal to the original </i><br /> <i>vendors and not the breaches attributable to the original vendees. The </i><br /> <i>subsequent purchasers, upon a bare reading of the said notice of </i><br /> <i>termination, ought to have made inquiries to ascertain whether the </i><br /> <i>original vendees had challenged the factum of termination by any </i><br /> <i>subsequent communication. This was all the more necessary because </i><br /> <i>the language employed by the original vendors in the notice of </i><br /> <i>termination itself clearly gave away that what was being asserted was </i><br /> <i>not a termination arising out of any breach or default attributable to </i><br /> <i>the original vendees but rather a unilateral act grounded in the </i><br /> <i>original vendors‘ own inability and inconvenience. </i> <b><i>It is a trite law </i></b><br /> <b><i>that a subsequent purchaser who relies merely on the assertions of </i></b><br /> <b><i>the vendor or who chooses to remain content with his own limited </i></b><br /> <b><i>knowledge while consciously abstaining from making further </i></b><br /> <b><i>inquiry into the subsisting interests in the property cannot escape the </i></b><br /> <b><i>consequences of deemed notice. Equity ought not assist a transferee </i></b><br /> <b><i>who deliberately avoids the truth that lies open to discovery. </i></b> <i>Thus, a </i><br /> <i>purchaser who has before him a document which on its very face </i><br /> <i>shows the termination to be unilateral and rooted in the vendors‘ </i><br /> <i>inconvenience cannot by shutting his eyes claim the benefit of ―good </i><br /> <i>faith‖. </i><br /> <i> </i><br /> <i>xxx xxx xxx‖ </i><br /> <i>(Emphasis Supplied) </i><br /> 142. Thus, a reading of the aforesaid decision of the Supreme Court makes <br /> it clear that for a subsequent purchaser to be a <i>bona fide</i> purchaser, he must <br /> <b><i>RFA 545/2016 Page 77 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> show that he did not have notice of the earlier contract, whether actual, <br /> constructive or imputed notice. Further, a person is said to have notice of a <br /> fact when he actually knows that fact or when, but for wilful abstention from <br /> inquiry or search which he ought to have made, or gross negligence, he <br /> would have known it. Thus, where a subsequent purchaser relies merely on <br /> the assertions of the vendor, and abstains from making further inquiry into <br /> the subsisting interests in the property, he cannot escape the consequences of <br /> deemed notice. <br /> <br /> 143. In view of the aforesaid position of law, this Court takes note of the <br /> submission of the appellant in his Evidence Affidavit, filed before the Trial <br /> Court, as <i>Ex. DW 1/1</i> , which reads as under: <b> </b><br /> <i>―xxx xxx xxx </i><br /> <i> </i><br /> <i>5. I state that in the meanwhile I have carried the above transaction after </i><br /> <i>making all verification from records. </i> <b><i>The defendant no. 1 has assured to </i></b><br /> <b><i>get me latest mutation letter and will confirm the house tax mutation</i></b> <i>. </i><br /> <i>The defendant no.1 has also given me the electric bills and had delivered </i><br /> <i>photo copies of the latest bill in confirmation of the same to be in the </i><br /> <i>name of his father. </i><br /> <i> </i><br /> <i>xxx xxx xxx‖ </i><br /> <i>(Emphasis Supplied) </i><br /> <i> </i><br /> 144. This Court further takes note of the submission of the appellant in his <br /> cross-examination, which is reproduced as follows: <br /> <i>―xxx xxx xxx </i><br /> <i> </i><br /> <b><i>The assurance given by the Som Nath with regard to the mutation in </i></b><br /> <b><i>favour of me was oral. I did not personally check the record of the </i></b><br /> <b><i>Registrar Office, in the MCD and in the L&DO personally.</i></b> <i> Registry </i><br /> <i>means the Registered document, I have mention in para 6 that I have </i><br /> <i>got the registry executed. By registry I mean the registered agreement </i><br /> <i>to sell and the GPA. I came to know this controversy only at the </i><br /> <i>receipt of the summon of this case. </i> <b><i>After coming to know of this </i></b><br /> <b><i>controversy I did not serve any notice in writing on Somnath or </i></b><br /> <b><i>lodged any complaint against Som Nath as to why he has re-sold the </i></b><br /> <b><i>property (vol. I talked to Mr. Somath personally and I satisfied after </i></b><br /> <b><i>RFA 545/2016 Page 78 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <b><i>talking to him. It was not a case of re-sale).</i></b> <i> </i><br /> <i> </i><br /> <i>xxx xxx xxx‖ </i><br /> <i>(Emphasis Supplied) </i><br /> <i> </i><br /> 145. Thus, from a perusal of the Evidence Affidavit as well as the cross- <br /> examination of the appellant, it is clear that the appellant never himself <br /> verified the records/documents from the office of the Registrar, MCD and <br /> L&DO. The appellant only relied on the oral assurance of the respondent no. <br /> 2. The appellant has only verified the electricity bills to be in the name of <br /> Shri Kanshi Ram, i.e., the father of respondent no. 2. <br /> <br /> 146. Thus, since the appellant himself admits that he only relied on the oral <br /> assurances of respondent no. 2, and never himself verified the records from <br /> the concerned authorities, he cannot be said to have exercised due diligence <br /> th <br /> before entering into the Agreement to Sell dated 18 August, 2006. <br /> 147. This Court has already noted the documents on record, wherein, the <br /> house tax receipts issued by the MCD, as well as water bills issued by the <br /> DJB, are in favour of the respondent no. 1. Had the appellant made <i>bona fide</i> <br /> inquiries and verified the record, he would have been aware of the house tax <br /> having been deposited by the respondent no. 1 with the MCD for the years <br /> 2004, 2005 and 2006. Therefore, on a genuine and proper verification, the <br /> appellant is deemed to be aware and have notice of the property tax having <br /> been deposited by the respondent no. 1 for the last three years prior to the <br /> transaction in favour of the appellant by respondent no. 2. Thus, the <br /> appellant cannot be considered a <i>bona fide</i> purchaser of the suit property. <br /> 148. Further, this Court notes that the appellant has admitted that even <br /> when he became aware about the controversy with respect to the suit <br /> property, he did not file any complaint against respondent no. 2, and after <br /> <b><i>RFA 545/2016 Page 79 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> speaking to only respondent no. 2, he was satisfied that it was not a case of <br /> re-sale of the suit property. <br /> 149. Further, the appellant simply states that he visited the suit property <br /> and met tenants who confirmed that they were paying rent to respondent no. <br /> 2. However, the appellant does not state to have seen any rent agreement or <br /> any rent receipt in favour of respondent no. 2. Given the failure on the part <br /> of the appellant to make an enquiry in the nature of the tenancy, the <br /> appellant cannot be considered to be a <i> bona fide</i> purchaser. <br /> <br /> 150. In this regard, it would be fruitful to refer to the decision in the case of <br /> <b><i>Ram Niwas Versus Bano and Others, (2000) 6 SCC 685</i></b> , wherein, the <br /> Supreme Court has held that a person is not a <i>bona fide</i> purchaser if he fails <br /> to enquire into the nature of possession of tenants in the suit property, in the <br /> following manner: <br /> <i>―xxx xxx xxx </i><br /> <i> </i><br /> <b><i>18.</i></b> <i> Both the learned Single Judge as well as the learned Judges of the </i><br /> <i>Division Bench of the High Court dealt with the question whether the </i><br /> <i>purchasers had actual knowledge of Ext. 1, the earlier contract, and </i><br /> <i>on evidence found that the purchasers did not have any knowledge of </i><br /> <i>it. But they failed to notice the provisions of Explanation II to Section </i><br /> <i>3 of the Transfer of Property Act which is germane on the point of </i><br /> <i>notice. Indeed, Issue 10 was not properly framed. The word ―notice‖ </i><br /> <i>should have been used in Issue 10 instead of ―knowledge‖ because </i><br /> <i>Section 19(b) uses the word ―notice‖. From the definition of the </i><br /> <i>expression ―a person is said to have notice‖ in Section 3 of the </i><br /> <i>Transfer of Property Act, it is plain that the word ―notice‖ is of wider </i><br /> <i>import than the word ―knowledge‖. A person may not have actual </i><br /> <i>knowledge of a fact but he may have notice of it having regard to the </i><br /> <i>aforementioned definition and Explanation II thereto. </i> <b><i>If the </i></b><br /> <b><i>purchasers have relied upon the assertion of the vendor or on their </i></b><br /> <b><i>own knowledge and abstained from making inquiry into the real </i></b><br /> <b><i>nature of the possession of the tenant, they cannot escape from the </i></b><br /> <b><i>consequences of the deemed notice under Explanation II to Section </i></b><br /> <b><i>3 of the Transfer of Property Act.</i></b> <i> On this point, in the light of the </i><br /> <i>above discussion, we hold that the purchasers will be deemed to have </i><br /> <b><i>RFA 545/2016 Page 80 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <i>notice of Ext. 1, should it be found to be true and valid. </i><br /> <i> </i><br /> <i>xxx xxx xxx‖ </i><br /> <i>(Emphasis Supplied) </i><br /> <i> </i><br /> 151. Additionally, in the case of <b><i>R.K. Mohammed Ubaidullah and Others </i></b><br /> <b><i>Versus Hajee C. Abdul Wahab and Others, (2000) 6 SCC 402</i></b> , the <br /> Supreme Court held that a subsequent purchaser is bound to make inquiry <br /> into the nature of possession and title under which a person is in possession <br /> of the suit property, on the date of purchase of the property, in the following <br /> manner: <b><i> </i></b><br /></div><table><tbody><tr><td>―xxx xxx xxx</td><td></td><td></td></tr><tr><td></td><td></td><td></td></tr><tr><td>15. Notice is defined in Section 3 of the Transfer of Property Act. It</td><td></td><td></td></tr><tr><td>may be actual where the party has actual knowledge of the fact or</td><td></td><td></td></tr><tr><td>constructive. “A person is said to have notice” of a fact when he</td><td></td><td></td></tr><tr><td>actually knows that fact, or when, but for wilful abstention from an</td><td></td><td></td></tr><tr><td>inquiry or search which he ought to have made, or gross negligence,</td><td></td><td></td></tr><tr><td>he would have known it. Explanation II of said Section 3 reads:</td><td></td><td></td></tr><tr><td></td><td></td><td></td></tr><tr><td></td><td></td><td></td></tr><tr><td></td><td>―Explanation II.—Any person acquiring any immovable</td><td></td></tr><tr><td></td><td>property or any share or interest in any such property shall be</td><td></td></tr><tr><td></td><td>deemed to have notice of the title, if any, of any person who is</td><td></td></tr><tr><td></td><td>for the time being in actual possession thereof.‖</td><td></td></tr><tr><td></td><td></td><td></td></tr><tr><td>Section 3 was amended by the Amendment Act of 1929 in relation to</td><td></td><td></td></tr><tr><td>the definition of ―notice‖. The definition has been amended and</td><td></td><td></td></tr><tr><td>supplemented by three explanations, which settle the law in several</td><td></td><td></td></tr><tr><td>matters of great importance. For the immediate purpose Explanation</td><td></td><td></td></tr><tr><td>II is relevant. It states that actual possession is notice of the title of the</td><td></td><td></td></tr><tr><td>person in possession. Prior to the amendment there had been some</td><td></td><td></td></tr><tr><td>uncertainty because of divergent views expressed by various High</td><td></td><td></td></tr><tr><td>Courts in relation to the actual possession as notice of title. A person</td><td></td><td></td></tr><tr><td>may enter the property in one capacity and having a kind of interest.</td><td></td><td></td></tr><tr><td>But subsequently while continuing in possession of the property his</td><td></td><td></td></tr><tr><td>capacity or interest may change. A person entering the property as</td><td></td><td></td></tr><tr><td>tenant later may become usufructuary mortgagee or may be</td><td></td><td></td></tr><tr><td>agreement holder to purchase the same property or may be some</td><td></td><td></td></tr><tr><td>other interest is created in his favour subsequently. Hence with</td><td></td><td></td></tr><tr><td>reference to subsequent purchaser it is essential that he should make</td><td></td><td></td></tr><tr><td>an inquiry as to the title or interest of the person in actual</td><td></td><td></td></tr><tr><td>possession as on the date when the sale transaction was made in his</td><td></td><td></td></tr></tbody></table><div><br /> <b><i>RFA 545/2016 Page 81 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <b><i>favour. The actual possession of a person itself is deemed or </i></b><br /> <b><i>constructive notice of the title if any, of a person who is for the time </i></b><br /> <b><i>being in actual possession thereof. A subsequent purchaser has to </i></b><br /> <b><i>make inquiry as to further interest, nature of possession and title </i></b><br /> <b><i>under which the person was continuing in possession on the date of </i></b><br /> <b><i>purchase of the property. </i></b> <i>In the case on hand Defendants 2 to 4 </i><br /> <i>contended that they were already aware of the nature of possession of </i><br /> <i>the plaintiff over the suit property as a tenant and as such there was </i><br /> <i>no need to make any inquiry. At one stage they also contended that </i><br /> <i>they purchased the property after contacting the plaintiff, of course, </i><br /> <i>which contention was negatived by the learned trial court as well as </i><br /> <i>the High Court. Even otherwise the said contention is self-</i><br /> <i>contradictory. In view of Section 19(b) of the Specific Relief Act and </i><br /> <i>definition of ―notice‖ given in Section 3 of the Transfer of Property </i><br /> <i>Act read along with Explanation II, it is rightly held by the trial court </i><br /> <i>as well as by the High Court that Defendants 2 to 5 were not bona fide </i><br /> <i>purchasers in good faith for value without notice of the original </i><br /> <i>contract. </i><br /> <i> </i><br /> <b><i>16.</i></b> <i> The High Court of Andhra Pradesh in Mummidi Reddi </i><br /> <i>Papannagari Yella Reddy v. Salla Subbi Reddy [AIR 1954 AP 20] </i><br /> <i>referring to various decisions in para 8 has stated thus: </i><br /> <i> </i><br /> <i>―It may be mentioned here that an Explanation was introduced </i><br /> <i>into the Transfer of Property Act by the Amending Act 21 of </i><br /> <i>1929. Even prior to this amendment, the law, as declared in </i><br /> <i>decided cases, was that, </i> <b><i>when a person purchased property </i></b><br /> <b><i>from the owner knowing that it is in the possession of another, </i></b><br /> <b><i>he is under a duty to inquire into the nature of that possession, </i></b><br /> <b><i>and, in the absence of such inquiry, knowledge of title under </i></b><br /> <b><i>which possession is held, should be attributed to the purchaser.</i></b> <i> </i><br /> <i>The leading case on the subject, relied on in a number of Indian </i><br /> <i>decisions is — ‗Daniels v. Davison‘ [(1809) 16 Ves Jun 249 : 33 </i><br /> <i>ER 978] . The Lord Chancellor held that: </i><br /> <i> </i><br /> <i>‗where there is a tenant in possession under a lease, or an </i><br /> <i>agreement, a person purchasing part of the estate must be </i><br /> <i>bound to inquire on what terms that person is in </i><br /> <i>possession … that a tenant being in possession under a </i><br /> <i>lease, with an agreement in his pocket to become the </i><br /> <i>purchaser, those circumstances altogether give him an </i><br /> <i>equity repelling the claim of a subsequent purchaser who </i><br /> <i>made no inquiry as to the nature of his possession.‘ ‖ </i><br /> <i> </i><br /> <i> </i><br /> <i>(emphasis supplied) </i><br /> <i> </i><br /> <b><i>RFA 545/2016 Page 82 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <b><i>17.</i></b> <i> Relying on the decision of this Court a Division Bench of the High </i><br /> <i>Court of Madras in Veeramalai Vanniar v. Thadikara Vanniar [AIR </i><br /> <i>1968 Mad 383 : (1968) 1 MLJ 437] has held that </i> <b><i>it is also the duty of </i></b><br /> <b><i>the subsequent purchaser to inquire from the persons in possession </i></b><br /> <b><i>as to the precise character in which they were in possession at the </i></b><br /> <b><i>time when subsequent sale transaction was entered into. If there be </i></b><br /> <b><i>a tenant in possession of land a purchaser is bound by all the </i></b><br /> <b><i>equities which the tenant could enforce against the vendor and such </i></b><br /> <b><i>equity extends not only to the interest connected with the tenancy </i></b><br /> <b><i>but also to interests under the actual agreement. </i></b><br /> <i> </i><br /> <i>xxx xxx xxx </i><br /> <i> </i><br /> <i> </i><br /> <b><i>19.</i></b> <i> In view of what is stated above, </i> <b><i>it is clear that Defendants 2 to 5 </i></b><br /> <b><i>were not bona fide purchasers for value without prior notice of the </i></b><br /> <b><i>original contract and that they were required to make inquiry as to </i></b><br /> <b><i>the nature of possession or title or further interest, if any, of the </i></b><br /> <b><i>plaintiff over the suit property at the time when they entered into </i></b><br /> <b><i>sale transaction notwithstanding they were already aware that the </i></b><br /> <b><i>plaintiff was in possession of the property as the tenant. What is </i></b><br /> <b><i>material is the inquiry at the time when the subsequent sale </i></b><br /> <b><i>transaction was entered into. </i></b><br /> <b><i> </i></b><br /> <i>xxx xxx xxx </i><br /> <i> </i><br /> <i>(Emphasis Supplied) </i><br /> <br /> 152. In view of the aforesaid wilful abstention of the appellant in verifying <br /> the official records, and placing mere reliance on the oral assurance of <br /> respondent no. 2, along with failure to enquire in the nature and basis of the <br /> possession of the tenants, the appellant, in the present circumstances, cannot <br /> be regarded as a <i> bona fide</i> purchaser. <br /> <b>Findings on other aspects raised before the Court: </b><br /> 153. This Court further notes that merely because the appellant had a <br /> registered Agreement to Sell, while the respondent no. 1 had an unregistered <br /> Agreement to Sell, will also have no bearing in the present case. This is so, <br /> since the Registration and Other Related Laws (Amendment) Act, 2001, <br /> which introduced the requirement of the registration of documents for the <br /> <b><i>RFA 545/2016 Page 83 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> purposes of Section 53-A, is prospective in nature, and came into force with <br /> th <br /> effect from 24 September, 2001. <br /> 154. Since the Agreement to Sell in favour of the respondent no. 1 is of the <br /> year 1988, the requirement of registration would not apply to it. In this <br /> regard, reliance is placed on the case of <b><i>Gurmeet Kaur Versus Harbhajan </i></b><br /> <b><i>Singh and Another, 2017 SCC OnLine Del 12863</i></b> , relevant paragraph of <br /> which, is reproduced as under: <br /> <i>―xxx xxx xxx </i><br /> <b><i>9. It is an undisputed fact that the appellant/plaintiff proved the </i></b><br /> <b><i>documents being the agreement to sell, general power of attorney </i></b><br /> <b><i>and the receipt as Ex. P.W. ½ to Ex. P.W. ¼. These documents have </i></b><br /> <b><i>been executed prior to amendment of section 53-A of the Transfer of </i></b><br /> <b><i>Property Act, 1882 by Act 48 of 2001 and which came into effect </i></b><br /> <b><i>from 24.9.2001. These documents therefore need not have been </i></b><br /> <b><i>stamped or registered so as to create rights in terms of doctrine of </i></b><br /> <b><i>part performance under the then existing section 53-A of the </i></b><br /> <b><i>Transfer of Property Act. It is only by the subsequent amendment of </i></b><br /> <b><i>section 53-A of the Transfer of Property Act w.e.f 24.9.2001, that an </i></b><br /> <b><i>agreement to sell would not confer any rights in terms of the </i></b><br /> <b><i>doctrine of part performance if such an agreement to sell is not </i></b><br /> <b><i>registered. Since the amendment is prospective in nature, therefore, </i></b><br /> <b><i>the documents executed prior to 24.9.2001 being the documents Ex. </i></b><br /> <b><i>P.W. ½ to Ex. P.W. ¼ dated 19.4.1995 did not require registration </i></b><br /> <b><i>and stamping</i></b> <i>. This aspect has been dealt by this Court in detail in the </i><br /> <i>judgment in the case of Shri Ramesh Chand v. Suresh Chand,1 and in </i><br /> <i>which judgment this Court has referred to the judgment of the </i><br /> <i>Supreme Court in the case of Suraj Lamps and Industries Pvt. Ltd. v. </i><br /> <i>State of Haryana, and as per which Supreme Court judgment </i><br /> <i>agreements to sell, general power of attorneys and Wills which are </i><br /> <i>validly executed are protected and such documents will have rights </i><br /> <i>flowing under the same in terms of section 53-A of the Transfer of </i><br /> <i>Property Act, section 202 of the Indian Contract Act and the relevant </i><br /> <i>provisions of the Indian Succession Act pertaining to devolution of </i><br /> <i>properties by a Will le only such documents executed post 24.9.2001 </i><br /> <i>will not have validity if they are not stamped and registered.</i> <br /> <b><i>RFA 545/2016 Page 84 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <i>xxx xxx xxx‖ </i><br /> <i>(Emphasis Supplied) </i><br /> <i> </i><br /> 155. Another important point to be noted is that even though the impugned <br /> judgment places reliance on the decision of this Court in the case of <b><i>Ramesh </i></b><br /> <b><i>Chand Versus Suresh Chand & Anr. 188 (2012) DLT 538</i></b> , which was <br /> subsequently overruled by the decision of the Supreme Court in the case of <br /> <b><i>Ramesh Chand (D) Thr. Lrs (Supra)</i></b> , the same would not have effect on the <br /> final outcome of the present case. The decision of the Trial Court was based <br /> upon the evidence and documents before it and the findings of the Trial <br /> Court are duly supported by the evidence on record. <b><i> </i></b><br /> 156. It is to be noted that in <b><i>Ramesh Chand Versus Suresh Chand & Anr. </i></b><br /> <b><i>188 (2012) DLT 538,</i></b> this Court had held that ownership of the property <br /> therein had devolved upon the plaintiff in terms of the Will executed by his <br /> father, as the father had passed away. However, the said decision of this <br /> Court was set aside by the Supreme Court on the ground that the Will <br /> therein, had not been duly proved under Section 68 of the Evidence Act. <br /> Further, the Supreme Court held that possession had not been proved in the <br /> said case, as the suit was for possession, on account of which, benefit under <br /> Section 53-A of the TP Act, could not be given. <b><i> </i></b><br /> 157. However, the aforesaid judgment of the Supreme Court is not <br /> applicable to the facts and circumstances of the present case. In the present <br /> case, the registered Wills executed by respondent no. 2 and his mother in <br /> favour of respondent no. 1, have been duly proved. Further, the possession <br /> of the respondent no. 1 also stands duly proved. Thus, the finding of the <br /> Trial Court will remain valid. <b><i> </i></b><br /> <b> </b><br /> <b><i>RFA 545/2016 Page 85 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15<br /><br /> <br /> <b>Conclusion:</b> <b><i> </i></b><br /> 158. Considering the detailed discussion hereinabove, this Court finds no <br /> infirmity with the findings arrived at by the Trial Court. <br /> 159. For the aforesaid reasons, no merit is found in the present appeal. The <br /> same is accordingly dismissed. Consequently, the Agreement to Sell dated <br /> th <br /> 18 August, 2006 executed by respondent no. 2, Late Shri Som Nath, in <br /> favour of the appellant, i.e., Shri Rajeev Miglani, is cancelled. <br /> 160. A copy of this judgment shall be sent by the Registry of this Court to <br /> the concerned Sub-Registrar, in whose office the Agreement to Sell dated <br /> th <br /> 18 August, 2006 in favour of the appellant, had been so registered. <br /> <i> </i><br /> <i> </i><br /> <b>MINI PUSHKARNA, J</b> <br /> <b>th</b><br /> <b>27</b> <b> March, 2026/</b> AK/KR/SK <br /> <b><i>RFA 545/2016 Page 86 of 86 </i></b><br /> <br /> Signature Not Verified<br /> Digitally Signed<br /> By:HARIOM SHARMA<br /> Signing Date:27.03.2026<br /> 19:53:15</div>