Sale deed executed in favour of plaintiff - Pending registration for want of income tax Clearance - vendor executed sale deed in favour of third parties - Sham and nominal - Plaintiff entitled to relief of declaration.

Citation

AIROnline 2022 Mad 680

Madras High Court

DR . G. JAYACHANDRAN , J.

A.S. - 121 of 2013 D/- 10 - 3 - 2022

A. Gothamchand and Ors. v. Shriram Chits and Investments (P) LTD and Ors.

Specific Relief Act (47 of 1963), S.34, S.6 - Registration Act (16 of 1908), S.47 - Suit for

declaration and delivery of possession - Vendee seeking to declare himself as absolute owner

of suit property - On payment of consideration of Rs. 23,00,000/- sale deed was executed in

favour of vendee on 17.3.1999 - Taking advantage of pendency of registration of sale deed for

want of income tax clearance, vendor created three sale deeds on 8.12.2000 in favour of third

parties showing total sale price as Rs. 12,30,000/- and each vendor paid Rs. 4,10,000/- towards

their 1/3rd share - While prior sale is for higher value, subsequent sales after 21 months is for

nearly 40% lesser value indicating that third parties are not bona fide purchasers - Vendor

also attempted to cancel pending registration but Sub-Registrar refused to cancel same - No

plausible reasons as why, for single flat three separate sale deeds trifurcating shares came to be

sold including undivided share in the land - Sale deed in favour of third parties, sham - Vendee

entitled to relief of declaration. Transfer of Property Act (4 of 1882), S.48 -

 (Paras 22 , 23 , 24) 

Cases Referred Chronological Paras

AIR 1961 SC 1747

AIR 1946 Mad 140

AIROnline 1990 SC 82

T. R. Rajagopalan, Senior Counsel, For D. Ravichander for Pet