Transfer of subject property pendente lite to third party by defendant after receipt of pre-suit notice, after issuance of summons in money suit and after issuance of notice in attachment before judgment - Third party cannot be construed as bona fide purchaser.

Citation

AIROnline 2021 Mad 4407

Madras High Court

(MADURAI BENCH)

S. VAIDYANATHAN , J. and DR . G. JAYACHANDRAN , J.

C.M.A.(MD) - 360 of 2012 D/- 23 - 12 - 2021

K. Thirumalaivadivu v. S. Rajasekaran and Ors.

Civil P.C. (5 of 1908), O.21 R.58(4), O.38 R.8 - Transfer of Property Act (4 of 1882), S.52, S.53 -

Adjudication of claim - Objection to attachment before judgment - Transfer of subject property

pendente lite to third party by defendant after receipt of pre-suit notice, after issuance of

summons in money suit and after issuance of notice in attachment before judgment application

- I A's filed by third party/purchaser to adjudicate title and raise attachment of property

before judgment - Inconsistency regarding payment of sale consideration proves that sale

deed was collusive and fraudulent document created with intention to defeat creditor and

order of attachment - Third party cannot be construed as bona fide purchaser on failure to

give accounts for payment of sale consideration - Creation of stamped document ante-dating

payment unravels intention of third party to defeat creditors, who already initiated recovery

proceedings - Order directing to raise attachment before judgment, erroneous.

 (Paras 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21) 

Cases Referred

C