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Vijay Lalchand Huf & Another v. K.M Lulls Huf

Madras High Court
Feb 16, 1995
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Structured Summary of the Opinion (Srinivasan, J.)

Factual and Procedural Background

This set of four appeals challenges a common order of a single Judge in proceedings pending in a suit for specific performance of an alleged oral agreement of sale made in or around August 1991. For convenience, the appellants are treated as plaintiffs and the respondent as defendant.

The plaintiffs allege an oral agreement to sell plots at Rs. 9,75,000 each and claim that the defendant delivered original title deeds and put the plaintiffs in possession. The plaintiffs prepared a draft sale deed, applied for and obtained an Income Tax Clearance Certificate under Section 230-A of the Income Tax Act (certificate issued on 30.8.1991) after submitting the draft sale deed with the Income Tax Officer. The plaintiffs allege they tendered consideration and sought execution of the sale deed, and thereafter undertook construction of a temple on the land and erected a compound wall around the entire 7.37 acres with a single gate (located in the plaintiffs' portion).

During the suit the plaintiffs filed three interlocutory applications (O.A. Nos. 53/94, 54/94 and 55/94) seeking, respectively, an injunction restraining the defendant from putting up any construction, restraining alienation/encumbrance, and restraining interference with plaintiffs' possession. The defendant contested the plaint, denied delivery of possession, denied any tender of consideration, characterized the compound wall and gate as common family arrangements and moved Application No. 3332/94 to vacate an interim injunction granted in O.A. No. 55/94.

The learned single Judge dismissed the plaintiffs' interlocutory applications and allowed the defendant's application to vacate the interim injunction. The appeals challenge that order.

Legal Issues Presented

  1. Whether, on the material on record (including the Advocate Commissioner's report, production of original title deeds, construction of compound wall and temple, and the Income Tax Clearance Certificate application), the first plaintiff was put in possession by the defendant under the alleged oral agreement.
  2. Whether the plaintiffs, as alleged transferees in possession, are entitled to interim injunction(s) during the pendency of a suit for specific performance on the basis of possession and the protection contemplated by Section 53-A of the Transfer of Property Act.
  3. Whether the single Judge correctly declined interim relief by relying on prior decisions holding that a person relying on Section 53-A cannot use it as a "sword" (i.e., maintain a suit as plaintiff for injunction) and by treating certain observations in earlier Division Bench judgments as determinative.

Arguments of the Parties

Plaintiffs' Arguments

  • There was an oral agreement in or around August 1991 for sale of plots at Rs. 9,75,000 each; the defendant delivered original title deeds and put plaintiffs in possession.
  • A draft sale deed was prepared and filed with the Income Tax Officer in support of an application for Clearance Certificate under Section 230-A; the clearance certificate was issued on 30.8.1991, evidencing intention to execute the sale deed.
  • The plaintiffs tendered the sale consideration and asked for execution of the sale deed; the defendant postponed execution and made false promises.
  • Acting on the agreement, plaintiffs constructed a compound wall around the whole property (7.37 acres), erected a temple on the northern portion, stored building materials on the southern part, and placed huts and security; they thereby suffered detriment and are in possession.
  • Plaintiffs are ready and willing to perform their contractual obligations and seek specific performance and interlocutory protection (injunctions) during the suit.

Defendant's Arguments

  • The defendant accepts the initial agreement was made but denies handing over possession as alleged by the plaintiffs.
  • No consideration was paid; the draft deed was never acted upon and the plaintiffs never tendered any consideration as alleged.
  • The compound wall and common gate and the arrangement of security were family arrangements (common facilities) and do not create any interest in the plaintiffs; mere erection of a common wall is insufficient to prove possession under the agreement.
  • There is no subsisting agreement and the plaintiffs are not in possession; therefore they are not entitled to interim relief.
  • Challenged the sufficiency of plaintiffs' proof of tender/offer of consideration and readiness/willingness to perform.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Krishnamoorthy v. Paramasiva (AIR 1981 Madras 310) Division Bench held, on facts of that case, plaintiff had not proved possession prima facie; contained observations that transferee in possession could not maintain suit and seek injunction under Section 53-A (i.e., not use Section as a "sword"). The court treated the latter observations as obiter and not binding on the present case; it declined to accept the single Judge's reliance on those observations as determinative.
T. Parameshwari & Ors. v. S.S. Investments Pvt. Ltd. (1993 (1) Law Weekly 109) Discussed rights under Section 53-A and the jurisdiction to grant temporary injunctions in suits for specific performance; contained observations on the availability/limits of Section 53-A. The court regarded much of the discussion as obiter in earlier instances but noted that a Division Bench later considered the issue in detail (Padmanabhan). The court preferred to apply the principles set out by the Division Bench in Padmanabhan.
Munuswamy Gounder v. Erusa Gounder (1974 (1) M.L.J 499) Held that a plaintiff in a suit for specific performance could seek protection of rights under Section 53-A by obtaining an injunction against the transferor and those claiming through him (i.e., use Section 53-A as a shield to defend possession). The court cited this decision as authority that a transferee in possession could seek injunctional protection; used it to support the proposition that plaintiffs may obtain interim relief.
Mahalingam v. Ayyathurai (1972 (I) M.L.J 9) Single Judge decision expressing view consistent with Munuswamy Gounder regarding protective relief under Section 53-A. Cited as earlier judicial support for permitting injunctive protection for a transferee in possession.
Venkat Dharmaji v. Vishwanath (AIR 1983 Bombay 413) Single Judge of Bombay High Court dissented from the Division Bench view in Krishnamoorthy (i.e., disagreed with prohibition on using Section 53-A as a sword). Cited to show there was judicial dissent from Krishnamoorthy and support for the protective approach adopted in Munuswamy's case.
Mohamed Ali & Ors. v. Nagaraja Mannair (1988 (1) Law Weekly 563) Contained discussion noting that observations in Krishnamoorthy were obiter and that Munuswamy's case should be followed. Used to reinforce that Krishnamoorthy's observations were not binding and to support reliance on Munuswamy.
Padmanabhan V.A v. M.A Narasimhan (1993 (1) Law Weekly 169) Division Bench laid out propositions: (1) transferee in possession can get relief as plaintiff or defendant under Section 53-A; (2) Section 53-A provides passive equity (a shield) and will not become active equity without something more; (3) courts retain jurisdiction to grant temporary injunctions in suits for specific performance and exceptional equitable circumstances may justify such relief. The court applied the principles set out in this decision and expressly relied on its framework to justify granting interim relief to the plaintiffs on the facts of the present case.
Srimathi India v. I.T.O (Income Tax Reports) and Smt. Fouzia Shahi Nazeer v. B.K. Lingappa (Income Tax Reports) Authority cited by counsel for proposition that only a transferor can apply under Section 230-A of the Income Tax Act (counsel relied on these cases). The court noted counsel's reliance but expressly stated it was unnecessary to decide that proposition for purposes of these appeals and therefore did not rule on those authorities.
Manekial v. H.J. Ginwallia & Sons (AIR 1959 SC 1); Karthikeya v. Singaram (1956 (1) M.L.J 77); A. Gangadhara Rao v. G. Gangarao (AIR 1968 Andhra Pradesh 291) Authorities cited by plaintiffs' counsel for the proposition that a draft sale deed filed with the Income Tax Officer could constitute a contract in writing within the scope of Section 53-A. The court stated it was unnecessary to consider these propositions in the present appeals and therefore did not adjudicate on those authorities.

Court's Reasoning and Analysis

The court proceeded by examining the undisputed facts on the record and the specific evidentiary materials before it:

  1. The court identified several undisputed facts: existence of an oral agreement; production of original title deeds by plaintiffs; application by the defendant for an Income Tax Clearance Certificate under Section 230-A together with a draft sale deed (certificate issued 30.8.1991); and the Advocate Commissioner's report noting two huts, stored building materials, and construction on the northern portion.
  2. The court considered whether the first plaintiff was put in possession by the defendant under the agreement. It gave weight to the Advocate Commissioner's report showing building materials, huts used by labourers/watchman, the temple in the northern part, and the compound wall encircling the entire 7.37 acres with only one gate (access located in plaintiffs' portion). The court also noted that plaintiffs appointed their own security.
  3. On the documentary material, the court observed that the defendant had filed for and obtained an Income Tax Clearance Certificate on 30.8.1991 and had filed a draft sale deed with the Income Tax Officer, yet the defendant did not produce that draft sale deed in court. The court held that an adverse inference could be drawn from the defendant's non-production of the draft deed (the deed, if produced, would in the court's view have shown a recital regarding possession).
  4. Taking the physical facts and the documentary context together, the court concluded that the only reasonable inference was that the plaintiffs were in possession of the subject land pursuant to the agreement and had acted on the agreement (erecting the temple and constructing the compound wall), suffering detriment in consequence.
  5. Turning to the legal question of entitlement to interlocutory relief, the court reviewed conflicting authority. It rejected the single Judge's reliance on certain observations in earlier Division Bench decisions (characterized as obiter), and analysed the line of authority represented by Munuswamy Gounder and by the Division Bench in Padmanabhan (which distilled guiding propositions concerning Section 53-A).
  6. The court adopted the Padmanabhan framework: Section 53-A affords passive equity (a shield) to a transferee in possession, but passive equity may be translated into active equitable protection (such as an injunction) where "something more" is shown and where the equitable principles for granting injunctions are satisfied; exceptional cases may warrant interim relief even in suits for specific performance.
  7. Applying these principles to the undisputed facts (possession, detriment, single access gate, building materials and men in occupation), the court found there was "much more than something" to justify interim injunctive protection. The court held the plaintiffs had established a prima facie case of possession and that the balance of convenience favored protecting that possession pending trial.
  8. The court addressed specific defendant contentions: that plaintiffs had not adequately pleaded or proved tender/offer of consideration and readiness/willingness to perform. The court held that, at interlocutory stage, an averment that plaintiffs were ready and willing sufficed; detailed proof is a matter for trial. The court did not decide several contested points counsel raised about Section 230-A and about whether the draft deed constituted a written contract under Section 53-A, deeming those issues unnecessary to resolve for purposes of the interlocutory applications.
  9. On remedies, the court concluded that (a) plaintiffs were entitled to an injunction restraining the defendant from interfering with plaintiffs' possession; (b) restraint against alienation during the pendency of the suit was necessary to avoid complications with third parties; and (c) the defendant (not being in possession) was not entitled to erect construction on the disputed property. In fairness, the court also restrained the plaintiffs from undertaking any further construction until final disposal of the suit.

Holding and Implications

Holding:

The appeals are allowed. The court held that the plaintiffs had proved prima facie possession of the disputed property and were entitled to interlocutory injunctive protection during the pendency of the suit.

Specific orders (as recorded in the opinion):

  • O.A. Nos. 53/94, 54/94 and 55/94 are ordered as prayed for (injunctions issued in those matters).
  • There will be an injunction restraining the defendant from interfering with the plaintiffs' possession of the disputed property and from alienating the property in any manner during the pendency of the suit.
  • There will be an injunction restraining the defendant from putting up any construction on the disputed property till disposal of the suit.
  • There will be an injunction restraining the plaintiffs and their men from putting up any further construction on the disputed property till disposal of the suit (the court noted the existence of two huts but restrained further construction).
  • Application No. 3332 of 1994 (defendant's application to vacate the interim injunction) is dismissed.
  • There will be no order as to costs.

Implications:

The direct effect is protective: the plaintiffs' possession is secured by interlocutory injunctions limiting the defendant's ability to interfere, to alienate the property, or to construct on it pending final determination of the suit; the plaintiffs are also restrained from further construction until judgment. The court applied established principles concerning Section 53-A and interim relief (notably the Padmanabhan framework and authority like Munuswamy Gounder) to the specific facts; the opinion does not purport to announce a novel or broader rule of law beyond applying those principles to the facts at hand.


Note: This summary is strictly based on the content of the provided opinion and does not add or infer facts beyond what the opinion itself states.

Show all summary ...

Srinivasan, J.

These four appeals are directed against the common order passed by a single Judge of this Court sitting on the Original side on four applications filed during the pendency of a suit. For the sake of convenience, the appellants will be referred to as the plaintiffs and the respondent will be referred to as the defendant.

2. The suit is for specific performance of an agreement for sale said to have been entered orally by the defendant with the plaintiffs in or around August 1991. The sale price was Rs. 9,75,000 for each plot. The parties have agreed that the sale consideration should be paid at the time of execution of the sale deed. The plaintiff and his wife agreed to purchase the plots because they intended to build a temple for Sri Shiridi Sai Baba and the entire extent of 7.37 acres was needed for such construction in a fit manner. The defendant delivered the original title deeds relating to the suit property to the first plaintiff and also put the plaintiffs in possession. The plaintiffs prepared a draft sale deed and handed over the same to the defendant. The defendant applied for Income Tax Clearance Certificate under Section 230-A of the Income Tax Act and the same was issued by the concerned authority on 30.8.1991 In the draft sale deed, filed along with application for Income Tax Clearance Certificate all the terms of the contract have been clearly set out. Immediately thereafter the plaintiffs tendered the sale consideration to the defendant and requested for execution of the sale deed. The defendant, without receiving the consideration, was postponing the fulfillment of the contract for some reason or other. The plaintiffs constructed a wall encircling the total area of 7.37 acres and fixed a gate on the northern side of the entire extent of land. The gate is provided at the entrance of the land, which is owned by the plaintiffs themselves. Anyone can have access to the entire extent of the land only through that gate and there was no other access. The plaintiffs employed their own security to protect the land. The construction of the temple began in July 1993 and the plaintiffs constructed the same in the northern part of the land which belonged to themselves. The building materials are stored in the southern part of the land which belonged to the defendant. Two huts were put up in that part of the land for use of the labourers and watchman. The defendant, who was postponing the execution of the sale deed, kept the plaintiffs in the dark by making false promises and prevented the plaintiffs from taking effective steps to complete the specific performance. The only intention of the plaintiffs was to build a temple along with facilities like prayer hall, nandavanam etc. But for the agreement and delivery of possession, the plaintiffs would not have indulged in constructing a temple. The plaintiffs are ready and willing to pay the sale consideration to the defendant and they have necessary funds therefor. In June 1994, a member of the defendant's family trespassed into the suit property and also gave a complaint against the plaintiffs. The plaintiffs had to give a counter complaint to the police. The plaintiffs have come up with a prayer for specific performance and for injunction restraining the defendant from interfering with their possession of the suit property. With the above case set out above in the plaint, the plaintiffs applied in O.A No. 55/94 for an injunction restraining the defendant during the pendency of the suit from interfering with the possession of the plaintiffs. In O.A No. 54/94, the plaintiffs prayed for an injunction restraining the defendant from alienating or encumbering the suit property in any manner pending disposal of the suit. By O.A No. 53/94, the plaintiffs prayed for an injunction restraining the defendant from putting up any construction on the suit property. In the affidavit filed in support of the applications, it is also alleged that the temple constructed by the plaintiffs is being managed and administered by the second plaintiff trust and the trust has appointed a number of employees who stay in the suit property to take care of the affairs of the temple.

3. The defendant filed counter affidavits contesting the claim of the plaintiffs. While the initial agreement is not denied, the defendant has stated that possession was not handed over to the plaintiffs as alleged by them. The plaintiffs have not paid even a pie as consideration and no doubt a draft deed of agreement was prepared but it was never acted upon. The plaintiffs never tendered the sale consideration to the defendant as alleged by them. The defendant agreed for a common compound wall and a common gate for the entire property because of the family relationship between the members of the first plaintiff and the defendant's family. A common security agency was agreed upon. As the Kartha of the defendants family is residing temporarily in U.S.A, the Kartha of the plaintiffs' family appointed the security agency. Merely raising a common compound wall with a common gate and appointing a security agency for the protection of the property will not create any interest in favour of the plaintiffs. There is no subsisting agreement between the plaintiffs and the defendant and the plaintiffs have no interest in the property. The plaintiffs not being in possession of the property are not entitled to claim any interim relief as prayed for in the applications. On the above averments, the defendant filed Application No. 3332/94 for vacating the interim injunction granted in O.A No. 55/94.

4. The learned single Judge after hearing both parties, held that the report filed by an Advocate Commissioner appointed by the court to note down the physical features does not help the plaintiffs to prove that they are in possession of the property and on the other hand it is seen from the report that the temple building and other buildings are only in the northern portion of the property which belongs to the plaintiffs whereas in the southern portion there are only two huts and that it is not sufficient for proving the possession of the disputed property being with the plaintiffs. The learned Judge went on to hold that there is no explanation for the delay on the part of the plaintiffs in approaching the court for the relief for specific performance after 1991 and the oral agreement pleaded by the plaintiffs has no legal force and that the plaintiffs are trying to revive a dead contract by preferring the suit. The learned Judge has opined that the defendant is always entitled to repudiate the oral contract and express his disinclination to transfer the suit property and that has been anne (Sic) in this case by the defendant and therefore, there is no subsisting contract. The learned Judge has also observed that the draft deed of agreement said to have been executed and signed by the parties has not been filed in to Court. According to learned Judge, the circumstances of the case prove that the plaintiffs were not having any intention to act upon the oral agreement and they had not made out that they were ready and willing to perform their part of the contract. The learned Judge proceeded to refer to certain judgments of this court under Section 53-A of the Transfer of Property Act and purporting to follow the same, held that the plaintiffs were not entitled to get any interim relief on the basis of an oral agreement which was repudiated later. In that view, the learned Judge dismissed all the applications filed by the plaintiffs and allowed the application filed by the defendant to vacate the interim injunction. It is the said order of the learned Judge that is challenged in these appeals.

5. The following facts and circumstances are apparent on the face of the record and not in dispute.

i) There was an oral agreement between the first plaintiff and the defendant.

ii) The original title deeds relating to the property are produced by the plaintiffs along with the plaint as they had been in their custody.

iii) The defendant applied for a certificate under Section 230-A of the Income Tax Act for Income Tax Clearance along with the draft sale deed and obtained the same on 30.8.1991 The draft sale deed is not produced by the defendant in court.

iv) The Advocate Commissioner appointed by Court has submitted a report from which it is clear that there are two huts and building materials on the disputed property and that buildings have been constructed on the northern side of the disputed property which belonged to the plaintiffs.

v) A compound wall has been constructed by the plaintiffs encircling the entire property 7.37 acres with only one gate on the northern side, which is situated in the property admittedly belonging to the plaintiffs. There is no other access to the disputed property excepting through that gate.

5. A question will naturally arise whether the first plaintiff was put in possession by the defendant under the agreement. The report of the Advocate Commissioner shows that the plaintiffs have stored the building materials on the disputed property and also erected two huts which, according to the plaintiffs, are used by the men appointed by the second plaintiff Trust and the labourers, who are employed for the construction activities. A temple has been constructed on the northern side of the land and a compound wall has been admittedly constructed by the plaintiffs. The security also was appointed only by the plaintiffs. The only inference that can be drawn from the above facts is that the plaintiffs are in possession of the land which is the subject matter of the suit. The fact that the defendant had applied for Income Tax Clearance Certificate under Section 230-A of the Income Tax Act and obtained the same even on 30.8.1991 shows that the parties intended to give effect to the oral agreement for sale and they had acted on it. The defendant has no explanation for not producing the draft sale deed which was filed before the Income Tax Officer along with the application for Clearance Certificate. If that document had been produced, it would have been seen that there is a recital with regard to possession of the property. If there is no such a recital, the defendant would have produced the certificate. An adverse inference can be drawn against the defendant for the non-production of the said document. In such circumstances, we have no doubt in accepting the case of the plaintiffs that possession was handed over to the first plaintiff by the defendant under the agreement and that the plaintiffs have acted in pursuance of the agreement for sale and erected a temple and is proceeding with the work. The plaintiffs have also suffered detriment by erecting a compound wall encircling the entire property including that of the defendant. But for an agreement alleged by the plaintiffs, there was no necessity for them to erect a compound wall around the property of the defendant. The fact that there is only one gate for entering the entire property including the disputed property and the fact that the defendant did not at any time protest against the provision of only one access to the entire property go a long way to make out a prima facie case in favour of the plaintiffs. The finding of the learned Judge ignoring the relevant part of the report filed by the Advocate Commissioner and also ignoring the circumstances that a compound wall has been erected covering the entire property by the plaintiffs, is erroneous. There is ample material now on record to prove prima facie that the plaintiffs are in possession of the disputed land.

6. Hence, the question arises whether the plaintiffs are entitled to have an injunction restraining the defendant from interfering with their possession on the basis of the agreement. The learned Judge has referred to the judgment in Krishnamoorthy v. Paramasiva (AIR 1981 Madras 310) and the judgment in Parameshwari, T. and four others v. S.S Investments Private Ltd. (1993 (1) Law Weekly 109) and taken the view that the two judgments have laid down the law that in case of a suit for specific performance of an oral agreement, the plaintiff is not entitled to get any interim relief on the basis of the alleged possession as the plaintiffs have to prove possession only at the trial and further that the right under Section 53-A of the Transfer of Property Act can be used only as a shield and not as a sword and therefore a person relying on that Section can get relief only as defendant and not as a plaintiff. We are unable to accept the view taken by the learned Judge as regards the proposition laid down in the two judgments referred to by him. In fact the observations contained in the judgments are really obiter. In Krishnamoorthy v. Paramasiva (AIR 1981 Madras 310), the case arises out of an interlocutory order. It was found as a fact that the plaintiff had not proved possession prima facie and was not entitled to claim injunction. It was also found in that case that the genuineness of the agreement was itself questioned by the defendant and in the face of such a challenge and in the absence of prima facie evidence to prove possession under the agreement, the plaintiff could not get injunction. After giving such a finding on the facts, the Division Bench proceeded to observe that even assuming that the plaintiff was put in possession under the agreement and that he was entitled to the benefits of Section 53-A of the Transfer of Property Act, he was not entitled to maintain a suit as plaintiff and seek an injunction as that would amount to his using the provision of Section as a sword and not as a shield. Those observations contained in that judgment are obiter. Similarly, in the later judgment in T. Parameshwari v. S.S. Investments Private Ltd. (1993 (1) Law Weekly 109), there was no averments that the plaintiff was in possession pursuant to the agreement. The only injunction granted by the trial court was restraining the defendant from alienating the property in any manner. It was that order which was challenged before the Bench and the Bench went on to consider the rights of parties under Section 53-A of the Transfer of Property Act. With all respect to the Bench, we are of the opinion that the entire discussion was unnecessary and the observations are obiter. 7. The question whether a plaintiff in a suit for specific performance can claim relief of injunction during the pendency of the suit on the basis of his possession, has been considered by this Court in Munuswamy Gounder v. Erusa Gounder (1974(1) M.L.J 499), it was held that the plaintiff could, in such cases, ask for protection of the right envisaged by Section 53-A of the Transfer of Property Act as a shield by debarring, in other words, by getting an injunction against the defendant the transferor and those claiming under him, from interfering with his possession. The same view was expressed by a single Judge earlier in Mahalingam v. Ayyathurai (1972 (I) M.L.J 9). The judgment of the Division Bench in Krishnamoorthy v. Paramasiva (AIR 1981 Madras 310) was dissented from by a single Judge of the Bombay High Court in Venkat Dharmaji v. Vishwanath (AIR 1983 Bombay 413). One of us had occasion to consider the two judgments of the Division Bench in Krishnamoorthy's Case (AIR 1981 Madras 310) and Munusamy Gounder v. Erusa Gounder (1974 (1) M.L.J 499) and point out that the observations in Krishnamoorthy's case were obiter and the law laid down in Munusamy's case would hold good. That is rendered in Mohamed Ali others v. Nagaraja Mannair (1988 (1) Law Weekly 563). The Division Bench which decided Parameswari v. S.S Investments Private Ltd. (1993 (1) Law Weekly 109) had occasion to consider the question once again in detail in Padmanabhan V.A v. M.A Narasimhan (1993 (1) Law Weekly 169). After referring to the earlier judgments on this question, the Bench said,

“16. What has been culled out by us leaves no manner of doubt that possession in part performance of a contract is a right falling under S. 53-A of the Act and the transferee in possession of the property in part performance of the contract can defend his possession in case there is any attempt by the transferor or any person claiming through him to dispossess him. That the transferee can do either as plaintiff or a defendant. Ordinarily, the issue as to possession or any other right under S. 53-A of the Act shall be consequential or a dependent issue upon the issue of the existence of the contract itself and with a decree for the enforcement of the contract, there can be an order for maintaining the possession of the agreement holder/transferee. In considering, however, whether injunction should be granted on the plea of possession and the allegation of threat of dispossession to a person holding the agreement for sale, the rule will be as one reiterated almost in every case that to plaintiff claiming only an equitable right the court would not ordinarily grant temporary injunction pending the suit on the basis of S. 53-A of the Act, as mere possession of the plaintiff of the suit property on the date of the suit cannot be taken to enable him to obtain injunction from the Court. The passive equity as provided under S. 53-A of the Act shall be available as shield against any interference by the defendant who is either the transferor himself or any other person claiming through the transferor but would not become active equity without there being something more. The doctrine of lis pendens as enunciated in Sec. 52 of the Act and similar other doctrines will take care of all pendents lite transfers. But there may be exceptional cases where the other rules of equity as are noticed in the cardinal principles for grant of injunction will intervene and injunction may be the proper and equitable order. The Bench decision of this Court in the case of T. Parameshwari v. S.S. Investments Private Ltd. (1993(1) Law Weekly 109) which has been affirmed by the Supreme Court in S.L.P Nos. 17926 & 17927/91, has clearly said that no one can question the jurisdiction of the Court to grant temporary injunction even in a suit for specific performance of a contract for sale. But while applying to exercise the discretion it would necessarily take the Court to the various provisions governing the suit for specific performance of a contract for sale of immovable property as well as other equitable doctrines”.

(Emphasis supplied)

For the purpose of this case, it is not necessary for us to discuss whether the propostion laid down by the Division Bench in that case is fully in accord with law we prefer, on the facts of this case, to apply the principle laid down by the Division Bench in that case. In the passage extracted above, the Division Bench has laid down two propositions, 1) a transferee can get relief either as a plaintiff or a defendant under Section 53-A of T.P Act and 2) the passive equity as provided under Section 53-A of the Transfer of Property Act shall be available as a shield against any interference by the defendant, who is either the transferor himself or any other person claiming through the transferor, but would not become active equity without there being something more. (Emphasis supplied).

8. On the facts of this case, we find there is much more than something which will entitle the plaintiffs to get an interim relief during the pendency of the suit for specific performance. We have already pointed out that the plaintiffs have suffered detriment by erecting a compound wall around the entire property of 7.37 acres including the disputed property and that they have constructed the temple on their land, which they would not have done but for the agreement as stated in the plaint. They are also in possession of the land and therefore in this case, the plaintiffs will be entitled to have the relief of temporary injunction during the pendency of the suit even on the basis of the principles laid down by the Division Bench in the case (Padmanabhan v. Ma Narasimhan (1993 (1) Law Weekly 169).

9. Learned counsel for the appellants points out that it is only the transferor who can apply under Section 230-A of the Income Tax Act for a Clearance Certificate and places reliance on Srimathi India v. I.T.O (Vol. 150 Income Tax Reports 351) and Smt. Fouzia Shahi Nazeer v. B.K Lingappa (Vol 182 Income Tax Reports 342). He has also contended that the draft sale deed, which was filed by the defendant along with the application for clearance certificate before the Income Tax Officer, would constitute a contract in writing as contemplated by Section 53-A of the Transfer of Property Act. In support of that proposition, learned counsel places reliance Manekial v. H.J Ginwallia & Sons (AIR 1959 Supreme Court 1), Karthikeya v. Singaram (1956 (1) M.L.J 77) and A. Gangadhara Rao v. G. Gangarao (AIR 1968 Andhra Pradesh 291). In our opinion, it is not necessary to consider either of the propositions for the purpose of these appeals. Hence, we are not considering the authorities cited by learned counsel for the appellants in that regard.

10. Learned counsel for the defendant submits that the plaintiffs have not made out a prima facies case of possession. We are unable to accept this contention. It is then contended that the plaintiffs have not given the details as to how consideration was offered or tendered by the plaintiffs to the defendant at any time. The relevant passages in the plaint and the affidavit are read out and it is submitted that under the agreement, the plaintiff is bound to give the sale consideration only at the time of execution of the sale deed as per the plaintiffs' case and no occasion for the plaintiffs to tender the amount earlier even before the execution of the sale deed. There is no merit in this contention. Just because the parties had agreed that the consideration shall be paid a the time of execution of the sale deed, it does not prevent the purchaser from tendering the amount earlier and requesting the vendor to execute the sale deed immediately.

11. It is next contended that merely making an averment that the plaintiffs are ready and willing to perform their part of the contract as required by Section 16(c) of the Specific Relief Act and prescribed in Forms 47 and 48 in Appendix A to the Code of Civil Procedure, will not help the plaintiffs to prove that they are ready and willing to perform their part of the contract as they have not given any details of the alleged tender. There is no merit in this contention as the plaintiffs would be able to prove the same by adducing evidence at the time of trial. The requirement in law at this stage is only to make an averment in the plaint that the plaintiffs are always ready and willing to perform their part of the contract. The question of proof comes at the trial.

12. It is next contended that the draft sale deed filed by the defendant along with the application for Clearance Certificate will not fall within the scope of Section 53-A of the Transfer of Property Act. As we have not taken into account the contention of leaned counsel for the plaintiffs, it is not necessary for us to consider this contention of the defendant also. However, we must point that the Clearance Certificate which has been issued by the Income Tax Officer on 30.8.1991 is in the prescribed Form No. 34-A. The relevant columns in the clearance certificate clearly show that the applicant intended to executed a sale deed conveying an absolute ownership in favour of the plaintiffs for a consideration of Rs. 9,75,000. The description of the property is also referred to as in the Schedule to the draft document. At the end of the form, there is a declaration by the applicant that to the best of his knowledge and belief, the information furnished therein is correct. Suffice it to point out that the essential terms of the contract as alleged by the plaintiffs are admitted in the said application for issue of Income Tax Clearance Certificate.

13. Hence, we hold that the plaintiffs have proved their possession of the disputed property. Consequently, they are entitled to protect the same till the disposal of the suit. The balance of convenience is undoubtedly in favour of the plaintiffs as they are having their building materials and their men, who are also in occupation of the disputed property.

14. Therefore, there will be an injunction restraining the defendant from interfering with the possession of the plaintiffs. If the defendant proceeds to alienate the property in any manner during the pendency of the suit, that will give rise to unnecessary complications and third party's right will intervene. Hence, this is a fit case in which an injunction restraining the defendant from alienating the suit property in any manner during pendency of suit, should also issue. The defendant not being in possession is not entitled to erect any construction on the disputed property. In the circumstances, there should be an injunction restraining the defendant from putting up any construction on the disputed property till the disposal of the suit. In the interest of justice, equally, the plaintiffs are also not entitled to raise any construction on the disputed property till the disposal of the suit.

15. In the result, the appeals are allowed. O.A Nos. 53, 54 and 55 1994 are ordered as prayed for. There will also be an injunction in O.A No. 53/94 restraining the plaintiffs and their men from putting up any further construction on the disputed property till the disposal of the suit. We have already referred to the fact that there are two huts on the disputed property. It will not be disposal till the disposal of the suit. Application No. 3332 of 1994 is dismissed. There will be no order as to costs.

ALS/VA