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Ammani v. Tiruchengode Municipality
Factual and Procedural Background
The plaintiff in the original suit, who lost in the Courts below, is the appellant before this Court. The appellant instituted O.S. No. 550 of 1994 in the District Munsif Court, Tiruchengode, seeking a permanent injunction against the respondent (the Municipality). The trial Court dismissed the suit on 23.8.2002. The appellant's first appeal, A.S. No. 361 of 2002, was also dismissed on 18.2.2003, which led to the present second appeal.
Material factual events, as reflected in the record, include: the appellant purchased the suit property (Plot No. 21) by sale deed Ex.A2 dated 17.1.1994 executed by a power of attorney of Paramasivam and obtained Patta in her name (Ex.A3). The appellant mortgaged the property (Ex.A7) and took steps like sinking a borewell. The respondent/municipality contends that Paramasivam had earlier procured layout sanctions (L.P/R (S.C) No. 26/82 and later L.P/R (S.C) No. 48/82 dated 27.5.1982) pursuant to which Plot Nos. 20 and 21 were reserved for public purposes (children's play space). Notices and undertakings (Ex.B5, Ex.B6, Exs.B7–B14) were issued or given in relation to reservation and handover for public use. Paramasivam's son was appointed power agent by Ex.A1 dated 7.4.1993 and sold Plot No. 20 (the suit property) by Ex.A2 on 17.1.1994. Paramasivam later executed a settlement (gift) deed Ex.A4 on 5.10.1994 in favour of the respondent, which the respondent relies upon to assert rights over the property.
At trial the appellant examined herself (PW1) and two other witnesses (PW2 and PW3) and produced documents Exs.A1–A9. The respondent examined DW1 and produced Exs.D1–D14. The trial Court framed issues, considered oral and documentary evidence and dismissed the suit. The first appellate court affirmed that dismissal, which precipitated the present second appeal.
Legal Issues Presented
- Whether the appellant's sale deed Ex.A2 (dated 17.1.1994) and consequent possession (including Patta and physical acts like sinking a borewell) gave the appellant a right to a perpetual injunction preventing the respondent from interfering with the suit property.
- Whether the reservation of Plot Nos. 20 and 21 for public purposes under the approved layout (sanctioned plans and related statutory/administrative approvals) precluded Paramasivam from alienating the suit property and thereby rendered the sale Ex.A2 invalid or ineffective as against the Municipality.
- Whether Section 122 of the Transfer of Property Act applied to invalidate the settlement/gift deed Ex.A4 or otherwise affect the rights claimed by the parties.
- Whether the appellant is disentitled to equitable relief (perpetual injunction) by reason of the vendor's conduct and the equitable principle encapsulated in Section 41 of the Specific Relief Act (i.e., the clean hands doctrine and other bars to granting injunction).
Arguments of the Parties
Appellant's Arguments
- The appellant purchased the suit property by sale deed Ex.A2 dated 17.1.1994 and thus established title and possession; she obtained Patta (Ex.A3) and carried out acts of ownership (e.g., sinking a borewell).
- The sale deed Ex.A2 predates the settlement/gift deed Ex.A4 (5.10.1994), and therefore Ex.A4 cannot impair the appellant's rights; the Courts below should not have gone into a deep title dispute when the suit was for a bare injunction.
- The appellant relied on documentary evidence (Exs.A3, A5–A7, A8, A9) and oral testimony (PW1–PW3) to show continuous possession and a valid transfer to her.
- It was contended that Ex.A4 contravenes Section 122 of the Transfer of Property Act and was not executed voluntarily or with free will (the appellant argued Ex.A4 is invalid because, after executing Ex.A2, the vendor had nothing left to transfer by Ex.A4).
Respondent's Arguments
- The respondent asserted that Paramasivam, the vendor, had procured layout sanction(s) in which Plot Nos. 20 and 21 (including the suit property) were reserved for public purposes (children's play space), thereby restricting the vendor's ability to alienate those plots.
- The respondent relied on the layout approvals (Ex.B2, Ex.B4, etc.), the application for layout (Ex.B1), undertakings by Paramasivam (Ex.B5, Exs.B11–B14) and municipal notices (Ex.B6, Exs.B7–B10) to demonstrate that the plots were to be placed at the disposal of the Municipality for public purposes.
- Because the vendor had lost his right to alienate the reserved plots once the layout sanctions and reservations were in place, the power of attorney holder (Sakthivel) could not validly execute a sale in favour of the appellant.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Pt. Chet Ram Vashist (dead) by LRs v. Municipal Corporation of Delhi, AIR 1995 SC 430 | Reservation of land in an approved layout does not create a proprietary right for the authority, but it bars the owner from dealing with the reserved land except in conformity with the authority's order; reservation is normally for public purpose and may create obligations akin to trust, precluding transfer. | The Court relied on this principle to hold that reservation in the sanctioned layout imposed a bar on the owner alienating the reserved plots and supported the conclusion that the owner effectively ceased to be full proprietor in respect of the reserved area. |
| Elumalai & 11 others v. Corporation of Madras, 2002 (3) LW 180 | Places earmarked for public park in an approved layout should not be changed or used for other purposes; promoter or government authority ought to maintain such lands for the designated public purpose. | The judgment was used to reinforce that lands reserved for public purposes cannot be diverted to other uses and that reservation imposes obligations preventing alienation inconsistent with the public purpose. |
| Bangalore Medical Trust v. B.S. Muddappa, AIR 1991 SC 1902 | Permission to construct in a place earmarked for a public park (under the relevant statute) is illegal; authorities' permissions cannot override statutory reservations for public purposes. | The Court cited this authority (as followed in Elumalai) to support the proposition that sanctioned reservations must be respected and cannot be bypassed by subsequent permissions to use the land for a different purpose. |
| M.I. Builders Pvt. Ltd. v. Radhey Shyam Sahu, 1999 (6) SCC 464 | Allowing construction (an underground shopping complex in a park) in a reserved public park violates statutory provisions and the public trust doctrine. | The Court invoked this decision to emphasize that the public trust doctrine and statutory limitations prevent conversion or alienation of land reserved for public use. |
Court's Reasoning and Analysis
The Court proceeded by analysing the documentary record of layout approvals, undertakings and municipal notices alongside the sequence of instruments affecting title (Ex.A1–A4 and the layout records Ex.B1–B14). Key steps in the Court's reasoning, as reflected in the opinion, were:
- Identification of the timeline: the layout sanction(s) and related communications show that Plot Nos. 20 and 21 were set apart for public purposes in the approved plan(s) and that Paramasivam gave undertakings and received notices relating to the reservation and handover of these spaces.
- Application of precedent: the Court relied on authorities (Pt. Chet Ram Vashist; Elumalai; Bangalore Medical Trust; M.I. Builders) to establish legal principles that a reservation in an approved layout imposes constraints on the owner's power to deal with the reserved land, that such reservation is for a public purpose, and that the owner effectively holds the land for the public (potentially as trustee), limiting alienation.
- Conclusion on applicability of Section 122 T.P. Act: the Court concluded that the effect of the reservation was to place the land at the disposal of the respondent for public purposes and to make the owner hold the land for the benefit of society; accordingly, the Court found that the appellant's reliance on Section 122 of the Transfer of Property Act (to challenge Ex.A4) was not applicable in the manner advanced by the appellant. The opinion states explicitly that the provisions of Section 122 "cannot be applied here."
- Equitable bar to injunction (Section 41, Specific Relief Act): the Court examined the claim for a perpetual injunction in the light of Section 41 of the Specific Relief Act (which lists circumstances where injunctions are to be refused). The Court invoked subsection (i) (the clean hands doctrine) and observed that the vendor's conduct—having left plots for public purposes under the sanctioned layout but then permitting or effecting a sale in contravention of that sanction—amounted to conduct disentitling the appellant to equitable relief. Thus, even assuming the appellant's possession, the Court held that such conduct precluded the grant of a perpetual injunction.
- Final procedural/legal conclusion: the Court found no substantial question of law in the second appeal and, applying the above analysis, concluded that the appellant was not entitled to the injunction sought.
Holding and Implications
SECOND APPEAL DISMISSED.
Direct consequences as stated in the opinion:
- The second appeal is dismissed. The trial decree dismissing the suit and the appellate dismissal are thereby sustained.
- No costs were awarded.
- The connected miscellaneous petition (CMP) is closed.
Broader implications and precedent: The Court applied existing precedents concerning reservation of land in approved layouts, the public purpose character of such reservations, and the equitable principle of clean hands to deny injunctive relief. The opinion does not announce any new legal principle or bind future courts; it relies on and applies established authorities to the facts of this case. In the Court's view, no substantial question of law arose for determination in the second appeal.
1. The plaintiff, who has lost before both the Courts below is the appellant. The appellant filed the suit O.S No. 550 of 1994 on the file of District Munsif Court, Tiruchengode for permanent injunction against the respondent herein, which was dismissed on 23.8.2002 The appellant has filed first appeal A.S No. 361 of 2002 which was also dismissed on 18.2.2003, hence this second appeal.
2. It is the case of the appellant that she purchased the suit property namely house site under Ex.A2, sale deed dated 17.1.1994 and obtained Patta in her name from the revenue authorities. The sale deed was executed by power of attorney of one Paramasivam. Later, she has mortgaged the suit property with District Centre, Namakkal. The respondent/Municipality attempted to interfere with the peaceful possession and enjoyment of the appellant under the pretext that the said Paramasivam executed a settlement deed under Ex-A4 dated 5.10.1994 settling the suit property in favour of the respondent. It is canvassed by the appellant that the settlement deed was executed long after the sale deed was executed in her favour.
3. The contention of the respondent is that the said Paramasivam was owner of large extent of land comprised in Survey No. 167/1 and 179/3. The said Paramasivam applied for layout sanction with the Town and Country Planning authorities, Salem. In the said plan, Plot Nos. 20 and 21, which is the suit property were set apart for public purpose. The said plan was approved after following the rules and regulations in L.P/R (S.C) No. 26/82 in Na.Ka No. 1391.82 L. 3 dated 27.5.1982 The said plan was altered by the said Paramasivam and a new plan has been approved in L.P/R (S.C) No. 48/82. In the said L.P/R (S.C)No. 48/82, the said two plots have been reserved for public purposes. As mentioned above, Plot No. 21 is the suit property. After approval of the layout, it is not open to the said Paramasivam to alienate either Plot No. 20 or Plot No. 21 since it was set apart for children play space. In virtue of the said sanctioned plan, the said two places were placed at the disposal of the respondent for the said public purposes. When the vendor namely Paramasivam has lost his right in the suit property, it is not open to the power of attorney agent, namely, Sakthivel to execute the sale deed in favour of the appellant herein.
4. Before the trial Court the appellant herein examined herself as PW1 and one Palanivel as PW2 and Somasundaram as PW3 and marked Exs. A1 to A9. The respondent Municipality examined one Thangamani as DW1 and marked Exs. D1 to D14. The trial Court after framing necessary issues and on proper consideration of the oral and documentary evidence has dismissed the suit. Aggrieved by the dismissal of the suit, the appellant has filed first appeal which was also dismissed after hearing both sides.
5. Mr. Kamadevan, learned counsel appearing for the appellant submitted that the appellant established her title to the suit property under Ex.A2 and also by continuous possession of the suit property under Exs.A3, A5 to A7, while so, the Courts below are not justified in dismissing the suit. The Courts below ought not to have gone deep into the aspect of the title since the suit is only for bare injunction; that the Courts below ought not to have declared the sale deed, Ex.A2 as null and void taking into account of the settlement deed under Ex.A4 The Courts below are not justified in holding that the vendor of the plaintiff has no title at the time of execution of the sale deed when admittedly the Municipality has got the right over the property only under Ex.A4 which is long after Ex.A2
6. It is canvassed before the Courts below that Paramasivam submitted Ex.B1 dated 30.1.1987 for approval of 21 house plots, to the Town and Country Planning authorities, Salem 1/10th area was to be kept allotted for the public park, play ground and school etc., Ex.B2 is the first approved plan. As Paramasivam requires some alteration, he submitted another plan which was approved under Ex.B4 dated 4.10.1982 with some conditions. Ex.B5 is undertaking given by Paramasivam stating that he will provide Plot No. 20 and 21 for public purpose. The respondent issued notice Ex.B6 dated 4.10.1983 calling upon Paramasivam to execute the settlement deed within seven days. Later, the respondent issued various notices under Exs.B7 to B10 on different dates to Paramasivam. Ex.B11 to B14 are letters of undertaking sent by Paramasivam agreeing to hand over the road and vacant space.
7. Paramasivam executed Ex.A4, settlement deed on 5.10.1994 Paramasivam appointed his son as power agent under Ex.A1 dated 7.4.1993, who sold Plot No. 20 the suit property under Ex.A2 dated 17.1.1994 to appellant herein. No doubt, the appellant has sunk borewell and obtained Patta along with other plot owners under Ex.A3 Ex.A5 is the field map pertaining to the suit property and Ex.A6 is the town survey extract. The appellant mortgaged the property under Ex.A7 and raised a loan for construction. Exs. A8 and A9 are parent title deeds relating to the suit property.
8. Privity of contract between Paramasivam and respondent is not denied. Layout was sanctioned in favour of the colonizer namely Paramasivam with certain conditions that he should reserve Plot Nos. 20 and 21 for public purpose. Paramasivam also submitted an application seeking permission to sell Plot Nos. 20 and 21 stating that he became financially poor and unable even to maintain his family. The said application was rejected by the respondent/Municipality.
9. The main pleas of the appellant before the trial Court is that Ex.A2 is earlier in point of time than the Ex.A4, Gift Deed. Ex.A4 executed by the vendor in favour of the appellant is not valid since it violates Section 122 of the Transfer of Property Act. In other words, Ex.A4 was not executed voluntarily or unfettered free will. After execution of sale deed Ex.A2, the vendor has not retained anything to transfer under Ex.A4 Both the Courts below rejected the plea of the appellant in toto.
10. In the decision Pt. Chet Ram Vashist (dead) by LRs v. Municipal Corporation of Delhi, AIR 1995 SC 430, wherein the Honourable Supreme Court held that reservation of land in respect of approved layout does not create any right or interest for the Corporation in the land so specified, however the land reserved cannot be dealt with by the owner except in confirmity with the order of the authority. In other words, it imposes a bar on exercise of power by the owner in respect of the land reserved. Reserving any site for any street, open space, park, School etc., in a layout or plan is normally a public purpose as it is inherent in such reservation that it shall be used by the public in general. The effect of such reservation is that the owner ceases to be the legal owner of the land in dispute and he holds the land for the benefit of the society or the public in general. It may result in creating an obligation in nature of trust and may preclude the owner from transferring or selling his interest in it.
11. In similar circumstance S. Jagadeesan, J. held in the decision Elumalai and 11 others v. Corporation of Madras, rep. by its Commissioner, Rippon Buildings, Madras-3 and others, 2002 (3) LW 180, that the place earmarked for public park in the approved layout should not be changed or permitted to be used to establish Kerosene Bunk and the promotor or the Government authority are expected to maintain the lands for that purpose and it cannot be utilised for any other purpose. The said judgment was made following the decision of the Honourable Supreme Court Bangalore Medical Trust v. B.S Muddappa, AIR 1991 SC 1902 wherein it was held, considering the provisions of Bangalore Development Act that permission granted by the authorities to construct the hospital in the place earmarked for a public park, is illegal.
12. One other Judgment was followed by S. Jagadeesan, J. M.I Builders Private Limited v. Radhey Shyam Sahu, 1999 (6) SCC 464, wherein the Honourable Supreme Court held that allowing construction of under ground shopping complex in the park not only violates the statutory provisions but also public trust doctrine.
13. The appellant's plan was sanctioned subject to the conditions imposed by the respondent. He did not raise any objection immediately. Indeed, he made a representation seeking permission of the respondent to sell it, which was also rejected. The effect of the reservation is that the owner ceases to be the owner and he holds the land for the benefit of the society as a trustee and execute the gift deed in discharge of the functions. Hence, the provisions of Section 122 of the Transfer of Property Act cannot be applied here.
14. The other plea of the learned counsel Mr. Kamadevan is that the appellant is in lawful possession pursuant to Ex.A2 as such taking into consideration of possession as on the date of suit, the Courts below ought to have granted decree as prayed for.
15. The prayer sought for in the suit is in the nature of perpetual injunction. The perpetual injunction forbids defendant to do a wrongful act which would be infringement of some right of the plaintiff legal or equitable. Injunction is a specific, order of the Court forbidding the commission of a wrong threatened or the continuance of a wrongful course of action.
16. The relief of injunction, whether temporary or permanent is granted at the discretion of the Court. Section 41 of Specific Relief Act 1963 contemplates when injunction is to be refused (which is equivalent to Section 56 of the 1877 Act).
Section 41. Injunction when refused- An injunction cannot be granted:-
(a) to restrain any person from prosecuting a judicial proceeding pending at the institution of the suit in which the injunction is sought, unless such restraint is necessary to prevent a multiplicity of proceedings;
(b) to restrain any person from instituting or prosecuting any proceeding in a Court not subordinate to that from which the injunction is sought;
(c) to restrain any person from applying to any Legislative Body;
(d) to restrain any person from instituting or prosecuting any proceeding in criminal matter;
(e) to prevent the breach of a contract the performance of which would not be specifically enforced;
(f) to prevent, on the ground of nuisance, an act of which it is not reasonably clear that it will be a nuisance;
(g) to prevent a continuing breach in which the plaintiff has acquiesced;
(h) when equally efficacious relief can certainly be obtained by any other usual mode of proceeding except in case of breach of trust;
(i) when the conduct of the plaintiff or his agents has been such as to disentitle him to assistance of the Court;
(j) when the plaintiff has no personal interest in the matter.
17. This Section gives a list of cases in which perpetual injunction cannot be granted. The sub-Section (i) implies that a person who seeks injunction must come to the Court with clean hands. If he acted in an unfair or unequitable manner, he cannot have relief. In this case, the appellant's vendor after leaving plots for public purposes obtained sanction to the layout and in contravention of the same it is sold to the appellant. Such conduct cannot entitle them to any relief at the hands of a Court of equity. Hence, the argument that the appellant is in lawful possession and entitled to injunction cannot be accepted.
18. I do not find any question of law, much less, substantial question of law involved in this Second Appeal.
19. For the foregoing reasons, the Second Appeal fails, liable to be dismissed and accordingly dismissed. No costs. Connected CMP is closed.
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