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  • section 54 of the same Act and with the Registration Act
  • section 55, clause (1)(f) of the Transfer of Property Act
  • section 55(1)(f) of the Transfer of Property Act,
  • Order II, rule 2 of the Civil Procedure Code.
  • SECTION 55 TRANSFER OF PROPERTY ACT
  • clauses of section 55, sub-section (1)
  • Order II, rule 2,
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • section 54 of the same Act and with the Registration Act
  • section 55, clause (1)(f) of the Transfer of Property Act
  • section 55(1)(f) of the Transfer of Property Act,
  • Order II, rule 2 of the Civil Procedure Code.
  • SECTION 55 TRANSFER OF PROPERTY ACT
  • clauses of section 55, sub-section (1)
  • Order II, rule 2,
Smart Summary

Concise Analytical Summary of the Opinion

Factual and Procedural Background

The plaintiff previously obtained a decree for specific performance ordering the execution of a deed of sale in accordance with an agreement to sell property. The decree was executed and the sale-deed was obtained in execution of that decree. Subsequently the plaintiff sued for possession of the land on the strength of the executed sale-deed. The defendants contended that because the plaintiff did not claim possession in the earlier suit for specific performance, the present suit for possession is barred under Order II, rule 2 of the Civil Procedure Code. The matter reached the Court in a Second Appeal which was ultimately dismissed.

Legal Issues Presented

  1. Whether the present suit for possession, brought after execution of the conveyance, is barred by Order II, rule 2 of the Civil Procedure Code because possession was not claimed in the earlier suit for specific performance.
  2. Whether the cause of action for possession (post-conveyance) is the same as, or distinct from, the cause of action in a suit for specific performance (based on the agreement to sell).
  3. How sections of the Transfer of Property Act (notably section 54 and section 55(1)(f)) and the Registration Act affect the timing of the purchaser's right to possession in the absence of an express covenant to transfer possession independently of the registered conveyance.

Arguments of the Parties

Plaintiff's Arguments

  • The plaintiff asserted that the present cause of action for possession arises only upon execution of the conveyance (the sale-deed), and therefore the right to possession did not exist at the time of the earlier suit for specific performance.
  • The plaintiff's position was that Order II, rule 2 applies only where the cause of action in the earlier suit is the same as that in the later suit; here the causes of action are distinct (agreement to convey vs. conveyance itself).

Defendant's Arguments

  • The defendants contended that by failing to claim possession in the earlier suit for specific performance, the plaintiff is barred from claiming possession now under Order II, rule 2.
  • The defendants relied on the decision in Narayana Kavirayan v. Kandasami Goundan, where it was held that the right to possession arises coincidently with the right to obtain a conveyance, implying the causes of action are the same.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Narayana Kavirayan v. Kandasami Goundan Held by Shephard and Boddam, JJ., that the right to possession arises coincidently with the right to obtain the conveyance (general proposition apparently tied to section 55 of the Transfer of Property Act). The Court (Tyabji, J.) declined to follow the reasoning in that case, expressing inability to agree that the causes of action are the same; the Court considered the decision to proceed on a proposition of general law but found that view unsatisfactory without a special agreement providing possession independently of conveyance.
Nathu valad Pandu v. Budhu valad Bhika Expressed the view (Sir Charles Sargent, C.J.) that a new and distinct cause of action arises from the deed of sale itself, separate from the agreement. The Court treated Sir Charles Sargent's view as supportive: it adopted the proposition that possession claims based on the conveyance constitute a distinct cause of action and therefore are not barred by failure to claim possession in an earlier suit for specific performance.
Rangayya Goundan v. Nanjappa Rao Held that where a purchaser in the first suit relied on the agreement and proved facts that entitled him to specific performance but only claimed possession (and thereby omitted to seek execution), he could not later sue for execution of the conveyance as it would be the same cause of action. The Court distinguished that case from the present facts: in Rangayya Goundan the plaintiff had relied on the agreement and claimed possession under it (proof covering facts necessary for execution), whereas in the present case the present suit is based on a conveyance executed after the first suit and thus a distinct cause of action.
Venkoba v. Subbanna Cited in relation to the proposition that damages for being kept out of possession until the date of conveyance could be barred if not sued earlier. The Court mentioned the case to illustrate that claims for rights under the agreement prior to conveyance (such as damages for being out of possession before conveyance) might be barred by non-joinder, but stressed that the present plaintiff did not make such a claim.
Kalidhun Chuttapadhya v. Shiba Nath Chuttapadhya Cited (by Sir Charles Sargent, C.J., in argument) for the proposition that where a Court has declared a right by a declaratory decree, consequential relief may be obtainable in a subsequent suit if the declaratory decree is disobeyed. The Court noted the citation and observed that the principle (per Garth, C.J. in that case) goes further than necessary for the present decision, but acknowledged it was referred to in the course of arguments in the earlier case.
Ranjit Singh v. Kalidasi Debi Decided that the two prayers (specific performance and possession) can be joined in the first suit for convenience. The Court accepted that a purchaser ought to be permitted to claim both reliefs in a single suit for convenience, and referenced the authority in considering the question of costs; nonetheless the Court maintained the technical distinction regarding when the right to sue for possession on title arises.

Court's Reasoning and Analysis

The Court's analysis proceeded on two complementary lines: (1) statutory interpretation of the Transfer of Property Act together with the Registration Act, and (2) application and distinction of cited authorities to the facts.

On statutory interpretation, the Court focused on section 54 and section 55(1)(f) of the Transfer of Property Act and the Registration Act. The Court reasoned that:

  • Section 54 defines "sale" so that a sale (transfer of ownership) is not complete until there is a registered instrument.
  • Section 55(1)(f) binds the "seller" to give possession to the buyer when required, but the Court analyzed whether "seller" in clause (f) should have the same temporal meaning as in other clauses (for example clause (d)).
  • The Court concluded that it is reasonable to interpret earlier clauses of section 55(1) as referring to the interim period between agreement and completion, while clauses (f) and (g) should be taken to operate after the sale is completed as per section 54. Thus, in the absence of an express independent covenant in the agreement to transfer possession prior to registration, the purchaser has no right to possession until the conveyance is completed.

On precedent and cause-of-action analysis, the Court addressed the defendants' reliance on Narayana Kavirayan v. Kandasami Goundan, where it was held that the right to possession arose coincidently with the right to obtain the conveyance. The Court (Tyabji, J.) rejected the reasoning of Narayana Kavirayan to the extent that it treated both rights as arising simultaneously in general law and thereby treated the causes of action as identical. The Court emphasized that if two rights arise coincidently, neither is the cause or effect of the other; rather both must arise from some other cause (the agreement or general law), and the Court did not find that Narayana Kavirayan showed a special agreement creating possession independently.

The Court considered authorities that supported different outcomes in particular factual contexts. The Court accepted the reasoning in Nathu valad Pandu v. Budhu valad Bhika (as expressing that a new and distinct cause of action arises from the deed of sale) and distinguished Rangayya Goundan v. Nanjappa Rao (where the plaintiff in the first suit had proved facts sufficient for execution but had only sought possession under the agreement and thereby could not later seek execution). The Court found the present facts different: the present suit for possession is based on the conveyance executed after the earlier suit, and thus the cause of action for possession on the title did not exist when the earlier suit was instituted.

On costs, the Court acknowledged the technical point that both prayers could have been joined in the first suit (citing Ranjit Singh v. Kalidasi Debi) but rejected the defendants' attempt to avail themselves now of a technical objection to say the present proceedings were unnecessary after having opposed the purchaser through three Courts. The Court concluded that defendants should pay costs throughout.

Holding and Implications

Holding: The Second Appeal is dismissed and the Court holds that the suit for possession brought after execution of the conveyance is not barred by Order II, rule 2 of the Civil Procedure Code.

Consequences for the parties:

  • The plaintiff's suit for possession based on the executed sale-deed is permitted to proceed and was not barred by the prior suit for specific performance.
  • The defendants were ordered to pay costs throughout the proceedings.

Broader implications: The Court explained its interpretive approach to section 54 and section 55(1)(f) of the Transfer of Property Act and distinguished prior authorities on the question of when the cause of action for possession arises. The opinion does not expressly state that it establishes a novel legal rule beyond its application to the facts; its decision turns on the timing of the acquisition of the right to possession (post-conveyance) and on distinguishing cases where an independent covenant to give possession existed in the agreement.

    Krishnammal v. M. Soundararaja Aiyar

    Sankaran Nair, J.:— The question is whether the suit is barred by Order II, rule 2 of the Civil Procedure Code. The plaintiff obtained a decree in his favour for the execution of the deed of sale in accordance with an agreement to sell property to him. Having obtained the sale deed in execution of the decree he now sues for possession on the strength of the sale-deed. The defendant's contention is that having failed to claim possession also in the previous suit, the present suit is barred and they rely on Narayana Kavirayan v. Kandasami Goundan(1). It is true that it was open to the plaintiff to sue not only for the execution of a deed of sale but also for possession in the previous suit. But was he bound to do so? At the time he brought that suit the right to possession was not vested in him. He would acquire that right only on the execution of the deed of conveyance. Possession is not merely an incident or subsidiary to the sale-deed. In a suit for a specific performance the parties to the contract alone need be parties. In a suit for possession all persons in possession are proper parties. I am therefore of opinion that the suit is not barred.

    We dismiss the Second Appeal with costs.

    Tyabji, J.:— The plaintiff is the purchaser from the defendants Nos. 1 and 2 of the land referred to in the plaint. He sues for possession of the land on the strength of a conveyance executed in his favour by his vendors, the first and second defendants.

    The claim is resisted on the ground that the plaintiff had not included a prayer for possession in a previous suit which the plaintiff had instituted against his vendors, and in which he had merely claimed specific performance of the agreement to convey the land, without claiming possession. It is argued for the defendants that in that suit the plaintiff ought to have claimed possession also, and having failed to do so, he is debarred under Order II, rule 2, from now claiming possession.

    The plaintiff's reply to this contention is that the rule referred to can only apply if the cause of action in the earlier suit is the same as the cause of action in the later suit; and that in the present case the cause of action arises on the execution of the conveyance, whereas in the previous suit the cause of action arose on the agreement to execute the conveyance.

    In answer to this contention, the defendants rely upon Narayana Kavirayan v. Kandasami Goundan, where Shephard and Boddam, JJ., held that the right to possession arose co-incidently with the right to obtain the conveyance. With great respect, I am unable to follow their train of reasoning. If two rights arise co-incidently, neither can be the cause nor the effect of the other. They must both result independently from some other cause: that other cause for the present purposes can only be either the agreement or the general law. If it had been meant, that in accordance with the terms of the particular agreement, with which the learned Judges who decided Narayana Kavirayan v. Kandasami Goundan were dealing, the purchaser was entitled on the one hand to claim execution of the conveyance (i.e, transfer of the ownership of the property) and on the other hand to obtain possession, that the transfer, of ownership and of possession were agreed to be made independently of each other, and that the right to claim each happened (under the terms of the agreement) to arise at the same moment — then I could have understood that the claims arose co-incidently. It does not appear that the judges considered that any such special agreement existed in Narayana Kavirayan v. Kandasami Goundan. They proceeded on a proposition of general law that (apparently by operation of section 55 of the Transfer of Property Act) by every agreement to sell, “the right to possession arises co-incidently with the right to the execution of a conveyance.” But further they intended, it would appear, to hold, contrary to the opinion expressed by Sargent, C.J, in Nathu valad Pandu v. Budhu valad Bhika to which I shall refer later, that the causes of action on the agreement and the conveyance are the same. With these propositions I am unable to agree.

    It seems to me that the effect of section 55(1)(f) of the Transfer of Property Act, when read with section 54 of the same Act and with the Registration Act is that in the absence of any express agreement to transfer possession independently of the registered conveyance, the purchaser (or to be accurate, the person agreeing to purchase) has no right to the possession of the property until the conveyance is completed.

    For section 55, clause (1)(f) of the Transfer of Property Act binds the “seller” of the property on being so required, to give possession to the buyer: under section 54 there is no “sale” until there is a transfer of the ownership of the property, and there is no such transfer, until there is a registered instrument. It is true that some of the clauses in section 55(1) do not warrant its being said that there is no “seller” within the terms of that section until there is a complete “sale” as defined in section 54:— thus clause (d) speaks of the “seller” being bound to execute a proper conveyance to the “buyer,” so that a person who has agreed to sell, but who has not completed the sale by transfer of ownership is referred to by the term “seller”—in clause (d). If the expression “seller” were interpreted in the same sense in clause (f) as in clause (d), then, the person agreeing to purchase could immediately after the agreement demand possession. This would be going beyond what was held in Narayana Kavirayan v. Kandasami Goundan(2), and it is not suggested that should be the interpretation of the clause. There seems to me to be nothing unreasonable in interpreting the various clauses of section 55, sub-section (1) so that the earlier clauses are taken to refer to the period between the agreement for sale and its completion, and clauses (f) and (g) to the time after the sale has been completed within the terms of section 54. It is difficult to hold on the other hand that the legislature intended to give the right to possession to a person who has agreed to have its ownership transferred to him, merely by reason of such agreement before or irrespective of the transfer being made.

    It may indeed be, that an agreement to sell the property contains not only a covenant to transfer the ownership of the property by a registered instrument, but also an independent and so to say, incidental, covenant to permit the vendee to take possession of the property or to exercise other rights, which for brevity may, for the present, be referred to as obtaining possession.

    Two cases were cited to us in which such independent covenants to give possession to the purchaser were alleged.

    One of these cases Rangayya Goundan v. Nanjappa Rao, was relied upon by the appellant. There the purchaser in the first instance came into Court relying upon the agreement for sale and sued for possession under that agreement. For obtaining the relief claimed in his first suit, he had to prove the facts leading up to and including the execution of the agreement: when those facts were proved he became entitled to claim a decree for specific performance of the whole of the agreement, including the vendor's covenant to execute the conveyance; and yet after having proved the execution of the agreement—after having proved all that had to be proved for obtaining execution of the conveyance—he stopped short of claiming the latter relief, and prayed merely for one portion of his rights arising from the facts proved, viz., possession. In these circumstances it was held that he could not subsequently come into Court once more on the same cause of action (namely, proof of the execution of the agreement to convey), and ask for the execution of the conveyance, a relief which he could have asked in the previous suit, and for obtaining which he would have to prove over again the same set of facts that were proved is his earlier suit.

    In the present case the circumstances are quite different. The plaintiff does not now sue for any right under the agreement to convey. In the previous suit he prayed for specific performance of the agreement; both the lower Courts have held that in the agreement there was he covenant on which the plaintiff could have sued for possession. Assuming (as was argued before us) that the agreement gave the right of possession apart from the right to obtain a conveyance, still possession under the agreement could only be for the period prior to the conveyance, after which the purchaser's title would be completed, and he would then be entitled to possession not under the agreement, but on the basis of his title. The plaintiff's failure to ask for possession in the previous suit might therefore have been fatal to any claim he might have set up in the present case under the agreement. If for instance the plaintiff had alleged that he was entitled to possession under the agreement at some time previous to the conveyance, and had claimed in the present suit damages for being kept out of possession from that date, the answer might no doubt have been that the plaintiff's rights to such damages until the date of the conveyance were barred: Venkoba v. Subbanna. The plaintiff makes no such claim. His claim is on a distinct cause of action which had not arisen at the time when the first suit was instituted.

    What I have just stated seems to me to have been the view expressed by Sir Charles Sargent, C.J, in the second case to which I alluded above [Nathu valad Pandu v. Budhu valad Bhika], though the very concise terms in which that great Judge has expressed the views of the Court, have perhaps prevented his judgment from having been availed of to the same extent as an expression of his opinion would otherwise be. In that case the contract for sale seems to have provided that the purchaser may take possession prior to the conveyance. This, it is true, is not explicitly stated in the judgment, or in the report. But in the first suit instituted by the purchaser he alleged that possession had actually been delivered to him at some time prior to 18th July 1889 (3). At that time no conveyance had been executed. Sargent, C.J, also refers in his judgment to the claim of possession on the contract for sale (as distinguished from the sale-deed). I take it therefore that it was conceded in that case that the purchaser could have claimed possession under the agreement for sale, even before the sale-deed was executed. The argument of Mr. Apte (who represented the vendor in the High Court) was that the right to possession could not be asserted in the second suit, inasmuch as possession could by virtue of the agreement for sale have been claimed in the first suit. The purchaser's reply to this argument was two-fold: first that possession could not have been claimed in the first suit because the purchaser had alleged that possession had already been given to him. This argument was not accepted by the Court. They held that as a matter of fact the purchaser had not been put into possession prior to the first suit and that therefore he could have sued for possession, and that his failure to do so in the first suit debarred him in the second suit from claiming such possession as he could have sued for in the first. But the Court accepted the second argument for the purchaser: that though possession could have been claimed in the first suit on the agreement, still the purchaser was not debarred from praying for it in the second suit on the conveyance or the deed of sale: for a new and distinct cause of action arose from the deed of sale itself: Sir Charles Sargent, C.J, expressed this view quite definitely both during arguments and in his judgment. On the former occasion, be cited Kalidhun Chuttapadhya v. Shiba Nath Chuttapadhya, where Garth, C.J, in expressing the view of himself, and Pontifex, Morris and Mitter, JJ., said: “It would indeed seem almost a mockery to empower a Civil Court to declare a plaintiff entitled to relief, and then, when the defendant refuses him that relief and disregards the Court's order, to tell the plaintiff that he is wholly without remedy, and that the Court has no power to assist him.” Garth, C.J, said this in deciding that as the law empowers the Courts to pass a merely declaratory decree without consequential relief, where such a decree has been passed, and the defendant disobeys that decree, so as to prevent the plaintiff from having the consequential relief flowing from the declaratory decree, in such a case the plaintiff may obtain in a subsequent suit the consequential relief, the right to obtain which had been declared in the earlier suit. This is certainly going much further than is necessary for the present case.

    I am therefore clearly of opinion that the plaintiff's suit for possession on the basis of the conveyance to him was not barred by his previous suit to obtain execution of the conveyance, and that therefore the appeal should be dismissed.

    It is argued on behalf of the appellant, however, that the plaintiff should not have the costs of these proceedings on the ground that this suit was unnecessary, because the purchaser could have obtained in the previous suit the relief which he seeks in the present suit. That the two prayers can be joined in the first suit was decided in Ranjit Singh v. Kalidasi Debi*. I concede that a purchaser ought to be permitted for convenience to claim both reliefs at once in order to prevent disregard of his rights by a vendor as hold as the present appellant. Yet in strict form the right to sue for possession on his title does not arise until the conveyance has already been executed, and unless thereafter the vendor refuses to give possession: prior to execution of the conveyance, there being no right to obtain possession, the denial of a right that has not arisen cannot furnish a cause of action. I allude to these purely technical considerations merely for the purpose of deciding the question of costs. It would have been entirely in keeping with the vendor's conduct to have raised this technical objection if the purchaser had added a prayer for possession in his first suit. The vendor cannot be permitted after he has opposed his purchaser's just claim through three Courts to turn round and say that these proceedings are unnecessary. He cannot now contend what he might have contended if he had been ready and willing to give possession without any legal proceeding. I am therefore of opinion that the defendants should be made to pay the costs throughout.

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    Krishnammal v. M. Soundararaja Aiyar
    (Dec 23, 1913)