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Structured Summary of the Opinion (Second Appeal arising from a suit for injunction)

Factual and Procedural Background

The plaintiffs entered into an agreement of sale dated 2-1-1973 (Ex. A1) with the then owner, Malangusa Rowther, for purchase of the suit properties for Rs. 9,675, of which Rs. 100 was paid. The plaintiff was allegedly put into possession under the agreement. Malangusa Rowther died shortly thereafter; his legal representatives became defendants 1 to 9. The 10th defendant was the son-in-law of the deceased owner; the 11th defendant was a subsequent purchaser of one item of the properties; the 12th defendant was described as a cultivating tenant and the 13th defendant was his brother.

When defendants sought to interfere with the plaintiff’s possession, the plaintiff filed the present suit seeking an injunction restraining interference with his possession. Defendants admitted the agreement’s truth but contended that the plaintiff was never put in possession under the agreement (that possession was with the 12th defendant, who paid rent to the 10th defendant) and that the plaintiff was not ready and willing to perform his part of the contract.

The trial court and the appellate court both found the facts in favour of the plaintiff, holding that the plaintiff had been put in possession under the agreement and was ready and willing to perform, and both courts granted an injunction against the defendants. The defendants (appellants) brought the present second appeal.

Legal Issues Presented

  1. Whether, assuming the transferee-plaintiff was put in possession under an agreement of sale and had satisfied the conditions of S. 53-A of the Transfer of Property Act, the plaintiff is entitled to maintain a suit for injunction (i.e., whether a transferee can invoke the protection of S. 53-A by suing as plaintiff to protect possession), or whether the rights under S. 53-A can be used only by a defendant as a shield and not by a plaintiff as a sword.
  2. Whether the findings of fact by the courts below (that the plaintiff was in possession under the agreement and was ready and willing to perform) are vitiated by a failure of the courts below to consider relevant evidence, and thus whether those factual findings are open to disturbance in this second appeal.

Arguments of the Parties

Appellants' Arguments (as recorded)

  • Even if the plaintiff was in possession under the agreement and was ready and willing to perform, the plaintiff could only claim the benefits of S. 53-A of the Transfer of Property Act as a defendant; the right under S. 53-A is available only to a defendant to protect possession and is usable only as a shield and not as a sword.
  • The appellants relied on the observations of the Privy Council and the Supreme Court (in Probodh Kumar Das v. Dantmara Tea Co. and Delhi Motor Co. v. V.A. Basrurkar) and on a Division Bench decision of this Court in Krishnamurthi Rounder v. Paramasiva Kounder to support the proposition that a person in possession under an agreement of sale is not entitled to file a suit for injunction but can only use S. 53-A defensively.
  • On the facts, the learned counsel for appellants also argued that the findings of the courts below were vitiated by failure to consider relevant evidence, and thus those findings were not binding in this second appeal.

Respondent/Plaintiff's Position (as recorded)

  • The plaintiff asserted he was put into possession under the agreement and that he was ready and willing to perform his obligations under the contract; on those factual findings both courts below granted an injunction protecting his possession.
  • Implicitly, the plaintiff's position (accepted by the courts below and by this Court) was that he could seek injunctive relief in his capacity as plaintiff to protect possession obtained under the agreement and the protections envisaged by S. 53-A.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Probodh Kumar Das v. Dantmara Tea Co., Ltd. (Privy Council) That the right under S. 53-A is available only to a defendant to protect possession; the right can be used only as a shield and not as a sword. The court noted this authority was relied upon by appellants but distinguished its applicability: the court observed that the Privy Council's statement that a transferee cannot have a right of action was to be interpreted as not conferring an active title but did not preclude a transferee from coming to court to protect possession when faced with unlawful dispossession.
Delhi Motor Co. v. V.A. Basrurkar (Supreme Court) Similar proposition relied upon that S. 53-A confers no right of action (left open whether a person suing as plaintiff could still be regarded as defending rights conferred by an unregistered deed). The court observed that the Supreme Court had specifically left open the question whether a plaintiff may be regarded as defending rights under S. 53-A; the present Court relied on that openness to support allowing a transferee to sue to protect possession.
Krishnamurthi Rounder v. Paramasiva Kounder (Division Bench) Observed that a person in possession under an agreement of sale is not entitled to file a suit for injunction and that the right under S. 53-A can only be used as a shield (observations made at interlocutory stage). The present Court treated the observations in that decision as obiter (made at interlocutory stage) and thus not binding in the circumstances of a final disposal; therefore the court did not follow those observations as determinative.
Munusami v. Erusa Gounder (Division Bench — earlier decision) Held (in a final disposal case) that S. 53-A confers rights that permit the transferee to seek protection of possession by injunction even when suing as plaintiff (i.e., a transferee can invoke S. 53-A to protect possession in a suit by the transferee). The court considered this earlier Division Bench decision as authoritative and followed its reasoning, noting it was rendered earlier than the Krishnamurthi Bench decision and that the later Bench had not adverted to the earlier ruling.
Achayya v. Venkatasubba Rao (Division, Andhra Pradesh High Court) Representative of a body of judicial opinion that S. 53-A confers on the transferee the right to have the transferor debarred from enforcing any right in respect of the property of which the transferee has taken or continued in possession; such right can be enforced as a shield, including by obtaining an injunction to protect possession. The court quoted and relied upon this exposition to show S. 53-A confers an enforceable right to protect possession (by injunction) and to support the conclusion that a transferee can seek protection of possession in a suit.
Mahatingam v. Ayyathurai (Ramanujam, J.) Explained that though S. 53-A confers no active title, it gives a right to protect possession and that a transferee can resist enforcement by the transferor "whether he is a plaintiff or a defendant"; emphasised examining the rights claimed in the suit (enforcement of contract vs protection of possession). The court relied on this reasoning to support the proposition that S. 53-A may be invoked by a transferee suing to defend possession and that whether invoked by plaintiff or defendant is not the determinative factor.
Mahalingam v. Ayyathurai (appears as citation in the text) Referred to in the opinion as an authority discussing whether S. 53-A confers a right of action. The opinion references this decision (and related discussion) in support of permitting a transferee to seek protection of possession in a suit when S. 53-A conditions are satisfied.
Rama Subbarayalu Reddiyar v. Rangammal (Full Bench) Full Bench rule that when subordinate courts find a direct conflict between two High Court decisions of equal strength, the subordinate court may follow the decision which it considers more correct after careful examination (whether earlier or later). The court applied this principle to note that the District Judge had considered both Division Bench pronunciations and reasonably followed the earlier Division Bench (Munusami) as being more correct; the present Court found no fault with that approach.
Rama Subbarayalu Reddiar v. Rengimmal (variation in spelling as appears in the text) Same Full Bench principle (as quoted elsewhere in the opinion). Referenced in the context of how subordinate courts should resolve conflicting High Court Bench decisions; used to justify the District Judge's choice of precedent.

Court's Reasoning and Analysis

The court's analysis proceeded in stages and constrained itself to the material and authorities placed before it:

  1. On the factual challenge: The court reviewed the record and concluded that the findings of the courts below (that the plaintiff was put into possession under the agreement and was ready and willing to perform) were unassailable. The court therefore rejected the appellants' contention that the factual findings were vitiated by a failure to consider relevant evidence. Accordingly, the factual basis for the injunction remained intact.
  2. On the legal question whether a transferee-plaintiff can maintain a suit for injunction invoking S. 53-A: The court examined the authorities relied upon by the appellants (Privy Council, Supreme Court and a Division Bench of this Court) and the contrary line of authority, including an earlier Division Bench decision and other High Court decisions.
    • The court noted that some observations relied upon by appellants (for example in Krishnamurthi Rounder v. Paramasiva Kounder) were made in an interlocutory context and were therefore obiter. The later Division Bench did not advert to an earlier Division Bench decision on the point.
    • The court gave weight to the earlier Division Bench decision (Munusami v. Erusa Gounder) and to other decisions (including Achayya v. Venkatasubba Rao and Mahatingam/Mahalingam v. Ayyathurai) which treated S. 53-A as conferring on the transferee a right to have the transferor debarred from enforcing rights against the transferee in respect of the property of which the transferee has taken or continued in possession, and that this right can be enforced by obtaining an injunction to protect possession.
    • The court reasoned from the language of S. 53-A itself: the provision debars the transferor (or persons claiming under him) from enforcing against the transferee any right in respect of the property of which the transferee has taken or continued in possession. The court interpreted this to mean the transferor is prevented from enforcing rights either through the court or by unlawful extra-judicial means; it would be anomalous to allow a transferor to dispossess a transferee by high-handed means while denying the transferee the recourse to court to protect possession.
    • Consequently, the court concluded that when a transferee comes to court seeking protection of possession, even though he is technically the plaintiff, he is in substance invoking a defensive right conferred by S. 53-A (i.e., using the right as a shield). That use by a plaintiff does not convert it into a prohibited "sword" and is permissible where the transferee seeks to defend possession against unlawful interference.
  3. On precedential choice: The court applied the Full Bench principle that where two Division Bench decisions of the High Court conflict, a subordinate court may follow the decision it considers more correct. The District Judge had considered both Division Bench decisions and followed the earlier decision Munusami v. Erusa Gounder; the present Court found no fault with that approach and was itself bound by or persuaded by the earlier Division Bench authority and related High Court and judicial opinions.

Holding and Implications

Holding: The court dismissed the second appeal. The central legal holding as reflected in the opinion is that a transferee who satisfies the conditions of S. 53-A of the Transfer of Property Act and who seeks to protect possession against unlawful interference may legitimately approach the court as a plaintiff to obtain injunctive relief; such relief constitutes the enforcement of a protective right (a shield) and is not an impermissible use of S. 53-A as a sword.

DISPOSITION: The second appeal is dismissed.

Immediate consequences: The finding means the injunction granted by the courts below stands (the lower courts' relief in favour of the plaintiff is not disturbed). The court ordered that there would be no order as to costs, noting that the appellants were justified in filing the second appeal because of conflicting pronouncements by two Division Benches of the High Court.

Broader implications: The opinion adopts and applies the view (as reflected in earlier Division Bench and High Court decisions quoted and relied upon) that S. 53-A can be invoked to protect a transferee’s possession even when the transferee sues as plaintiff to obtain injunctive relief; the court treated contrary observations from an interlocutory Division Bench ruling as obiter and preferred the earlier controlling view. The opinion does not, on its face, purport to lay down a novel precedent beyond the determination made in this appeal; it resolves the dispute in accordance with earlier Division Bench and Full Bench principles discussed in the judgment.

    Mohamed Ali & Others v. K.G Nagaraja Mannair & Others

    1. An interesting question of law is raised by learned counsel for the appellants in this second appeal, which arises out of a suit for bare injunction.

    2. Necessary facts are: The plaintiffs entered into an agreement for purchase of the suit properties with the owner thereof by name Malangusa Rowther on 2-1-1973 under Ex. A1. The consideration was fixed at Rs. 9675. Out of it a sum of Rs. 100 was paid by the plaintiff. Under the agreement, the plaintiff was put in possession of the suit property, Melangusa Rowther died soon after the agreement and his legal representatives are defendants 1 to 9. The 10th defendant is the son-in-law of Malangusa Rowther. The 11th defendant is the subsequent purchaser of item 2 of the suit properties and the 12th defendant is said to be a cultivating tenant. The 13th defendant is the brother of the 12th defendant. When the defendants sought to interfere with the possession of the plaintiff he came forward with the present suit for an injunction restraining the defendants from interfering with his possession. Though the defendants admitted the truth of the agreement, their contention was that the plaintiff was not put in possession under the agreement and that possession was always with the 12th defendant, the cultivating tenant, who was paying rent to the 10th defendant, the son-in-law of the family. It was also the contention of the defendants that the plaintiff was not ready and willing to perform his part of the contract.

    3. Both the courts below have found against the defendants on the facts and held that the plaintiff got possession under the agreement and that ht was ready and willing to perform his part of the contract. Consequently, the courts below granted an injunction against the defendants.

    4. In this second appeal, it is vehemently contended by the learned counsel for the appellants that the findings of the courts below on the facts are vitiated by failure of the courts below to consider the relevant evidence on record and that such findings are not binding on this court even though it is a second appeal. I am convinced on a perusal of the records that the conclusions arrived at by the courts below on the facts is unassailable.

    5. The question of law, as raised by learned counsel for the appellants, is that the plaintiff is not entitled to maintain the suit for injunction. His contention is that the plaintiff, even assuming that he was put in possession under the agreement and that he was ready and willing to perform his part of the contract, would only be entitled to the benefits of S. 53-A of the Transfer of Property Act, which he could utilise only as a defendant. He relied upon the observations of the Privy Counsil as well as the Supreme Court in Probodh Kumar Das v. Dantmara Tea Co., Ltd. 1, and Delhi Motor Co. v. V.A. Basrurkar 2, respectively. It is laid down in those cases that the right under S. 53-A of the Transfer of Property Act, is available only to the defendants to protect his possession. It has also been observed that the right conferred under this section could be used only as a shield and not as a sword. Learned counsel also relied upon an observation of a Division Bench of this Court in Krishnamurthi Rounder v. Paramasiva Kounder 3. The Division Bench has taken the view that a person in possession under an agreement of sale is not entitled to file a suit for injunction as his right is only to defend any suit that could be filed against him by the transferor for enforcement of his rights. The ratio is that an agreement of sale does not create any interest in the property, which is the subject matter of the agreement and that all that the transferee could claim under S. 53 of the Transfer of Property Act is only an equity conferred on him by S. 53-A of the Transfer of Property Act.

    6. I am unable to agree with the contention put forward by learned counsel for the appellants, for the following reasons. The observations relied on by him, which are made by the Division Bench in Krishnamurthi Kounder v. Paramasiva Rounder 3, were made in a case which came to this Court at an interlocutory stage of a suit. In a suit for specific performance, the plaintiff prayed for an interim injunction, during the pendency of the suit, restraining the defendants from interfering with his possession. The trial court granted injunction and that order was challenged in appeal before this Court. On the facts of the case, the Division Bench found that it was not proved prima facie that the plaintiff was put in possession under the agreement. It was also found that the genuineness of the agreement was itself questioned by the defendants and in the face of such a challenge and in the absence of prima facie evidence to prove the possession of the plaintiff under the agreement, the court held that the trial court was in error in granting injunction till the disposal of the suit. 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 S. 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 provisions of the section as a sword and not as a shield.

    7. Apart from the fact that the observations made by the Division Bench were only obiter, I am bound by the decision of another Division Bench of this Court, which had occassion to deal with the matter in a case of final disposal. It has to be noted that the decision of the said Division Bench was rendered much earlier to the Division Bench decision in Krishnamurthi Kounder v. Paramasiva Kounder 1. In fact, the attention of the later Bench was not drawn to the rulling of the earlier Division Bench, which was given in Munusami v. Erusa Gounder 2. After refer ring to the decision of a Division of Andhra Pradesh High Court in Achayya v. Venkatasubba Rao 3, the Bench observed as follows—

    "As pointed out in Achayya v. Venkatasubba Rao3, which is representative of a large volume of judicial opinion, S. 53-A of the Transfer of Property Act does confer some right on the transferee, if the conditions of that section are fully satisfied and what is that right is also clear from the provisions of S. 53-A. The right is to have the transferor or any person claiming under him debarred from enforcing against the transferee and persons claiming under him any right in respect of the property of which the transferee has taken or continued in posse ssion. This right can be enforced by the transferee always as a shield and not as an independent claim either in the capacity of plaintiff or defendants, that is to say, he cannot ask for title basing his claim on the fact that he has fulfilled the conditions of S. 53-A. But he can, as a shield, ask for protection of the right envisaged by S. 53-A, by debarring, in other words, by getting an injunction against the transferor and those claiming under him from interfering with his possession."

    8. The same view was taken by Ramanujam, J., in Mahatingam v. Ayyathurai 4. In that case, the learned Judge had elaborately discussed the matter and had also referred to the decisions of the Privy Council and the Supreme Court relied on by learned counsel for the appellants before me. After referring to the earlier decisions, the learned Judge observed in these terms:—

    "Though S. 53-A confers no active title on the transferee, it gives him a right to protect his possession. Though the transferee is the plaintiff in this, case, he is a person who is trying to defend his possession upon the doctrine of part performance against the invasion thereof by the transferor and his representative. Under S. 53-A, a transferee can resist any attempt on the part of the transferor to enforce his right in respect of the property whether he is a plaintiff or a defendant."

    Again, the learned Judge observed—

    "Hence, the correct view seems to be not to consider whether S. 53-A is invoked by the plaintiff or the defendant, but to see as to what are the rights claimed b> the plaintiff in the suit, if the right is claimed to enforce the contract or to assert the right to protect or sustain the possession, which the transferee got by way of part performance."

    It was also pointed out by the learned Judge that to say that the rights under S. 53-A cannot be availed of by a plaintiff is to take away the benefit of the section to a large number of cases where the transferee may not be able to sustain his possession against his transferor. While concluding his judgment, the learned Judge stated thus—

    "I am inclined to interpret the observations of their Lordships of the Privy Council when they said that S. 53-A conferred no right of action on a transferee in possession as meaning that he cannot have a right of action to enforce his title to the properties in his possession or to seek recovery of possession. The Supreme Court in Delhi Motor v. Basurkar 1, has specifically left open the question whether a person, who sues as a plaintiff may still be regarded as defending the rights sought to be conferred upon him by an unregistered deed. It is true that a suit to enforce the rights on the basis of the agreement of sale by resort to S. 53-A of the Transfer of Property Act, cannot be maintained unless the transferee files a suit for specific performance of the contract of sale. But where he files a suit in defence of his rights under the agreement on the b asis of S. 53-A and seeks to protect his possession, there cannot, in my opinion, be any objection."

    9. It is to be noted that Ramanujam, J. was party to the Division Bench which decid ed in Krishnamurthi Rounder v. Paramasiva Kounder 1. Obviously, his attention was not drawn to the earlier decision reported in Mahalingam v. Ayyathurai 2.

    10. It has been laid down by a Full Bench of this Court in Rama Subbarayalu Reddiyar v. Rangammal 3, that the normal rule to be followed by subordinate courts is that, where there is a conflict between two decisions both pronounced by a Bench of the High Court consisting of the same number of Judges, and the Subordinate Courts after a careful examination of the decisions comes to the conclusion that both of them directly apply to the case before it, it will then be at liberty to follow that decision which seems to it more correct, whether such decision be the later or the earlier one. In this case, the learned District Judge, West Thanjavur, has referred to the decisions of both the Division Benches and also the decision of the Full Bench in Rama Subbarayalu Reddiar v. Rengimmal 3, and came to the conclusion that the decision of the earlier Division Bench rendered in Munusami v. Erusa Gounder 4, is more correct. I cannot find fault with the reasoning of the learned District Judge.

    11. Apart from the authorities referred to above, I am of the opinion that even on a reading of S. 53-A of the Transfer of Property Act, the plaintiff in this case cannot be nonsuited. The relevant portion of S. 53-A is to the effect that notwithstanding that the contract, though required to be registered, has not been registered, or where there is an instrument of transfer, that the transfer has not been completed, in the manner prescribed there for by the law for the time being in force, the transferor or any person claiming under him shall be debarred from enforcing against the transferee and persons claiming under him any right in respect of the property of which the transferee has taken or continued in possession. It is not necessary to refer to the other portions of the section. This part of the section makes it clear that the transferor is debarred from enforcing his rights against the transferee. This in my opinion, will not only prevent the transferor from enforcing his rights through a court of law, but also from enforcing his rights outside the court adopting means which cannot be upheld by a court of law. Otherwise, if the interpretation suggested by learned counsel for the appellants were to be accepted it would only mean that when a person cannot obtain by instituting proceedings in a court of law, he can obtain the same by high-handed means outside the Court. If the transferor seeks to dispossess the transferee high-handedly without approaching the court of law, then to say that the transferee cannot seek the aid of the court as a plaintiff would only mean that the transferor can disregard the law as well as the machinery for enforcing the law. It will be a lamentable state of affairs to hold that a transferee, who obtained possession lawfully under an agreement and who satisfies the condition prescribed by S. 53A of the Transfer of Property Act will not be in a position to protect such possession, where the said possession is sought to be interfered with by unlawful means. I am, therefore, of the opinion that, when the transferee comes to court seeking the aid of the court to protect his possession, it is only a case of using the right conferred on him by S. 53-A of the Transfer of Property Act, whether it is an equity or a right, as a shield and not as a sword. It is only a right of defence that is put forward by him in the garb of a plaintiff J That cannot be considered to be a case, which is prohibited by S. 53-A of the Transfer of Property Act, or by the interpretation of S. 53-A, given by the Privy Council of the Supreme Court, when they observed that the transferee under S. 53-A can only use the right as a shield and not as a sword.

    12 . In the result, the contentions urged by learned counsel for the appellants cannot be accepted and the second appeal has to fail. Accordingly, the second appeal is dismissed, but there will be no order as to costs, as the appellants were justified in filing the second appeal in view of the conflicting pronouncements of two Division Benches of this Court.

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    Mohamed Ali & Others v. K.G Nagaraja Mannair & Others
    (Nov 20, 1987)