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Supreme Court of India

D.R. Rathna Murthy vs Ramappa on 8 October, 2010

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Supreme Court of India
D.R. Rathna Murthy vs Ramappa on 8 October, 2010
Author: . B Chauhan
Bench: P. Sathasivam, B.S. Chauhan
                                                                       REPORTABLE


        IN THE SUPREME COURT OF INDIA

          CIVIL APPELLATE JURISDICTION


          CIVIL APPEAL NO. 6396 OF 2002




D.R. Rathna Murthy                                               ...

Appellant





                                  Versus





Ramappa                                                     ...Respondent 




                           J U D G M E N T

Dr. B.S. CHAUHAN, J.

1. This appeal has been filed against the judgment and order dated

2nd April, 2002 passed by the High Court of Karnataka at

Bangalore in R.S.A No. 446 of 1996, reversing the judgment of

the First Appellate Court dated 10.3.1999, passed in RFA

No.133 of 1995; and restoring the judgment and decree of the

trial court dated 15.11.1995 in O.S. No. 122 of 1992. The trial

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court had dismissed the suit of the plaintiff/appellant

(hereinafter called the appellant) for specific performance.

2. Facts and circumstances giving rise to this appeal are that the

appellant, D.R. Rathna Murthy, had purchased the land in

question vide registered sale deed dated 23rd April, 1986 from

one A.M. Venkatachalapathy Setty for a consideration of Rs.

10,000/-. On the very next day, the appellant sold the said land

vide registered sale deed dated 24th April, 1986, to the

defendant/respondent (hereinafter called the respondent) for

consideration of Rs.10,000/- only and delivered the possession

to him. In pursuance of the said sale deed dated 24th April,

1986, the respondent is in possession of the suit land. The

appellant subsequently served a legal notice upon the

respondent in the year 1991-1992 demanding the reconveyance

of the suit property on the ground that registered sale deed

executed in favour of respondent dated 24th April, 1986 was a

conditional sale deed and appellant had a right to repurchase the

sale land for the same consideration of Rs.10,000/- within a

period of ten years from the date of execution of the sale deed.

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3. The respondent did not make any response to the said legal

notice, thus, the appellant filed Original Suit No. 122 of 1992

before the court of Munsiff and JMFC Court, Mulbagal,

seeking the relief of specific performance. The said Suit was

contested by the respondent contending that there was an

absolute sale deed in his favour and it was not a conditional sale

deed, the term of reconveyance had been fraudulently inserted

by the appellant after the execution of the document.

Manipulation had been done at several places in the said sale

deed after the execution and the appellant had put in the word

“Avadhi”, which means tenure, just to make the same a

conditional sale deed. The trial court considered the case of

both the parties and dismissed the Suit vide judgment and

decree dated 15th November, 1995.

4. Feeling aggrieved, the appellant approached the First Appellate

Court by filing RFA No.133/1995, and the appeal was allowed vide

judgment and decree dated 10th March, 1999. The First Appellate

Court held that it was a conditional sale deed, thus, the Court directed

the respondent to execute the sale deed in favour of the appellant. The

respondent approached the High Court by filing the Regular Second

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Appeal i.e. R.S.A. No. 446 of 1999 under Section 100 of Code of

Civil Procedure, 1908 (hereinafter referred to as `C.P.C.’) and the said

appeal has been allowed by the High Court vide judgment and order

dated 2nd April, 2002. Hence, this appeal.

5. Shri Naveen R. Nath, learned counsel appearing for the

appellant has submitted that the sale executed by the appellant in

favour of the respondent was a conditional sale deed and thus, he had

a right to repurchase the land any time within a period of ten years

from the date of the execution of the sale deed. The appellant

exercised his option within the period prescribed in the conditional

sale deed. The trial court has erred in dismissing the suit, however, the

First Appellate Court after proper appreciation of the entire evidence

on record came to the conclusion that it was a conditional sale deed

and not a case of absolute sale. The High Court ought not to have

reversed the said findings of fact as it is not permissible to appreciate

the evidence in second appeal, and no substantial question of law was

involved in the appeal. The High Court recorded a totally perverse

finding that it was a case of absolute sale. Hence, the appeal deserves

to be allowed.

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6. On the contrary, Shri Girish Anantha Murthy, learned counsel

appearing for the respondent, has vehemently opposed the appeal

contending that the sale deed in favour of respondent was an absolute

sale deed and it is not a conditional sale deed. The word “Avadhi” was

inserted in the margin of said deed at three places and a term of

reconveyance within a period of ten years was added in the same

after its execution and prior to registration. Such an insertion of said

word “Avadhi” at three places and the addition of the last clause

providing for reconveyance was without the consent and knowledge

of the respondent; therefore, he cannot be bound by the said terms. In

case of contradictions between the oral evidence of the witnesses of

both the sides, the First Appellate Court should not have re-

appreciated the entire evidence and thus, there was no occasion for the

First Appellate Court to reverse the findings of fact recorded by the

trial court. The judgment and order of the High Court does not

require any interference, the appeal lacks merit and, accordingly, is

liable to be dismissed.

7. We have considered the rival submissions made by learned

counsel for the parties and perused the record.

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Undoubtedly, the High Court can interfere with the findings of

fact even in the Second Appeal, provided the findings recorded by the

courts below are found to be perverse i.e. not being based on the

evidence or contrary to the evidence on record or reasoning is based

on surmises and misreading of the evidence on record or where the

core issue is not decided. There is no absolute bar on the re-

appreciation of evidence in those proceedings, however, such a course

is permissible in exceptional circumstances. (Vide Rajappa

Hanamantha Ranoji v. Mahadev Channabasappa & Ors., AIR SC

2000 2108; Hafazat Hussain v. Abdul Majeed & Ors., (2001) 7

SCC 189; and Bharatha Matha & Anr. v. R. Vijaya Renganathan

& Ors., JT 2010 (5) SC 534)

8. The sale deed dated 24th April, 1986, is a registered document.

The document is admitted by the other side. Most of the contents are

also admitted. However, it is disputed that the word “Avadhi” and

last clause have been inserted subsequent to execution of the

document. In such a fact-situation, the probative value of that part of

the document is required to be assessed. It becomes a case as if the

respondent had never intended to have conditional sale deed. He

never intended to enter into a contract to which certain part was not

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even known to him. The part of the contract as had been inserted after

his signature i.e., after execution of the document cannot be binding

upon him. If such averments are accepted, it becomes a clear cut case

of manipulation/fraud by the appellant. (Vide Dularia Devi v.

Janardan Singh & Ors., AIR 1990 SC 1173)

9. The appellant has examined himself and two other witnesses as

PW.1 to PW.3. The other persons had been the scribe and attesting

witnesses to the document. Copies of the said sale deed were

produced and marked as Ex. P-1 to P-4. The respondent examined

himself as DW-1. Two other witnesses including one attesting witness

were also examined by him in defence. The trial court framed four

issues :

1) Whether plaintiff proves that under sale deed dated

24.4.86 he has got right to purchase the suit

schedule property?

2) Whether plaintiff further proves that he is entitled

for the specific relief of specific performance of

contract?

3) Whether the defendant proves that suit is not

maintainable and not complied with the mandatory

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provisions required under Section 16(3) of the

Specific Relief Act?

4) To what relief the parties are entitled?

10. The trial court appreciated the evidence of the parties and their

witnesses and came to the conclusion that the word “Avadhi” and the

last part of the sale deed were inserted after the execution of the

document making it a conditional sale deed from absolute sale deed.

The trial court while reaching this conclusion relied upon the

deposition of Gopalakrishna (PW.2), the attesting witness of the sale

deed, wherein he had admitted in cross-examination that there was no

clause as to after how many years the suit land has to be repurchased

and the word “Avadhi” was written in the margin after completion of

the document. The last part i.e. Ex. D-2 was added after the execution

of the sale deed i.e. Ex. P-4, thus, it was evident that the appellant and

his scribe inserted the word “Avadhi” in Ex.P-4 and also inserted the

portion Ex.D-2 and it is so evident even to the naked eyes. In view of

the aforesaid findings, the suit was dismissed. The First Appellate

Court had unnecessarily laboured to find fault with the trial court’s

judgment and without realising that there was contradiction in the oral

testimony of two marginal witnesses, re-appreciated the entire

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evidence and reached the contrary conclusion. The High Court

realising that the findings of facts recorded by the First Appellate

Court were perverse, proceeded with appreciation of evidence and

came to the conclusion that the trial court was right in holding that the

word “Avadhi” had been inserted at three places in the margin and last

part of the sale deed Ex.D-2 in Ex.P-4 had been added subsequent to

the execution of the sale deed. The findings so recorded by the High

Court are based on a proper appreciation of evidence and the statutory

provisions applicable in the case. Admittedly, there had been

interlineations in the sale deed.

11. Section 20 of the Registration Act, 1908 reads as under:

“Documents containing interlineations, blanks,

erasures or alterations.-

(1) The registering officer may in his discretion

refuse to accept for registration any document in

which any interlineations, blank, erasure or

alteration appears, unless the persons executing the

document attest with their signatures or initials

such interlineations, blank, erasure or alteration.

(2) If the registering officer registers any such

document, he shall, at the time of registering the

same, make a note in the register of such

interlineations, blank, erasure or alteration.”

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It appears that vide Karnataka Act No. 41 of 1984, Clause 2 of

Section 20 has been deleted, w.e.f. 7th November, 1986, however,

corresponding provisions in Karnataka Registration Rules, 1965

(hereinafter called the Rules), providing for similar requirement have

not been amended. Rule 41 of the said Rules provided examination of

a document by the Registering Officer and made an obligation on his

part that if there are unattested interlineations, alterations, erasures or

blanks, which the Registering Officer considers should be attested, by

the signatures of the executant, he shall not alter the document himself

in any way.

12. Rule 42 of Rules reads as under:

“Manner of noting interlineations, etc.- Each

important interlineations, erasure or alteration

occurring in a document shall, whenever possible,

be caused to be noted or described at the foot of

the document and to be signed by the executant

before the document is accepted for registration….

Therefore, Rule 42 mandatorily requires that if there is any

interlineation, erasure, alteration etc., it must be mentioned and

described at the foot of the document and must be duly signed by the

executant before the document is accepted for registration.

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13. In the instant case, we have, ourselves examined certified copy

of the said sale deed, and found that the provisions of Rule 42 have

not been complied with. Nothing has been endorsed at the foot of the

sale deed, nor it bears signatures of the executant. The word

“Avadhi” has been inserted at three places in the margin of the sale

deed. It has not be attested by the executant. The part Ex. D-2 had

been inserted in Ex.P-4 in an unusual manner. The entire sale deed

has been scribed in double space while the part Ex.D-2 is in single

space. It was necessary to do so as the parties had already signed the

document. Had it been written in ordinary course, it could have gone

below the signatures of the parties in the sale deed. Therefore, it is

crystal clear that such insertion had been made to convert the absolute

sale deed into a conditional sale deed. Thus, we are of the view that

the trial court and the High Court have rightly believed the testimony

of the respondent that there was no mention of Ex.D-1 and D-2 in

Ex.P-4 and the appellant was not entitled for reconveyance of the suit

property. The manner in which interlineations have been made in the

document itself reveal that addition was made subsequent to the

execution of the document otherwise there was enough space to insert

such a clause in the same manner in which the entire sale had been

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scribed. This particular clause had to be squeezed in a small space

and to adjust the same before the signature already made by the

appellant. The First Appellate Court committed grave error in not

properly appreciating the evidence of D.R. Rathna Murthy (PW.1) and

Gopalakrishna (PW.2) in this regard, though the Court took note of

the admission made by Gopalakrishna (PW.2), the attestator, that no

time was fixed for reconveyance, thus, the term “Avadhi” was written

in `margin’ and also Ex.D-2 was written after Ex.P-4 has completely

been written.

14. D.R. Rathna Murthy (PW.1) had also admitted that he sold the

land to the respondent as he was in dire need of money to pay to his

Vendee. He had himself purchased the property only one day before

i.e. on 23rd April, 1986. We fail to understand if the appellant was not

having money, why did he purchase the property from his vendor on

23rd April, 1986 and in order to pay him the sale consideration sold it

to the respondent on the very next day i.e. on 24th April, 1986 for the

same amount. There is nothing on record to show as under what

circumstances the sale deed had been executed in favour of the

appellant by his vendor without receiving the sale consideration and

how could he be put in possession.

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15. The First Appellate Court failed to appreciate that there was no

shara (noting) in respect of interlineations in the sale deed. The

respondent had deposed as under:

“At that time there was no mention in respect of

conditional sale deed. In front of sub registrar

nothing was spoken about the conditional sale

deed. At the time of purchase the suit land was

fallen land. After purchase I formed the land and

improved its fertility. I spent about 10 to 15,000/-

for the improvement of the land. I grow ragi and

ground nut crops. I dig one Well in the suit land. I

spent Rs.20,000/- to dug the Well. Prior to filling

of this suit plaintiff did not approach me with a

request to execute sale deed in his favour. No

panchayat was held in respect of the suit lands.

Neither witnesses nor scribe intimated me about

the Avadhi transaction in respect of suit lands. At

the time of change of revenue records the plaintiff

did not file any objections contending that the sale

is conditional one. I came to know about the

Avadhi only after filing of this suit. I sent reply

notice to the plaintiff’s legal notice. After sale the

plaintiff is not related to suit land. I have not

agreed for re sale of suit land”.

Had it been a case of conditional sale, the appellant could have

asked the respondent to wait for mutation or raise the objection before

the Revenue Authorities in spite of the fact that mutation is a revenue

entry and does not refer to the title of the land. Had it been the case of

conditional sale deed enabling the appellant to repurchase the land any

time within ten years, the respondent could not have spent huge

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amount of his life savings for improving the land, nor would he have

dug a Well in the suit land spending twenty thousand of rupees. The

aforesaid circumstances make it clear that the respondent had never

agreed for reconveyance.

15. The interlineations had been made at four places in the sale

deed. Word “Avadhi” had been mentioned at three places in the

margin of the sale deed. The appellant did not attest the said word by

putting his signatures at the time of registration. Attestation

testifies/certifies the genuineness of the document. Attestation and

execution are different acts, one following the other. Execution

includes delivery and signing of the document in the presence of the

witnesses and also the whole series of acts or formalities which are

necessary to render the document valid. Attestation of sale deed is

imperative. In the instant case, we find that the animus to attestation

remain totally absent. It is settled legal proposition that the document

may be admissible but probative value of the entries contained therein

may still be required to be examined in the fact and circumstances of a

particular case. (Vide State of Bihar & Ors. v. Sri Radha Krishna

Singh & Ors., AIR 1983 SC 1984; and Bharatha Matha & Anr.

(Supra).

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16. The case is required to be examined from another angle also.

The appellant had purchased the land for a consideration of

Rs.10,000/-. On 23rd April, 1986, he sold the land on the very next

date for a sum of Rs.10,000/- reserving his right to purchase the land

for the same consideration within a period of ten years. In normal

circumstances, the vendor would not agree for reconveyance for the

same consideration for the reason that the value of the land generally

goes upwards and within a period of ten years it could have at least

become double. (See Sardar Jogender Singh v. State of U.P., (2008)

17 SCC 133; and Satish & Ors. v. State of U.P. & Ors., (2009) 14

SCC 758).

17. The aforesaid circumstances make it abundantly clear that the

appellant has made inter-lineations after the document stood executed.

The said additions were made without the consent and knowledge of

the respondent. In fact the mind of the respondent did not actuate with

his hand while putting his thumb impression on the said sale deed at

the time of registration. Thus, the additions so made by the appellant

cannot be binding on the respondent. The additions in question are

surrounded by the suspicious circumstances of a grave nature and,

therefore, the same are required to be ignored. The contract being

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severable, the terms of contract included by these additions being

void, cannot be taken note of.

In view of the above, we find no force in the appeal and it lacks

merit and, is accordingly, dismissed. There shall be no order as to

costs.

……………………….J.

(P. SATHASIVAM)

………………………J.

(Dr. B.S. CHAUHAN)

New Delhi,

October 8, 2010

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