{"id":228964,"date":"2007-02-02T00:00:00","date_gmt":"2007-02-01T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/hardev-singh-vs-gurmail-singh-dead-by-lrs-on-2-february-2007"},"modified":"2018-12-21T16:58:17","modified_gmt":"2018-12-21T11:28:17","slug":"hardev-singh-vs-gurmail-singh-dead-by-lrs-on-2-february-2007","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/hardev-singh-vs-gurmail-singh-dead-by-lrs-on-2-february-2007","title":{"rendered":"Hardev Singh vs Gurmail Singh (Dead) By Lrs on 2 February, 2007"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Hardev Singh vs Gurmail Singh (Dead) By Lrs on 2 February, 2007<\/div>\n<div class=\"doc_author\">Author: S Sinha<\/div>\n<div class=\"doc_bench\">Bench: S.B. Sinha, Markandey Katju<\/div>\n<pre>           CASE NO.:\nAppeal (civil)  6222 of 2000\n\nPETITIONER:\nHardev Singh\n\nRESPONDENT:\nGurmail Singh (Dead) by LRs\n\nDATE OF JUDGMENT: 02\/02\/2007\n\nBENCH:\nS.B. Sinha &amp; Markandey Katju\n\nJUDGMENT:\n<\/pre>\n<p>J U D G M E N T<\/p>\n<p>S.B. Sinha, J.\n<\/p>\n<p>\tThis appeal raises an interesting question of law in regard to<br \/>\ninterpretation of Section 43 of the Transfer of Property Act, 1882 (&#8220;the Act&#8221;,<br \/>\nfor short).\n<\/p>\n<p>\tHarcharan Singh, the original Defendant No.1, allegedly transferred<br \/>\nsome properties in favour of his wife Udham Kaur in lieu of maintenance<br \/>\npursuant to a compromise entered into by and between them.  She claimed<br \/>\nherself to be the absolute owner thereof in terms of Section 14(1) of the<br \/>\nHindu Succession Act. 1956.  She filed a suit against her husband Harcharan<br \/>\nSingh for a declaration that she was the owner in possession of the suit land.<br \/>\nThe learned Trial Judge was of the opinion that as she had been in<br \/>\npossession of the property in lieu of maintenance, she was &#8216;entitled to enjoy<br \/>\nthe fruits thereof only during her life time&#8217;.  An appeal was preferred<br \/>\nthereagainst and the Appellate Court declared her to be the full owner in<br \/>\npossession of the suit land.  Indisputably, during pendency of the said suit,<br \/>\nHarcharan Singh sold the said land to the respondent herein by a deed of sale<br \/>\ndated 17.3.1982 and he had been given possession thereof.  Another suit was<br \/>\nfiled by Udham Kaur.\n<\/p>\n<p>\tThe appellant, in the suit, inter alia, raised a plea that he was a<br \/>\nbonafide purchaser for value, whereas the case of Udham Kaur was that as<br \/>\nthe properties were purchased during pendency of the suit, the same was hit<br \/>\nby the &#8216;doctrine of lis pendens&#8217;, as envisaged under Section 52 of the Act.<br \/>\nThe said contention of the respondent was not accepted by the learned Trial<br \/>\nJudge as also by the First Appellate Court holding that the transaction was<br \/>\nhit by the doctrine of lis pendens.  In the Second Appeal, one additional<br \/>\nground was taken by him, viz., having regard to the death of Udham Kaur,<br \/>\nthe properties devolved upon the appellant herein as also on Harcharan<br \/>\nSingh in equal shares; and, thus, he should be declared to be the owner of the<br \/>\nlands in terms of Sections 41 and 43 of the Act.\n<\/p>\n<p>\tThe High Court, although, rejected the contention of the respondent<br \/>\nherein that Section 41 of the Act would be attracted, but opined that Section<br \/>\n43 would.  Appellant is, thus, before us.\n<\/p>\n<p>\tMr. A. Mariarputham, learned counsel appearing on behalf of the<br \/>\nappellant took us through the judgment of the High Court and contend that<br \/>\nas the bonafide of the respondent was not proved and furthermore in view of<br \/>\nthe fact that the High Court itself opined that he was not entitled to the<br \/>\nbenefit of Section 41 of the Act, the judgment of the High Court upholding<br \/>\nhis claim in terms of the Section 43 thereof cannot be sustained.\n<\/p>\n<p>\tMr. R.K. Kapoor, learned counsel appearing on behalf of the<br \/>\nrespondent, on the other hand, supported the judgment.\n<\/p>\n<p>\tAlthough, in this appeal we are not concerned with the applicability of<br \/>\nSection 41 of the Act, with a view to appreciate the rival contentions raised<br \/>\nby the parties we may notice the provision of both Sections 41 and 43 of the<br \/>\nAct, which are as under :\n<\/p>\n<p> &#8220;41.\tTransfer by ostensible owner. Where, with the<br \/>\nconsent, express or implied, of the persons interested in<br \/>\nimmoveable property, a person is the ostensible owner of<br \/>\nsuch property and transfers the same for consideration,<br \/>\nthe transfer shall not be voidable on the ground that the<br \/>\ntransferor was not authorised to make it: provided that<br \/>\nthe transferee, after taking reasonable care to ascertain<br \/>\nthat the transferor had power to make the transfer, has<br \/>\nacted in good faith.&#8221;\n<\/p>\n<p> &#8220;43.\tTransfer by unauthorized person who<br \/>\nsubsequently acquires interest in property<br \/>\ntransferred.  Where a person fraudulently or<br \/>\nerroneously represents that he is authorised to transfer<br \/>\ncertain immoveable property and professes to transfer<br \/>\nsuch property for consideration, such transfer shall, at the<br \/>\noption of the transferee, operate on any interest which the<br \/>\ntransferor may acquire in such property at any time<br \/>\nduring which the contract of transfer subsists.\n<\/p>\n<p>\tNothing in this section shall impair the right of<br \/>\ntransferees in good faith for consideration without notice<br \/>\nof the existence of the said option.&#8221;\n<\/p>\n<p>\tThe distinction between the said two provisions is apparent.\n<\/p>\n<p>\tApplication of Section 41 of the Act is based on the law of estoppel to<br \/>\nthe effect that if a man has represented that the transferor consents to an act<br \/>\nwhich has been done and that he would not offer any opposition thereto,<br \/>\nalthough the same could not have been lawfully done without his consent<br \/>\nand he thereby induces others to do that from which they might have<br \/>\nabstained  he could not question the legality of the act he had so sanctioned<br \/>\n to the prejudice of those who have so given faith to his words or to the fair<br \/>\ninference to be drawn from his conduct.\n<\/p>\n<p>\tThe ingredients of Section 41 of the Act are :\n<\/p>\n<p>1)\tthe transferor is the ostensible owner;\n<\/p>\n<p>2)\the is so by the consent, express or implied, of the real owner;\n<\/p>\n<p>3)\tthe transfer is for consideration;\n<\/p>\n<p>4)\tthe transferee has acted in good faith, taking reasonable care to<br \/>\nascertain that the transferor had power to transfer.\n<\/p>\n<p>\tSection 43, on the other hand, embodies a &#8216;rule of feeding the<br \/>\nestoppel&#8217; and enacts that a person who makes a representation shall not be<br \/>\nheard to allege the contrary as against a person who acts thereupon and it is<br \/>\nimmaterial whether the transferor acts bona fide or fraudulently in making<br \/>\nthe representation.  [<a href=\"\/doc\/1271790\/\">See Jumma Masjid, Mercara v. Kodimaniandra Deviah,<br \/>\nAIR<\/a> 1962 SC 847 : 1962 Supp.2 SCR 554.]<\/p>\n<p>\tIn order to get the benefit of the said provision, the conditions which<br \/>\nmust be satisfied are :\n<\/p>\n<p>(1)\tthe contract of transfer was made by a person who was<br \/>\ncompetent to contract; and<br \/>\n(2)\tthe contract would be subsisting at the time when a claim for<br \/>\nrecovery of the property is made.\n<\/p>\n<p>\tHowever, the provisions would have no application if the transfer was<br \/>\ninvalid as being forbidden by law or contrary to public policy, as envisaged<br \/>\nunder Section 23 of the Indian Contract Act.  Thus, no estoppel can be<br \/>\npleaded contrary to the provisions of a statute.  The &#8216;rule of feeding the<br \/>\nestoppel&#8217; shall apply in absence thereof.\n<\/p>\n<p>\tThe doctrine of feeding the estoppel envisages that &#8216;where a grantor<br \/>\nhas purported to grant an interest in land which he did not at the time<br \/>\npossess, but subsequently acquires, the benefit of his subsequent acquisition,<br \/>\ngoes automatically to the earlier grantee, or as it is usually expressed, feeds<br \/>\nthe estoppel&#8217;.\n<\/p>\n<p>\tThe principle is based on an equitable doctrine that a person who<br \/>\npromised to perform more than he can perform must make good his contract<br \/>\nwhen he acquires the power of performance.  The difference between the<br \/>\nambit of Section 41 and 43 of the Act is apparent.  Whereas Section 41<br \/>\nprovides that a transfer by an ostensible owner cannot be avoided on the<br \/>\nground that the transferor was not authorised therefor, subject to the<br \/>\ncondition that the transferee should take reasonable care to ascertain that the<br \/>\ntransferor had power to make the transfer and to act in good faith before a<br \/>\nbenefit thereof is claimed by him.  Section 43, on the other hand, enables the<br \/>\ntransferee to whom a transferor has made a fraudulent or erroneous<br \/>\nrepresentation to lay hold, at his option, of any interest which the transferor<br \/>\nmay subsequently acquire in the property, unless the right of any subsequent<br \/>\npurchaser for value without notice is in effect.\n<\/p>\n<p>\tWith the aforementioned proposition in mind, we may notice that the<br \/>\nHigh Court has declined to grant any relief to the respondent herein in terms<br \/>\nof Section 41 of the Act, inter alia, on the premise (1) that Harcharan<br \/>\nadmitted that he had sold the property to the respondent in order to frustrate<br \/>\nthe claim of Udham Kaur; (2) a public notice was not given; and (3) that the<br \/>\nrespondent knew regarding the pending litigation, and it was for the<br \/>\nrespondent to show that he had no knowledge about the litigation.\n<\/p>\n<p>\tIn applying the provisions of Section 43 of the Transfer of Property<br \/>\nAct, the High Court, however, held :\n<\/p>\n<p>i)\tIt was Harcharan Singh who had pleaded the mischief;\n<\/p>\n<p>ii)\tAfter the death of Udham Kaur, Harcharan Singh would be the<br \/>\nnatural heir of the half share of her property.\n<\/p>\n<p>\tThe learned Trial Judge and the First Appellate Court had decreed the<br \/>\nsuit of Udham Kaur only on the basis that she acquired the suit property<br \/>\nduring the pendency of the earlier litigation.  Section 52 of the Act merely<br \/>\nprohibits a transfer.  It does not state that the same would result in an<br \/>\nillegality.  Only the purchaser during the pendency of a suit would be bound<br \/>\nby the result of the litigation.  The transaction, therefore, was not rendered<br \/>\nvoid and\/or of no effect.\n<\/p>\n<p>\tIn Jumma Masjid, Mercara (supra), speaking for a four Judge, Bench,<br \/>\nAiyar, J. opined :\n<\/p>\n<p>&#8220;Considering the scope of the section on its terms, it<br \/>\nclearly applies whenever a person transfers property to<br \/>\nwhich he has no title on a representation that he has a<br \/>\npresent and transferable interest therein, and acting on<br \/>\nthat representation, the transferee takes a transfer for<br \/>\nconsideration.  When these conditions are satisfied, the<br \/>\nsection enacts that if the transferor subsequently acquires<br \/>\nthe property, the transferee becomes entitled to it, if the<br \/>\ntransfer has not meantime been thrown up or cancelled<br \/>\nand is subsisting&#8221;\n<\/p>\n<p>\tReferring to the illustration appended to Section 43 of the Act, it was<br \/>\nheld :\n<\/p>\n<p>&#8220;&#8230;But far from being restricted in its scope as contended<br \/>\nfor by the appellant, the section is, in our view, general in<br \/>\nits terms and of sufficient amplitude to take in the class<br \/>\nof transfers now in question.  It is not to be readily<br \/>\nassumed that an illustration to a section is repugnant to it<br \/>\nand rejected&#8221;\n<\/p>\n<p>\tIt was concluded :\n<\/p>\n<p>&#8220;&#8230;We accordingly hold that when a person transfers<br \/>\nproperty representing that he has a present interest<br \/>\ntherein, whereas he has, in fact, only a spes successionis,<br \/>\nthe transferee is entitled to the benefit of s.43, if he has<br \/>\ntaken the transfer on the faith of that representation and<br \/>\nfor consideration&#8221;\n<\/p>\n<p>\tIt is one thing to say that the respondent was aware of the litigation,<br \/>\nbut it is another thing to say that he did not purchase the property on<br \/>\nrepresentation of Harcharan Singh.  In fact, from the judgment of the courts<br \/>\nbelow, it does not appear that any finding has been arrived at to the effect<br \/>\nthat the respondent herein was aware that the said Harcharan Singh had no<br \/>\ntitle over the property.\n<\/p>\n<p>\tOur attention has, however, been drawn to a decision of this Court in<br \/>\nKartar Singh (Dead) by LRs. &amp; Ors. v. Harbans Kaur [(1994) 4 SCC 730],<br \/>\nwherein this Court held :\n<\/p>\n<p>\t&#8220;Section 43 feeds its estoppel.  The rule of<br \/>\nestoppel by deed by the transferor would apply only<br \/>\nwhen the transferee has been misled.  The transferee<br \/>\nmust know or put on notice that the transferor does not<br \/>\npossess the title which he represents that he has.  When<br \/>\nnote in the sale deed had put the appellant on notice of<br \/>\nlimited right of the mother as guardian, as a reasonable<br \/>\nprudent man the appellant is expected to enquire whether<br \/>\non her own the mother as guardian of minor son is<br \/>\ncompetent to alienate the estate of the minor.  When such<br \/>\nacts were not done the first limb of Section 43 is not<br \/>\nsatisfied.  It is obvious that it may be an erroneous<br \/>\nrepresentation and may not be fraudulent one made by<br \/>\nthe mother that she is entitled to alienate the estate of the<br \/>\nminor.  For the purpose of Section 43 it is not strong<br \/>\nmaterial for consideration.  But on declaration that the<br \/>\nsale is void, in the eye of law the contract is non est to the<br \/>\nextent of the share of the minor from its inception.  The<br \/>\nsecond limb of Section 43 is that the contract must be a<br \/>\nsubsisting one at the time of the claim.  A void contract is<br \/>\nno contract in the eye of law and was never in existence<br \/>\nso the second limb of Section 43 is not satisfied.&#8221;\n<\/p>\n<p>\tThe said finding was arrived at, inter alia, on the premise that<br \/>\nKulwant Singh was a minor on the date on which the property was<br \/>\ntransferred and in the marginal note of the sale deed specifically mentioned :\n<\/p>\n<p>&#8220;&#8230;that the land had been acquired by her and by her<br \/>\nminor son by exercising the right of pre-emption and that<br \/>\nshe was executing the sale deed in respect of her own<br \/>\nshare and acting as guardian of her minor son so far as<br \/>\nhis share was concerned.&#8221;\n<\/p>\n<p>\tIt was held that under the Guardian and Wards Act, the estate of the<br \/>\nminor could not have been alienated unless a specific permission in that<br \/>\nbehalf is obtained from the district court and admittedly, no such permission<br \/>\nhad been obtained.  In that view of the matter, the sale of the half share of<br \/>\nthe interest of the minor son made by his mother was void.\n<\/p>\n<p>\tWe have noticed hereinbefore that the transaction was not void.  It<br \/>\nwas not contrary to any provision of law.  It was not hit by Section 23 of the<br \/>\nIndian Contract Act.  We, therefore, do not accept the submission of the<br \/>\nlearned counsel that the ingredients of Section 41 would also be applicable<br \/>\nin a case falling under Section 43 of the Act.  We may notice that in Jote<br \/>\nSingh (dead) by <a href=\"\/doc\/1470804\/\">LRs. v. Ram Das Mahto &amp; Ors.<\/a> [AIR 1996 SC 2773], it was<br \/>\nheld that the provisions of Sections 41 and 43 would not be available where<br \/>\nthe properties have been sold in auction.\n<\/p>\n<p>\tIn N. Srinivasa Rao v. Special Court under the A.P. Land Grabbing<br \/>\n(Prohibition) Act &amp; Ors. [(2006) 4 SCC 214], to which our attention has<br \/>\nbeen drawn by learned counsel appearing on behalf of the appellant, it was<br \/>\nheld that the transfer must be a valid one.  Therein, the property in question<br \/>\nwas transferred in violation of the provisions of Section 47 of the Andhra<br \/>\nPradesh (Telangana Area) Tenancy and Agricultural Lands Act, 1950.  It<br \/>\nwas, in the factual matrix obtaining therein, opined :\n<\/p>\n<p>\t&#8220;Even on the question of the applicability of<br \/>\nSection 43 of the Transfer of Property Act, we agree with<br \/>\nthe view taken by the High Court that when the initial<br \/>\ntransfer itself between Uppari Ramaiah and Mir Riyasat<br \/>\nAli was invalid, the question of application of Section 43<br \/>\nof the Transfer of Property Act to such a transaction on<br \/>\naccount of subsequent acquisition of title by Uppari<br \/>\nRamaiah would not be available.&#8221;\n<\/p>\n<p>\tThe said decision, therefore, has no application to the facts of the<br \/>\npresent case.\n<\/p>\n<p>\tThere is another aspect of the matter which cannot be lost sight of.<br \/>\nAppellant claimed absolute interest in the property on the premise that his<br \/>\nmother has executed a Will in his favour on 3.10.1995.  The said Will has<br \/>\nnot been proved.  If the title claimed is on the basis of the Will, the same was<br \/>\nrequired to be proved in the light of the provisions contained in Section 63<br \/>\nof the Indian Succession Act and Section 68 of the Indian Evidence Act.  If<br \/>\nthe Will has not been proved, in the absence of such proof the general law of<br \/>\nsuccession and inheritance shall apply.\n<\/p>\n<p>\tThe plea of inapplicability of Section 43 of the Transfer of Property<br \/>\nAct could have been taken by Harcharan Singh and not by the appellant,<br \/>\nwho has based his claim on the basis of the Will.\n<\/p>\n<p>\tThe principle of feeding the estoppel will apply against Harcharan<br \/>\nSingh and not against the appellant.  He could not have, in our opinion,<br \/>\ntherefore, raised the said plea.\n<\/p>\n<p>\tFor the reasons aforementioned, we do not find any merit in this<br \/>\nappeal, which is accordingly dismissed with costs.  Counsel&#8217;s fee is assessed<br \/>\nat Rs.5,000\/-.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Hardev Singh vs Gurmail Singh (Dead) By Lrs on 2 February, 2007 Author: S Sinha Bench: S.B. Sinha, Markandey Katju CASE NO.: Appeal (civil) 6222 of 2000 PETITIONER: Hardev Singh RESPONDENT: Gurmail Singh (Dead) by LRs DATE OF JUDGMENT: 02\/02\/2007 BENCH: S.B. Sinha &amp; Markandey Katju JUDGMENT: J U D G [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-228964","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Hardev Singh vs Gurmail Singh (Dead) By Lrs on 2 February, 2007 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/hardev-singh-vs-gurmail-singh-dead-by-lrs-on-2-february-2007\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Hardev Singh vs Gurmail Singh (Dead) By Lrs on 2 February, 2007 - Free Judgements of Supreme Court &amp; 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