SARGUNAM (D) BY LR. versus CHIDAMBARAM AND ANR.

SARGUNAM (D) BY LR. versus CHIDAMBARAM AND ANR.

Defendant no.2 was not a bona fide purchaser for value without notice; evidence established notice of plaintiff's agreement, and conveyance was a sham, nominal sale intended to defeat plaintiff's claim. High Court findings that defendant no.2 had notice and that the agreement dated 15.4.1978 was concocted are correct and warrant no interference. Section 20(2)(b) does not apply as defendant no.2 could foresee hardship and had notice when entering conveyance.

Parties
Appellant / Defendant No.2: Sargunam (D) by LR.; Respondent No.1 / Plaintiff: Chidambaram; Respondents: Chidambaram and Anr.
Jurisdiction
India
Judgment Date
07 October 2004
Procedural Posture
Civil Appeal / Supreme Court Appeal Against Karnataka High Court Judgment in R.f.a. No. 464 of 1992
Outcome
Appeal dismissed
Legal Topics
Specific Performance, Bona Fide Purchaser, Hardship Under Specific Relief Act, Agreement for Sale
Property Law Contract Law Specific Performance Bona Fide Purchaser Hardship Under Specific Relief Act Agreement for Sale

Case Brief

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Parties

Sargunam (D) by LR.

Appellant / Defendant No.2

Chidambaram

Respondent No.1 / Plaintiff

Chidambaram and Anr.

Respondents

Procedural Posture

Civil Appeal / Supreme Court Appeal Against Karnataka High Court Judgment in R.f.a. No. 464 of 1992

Legal Issues

  1. 1 Whether defendant no.2 was a bona fide purchaser for value without notice
  2. 2 Whether the conveyance was sham, bogus, and nominal to defeat the claim of plaintiff
  3. 3 Whether Section 20(2)(b) of the Specific Relief Act, 1963 applies to deny specific performance

Ratio Decidendi

Defendant no.2 was not a bona fide purchaser for value without notice; evidence established notice of plaintiff's agreement, and conveyance was a sham, nominal sale intended to defeat plaintiff's claim. High Court findings that defendant no.2 had notice and that the agreement dated 15.4.1978 was concocted are correct and warrant no interference. Section 20(2)(b) does not apply as defendant no.2 could foresee hardship and had notice when entering conveyance.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed.
  • No order as to costs.