T. VIJENDRADAS AND ANR. versus M. SUBRAMANIAN AND ORS.

T. VIJENDRADAS AND ANR. versus M. SUBRAMANIAN AND ORS.

Municipality was not a necessary party under Order XXI Rule 92(4) CPC as the suit alleged fraud against vendor only and not against Municipality. Appellants purchased property pendente lite with notice and are bound by decree. Fraud by vendor rendered auction sale and decree void, and Supreme Court may exercise Article 142 equity jurisdiction to undo benefit of fraud and direct respondents to pay property tax amount. Relief not to be refused to victim of fraud.

Parties
Appellant: T. Vijendrada; Respondent: M. Subramanian; Appellant: K.V. Venkataramani; Appellant: B. Raghunath; Appellant: R. Nedumaran; Respondent: V. Mahana; Respondent: Hari Priya; Respondent: Anirudh Sharma
Jurisdiction
India
Judgment Date
09 October 2007
Procedural Posture
Civil Appeal / Appeal (supreme Court, Post Second Appeal)
Outcome
Appeal dismissed; directions issued under Article 142.
Legal Topics
Auction Sale, Necessary Party, Fraud on Court, Property Tax Liability, Right of Redemption, Suppression of Facts, Article 142 Equity Powers, Statutory Charge
Civil Procedure Property Law Municipal Law Constitutional Law Auction Sale Necessary Party Fraud on Court Property Tax Liability +4 more

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Parties

T. Vijendrada

Appellant

M. Subramanian

Respondent

K.V. Venkataramani

Appellant

B. Raghunath

Appellant

R. Nedumaran

Appellant

V. Mahana

Respondent

Hari Priya

Respondent

Anirudh Sharma

Respondent

Procedural Posture

Civil Appeal / Appeal (supreme Court, Post Second Appeal)

Legal Issues

  1. 1 Whether the Municipality was a necessary party under Order XXI Rule 92(4) CPC in the suit filed for declaration and possession.
  2. 2 Liability for property tax under Tamil Nadu District Municipalities Act, 1920—whether continues with vendor if mutation not done.
  3. 3 Effect of fraud by vendor in not intimating sale to Municipality and obtaining auction sale.

Ratio Decidendi

Municipality was not a necessary party under Order XXI Rule 92(4) CPC as the suit alleged fraud against vendor only and not against Municipality. Appellants purchased property pendente lite with notice and are bound by decree. Fraud by vendor rendered auction sale and decree void, and Supreme Court may exercise Article 142 equity jurisdiction to undo benefit of fraud and direct respondents to pay property tax amount. Relief not to be refused to victim of fraud.

Court Disposition

Appeal dismissed; directions issued under Article 142.

Orders

  • Plaintiffs-respondents are directed to deposit the amount paid to Municipality out of auction amount within six months; any balance with Court to be paid to appellants if available.
  • Appellants may file appropriate suit against wife of vendor and others; no relief granted to appellants.