2006 (10) TMI 463 - SC - Indian Laws

Suit Not Time-Barred; 'Heirs' Includes All Descendants; Sale Deed Void; Bona Fide Purchaser Claim Dismissed.

M/s. Bay Berry Apartments Pvt. Ltd. & Anr Versus Shobha & Ors

M/s. Bay Berry Apartments Pvt. Ltd. & Anr Versus Shobha & Ors - 2007 AIR 226, 2006 (7) Suppl. SCR 738, 2006 (13) SCC 737, 2006 (9) JT 404, 2006 (10) SCALE ... Issues Involved:1. Limitation2. Non-joinder of parties3. Adequacy of valuation of the suit and amount of court fees4. Construction of the expression 'heirs' in the Will5. Validity of the sale deed executed by the original defendant No. 1 and his son6. Bona fide purchaser status of the appellantsIssue-wise Detailed Analysis:1. Limitation:The City Civil Judge, Bangalore, dismissed the suit on the grounds that it was barred by limitation. The plaintiffs contended that the suit was not barred by limitation as the original defendant No. 1 died during the pendency of the suit, and the cause of action arose only upon his death in 1998. The Supreme Court upheld this view, stating that the suit was pre-mature at the time of its institution but became valid upon the death of the original defendant No. 1. The High Court's decision to allow the appeal was deemed appropriate as the cause of action arose during the pendency of the suit.2. Non-joinder of Parties:The City Civil Judge also dismissed the suit for non-joinder of necessary parties, specifically the brother of the plaintiffs. The Supreme Court noted that the brother was later impleaded as a party during the pendency of the suit. Therefore, the non-joinder issue was resolved, and the High Court's judgment was upheld.3. Adequacy of Valuation of the Suit and Amount of Court Fees:The City Civil Judge held that the court fees paid were inadequate. However, this issue was not elaborated upon in the Supreme Court judgment, implying that it did not significantly impact the final decision.4. Construction of the Expression 'Heirs' in the Will:The central issue revolved around the interpretation of the term 'heirs' in the Will dated 14.7.1932. The appellants argued that 'heirs' referred only to male lineal descendants. The Supreme Court, however, interpreted 'heirs' to include both male and female descendants, considering the provisions of the Hindu Succession Act, 1956, which granted daughters equal inheritance rights. The Court emphasized that the Will must be read in its entirety, and the term 'heirs' should be understood in the context of the prevailing law at the time of succession.5. Validity of the Sale Deed Executed by the Original Defendant No. 1 and His Son:The Supreme Court held that the original defendant No. 1 and his son had no authority to execute the sale deed dated 3.12.1975, as the original defendant No. 1 only had a life interest in the property. The succession opened only upon his death in 1998, and thus, the sale deed was void and not binding on the plaintiffs.6. Bona Fide Purchaser Status of the Appellants:The appellants claimed to be bona fide purchasers for value. However, the Supreme Court found that the sale deed was void, and therefore, the bona fide purchaser defense was not applicable. The Court noted that the consequences of the void sale deed would ensue, and the appellants' status as bona fide purchasers did not alter the legal outcome.Conclusion:The Supreme Court upheld the High Court's judgment, which allowed the plaintiffs' appeal. The Court found that the suit was not barred by limitation, the non-joinder issue was resolved, and the term 'heirs' in the Will included both male and female descendants. The sale deed executed by the original defendant No. 1 and his son was void, and the appellants' claim of being bona fide purchasers was not significant. The appeal was dismissed with no order as to costs.