1999 (3) TMI 667 - SC - Indian Laws

Supreme Court affirms private sale by executors, dismissing appeal. Property rights not vested in legatees.

K. Leelavathy Bai and Ors. Versus P.V. Gangadharan and Ors.

The Supreme Court affirmed the High Court's decision, dismissing the appeal. The private sale by the executors was upheld over the court sale, as the ... - Issues Involved:1. Entitlement to tenancy rights.2. Validity and precedence of the private sale by executors versus court sale.3. Assent of executors and vesting of property in legatees.Issue-wise Detailed Analysis:1. Entitlement to Tenancy Rights:In the appeal before the High Court, the first issue was whether the first defendant is entitled to the tenancy rights as pleaded by him. Both the trial court and the lower appellate court had held against the defendants on this matter. The High Court, after considering the materials on record, held that the document of mortgage, Ex. A-1, was in fact only a rental arrangement of the buildings. The transaction under the said document came within the purview of the Kerala Buildings (Lease and Rent Control) Act, thereby protecting the possession of the defendants under the said Act de hors the mortgage claim.2. Validity and Precedence of the Private Sale by Executors versus Court Sale:The second issue was whether the prior sale by the executors would prevail or whether the court sale would have preference over it. The High Court concluded that the private sale executed by the two executors on 10.1.1964 in favor of the fourth defendant would prevail over the court sale dated 27.7.1964 in favor of the plaintiff. The plaintiff's contention that the private sale was in violation of the court's order of attachment dated 24.11.1961 was rejected. The High Court held that the attachment did not bind the executors of the Will since at least one of them was not a party to the decree, and the decree was personal only against the younger Sadanandan. Under Section 60 of the C.P.C., there could be no attachment of properties belonging to persons other than the judgment debtor. The High Court also noted that attachment does not confer any title in favor of the person who gets the property attached. The High Court relied on Section 211(1) and Section 307(1) of the Indian Succession Act, which provide that an executor or administrator has the power to dispose of the property of the deceased vested in him.3. Assent of Executors and Vesting of Property in Legatees:The appellants argued that the elder Sadanandan's act of executing a possessory mortgage impliedly divested the interest of the executors in the property, making it available for attachment and court sale. The High Court rejected this argument, stating that under Section 211 of the Indian Succession Act, the property of the deceased testator vests in all the executors, and if there are more than one executor, all must act jointly. The act of a single executor cannot bind the estate of the deceased. The Court further noted that the Will was not probated at the time of the execution of Ex. A-1, and thus, the act of elder Sadanandan could not be construed as an implied assent under Sections 332 and 333 of the Act. Consequently, the sale made by the executors on 10.1.1964 was valid and not restricted by the attachment order of the executing court. The private sale was upheld, and the property was not available for court sale. Therefore, the appellants did not acquire any right, title, or interest in the suit property through the court sale.Conclusion:The Supreme Court affirmed the judgment and decree of the High Court, dismissing the appeal. The private sale executed by the executors was valid, and the court sale did not confer any rights to the appellants. The question of tenancy rights did not survive for consideration due to the findings on the validity of the private sale. The appeal was dismissed with no costs.