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1968 (5) TMI 64

..... g to defendant No. 1 for ₹ 4,500/-. This agreement was executed on the 15th of June, 1959 by defendant No. 1 who took from the plaintiff ₹ 500/- towards consideration. Without executing the deed of sale in pursuance of that agreement he (defendant No. 1) sold two of those rooms to defendant No. 2 for ₹ 4,800/-. The deed of sale in that respect was executed by defendant No. 1 in favour of defendant No. 2 on the 10th of July, 1959 and the document was registered. The present suit was instituted on the 8th of August, 1959. The trial court held that defendant No. 2 was bona fide purchaser of value without notice of any agreement between the plaintiff and the defendant No. 1 in respect of the property which he purchased. It also held that the agreement on which the plaintiff relied and sued for specific performance was not genuine. When an appeal was brought by the plaintiff to the court below, the finding about the lack of genuineness of the said agreement was reversed; but the plaintiff's suit for specific performance was equally refused by the lower appellate court on the ground that the defendant No. 2 was a bone fide purchaser for value and without notice of t .....

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..... is quite valid but I am afraid that would not be of any assistance to the plaintiff. Under Section 47 of the Indian Registration Act a registered document becomes operative at the time from which it would have commenced to operate if no registration thereof was required or made and not at the time of its registration. As far as Ext. Ka is concerned, the time of its registration or in other words, the completion of registration of the document, was not till the 24th of October, 1959, but once it is registered, the vendee, defendant No. 2 obtained a title under that document as operative from the date of its execution, which was 10th of July, 1959. Section 19 of the Specific Relief Act provides:- "Except as otherwise provided by this Chapter, specific performance of a contract may be enforced against, (a) either party thereto; (b) any other person claiming under him by a title arising subsequently to the contract, except a transferee for value who has paid his money in good faith and without notice of the original contract." It has to be seen whether the defendant No. 2 can come within clause (b) above. He is claiming a title arising subsequent to the contract of which the .....

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..... the institution of the earlier mortgage suit. There was, therefore, no point of the doctrine of lis pendens in that case. 4. Learned counsel's further argument on which he very much stressed, is that there is no finding by the lower appellate court or. even by the trial court that the defendant No. 2 was a bona fide purchaser, although there is a finding that he had paid the consideration money. Here, I am afraid, there is a little misconception. What learned counsel really meant was that there is no clear finding that defendant No. 2 had paid the consideration money in good faith to defendant no, 1, "Good faith has a special connotation and it has been so understood. Courts below have used the expression "bona fide purchaser" in the same sense. Reading the two Judgments I am not left with any doubt that both the courts came to the conclusion that defendant No. 2 had paid his money to the vendor in good faith at a time when he had no notice of the original contract between the plaintiff and defendant No. 1. Learned counsel placed another aspect of this matter in a different way. He argued that the plaintiff was in possession of the property involved in the said .....

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..... ossession of that property. IN the case of Robert George Barnhart v. James Blackwood Greenshields, (1853)9 Moore PC 18, it was observed that it there Is a tenant in possession of a land, a purchaser is bound by all equities which the tenant could enforce against the vendor, and that the equity of the tenant extends not only to interests connected with his tenancy but also to interests under collateral agreements the principle being the same In both classes of cases, namely that the possession of the tenant Is notice that he may have some interest in the land and that the purchaser having notice of that fact, is bound according to the ordinary rule, either to enquire what interest he has, and to vacate whatever it may be. It Is to be noticed that in both these cases "other equities" were by way of collateral agreements to the tenancy. In the instant case, it was no part of the agreement of tenancy between the plaintiff and defendant No. 1 in respect of the room which he (the plaintiff) had been in occupation for several years, that he could have enforced his right to purchase either that room or any other rooom in that house from the owner (defendant No. 1). The contract o .....

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