Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Fiduciary relation Transfer of membership/flat |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | TRANSFER OF PROPERTY ACT, 1882: Housing Society - Transfer of membership/flat - Validity of - Flat given on rent to the son of the respondent - Letters written by appellant to Society for transferring the said flat in favour of respondent on account of close relationship between them - Transfer was without consideration - Arbitrator held the letters of transfer invalid - Cooperative Tribunal and High Court held that approach of arbitrator was erroneous - Held: Respondent was mother-in-law of niece of appellant - Therefore factually the expression of close relationship depicted in the letters was false - As regards transfer without consideration, respondent herself gave statement to the effect that appellant had transferred the flat for consideration of Rs.4.29 lacs which was in form of shares belonging to the son of the respondent - However, on the date of execution of transfer or even when board resolution was passed, the son of the respondent did not have any shares in his name said to have been transferred to appellant as consideration of the flat - Therefore, all the ingredients of the letters were shrouded in suspicious circumstances - The stance of appellant regarding transfer of shares was that same was return of loan extended by her to son of the respondent for business venture - This factual position was overlooked by Cooperative Tribunal and High Court - Arbitrator held that the appellant was in Bombay and not in Calcutta when these letters were written - Said finding was recorded on the basis of 3 witnesses produced on behalf of appellant before the arbitrator - Cooperative Tribunal overlooked the statement of witnesses merely because notary was an Advocate - Conclusion of Cooperative Tribunal and High Court that the documents were executed in Calcutta was therefore based on no evidence - Further, respondent continued to pay rent into the account of appellant - Accordingly, arbitrator rightly inferred that even to the knowledge of respondent, flat was not actually transferred to her name. Housing Society - Transfer of membership/flat - Revocation of - Withdrawal letter revoking letters of transfer was sent by appellant before the transfer of membership/flat had attained finality - Still, Society did not consider the withdrawal letter - Acceptance or rejection on merits is another matter, but non-consideration clearly invalidated the resolution of transfer passed by society. Transfer of membership/flat - Validity of - Fiduciary relation - Held: When parties are in fiduciary relationship, the manner of examining the validity of a transaction specifically when there is no reciprocal consideration has to be based on parameters which are different from those applicable to an ordinary case. Transfer of membership/flat without consideration - Relationship of faith, trust and confidence - Letters written by appellant to Housing Society for transferring her flat to the name of the respondent - Held: There was no justification for the appellant to transfer her flat to respondent free of cost specially when she has no direct intimate relationship with respondent - Son of respondent was married to niece of appellant and so he was in domineering position - He enjoyed trust and confidence of appellant which was apparent from the fact that the Joint account of appellant with the son of the respondent was operated by him exclusively and drafting of the letters of transfer of flat was done by him on behalf of appellant - In such fact situation, the onus of substantiating the validity and genuineness of the transfer of flat by the appellant rested squarely on the shoulders of the respondent which she miserably failed to discharge. CODE OF CIVIL PROCEDURE, 1908: Pleadings - Rejoinder - Non consideration of facts stated in the rejoinder - Effect of - Respondent-defendant in written replies adopted stand contrary to documents relied upon by rival parties - Number of documents not mentioned by appellant-plaintiff in the dispute case relied upon by respondent - Held: Arbitrator recorded his findings in the award not only on the pleadings including rejoinder but also on the basis of evidence led in support of said pleadings - Thus, arbitrator acted in accordance with law and therefore exclusion from consideration of factual position asserted by appellant in her rejoinder by the Cooperative Tribunal and High Court was wholly unjustified. DOCTRINES/PRINCIPLES: Principle of estoppel - Applicability of - Discussed. Principle of justice and equity and doctrine of faimess - Applicability of. Evidence Act, 1872: s.115 - Estoppel - Salient pre-condition for invoking rule of estoppel - Discussed - In the instant case, the first party made no representation, the second party did not accept any representation and did not act in any manner nor second party altered its position - Therefore, the question whether the restoration of the original position would be iniquitous or unfair did not arise. NOTARY ACT, s.8 - Notarization of document - Non issuance of notarial certificate - Held: In the absence of issuance of certificate, notarization of document becomes Suspicious. |
Judge | Honble Mr. Justice Jagdish Singh Khehar |
Neutral Citation | 2014 INSC 87 |
Petitioner | PRATIMA CHOWDHURY |
Respondent | KALPANA MUKHERJEE & ANR. |
SCR | [2014] 2 S.C.R. 656 |
Judgement Date | 2014-02-10 |
Case Number | 1938 |
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