Tag: Encumbrance

Why a Poorly Drafted Plaint Can Derail Your Case: Lessons from a Recent Supreme Court Judgment
Supreme Court

Why a Poorly Drafted Plaint Can Derail Your Case: Lessons from a Recent Supreme Court Judgment

The Supreme Court held that even if a Will is proved, a prayer for mere injunction without seeking declaration of title is unsustainable when the plaintiff admits the defendant is in possession. The Court clarified that injunction against alienation is maintainable, but injunction against interference with possession requires a declaration of title and a prayer for recovery. Facts Of The Case: The dispute centered on a property originally owned by Rangaswamy Naidu. His daughter, Rajammal (respondent-plaintiff), filed a suit against her brother, Munuswamy (original defendant), seeking an injunction to restrain him from alienating the property and from interfering with her peaceful possession. She claimed absolute title under a Will dated 30.09.1985, by which her father had allegedly beque...
Supreme Court Rules: Bank’s Illegal Mortgage Voids Multi-Crore Property Auction
Supreme Court

Supreme Court Rules: Bank’s Illegal Mortgage Voids Multi-Crore Property Auction

The Supreme Court quashed the e-auction sale as the proclamation violated Rule 53 of the Income Tax Act's Second Schedule, applicable via the RDDB Act. It failed to disclose material encumbrances, specifically DDA's claim for unearned increase. The Court held the sale was void, applying principles of restitution to refund the auction purchaser with interest. Facts Of The Case: The Delhi Development Authority (DDA) allotted a plot to Sarita Vihar Club on a leasehold basis. The club mortgaged the plot to Corporation Bank without obtaining the mandatory prior written consent from the Lieutenant Governor, as required by the lease deed. When the club defaulted on its loan, the Bank initiated recovery proceedings. The Debt Recovery Tribunal (DRT) ordered the sale of the plot. Despite DDA's obj...
Land Sale Void If Society’s Charge Not Cleared: Supreme Court Explains Legal Consequence
Supreme Court

Land Sale Void If Society’s Charge Not Cleared: Supreme Court Explains Legal Consequence

The Supreme Court dismissed an appeal, affirming that a plaintiff cannot benefit from their own wrong. The Court held that an alienation of charged property, even if voidable, can only be challenged by the aggrieved society, not the member-loanee who committed the breach. Subsequent release of the charge validated the sale, and the reconveyance deed was deemed invalid due to lack of stamp paper, registration, and crucial terms. Facts Of The Case: The case originated from Special Civil Suit No. 49/1973, filed by the original plaintiff, Machhindranath, seeking possession and reconveyance of ancestral agricultural land, Survey No. 30, admeasuring 15 Acres and 17 Guntha, located in Village Kendal Bk., Taluka Rahuri, Ahmednagar, Maharashtra. The plaintiff had obtained a loan from Kendal Bk....