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Saturday, December 22, 2018

Whether the alienation of the property pending the suit can be set aside in contempt of proceedings for voiltion of injunciton orders restraing from alienation ? - No- the appellant filed a suit against PABC's for specific performance in the year 1993 basing on sale agreement 0f the year 1981 and the same was decreed and sale deed was executed in the year 2003 - in the mean while in the year 1994 a suit was filed against the properties PABC - in the year 2003 the Madara High court granted interim injunciton not to alinate the properties of PABC- a contempt petition filed - Madras High court set aside the sale and order to restoration of the property - Appellant is not the party before the Madaras High court - Apex court held that in the present appeal, the case of the appellant that it was in pursuance of the decree passed by the Civil Court in Andhra Pradesh in a suit for specific performance that the appellant had obtained the sale deed through the process of the Court, could not have been negated in the summary manner in which the High Court had proceeded to pass orders in the exercise of its contempt jurisdiction. Moreover, it is not in dispute that the appellant is not a party to the suit pending before the Madras High Court. The issue as to Whether the alienation of the property by PABC is valid or otherwise must be adjudicated upon in the course of the hearing of the suit. That is also the basis of the order dated 26.04.2013 passed by this Court in the earlier civil appeals, noted above. In the circumstances, we are of the view that the impugned order passed by the High Court in purported exercise of its contempt jurisdiction should be set aside in so far as the appellant is concerned. It is ordered accordingly. We however, clarify that it will be open to the plaintiffs to seek appropriate remedies in the suit which is pending before the Madras High Court.



 HON'BLE DR. JUSTICE D.Y. CHANDRACHUD
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IN THE SUPREME COURT  OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO.2641/2011
ALLU VENKATRAMAN AND ANR.   ��. APPELLANT(S)
                                VERSUS
     
      G.D.D. DIWAKAR, EXECUTIVE DIRECTOR   ��  RESPONDENT(S)
      AND ANR.
   
     with
CIVIL   APPEAL   NO.2646/2011     &     CIVIL   APPEAL   Nos.2644-
2645/2011.
   
O R D E R
CIVIL APPEAL NO.2641/2011
This appeal arises from the judgment and order of   a
Division   Bench   of   the   Madras   High   Court   dated   17.06.2006
in   a   batch   of   contempt   petitions.   The   present   appeal
relates   to   the   order   of   the   High   Court   in   contempt
petition   No.370   of   2006   and   Sub   Application   No.126   of
2006.
  The   contempt   petition   was   disposed   of   by   the   High
Court in terms of the following order:-
�There   is   no   representation   on   behalf   of   the
petitioner.     Heard   the   parties.     Except   to   suspend
the   sale   made   under   the   teeth   of   injunction   and   to
permit the purchasers to seek appropriate relief in
the manner known to law, to protect their right and

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interest and to restore status quo ante on the date
of   the   orders   of   injunction   with   regard   to   the
possession   of   the   plaintiffs,     which   were   being
complained as willfully disobeyed in these contempt
petitions,   no   further   order   is   required   in   the
contempt   petitions.     Accordingly   the   same   are
closed.     Consequently,   Sub   Application   Nos.   227,
278 to 293 of 2003, 170 to 185 and 187 of 2004, 370
of 2005 and 125 to 127 of 2006 are also closed.�
A   suit   (C.S.   No.124   of   1994)   has   been   instituted   on
the   Original   Side   of   the   Madras   High   Court   under   Section
92 of the Code of Civil Procedure, 1908 .   There are five
plaintiffs   including   D.   Jayaraju,   who   is   the   second
respondent   in   the   present   appeal.     Among   the   reliefs
sought in the suit, the plaintiffs seek the removal of the
Property   Association   of   Baptist   Churches   Private   Limited
(PAPB) from trusteeship of the properties mentioned in the
schedule   thereto.     An   inquiry   has   been   sought   into   the
affairs   of   the   company   and   into   several   transfers   of
immovable   properties   effected   by   or   on   behalf   of   the
trustee company after 1979. 
  On   25.07.2000,     a   Division   Bench   of   the   High   Court
while dealing with an application for the sale of certain
property   at   Kodaikanal   directed   that   no   other   properties
should   be   sold   pending   the   disposal   of   the   suit.     This
order was passed in OSA  No. 69 of 1999 and CMP No.7306 of
1999.   During   the   course   of   the   proceedings   in   the   suit,
following   order   was   also   passed     by   a   Division   Bench   of

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the High Court on 27.06.2003 (in Sub-Application No.274 of
2003 in contempt Petition No.441 of 2003):-
�The   first   respondent   or   its   office   bearers   or
power of attorneys or custodians or care takers or
allottees   so   also   the   other   respondents   are   hereby
restrained   by   means   of   an   injunction   from
alienating   by   way   of   sale,   mortgage,   lease   of   the
properties   fully   described   in   the   Schedule.     They
should   not   enter   into   any   kind   of   agreement
whatsoever   with   anyone   else   with   reference   to   the
said   property.     All   activities   in   the   premises
should   be   stopped   and   advertisement   board,   if   any,
exhibited shall be removed forthwith.�
In 1993, the appellant instituted a suit for specific
performance     before   the     Principal   Senior   Civil   Judge,
Narasaraopet,   Andhra   Pradesh   (O.S.No.109/1993).     This   suit
was   filed   in   respect   of   an   agreement   to   sell   which   was
allegedly     executed   by   PABC,   on   14.05.1981.   The   suit   was
decreed   on   18.04.2003.     The   sale   deed   was   stated   to   have
been   executed   on   31.12.2003,   in   the   course   of   execution
proceedings through the Court.  
In   the   contempt   petition   which   was   filed   by   the
second   respondent,   it   was   alleged   that   the   above   sale   was
in   breach   of   the   interim   order   of   injunction   which   was
passed   by     the   High   Court.   Various   other   transactions
involving   the   sale   of   the   property   belonging   to   the   Trust
appear  to  have  taken  place  giving  rise  to  several  contempt
proceedings.   It   was   in   the   course   of   the   hearing   of   the
batch   of   contempt   petitions   that   the   impugned   order   has
been passed.

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We have heard learned counsel appearing on behalf of
the   appellant   and   learned   counsel   appearing   on   behalf   of
second respondent who are the contesting parties.
    The   submission   which   has   been   urged   is   that   in   the
exercise   of   its   contempt   jurisdiction,   the   High   Court
manifestly   erred   in   directing   the   suspension   of   the   sale
made and for the restoration of the status quo ante on the
date of the order of injunction.
  This   Court   has   been   apprised   of   the   fact   that   in   Civil
Appeal   No.4124   and   4125   of   2013,     a   bench   of   two   learned
Judges   of   this   Court   while   dealing   with   the   same   order   of
the High Court passed the following order on 26.04.2013:
�Heard   learned   senior   counsel   for   the
appellants.
  Leave granted.
In   spite   of   service,   none   appears   on   behalf
of respondents.
After   hearing   learned   senior   counsel
appearing   on   behalf   of   the   appellants   and   the
relief   as   prayed   for   in   contempt   petition   before
the   High   Court,     we   are   satisfied   that   the   High
Court   is   not   justified   in   passing   the   impugned
order without dealing with any of the claim in the
contempt petition.  Inasmuch as the main suit which
is   of   the   year   1994   are   still   pending   on   the   file
of   the   High   Court,     we   are   inclined   to   remit   the
matter   for   disposal   of   the   contempt   petition
afresh,   but we feel that ends of justice would be
met by setting aside the impugned order and request
the   High   Court   to   take   all   endeavour   for   early
disposal   of   the   suit   viz.   C.S.   124   of   1994
preferably   within   a   period   of   six   months   from   the
date of receipt of copy of this order.
The civil appeals are allowed.�

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In the present appeal, the case of the appellant that
it   was   in   pursuance   of     the   decree   passed   by   the   Civil
Court in Andhra Pradesh in a suit for specific performance
that   the   appellant   had   obtained   the   sale   deed   through   the
process   of   the   Court,   could   not   have   been   negated   in   the
summary   manner   in   which   the   High   Court   had   proceeded   to
pass orders in the   exercise of its contempt jurisdiction.
Moreover, it is not in dispute that the appellant is not a
party to the suit pending before the Madras High Court.
The   issue   as   to   whether   the   alienation   of   the
property by PABC is valid or otherwise must be adjudicated
upon   in   the   course   of   the   hearing   of   the   suit.       That   is
also the basis of the order dated 26.04.2013 passed by this
Court in the earlier civil appeals, noted above.
In   the   circumstances,     we   are   of   the   view   that   the
impugned   order   passed   by   the   High   Court   in   purported
exercise of its contempt jurisdiction should be   set aside
in   so   far   as   the   appellant   is   concerned.   It   is   ordered
accordingly.
We   however,   clarify   that   it   will   be   open   to   the
plaintiffs   to   seek   appropriate   remedies   in   the   suit   which
is   pending   before   the   Madras   High   Court   (O.S.   No.124   of
1994). Nothing contained in the order shall be construed as

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any   opinion   of   this   Court   on   the   disposition   which   is
claimed by the appellant(s).
Having   due   regard   to   the   order   passed   by   this   Court
on 26.04.2013 for the expeditious disposal of the suit, we
once   impress   upon   the   High   Court   the   need   for   the
expeditious disposal of the suit.
The   civil   appeal   is   accordingly   disposed   of   in   the
above terms.
Pending applications, if any, stand disposed of.
CIVIL APPEAL NO.2646/2011
This   appeal   is   directed   against   the   judgment   and
order of the Division Bench of the Madras High Court dated
15.09.2006 which seeks to clarify the previous order dated
02.08.2006   passed     in   the   exercise   of   its   contempt
jurisdiction.     The   present   appeal   has   been   heard   together
with   companion     civil   appeal   No.2641/2011.   As   the   facts
narrated   in   the   judgment   indicate,   an   order   was   initially
passed on 17.06.2006 by the High Court which was sought to
be   modified   in   certain   respects   on     02.08.2006   and
clarified by  the order dated 15.09.2006.  The order dated
17.06.2006   has   been   set   aside   in   companion   civil   appeal
No.2641/2011.     Since   the   main   order   has   been   set   aside,
the   clarification   will   not,   in   consequence,   survive   and
the civil appeal shall accordingly disposed of. No costs.
Pending applications, if any, also stand disposed of.

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CIVIL APPEAL Nos.2644-2645/2011
In   view   of   the   order   passed   in   Civil   Appeal
No.2641/2011, civil  appeal Nos.2644-2645/2011  are disposed
of.
Pending applications, if any, also stand disposed of.
���������������������������.J.
                                    [D.Y. CHANDRACHUD
�������������������������....J.
                                    [VINEET SARAN]
   New Delhi
   20 th
 November,2018.

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ITEM NO.104               COURT NO.11               SECTION XII
               S U P R E M E  C O U R T  O F  I N D I A
                       RECORD OF PROCEEDINGS
Civil Appeal  No(s).2641/2011
ALLU VENKATRAMAN AND ANR. & ANR.                   Appellant(s)
                                VERSUS
G.D.D. DIWAKAR AND ANR. & ANR.                     Respondent(s)

WITH
C.A. No. 2644-2645/2011 (XII)
C.A. No. 2646/2011 (XII)

Date : 20-11-2018 These appeals were called on for hearing today.
CORAM :  HON'BLE DR. JUSTICE D.Y. CHANDRACHUD
         HON'BLE MR. JUSTICE   VINEET SARAN
       
For Appellant(s) Mr. Ratnakar Dass,Sr.Adv.
Ms. Promila,Adv.
                    Mr. S. Thananjayan, AOR
104.1 and 104.2 Mr. V.Prabhakar,Adv.
Ms. Jyoti Parasher,Adv.
Mr. N.J.Ramchandar,Adv.
                    Mr. R. Chandrachud, AOR
                 
For Respondent(s) Mr. Ajit Kr. Sinha,Sr.Adv.
Mr. Dhruv Kumar Jha,Adv.
                    Mr. Bijan Kumar Ghosh, AOR
                    Mr. R. Chandrachud, AOR
                    Ms. D. Bharathi Reddy, AOR
Mr. K. K. Mani, AOR
Ms. T.Archana,Adv.
Mr. V.Prabhakar,Adv.
Ms. Jyoti Parasher,Adv.
Mr. N.J.Ramchandar,Adv.
                    Mr. R. Chandrachud, AOR

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          UPON hearing the counsel the Court made the following
                             O R D E R
The   Civil   Appeals   are   disposed   of   in   terms   of 
the signed order.
Pending   applications,   if   any,   also   stand 
disposed of.
(INDU MARWAH)                                 (SUMAN JAIN)
COURT MASTER                                 BRANCH OFFICER
(Signed order is placed on the file)