M/S Aaditri Housing Pvt Ltd vs Goverdhan Reddy Kanapuram on 6 July, 2026

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    Telangana High Court

    M/S Aaditri Housing Pvt Ltd vs Goverdhan Reddy Kanapuram on 6 July, 2026

         IN THE HIGH COURT FOR THE STATE OF TELANGANA
                         AT HYDERABAD
    
         THE HON'BLE JUSTICE MOUSHUMI BHATTACHARYA
                             AND
           THE HON'BLE JUSTICE GADI PRAVEEN KUMAR
    
                        C.M.A.Nos.520 and 527 of 2024
    
                                Date: 06-07-2026
    C.M.A.No.520 of 2024
    
    Between :
    
    M/s.Aaditri Housing Pvt. Ltd.
    
                                                                 ...Appellant
                                      And
    1. Goverdhan Reddy Kanapuram
    and Three others.
                                                               ...Respondents
    
    
    COMMON JUDGMENT:

    (per Hon’ble Justice Gadi Praveen Kumar)

    Heard Sri P.Sri Raghuram, learned Senior Counsel assisted by Sri

    SPONSORED

    Mallikharjuna Rao, learned counsel appearing for the appellant, Sri

    A.Venkatesh, learned Senior Counsel assisted by Ms.Priyanka Banala,

    learned counsel appearing for the respondent No.1 and Sri Velagapudi

    Srinivas, learned counsel representing Ms.S.Bhavana Sagar, learned

    counsel appearing for respondent Nos.2-4.

    2. Both the Appeals are filed being aggrieved by the orders dated

    12.08.2024 passed by the learned Special Judge for Trial of Offences under
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    S.Cs/S.Ts. (POA) Act-cum-III Additional District and Sessions Judge,

    Sangareddy (for short ‘the Trial Court’) allowing I.A.Nos.783 and 782 of

    2024 in O.S.No.270 of 2022 granting ad interim injunction in favour of

    respondent No.1 and against the appellant, restraining the appellant and its

    men from changing the nature of the suit schedule property till disposal of

    the suit and from interfering with the peaceful possession of the respondent

    No.1 in respect of the suit schedule property till disposal of the suit.

    3. The appellant herein is the defendant No.4 in the suit O.S.No.270 of

    2022 filed by the respondent No.1/plaintiff herein against respondent

    Nos.2-4/defendant Nos.1-3, who are his own family members i.e. mother

    and brothers and the appellant herein, for the relief of declaration that the

    registered sale deed vide Doc.No.15488/2021 dated 31.03.2021 as null and

    void, and not binding on the respondent No.1 to the extent of 5/16th share

    of the respondent No.1 and to restrain the appellant from interfering with

    the joint peaceful possession and enjoyment of the respondent No.1 over

    the suit schedule property i.e. the land in an extent of Ac.3.07 gts in

    Sy.No./491 situated at Velimela Village, Ramachandrapura Mandal,

    Sangareddy District.

    4. The facts leading to file the suit by the respondent No.1 are that the

    suit schedule property is the joint family property of respondent No.1 and
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    respondent No.2-4 without any partition with metes and bounds. The

    respondent No.1 and respondent Nos.2-4 jointly entered into an agreement

    of sale in respect of the land to an extent of Ac.3.25 gts in Sy.No.491, an

    extent of Ac.0.09 gts in Sy.No.476, Ac.0.17 gts in Sy.No.477 and Ac.0.20

    gts in Sy.No.487 of Velimela village in favour of the appellant on

    18.09.2019. Subsequently, the appellant failed to pay the balance sale

    consideration within three months and as such, the said agreement of sale

    deemed to be cancelled.

    5. It is the further case of respondent No.1 that in the month of August,

    2022, the appellant started digging the land in Sy.No.491 for construction

    of apartments, and when respondent No.1 questioned the said act of the

    appellant, he was informed that respondent Nos.2-4 executed a sale deed in

    favour of the appellant in respect of land to an extent of Ac.3.07 gts in

    Sy.No.491 vide Doc.No.15488/2021 dated 31.03.2021. Respondent No.1

    is having share of 5/16 in the suit schedule property. Respondent Nos.2-4

    and the appellant colluded with each other and created the sale deed dated

    31.03.2021 to deprive the rights of the respondent No.1.

    6. It is the case of the respondent No.1 that as the suit schedule

    property is the joint family property of respondent No.1 and respondent

    Nos.2-4 and as no partition took place, the sale deed executed by the
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    respondent Nos.2-4, who do not have exclusive rights, in favour of the

    appellant is not binding on the respondent No.1, and the appellant cannot

    claim any right or possession over the schedule property. On 25.08.2022,

    when the appellant started interfering with the peaceful possession of the

    respondent No.1 of the suit schedule property and proceeded with

    construction in the undivided property by creating third party interests, he

    was constrained to file the suit for declaration and injunction against the

    appellant.

    7. Pending adjudication of the suit, the respondent No.1 filed

    I.A.Nos.783 and 782 of 2024 for ad interim injunction against the

    appellant.

    8. The appellant herein filed counter to the Interlocutory Applications

    contending that the appellant herein entered into an agreement of sale

    dated 18.09.2019 with respondent No.1 and respondent Nos.2-4 in respect

    of lands in Sy.No.491 to an extent of Ac.3.25 gts, Sy.No.476 to an extent

    of Ac.0.09 gts, Sy.No.477 to an extent of Ac.0.17 gts and Sy.No.487 to an

    extent of Ac.0.20 gts, in total admeasuring Ac.4.31 gts and paid advance

    sale consideration of Rs.1,60,00,000/- under acknowledgment and balance

    of sale consideration was to be paid within three months at the time of

    registration subject to clause 7 to 9 of the agreement of sale, which
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    provides for prior performance of the obligations by the vendors therein,

    such as survey of land. Despite receiving huge amount of Rs.1,60,00,000/-

    , the respondent No.1 and respondent Nos.2-4 never came forward to

    perform their part of the obligations within the stipulated time though the

    appellant is ready and willing to pay the balance sale consideration.

    Subsequently, respondent Nos.1 to 4 represented to the appellant that

    respondent Nos.2-4 have exclusive possession of the suit schedule property

    in Sy.No.491 and accordingly, registered sale deed Doc.No.15488/2021

    dated 31.03.2021 was executed in favour of the appellant and possession

    was also delivered.

    9. It is the further case of appellant that after purchase of the property,

    the appellant obtained necessary permissions from different authorities by

    paying requisite fees and developed the land and commenced construction

    of flats/villas by pooling the neighbouring lands and dumped construction

    material in the suit schedule property. In spite of having knowledge about

    purchase of the schedule property by the appellant from respondent Nos.2-

    4 under registered sale deed and taking delivery of possession, the

    respondent No.1 kept silent and when the constructions undertaken by the

    appellant are going on, the respondent No.1 without issuing any notice,

    approached this Court with the present suit. It is contended that the time

    period of three months stipulated in the agreement of sale is not an essence
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    of the contract and that the respondent No.1 cannot seek cancellation of the

    sale deed when the principal agreement itself is in force and binding. The

    appellant is in possession of the property as on the date of filing of the suit

    by virtue of induction into possession by respondent Nos.2-4 on the basis

    of oral partition disregarding the joint possession claimed by the

    respondent No.1. The respondent No.1 has to seek appropriate remedy for

    recovery of possession in his discretion instead of persisting with perpetual

    injunction without there being possession. He therefore sought for

    dismissal of the suit as well as Interlocutory Applications.

    10. Respondent Nos.2-4 did not file any counter, but filed written

    statement in the main suit taking a stand that there had been an oral

    partition and that the suit schedule property was in their exclusive

    possession.

    11. The learned Trial Court marked Exs.P-1 to P-12 on behalf of

    respondent No.1 and Exs.R-1 to R-4 on behalf of the appellant.

    12. Taking into consideration of the submissions made on behalf of both

    parties and basing on the material available on record, the learned Trial

    Court held that there is inter se family dispute between the respondent

    No.1 and respondent Nos.2-4. Though, respondent No.1 had entered into

    an agreement of sale with the appellant along with his mother and siblings
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    i.e. respondent Nos.2-4, due to strained relationship between them, the

    respondent No.1 had not participated in the execution of sale deed of the

    appellant and not received the advance sale consideration under agreement

    of sale along with respondent No.2-4. When the issue between the family

    members was not resolved, the appellant had stepped into their shoes and

    proceeded with the construction at his own risk. Due to the approach of

    the appellant and respondent Nos.2-4 on account of alleged interference,

    the respondent No.1 was put to great inconvenience since identification

    and extent of the land to the share of respondent No.1 itself is in ambiguity

    as the appellant is not in a position to explain the respondent No.1’s left

    over share in the disputed property. The learned Trial Court further held

    that mere filing of petition for rejection of plaint by respondent Nos.2-4, by

    itself is not fatal to the case of the respondent No.1 and it all depends on

    the evidence adduced by either party during the course of trial.

    13. The learned Trial Court therefore held that prima facie case, balance

    of conveyance and irreparable injury lies in favour of the respondent No.1

    and accordingly granted ad interim injunction in favour of respondent

    No.1.

    14. Aggrieved by the said orders, the appellant filed the present

    Appeals.

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    15. Sri P.Sri Raghuram, learned Senior Counsel appearing for the

    appellant contended that the appellant confirmed the agreement of sale

    deed dated 18.09.2019 in respect of land to the extent of Ac.3.25 gts in

    Sy.No.491, Ac.0.09 gts in Sy.No.476 and Ac.0.17 gts in Sy.No.47 and

    Ac.0.20 gts in Sy.No.487 of Velimela Village and paid advance sale

    consideration of Rs.1,60,00,000/-, and balance sale considerable is payable

    subject to compliance of Clause 7 and 8 of the agreement by respondents,

    and though the appellant is always ready and willing to pay the balance

    consideration, and in spite of many demands, since the respondent No.1

    failed to discharge his obligations under the agreement of sale, the non-

    payment of balance sale consideration, is not a default on the part of

    appellant, but it is on the part of respondent No.1.

    16. It is contended that respondent Nos.2-4 have executed the registered

    sale deed dated 31.03.2021 in favour of the appellant in respect of the suit

    schedule property with the knowledge of respondent No.1 and possession

    was also delivered. It is further contended that the suit extent of Ac.3.25

    gts is in exclusive possession of respondent Nos.2-4 while the balance

    extent out of Ac.4.05 gts was in possession of respondent No.1.

    17. It is contended that the appellant invested huge sums for conversion

    of land from agriculture to non-agricultural land and also obtained
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    permission from various authorities, commenced construction and also

    dumped construction material in the land being in its possession, and that

    despite knowledge of such hectic activity, the respondent No.1 remained

    silent and approached the Court with unclean hands by material

    suppression. The respondent Nos.2-4 having alienated the property

    pursuant to the agreement sale, confirmed the possession of the appellant

    18. It is further contended that there is no clear finding in the impugned

    orders with respect to the possession of the property; that in a petition filed

    under Order 39 Rule 1 and 2 of the Code of Civil Procedure, 1908 (CPC),

    it is necessary to record a finding with regard to possession; that it is the

    duty of the respondent No.1 to establish prima facie case with regard to

    possession, and in the absence of such a clear finding, the impugned order

    is unsustainable.

    19. Learned Senior Counsel contended that without there being any

    pleading with regard to collusion, the learned Trial Court recorded an

    erroneous finding that there is collusion between the appellant and

    respondent No.2-4. The learned Trial Court also failed to observe that

    respondent No.1 having committed breach of the contract, cannot seek

    equitable relief of injunction.

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    20. Learned Senior Counsel further contended that in the present suit,

    cancellation of sale deed is not sought under Section 31 of The Special

    Relief Act, 1963 (for short ‘The Act“), but a declaration was sought to

    declare the sale deed is not binding to the extent of his share under Section

    34 of The Act and as such, the sale deed of the appellant is not in complete

    challenge.

    21. It is further contended that the respondent No.1 filed the present suit

    after one and half year of the sale deed executed by respondent No.2-4 in

    favour of the appellant, but by that time, the appellant had constructed over

    three Towers each comprising upto seven floors in the suit schedule

    property.

    22. The learned Senior Counsel placed reliance on the decision in

    Sk.Golam Lalchand Vs. Nandu Lal Shaw alias Nand Lal Keshri alias

    Nandu Lal Bayes and others 1 on the ground that since the suit property

    has many co-owners, the defendant therein could not have acquired right,

    title and interest in the whole of the suit property solely on the basis of the

    sale deed executed by one of the co-sharer. He relied on the decisions of

    the Hon’ble Supreme Court in Bachan Singh Vs. Swaran Singh2,

    1
    2024 SCC OnLine SC 2456
    2
    2000 SCC OnLine P&H 233
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    Ananthula Sudhakar vs. P. Buchi Reddy (Dead) Lrs & Ors 3, Dharma

    Devi Vs. Sardari Devi 4 and judgment of this Court in Ravulkole Vijay

    Kumar Vs. Smt.Gruhalaxmi 5.

    23. On the other hand, Sri A.Venkatesh, learned Senior Counsel

    appearing for respondent No.1/plaintiff while defending the orders passed

    by the learned Trial Court urged that the suit schedule property is an

    undivided joint family property and each co-owner holds undivided

    interest in the joint property. Therefore, in the absence of family partition

    by metes and bounds, no co-owner is entitled to alienate any specific

    portion thereof.

    24. It is further contended that the alleged sale deed dated 31.03.2021

    executed by respondent No.2-4 in the absence of partition and without the

    consent of the respondent No.1 is inoperative in law to the extent of his

    undivided share. Further, the total joint property in Sy.No.491 (Ac.3.25

    guntas) if divided equally among four co-owners yields approximately

    Ac.0-36.25 gts per co-owner and that respondent No.2-4 collectively own

    about Ac.2.29 gts, yet conveyed Ac.3.07 gts, thereby exceeding their

    lawful share. The boundaries in the sale deed cover the entirety of the joint

    property, leaving no identifiable portion corresponding to respondent

    3
    AIR 2008 SC 2033
    4
    2009 SCC OnLine Raj 144
    5
    Judgment dated 19.02.2025 in S.A.No.90/2024
    12

    No.1’s share on ground and therefore, the transaction effectively

    appropriates the whole property to the exclusion of a co-owner.

    25. Leaned Senior Counsel, by placing reliance upon the observation of

    the learned Trial Court to the effect that appellant is not in a position to

    explain the respondent No.1’s left over share, which goes to the root of the

    matter justifying the grant of interim relief in favour of the respondent

    No.1.

    26. It is further contended that the possession of one co-owner is

    deemed to be possession of all and a co-sharer in occupation holds the joint

    estate as a ‘constructive trustee’ for the benefit of other co-owners.

    Consequently, mere claims of exclusive possession cannot constitute an

    ‘ouster’ or establish a title by adverse possession against a non-consenting

    co-owner. It is contended that the alleged exclusive possession by

    respondent Nos.2-4 is legally insufficient to displace the presumption of

    respondent No.1’s joint possession.

    27. Learned Senior Counsel further urged that it is established legal

    position that purchaser of a co-owner’s undivided interest does not acquire

    title to any defined share in the property. It is contended that the alleged

    unregistered agreement of sale dated 18.09.2019 was never marked in

    evidence in the learned Trial Court and became unenforceable due to
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    appellant’s admitted failure to pay the balance sale consideration within

    the stipulated time and respondent No.1 consistently denied receipt of any

    consideration under Ex.R-4. It is contended that an agreement of sale does

    not convey title or create any interest in immovable property and at best,

    gives rise to a right to seek specific performance, and admittedly, no suit

    for specific performance has been instituted, and in the absence of such an

    adjudication, the agreement of sale remains as an untested contractual

    claim and cannot form basis for any equitable or possessory right against a

    co-owner.

    28. Learned Senior Counsel contended that after institution of the suit

    O.S.No.270 of 2022 and subject Interlocutory Applications, the appellant

    proceeded with the construction on the undivided property at its own risk

    knowing fully aware of the subsisting co-ownership and absence of

    partition, thereby the learned Trial Court rightly observed that the issue

    between respondent No.1 and respondent Nos.2-4 was not resolved and the

    appellant proceeded with construction at its own risk, and therefore, the

    orders dated 12.08.2024 are well reasoned orders passed in exercise of

    judicial discretion based on a correct application of the principles of prima

    facie case, balance of convenience and irreparable injury, and the said

    orders does not warrant any interference.

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    29. It is further urged that the appellant’s conduct throughout the

    proceedings has been characterized by concealment of material facts,

    misrepresentation and an attempt to overreach the legal process and that

    the appellant failed to disclose the true status of RERA books and

    appellant’s misleading statements regarding the extent of construction

    demonstrates lack of bona fides, and continuation of injunction causes no

    prejudice to the appellant beyond a temporary deferment of construction,

    subject to the outcome of the suit, and permitting construction would

    irreversibly alter the subject matter. The appellant, having proceeded in

    conscious disregard of admitted co-ownership, cannot convert its own acts

    into a ground for equitable relief, and therefore contended that the Appeals

    are liable to be dismissed.

    30. In support of his contentions, learned Senior Counsel appearing for

    respondent No.1 placed reliance on the decisions in Sk.Golam Lalchand

    (supra), Karbalai Begum Vs. Mohd.Sayeed and another 6, Sidheshwar

    Mukherjee Vs. Bhubneshwar Prasad Narain Singh and others 7, Deoraj

    Vs. State of Maharashtra and others 8, Bachan Singh (supra), Dharma

    Devi (supra), Ravulkole Vijay Kumar (supra).

    6
    (1980) 4 SCC 396
    7
    (1953) 2 SCC 265
    8
    (2004) 4 SCC 697
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    31. Sri Velagapudi Srinivas, learned counsel appearing for the

    respondent Nos.2-4, while reiterating the contentions made on behalf of

    the appellant contended that the execution of agreement of sale is an

    admitted fact by the respondents, and that the execution of registered sale

    deed dated 31.03.2021 by respondent Nos.2-4 in favour of the appellant in

    respect of the suit schedule property and delivery of possession is within

    the knowledge of respondent No.1.

    32. Learned counsel appearing for respondent Nos.2-4 by drawing the

    attention to para-12 of the written statement filed by respondent Nos.2-4 in

    the suit contended that joint family properties were partitioned with mutual

    understanding and therefore the respondent No.1 is not in possession of the

    suit schedule property. It is contended that there are conflicting prayers in

    the I.As. and the impugned orders passed by the learned Trial Court lacks

    clear findings with respect to possession of the property. The learned Trial

    Court, instead of considering the prima facie case, balance of convenience

    in deciding an application under Order 39 Rule 1 and 2 CPC, dealt with the

    issues which are related to trial.

    33. It is further contended that the learned Trial Court failed to consider

    that the plea of collusion raised by the respondent No.1 is not established

    as there was an agreement of sale between the parties and the sale deed
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    was executed in pursuance of agreement of sale and in compliance of the

    same. It is also contended that the learned Trial Court gave a finding that

    respondent No.1 did not receive any consideration under agreement of sale

    and such a finding is based upon no evidence and as respondent No.1 did

    not produce the agreement of sale to establish the same, the same cannot

    be considered.

    34. Learned counsel further contended that suit is filed for injunction

    and declaration that the sale deed is not binding on respondent No.1 is not

    maintainable in the absence of the relief for recovery of possession since

    respondent No.1 is not in possession of the suit schedule property as on the

    date of filing of the suit.

    35. Learned counsel appearing for respondent Nos.2-4 placed reliance

    on the decision in Dharmi Devi (supra) and Ananthula Sudhakar (Supra),

    Ravulkole Vijay Kumar (supra).

    36. Learned counsel appearing for respondent Nos.2-4 therefore

    contends that there are glaring infirmities in the impugned orders passed by

    the learned Trial Court and are liable to be set aside.

    37. We have extensively heard leaned counsel for the parties and have

    gone through the impugned orders and the material placed on record.
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    38. In the present case, it is an admitted fact by the appellant that the

    suit schedule property originally belonged to late Anthi Reddy; that upon

    his demise, his son Venkat Reddy succeeded to the property; that after the

    death of Venkat Reddy intestate, respondent No.1 and respondent Nos.2-4

    succeeded to his estate as legal heirs; and that all of them jointly entered

    into an Agreement of Sale dated 18.09.2019 in favour of the appellant.

    These admitted facts, prima facie, establish the status of respondent No.1

    as one of the co-owners of the property. Thus, the controversy is not

    whether respondent No.1 has any right in the property, but whether

    respondent Nos.2-4 could validly convey an extent of Ac.3.07 guntas

    under the registered sale deed dated 31.03.2021 in a manner affecting the

    undivided interest claimed by respondent No.1. Such an issue involves

    disputed questions of fact and law and necessarily requires adjudication on

    the basis of evidence during trial. Therefore, the learned Trial Court was

    justified in holding that respondent No.1 has made out a prima facie case.

    39. Equally significant is the fact that the appellant cannot claim to be a

    bona fide purchaser without notice. The contentions of the appellant show

    that it entered into the Agreement of Sale dated 18.09.2019 with

    respondent No.1 as well as respondent Nos.2-4. Thus, the appellant had

    full knowledge of the title history, the identity of all the legal heirs and the

    status of respondent No.1 as a co-owner. Having knowingly entered into a
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    transaction with all the co-sharers, the appellant was fully aware that

    respondent No.1 possessed an undivided interest in the property.

    Therefore, the appellant cannot now contend that it acquired rights without

    being aware of respondent No.1’s claim. In that view of the matter, the

    observation of the learned Trial Court that the appellant stepped into the

    shoes of respondent Nos.2-4 with full knowledge of the existing dispute

    cannot be said to be erroneous.

    40. The consistent case of respondent No.1 is that no partition by metes

    and bounds has ever taken place among the legal heirs of late Venkat

    Reddy. Admittedly, no registered partition deeds, decree of partition or

    revenue entries evidencing such partition have been placed before this

    Court. Though the appellant and respondent Nos.2-4 seek to contend that

    there had been an oral partition and that respondent Nos.2-4 were in

    exclusive possession of the suit schedule property, such contention remains

    a disputed question of fact which can be established only upon

    appreciation of oral and documentary evidence during trial. At this

    interlocutory stage, the contention of oral partition cannot be accepted as

    an established fact.

    41. Another observation which weighed with the learned Trial Court is

    that the appellant has not been able to satisfactorily explain as to how the
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    undivided share claimed by respondent No.1 would remain protected after

    execution of the impugned sale deed and the subsequent construction

    undertaken by it. Though the appellant claims to have purchased Ac.3.07

    guntas under the registered sale deed dated 31.03.2021, there is no material

    placed before this Court to indicate the precise location of respondent

    No.1’s remaining share, whether such share stands identified or demarcated

    on the ground, or the manner in which his rights would remain unaffected

    after the development undertaken by the appellant. The learned Trial Court

    specifically observed that the appellant was unable to explain the

    respondent No.1’s remaining share in the disputed property. This Court

    finds no infirmity in such observation at this stage.

    42. The contention of the appellant that substantial investments have

    already been made, necessary statutory permissions have been obtained

    and construction has progressed considerably cannot, by itself, disentitle

    respondent No.1 from seeking interim protection. The appellant admittedly

    undertook such development after entering into the Agreement of Sale

    with all the co-owners and with full knowledge of the competing claims.

    Any development or construction undertaken during the pendency of the

    litigation necessarily remains subject to the result of the suit, and the

    appellant cannot seek to defeat the claim for interim protection merely on

    the ground that substantial investments have already been made.
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    Consequently, the appellant cannot rely upon the construction carried out

    by it to defeat the claim for preservation of the subject property.

    43. If the injunction granted by the learned Trial Court is vacated,

    further construction may continue over the suit schedule property, the

    physical character of the property may undergo irreversible alteration and

    third-party interests may be created, thereby rendering the final

    adjudication more complex and giving rise to third-party complications.

    On the other hand, continuation of the interim order merely preserves the

    property pending adjudication of the rights of the parties and does not

    finally determine any issue. Preservation of the subject matter of the suit is,

    therefore, in the larger interest of justice. Therefore, the balance of

    convenience also lies in favour of maintaining the existing state of affairs.

    44. Similarly, respondent No.1 has also established the element of

    irreparable injury. The dispute pertains to immovable property in which

    respondent No.1 claims an undivided property issue. If construction is

    permitted to continue and third-party rights are created pending disposal of

    the suit, restoration of the property to its original condition may become

    impossible and respondent No.1’s undivided share may become incapable

    of effective enjoyment. Such consequences cannot be adequately

    compensated merely by award of monetary damages. The learned Trial
    21

    Court was, therefore, justified in concluding that refusal of interim

    protection would result in irreparable injury to respondent No.1.

    45. Learned Senior Counsel appearing for the appellant placed reliance

    upon the decision in Sk. Golam Lalchand (supra) to contend that the sale

    deed executed by respondent Nos.2-4 in favour of the appellant is a valid

    transfer. There is no dispute with the proposition that a co-owner is

    competent to transfer his undivided interest. However, the said decision

    also recognizes that such a transfer does not confer exclusive rights over

    any defined portion of an undivided property and that the transferee merely

    steps into the shoes of the transferor, subject to the rights of the remaining

    co-owners. In the present case, respondent No.1 alleges that the sale deed

    covers an extent exceeding the share of respondent Nos.2-4 and that the

    appellant is asserting exclusive rights over the undivided property by

    undertaking construction. These issues are yet to be adjudicated and,

    therefore, the said decision does not advance the appellant’s case at this

    interlocutory stage.

    46. Reliance was also placed on the decision in Bachan Singh (supra)

    to contend that injunction cannot ordinarily be granted against a co-owner

    or his transferee. The said judgment, however, also recognizes that an

    injunction may be granted where the acts are prejudicial to the rights of the
    22

    other co-owners or alter the nature and character of the joint property. In

    the present case, respondent No.1 alleges that respondent Nos.2-4

    conveyed an extent beyond their prima facie share and that the appellant

    has undertaken construction over the undivided property, thereby affecting

    his rights as a co-owner. Whether these allegations are true, are to be

    determined during trial, but at this stage they constitute sufficient grounds

    to preserve the subject property pending adjudication.

    47. The appellant further relied upon Section 44 of the Transfer of

    Property Act, 1882 to contend that the purchaser from co-owners acquires

    a valid right in the property. Section 44 merely recognizes the right of the

    transferee to step into the shoes of the transferor and enjoy such rights as

    the transferor himself possessed. However, the provision does not

    authorize the transferee to claim exclusive ownership over any specified

    portion of an undivided property or to alter the nature and character of the

    joint property to the prejudice of the remaining co-owners before partition.

    The extent of the rights acquired by the appellant and the effect of the sale

    deed executed by respondent Nos.2-4 are matters which necessarily require

    adjudication in the suit.

    48. The contention of the appellant that respondent No.1 is bound by the

    Agreement of Sale dated 18.09.2019 and, therefore, disentitled to seek
    23

    equitable relief also does not persuade this Court at this stage. The

    existence of the Agreement of Sale is not in dispute. Equally, it is not in

    dispute that the registered sale deed was not executed by respondent No.1.

    Whether the agreement continues to subsist, whether the appellant was

    always ready and willing to perform its obligations, whether respondent

    No.1 committed breach of the contractual obligations, and whether the

    appellant is entitled to seek enforcement of the agreement are all questions

    arising out of contractual rights which are yet to be adjudicated in

    appropriate proceedings.

    49. Learned counsel appearing for respondent Nos.2-4 relied upon the

    decision in Anathula Sudhakar (supra) to contend that the suit is not

    maintainable without seeking recovery of possession. The said decision

    merely lays down the principles governing the nature of relief to be

    claimed depending upon the character of the dispute relating to title and

    possession. In the present case, respondent No.1 asserts that the property

    continues to be joint and undivided, that no partition has taken place, and

    consequently, that he continues to be in constructive joint possession as a

    co-owner.

    50. Similarly, the reliance placed on the judgment in Dharmi Devi

    (supra) is a case where the appellate court found that no clear finding
    24

    regarding prima facie possession had been recorded while granting an

    order of status quo. In the present case, the learned Trial Court has

    considered the admitted relationship of co-ownership, the rival claims

    regarding possession, the absence of any established partition, the

    likelihood of alteration of the property, and thereafter recorded findings on

    prima facie case, balance of convenience and irreparable injury.

    51. The principles governing interference with discretionary orders

    granting temporary injunction are equally well settled. In Dalpat Kumar v.

    Prahlad Singh 9, the Hon’ble Supreme Court held that while considering an

    application under Order XXXIX Rules 1 and 2 CPC, the Court is required

    to examine only whether the plaintiff has established a prima facie case,

    whether the balance of convenience lies in his favour, and whether refusal

    of injunction would result in irreparable injury. At this stage, this Court is

    not expected to finally adjudicate the disputed questions of title or record

    conclusive findings on the merits of the controversy. The appellate court

    would interfere when the exercise of judicial discretion by the Trial Court

    is shown to be arbitrary, capricious or contrary to settled principles of law.

    Applying the aforesaid principles to the facts of the present case, this Court

    is of the considered opinion that the learned Trial Court exercised its

    9
    (1992)1 SCC 719
    25

    discretion on relevant considerations and no ground is made out warranting

    interference in the impugned orders.

    52. Therefore, the learned Trial Court, upon appreciation of the material

    placed before it, came to a prima facie conclusion that the three essential

    points are made out for granting the injunction such as prima facie case,

    balance of convenience and irreparable loss lies in favour of the respondent

    No.1. No perversity, illegality or material irregularity is made out

    warranting interference by this Court in exercise of its appellate

    jurisdiction.

    53. Accordingly, both the Civil Miscellaneous Appeals are dismissed,

    confirming the common orders dated 12.08.2024 passed in I.A.Nos.782

    and 783 of 2024 in O.S.No.270 of 2022.

    54. Interim orders granted, if any shall stand vacated. No order as to

    costs.

    _______________________________
    MOUSHUMI BHATTACHARYA, J

    __________________________
    GADI PRAVEEN KUMAR, J
    Date: 06.07.2026
    Vsv



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