BASAVEGOWDA Vs. S NARAYANASWAMY

JUDGEMENT

(1.) These four appeals are directed against the common judgment and decree dated September 25, 1974 made by the Civil Judge at Mandya in O.S. Nos. 21 of 1969 and 62 of 1970. Both the suits were by creditors, apparently under Section 53 of the TRANSFER OF PROPERTY ACT, 1882. The creditors have impeached the bona fides of transfer of plaint 'A', 'B' 'C' schedule properties effected by their debtor-Channiah.

(2.) To avoid confusion, we consider it would be convenient to refer to the parties by their array in O.S. No. 21 of 1969. Channiah-defendant-1 is the father of defendants 4 to 7. He was an 'A' Class P.W.D. Contractor and the owner of 'A', 'B' 'C' schedule properties. Defendant-3 is the brother of Channiah, but taken in adoption by his uncle. Defendant-2 is a businessman with whom Channiah used to buy his requirements. 'A' schedule consists of a house at Mandya Town; 'B' schedule consists of six items out of which 5 are agricultural lands and one is a village house and 'C' schedule also consists of 5 items out of which one is again a village house and the rest are agricultural lands.

(3.) On Mach 28, 1966, Channiah sold under Ex. D-1 the 'A' schedule property for Rs. 60,000/- in favour of defendant-2 On July 22, 1966, he sold 'B' schedule properties to defendant-3 for Rs.10,000/- under Ex. D-2. On July 25, 1966, he sold 'C' schedule properties to defendants 4 to 7 for Rs. 5,000/- under Ex. D-20. In 1964 and 65, Channiah continually had taken few loans from plaintiffs. He could not or did not repay those loans. In 1967 and 68, plaintiffs filed suits and obtained decrees to recover their dues. On coming to know of the alienations of 'A' 'B' 'C' schedule properties made by Channiah, plaintiffs instituted O. S. No. 21 of 1969 on March 26, 1969 and another set of creditors instituted O.S. No. 62 of 1970 on October 12, 1970, for a declaration that the alienations in favour of the defendants were intended to defraud the creditors and as such they were not binding on them or other credi'tors.