K R LOGANATHAN Vs. UNION OF INDIA

JUDGEMENT

(1.) THESE three appeals arise out of the common judgment of the Court of the Subordinate Judge, Coimbatore, in O.S. Nos. 839 of 1974, 836 of 1974 and 52 of 1975, respectively. The plaintiffs are the appellants The plaintiffs in these three suits, who are brothers have filed these three separate but identical suits against the defendants, who are the same in all three suits, for a declaration that the suit property, which is also the same in all the three suits, viz., an undivided one-third share in the premises bearing door No. 26/285, Big Bazaar Street, Coimbatore, is not liable for attachment or sale for recovery of arrears of income-tax of K. R. Radhakrishnan and for a consequential injunction. The averments in these plaints are as followsThe three plaintiffs in these three suits and K. R. Radhakrishnan are the sons of late K. Ramakrishna Pillai.

(2.) THE said Ramakrishna Pillai was carrying on business in jewellery at Coimbatore, in door No. 261/285 in the name and style of "K. R. & Sons". Under a family arrangement, the said K. Ramakrishna Pillai settled the entire plaint scheduled property in favour of his son, K. R. Radhakrishnan, under a registered document dated March 27, 1957, on the distinct understanding that the business of K. R. & Sons has to be carried on in this building and that in no event or circumstance should the building be alienated to any third party. In the event of sale, it shall be sold only to member or members of the family carrying on the jewellery business in the suit premises. THE settlee, K. R. Radhakrishnan, left the family in furtherance of the family arrangement and started his own business in the name of "K. R. Radha and Company" in a different building in Raja Street, Coimbatore, while the settlor, Ramakrishna, Pillai, continued to occupy the scheduled building and carry on the business of K. R. & Sons on payment of rent to the settlee, K. R. Radhakrishnan.

(3.) THE plaintiffs are owners of a number of buildings in Coimbatore town. THE building has been sold in January, 1969, at the time when the income-tax proceedings and the assessments for years 1964-1965 to 1968-1969 in the case of K. R. Radhakrishnan were at various stages of finalisation. In fact, the assessments for 1964-65 and 1965-66 were completed within a few months thereafter and in respect of these assessments, K. R. Radhakrishnan was found guilty by the Chief Magistrate under sections 193 and 196, IPC. THE motive with which the property has been sold is to defraud the Revenue.