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Issues:
Recovery of sale price and damages suffered by plaintiff due to defective title transfer, entitlement of plaintiff to recover litigation expenses incurred, application of Section 55 of the Transfer of Property Act, implications of buyer's knowledge of defect in title, validity of implied warranty in cases of fraudulent transactions. Analysis: The judgment involves a dispute where the plaintiff filed a suit against the defendant for recovery of the sale price paid and damages suffered due to a defective title transfer. The defendant mistakenly conveyed a property to the plaintiff, leading to subsequent rectification deeds. The plaintiff, aware of the defendant's lack of title, convinced the defendant to execute the conveyance to cause trouble to a third party. The key issue is whether the plaintiff can claim a refund of the purchase price and damages under these circumstances. Section 55 of the Transfer of Property Act imposes an obligation on the seller to disclose material defects in the property to the buyer. The Act also implies a warranty that the seller has the power to transfer the interest professed. Legal precedents establish that the buyer's knowledge of the defect in the seller's title does not automatically disentitle the buyer from recovering damages. However, the buyer's awareness of the defect may impact the application of implied warranties in certain situations. The judgment cites various cases to illustrate the principle that mere knowledge of the defect in the seller's title does not defeat the buyer's right to recover damages. However, this principle is subject to limitations, especially when the buyer knowingly enters into a transaction with full awareness of the seller's lack of title. In such cases, the implied warranty under Section 55(2) may not be invoked, particularly if the transaction is fraudulent and aims to cause harm to another party. Ultimately, the judgment allows the appeal, setting aside the lower appellate court's decision and restoring the trial court's decree. It concludes that the plaintiff, who knowingly engaged in a transaction with a seller lacking title, cannot recover the expenses incurred in prior litigation. The decision emphasizes the importance of good faith and genuine transactions in property dealings, highlighting the limitations of implied warranties in cases involving fraudulent intentions. This comprehensive analysis of the judgment showcases the intricate legal considerations surrounding defective title transfers, implied warranties, and the impact of buyer's knowledge on the right to recover damages and expenses in property disputes.
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