MD MUSTAFA V. HAJI MD ISA, AIR 1987 PAT 5
FACTS
- A, was the owner of a building that comprised seven smaller more or less identical portions. Each one of them was occupied by a different tenant, one of whom was B.
- According to B, A had contracted to sell him his portion of the property in lieu of the loan that he had advanced to A.
- However, instead of selling it to B, A sold the entire building to C and directed all the tenants, including B, to start paying rent to C.
- B claimed that as he was in actual occupation of his portion, C as a prospective purchaser was bound to make inquiries from him about his rights and a failure to do so would result in the imputation of constructive notice on him.
HELD
- When C had no prior knowledge about the said agreement, C cannot be bound by it and then plaintiff (A) cannot enforce his agreement as against them, even if his agreement would have been a valid and genuine document, because a bona fide purchaser for value without notice cannot be bound by any prior agreement between his vendor and the plaintiff.
- C, as a bona fide purchaser, after having made inquiries from the owner, was not duty bound to inquire from each and every tenant in occupation of a fraction of the property.
- Hence, no constructive notice can be imputed on him of his rights.