Case Note & Summary
The appeal arose from a dispute over specific performance of an agreement to sell dated 31.07.2001, where the defendant, a tribal, agreed to sell land to the plaintiff, a non-tribal, for Rs.2,25,000. The plaintiff paid Rs.2,20,000 and took possession in 2003. When the defendant failed to execute the sale deed, the plaintiff filed Special Civil Suit No.11 of 2005 seeking specific performance or refund. The trial court refused specific performance but granted refund of Rs.2,20,000 with 6% interest. The first appellate court affirmed but increased interest to 14% and directed possession handover. The High Court, in second appeal, considered Section 36A of the Maharashtra Land Revenue Code, 1966, and dismissed the appeal, holding that specific performance could not be granted due to restrictions on tribal land transfer. The Supreme Court granted leave. The core legal issue was whether a decree for specific performance could be granted subject to obtaining permission under Section 36A. The appellant argued that Section 36A does not bar an agreement to sell, only conveyance, and that sanction is required at the execution stage, not before. The respondent contended that the agreement violated Section 36A as no prior sanction was obtained, making the transaction void. The Court analyzed Section 36A, noting it restricts transfer by sale, gift, etc., requiring previous sanction, but does not prohibit agreements to sell. It emphasized that conveyance occurs only upon registration under the Registration Act, 2008. The Court held that the plaintiff had complied with the Specific Relief Act, 1963, and that the lower courts erred in denying specific performance. It set aside the High Court's judgment, allowing the appeal and granting a decree for specific performance, subject to obtaining sanction under Section 36A.
Headnote
A) Property Law - Specific Performance - Agreement to Sell - Specific Relief Act, 1963, Sections 10, 16 - Plaintiff sought specific performance of agreement to sell land from tribal defendant - Court held plaintiff complied with conditions under Specific Relief Act, having paid Rs.2,20,000 out of Rs.2,25,000 consideration and performed his part - Trial and appellate courts erred in granting only alternative relief of refund - Held that decree for specific performance can be granted subject to obtaining sanction under Section 36A Maharashtra Land Revenue Code (Paras 1-5). B) Property Law - Tribal Land Transfer - Restrictions on Alienation - Maharashtra Land Revenue Code, 1966, Section 36A - Dispute involved transfer of land from tribal to non-tribal - Section 36A imposes restriction requiring previous sanction of State Government for transfer by sale, gift, exchange, mortgage, lease or otherwise - Court interpreted that restriction applies to conveyance, not to agreement to sell - Held that there is no bar for tribal to enter into agreement to sell and receive advance consideration, and decree for specific performance can be granted subject to obtaining sanction (Paras 3-8). C) Property Law - Conveyance and Registration - Timing of Transfer - Registration Act, 2008, Section 17 - Issue arose regarding when conveyance occurs in tribal land transfer - Court stated conveyance by sale takes place only at time of registration of sale deed under Section 17 Registration Act - Till registration, there is no conveyance - This supports that agreement to sell is permissible before sanction under Section 36A - Held that plaintiff can seek decree for specific performance, with execution contingent on obtaining sanction (Paras 7-8).
Issue of Consideration
Whether a decree for specific performance of land to be transferred from tribal to non-tribal can be granted subject to obtaining permission under Section 36A of Maharashtra Land Revenue Code?
Final Decision
Supreme Court allowed the appeal, set aside the judgment of the High Court, and granted decree for specific performance of agreement to sell subject to obtaining sanction under Section 36A Maharashtra Land Revenue Code
Law Points
- Specific performance of agreement to sell
- Section 36A Maharashtra Land Revenue Code 1966
- Restrictions on transfer of tribal land to non-tribal
- Previous sanction requirement
- No bar to agreement to sell
- Conveyance occurs at registration
- Sections 10 and 16 Specific Relief Act 1963
