Supreme Court Upholds Decree for Specific Performance of Agreement to Sell Joint Hindu Family Property by Karta. Readiness and Willingness of Plaintiff to Perform Contract is a Finding of Fact Binding on Appellate Courts.

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Case Note & Summary

The Supreme Court dismissed the appeal filed by the defendants (legal representatives of the original defendant No.1 and defendant Nos. 2 and 3) against the judgment of the Punjab & Haryana High Court, which had upheld the decree for specific performance of an agreement to sell dated 12.06.1979. The original plaintiffs, Kulwant Rai and Atul Kumar, had sued for specific performance of an agreement entered into with Amar Nath (defendant No.1) for sale of a property in Ambala Cantt for Rs.46,000, with Rs.5,000 paid as earnest money. The plaintiffs alleged that they were ready and willing to perform their part, but Amar Nath sold the property to defendant Nos. 2 and 3 on 27.11.1981, committing breach. The Trial Court dismissed the suit, holding that the property was joint Hindu family property and Amar Nath, as Karta, was not competent to sell without legal necessity. The First Appellate Court reversed, decreeing the suit, holding that the sale to defendant Nos. 2 and 3 was collusive and that the agreement was binding on all coparceners. The High Court dismissed the second appeal. The Supreme Court held that the finding on readiness and willingness of the plaintiffs was a finding of fact, not challenged by cross-objection, and thus binding. On the issue of non-impleadment of some legal representatives in the first appeal, the Court held that since the majority were on record and had common defense, the estate was sufficiently represented, and no conflicting decrees arose. The appeal was dismissed with no order as to costs.

Headnote

A) Specific Relief Act, 1963 - Section 16(c) - Readiness and Willingness - Finding of fact - The finding that the plaintiffs were ready and willing to perform their part of the agreement is a finding of fact based on evidence. Once recorded and not challenged by cross-objection, it becomes binding on the High Court and the Supreme Court unless perverse or contrary to law (Paras 19-23).

B) Hindu Law - Joint Hindu Family Property - Karta's Power to Sell - The Karta of a joint Hindu family can enter into an agreement to sell family property, and such agreement is binding on all coparceners if it is for legal necessity or benefit of the estate. The First Appellate Court held the agreement binding on all coparceners (Paras 14, 16).

C) Civil Procedure Code, 1908 (CPC) - Order 22 Rule 4 - Impleadment of Legal Representatives - Non-impleadment of some legal representatives in appeal does not render the decree invalid if the majority of legal representatives are already on record and the estate is sufficiently represented. The objection must be raised at the earliest opportunity (Paras 27-32).

D) Civil Procedure Code, 1908 (CPC) - Section 96 - Appeal - Conflicting Decrees - No conflicting decrees arise when the First Appellate Court decrees the suit against some legal representatives while the Trial Court's decree dismissing the suit against others remains, because the legal representatives were all on record and had common defense; the non-impleaded ones were not necessary parties (Paras 26-33).

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Issue of Consideration

Whether the High Court was justified in dismissing the second appeal and upholding the decree for specific performance of an agreement to sell joint Hindu family property executed by the Karta, and whether the non-impleadment of some legal representatives in the first appeal resulted in conflicting decrees.

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Final Decision

The Supreme Court dismissed the appeal with no order as to costs, upholding the decree for specific performance granted by the First Appellate Court and confirmed by the High Court.

Law Points

  • Specific performance
  • Readiness and willingness
  • Finding of fact
  • Joint Hindu family property
  • Karta
  • Legal representatives
  • Impleadment
  • Conflicting decrees
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Case Details

2019 LawText (SC) (1) 37

Civil Appeal No.5177 of 2009

2019-01-28

Abhay Manohar Sapre

Vijay A. Mittal & Ors.

Kulwant Rai (Dead) Thr. LRs. & Anr.

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Nature of Litigation

Civil suit for specific performance of an agreement to sell immovable property.

Remedy Sought

Decree for specific performance of the agreement dated 12.06.1979 directing the defendants to execute the sale deed in favour of the plaintiffs.

Filing Reason

The defendant No.1 (Amar Nath) failed to execute the sale deed as per the agreement and instead sold the property to defendant Nos. 2 and 3.

Previous Decisions

Trial Court dismissed the suit on 22.11.1991; First Appellate Court allowed the appeal and decreed the suit on 15.04.1993; High Court dismissed the second appeal on 21.12.2007.

Issues

Whether the finding on readiness and willingness of the plaintiffs is a finding of fact binding on the High Court and Supreme Court? Whether the non-impleadment of some legal representatives of the deceased defendant No.1 in the first appeal resulted in conflicting decrees?

Submissions/Arguments

Appellants argued that the plaintiffs failed to implead all legal representatives of Amar Nath in the first appeal, leading to conflicting decrees. Respondents argued that the finding on readiness and willingness was not challenged and is binding; non-impleadment was not fatal as the estate was sufficiently represented.

Ratio Decidendi

The finding that the plaintiffs were ready and willing to perform their part of the agreement is a finding of fact, and once recorded and not challenged by cross-objection, it is binding on appellate courts. Non-impleadment of some legal representatives in appeal does not invalidate the decree if the majority are on record and the estate is sufficiently represented.

Judgment Excerpts

In the first place, in our considered opinion, when the three Courts below have held against the defendants and in favour of the plaintiffs that the plaintiffs were ready and willing to perform their part of the agreement, this finding was binding on the High Court and also on this Court. A finding on the issue of readiness and willingness is one of the important and relevant findings in a suit for specific performance of an agreement. It is a finding based on facts and once it is recorded, it becomes a finding of fact. it is a trite law that if out of all the legal representatives, majority of them are already on record and they contested the case on merits, it is not necessary to bring other legal representatives on record.

Procedural History

The original plaintiffs filed a civil suit on 19.03.1982 for specific performance. The Trial Court dismissed the suit on 22.11.1991. The plaintiffs appealed to the First Appellate Court, which allowed the appeal and decreed the suit on 15.04.1993. The defendants filed a second appeal before the High Court, which was dismissed on 21.12.2007. The defendants then appealed to the Supreme Court by special leave.

Acts & Sections

  • Specific Relief Act, 1963: Section 16(c)
  • Code of Civil Procedure, 1908: Order 22 Rule 4, Section 96
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Supreme Court Supreme Court Upholds Decree for Specific Performance of Agreement to Sell Joint Hindu Family Property by Karta. Readiness and Willingness of Plaintiff to Perform Contract is a Finding of Fact Binding on Appellate Courts.
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