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1999 Supreme(SC) 1151

1999(8) Supreme 430
Supreme Court of India
(Jammu & Kashmir High Court)
D.P. Wadhwa & M.B. Shah, JJ.
Manzoor Ahmed Margray etc. -Appellants
versus
Gulam Hassan Aram & Ors. -Respondents
Civil Appeal Nos. 5726-27 of 1999
(@ SLP (C) Nos. 166649-50 of 1998)
With
Civil Appeal Nos. 5728-5729 of 1999
(@ SLP (C) Nos. 18241-42 of 1998)
Decided on 5-10-1999
Counsel for the Parties :
For the Appearing Parties : M.L. Verma, M.L. Bhat, Sr. Advocates, Mushraff Choudhary, Krishan Mahajan, P.H. Parekh, N.N. Bhat, A.H. Laskar, Ms. Sunita Sharma, Ms. G.M. Kawoosa, Ashok Mathur, Advocates.

Headnote:(i) Jammu & Kashmir Specific Relief Act-Section 20-Suit for specific performance of sale agree­ment-Defence that agreement contained de­fault clause for payment of Rs. 10,000 towards damage and hence decree cannot be granted-Not tenable-Default clause was a penalty clause for securing perfor­mance of contract-That would not mean contract was not to be performed-Penalty clause not a bar to decree suit. (Paras 6 to 8)

       (ii) Jammu & Kashmir Specific Relief Act-Section 15-Suit for specific performance of sale agree­ment-Agreement to sell property standing in name of three persons -Defendant No. 1 executing sale agree­ment for himself and minor his and minor brother-Defence that other owners not agreeing to execute sale deed and contract being indivisible specific relief could not be granted-Untenable-In terms of Section 15 Court can direct party in default to perform specifically so much of his party contract as he can perform-No bar for passing decree for specific relief with regard to 1/3 or 2/3 share owned by defendant for which he can execute sale deed-Further, whenever a share in property is sold vendee has right to apply for partition of property and get share demarcated-No bar to grant specific performance of contract to the extent to which is binding between parties. (Paras 10 & 12)

       (iii) Jammu & Kashmir Specific Relief Act-J & K Agrarian Reforms Act, 1972-Section 2(4)-J & K Agrarian Reforms Act, 1976-Sections 2(9) and 2(10)-Agree­ment to sell orchard-Suit for specific performance - De­fence that Agrarian Reforms Act bars sale of land-Not tenable-Or­chard is excluded from operation of Agrarian Reforms Act-Defendant cannot avoid specific performance. (Para 13)

       (iv) Jammu & Kashmir Prohibition on Conservation of Land and Alienation of Orchards Act, 1975-Section 3-Prohibition on con­ver­sion of land and alienation of orchards - Scope of prohibition-Prohibition of orchard is not absolute. (Para 14)

       (v) Jammu & Kashmir Specific Relief Act-J & K prohibition on conser­vation of Land and Alienation of Orchards Act, 1975-Section 3-Agree­ment to sell orchard-Suit for specific performance-Defence that Section 3 of Alienation of Orchard Act prohibits sale of orchard land and, therefore, relief of specific performance cannot be granted-Not tenable-Prohibition contained in Section 3 is not absolute-Permis­sion contemplated in Section 3(1)(a) would arise at the time of execu­tion of sale-Section 3 does not bar maintainability of suit for specific performance-Defendant cannot avoid specific performance.

       Held : It is apparent that prohibition on transfer of orchards is not absolute and the question of obtaining previous permission as contemplated under Section 3(1)(a) would arise at the time of execution of the sale deed on the basis of decree for the specific performance. Section 3 does not bar the maintainability of the suit and permission can be obtained by filing proper applica­tion after the decree is passed. Therefore, it cannot be stated that decree for specific performance is not required to be passed. Further, under Section 3 of the J & K Prohibition on Conservation of Land and Alienation of Orchards Act, 1975, prohibition on transfer is limited. Firstly, the proviso makes it clear that alienation of orchards to the extent of four kanals only in favour of one or more persons for resi­dential purposes will not require any permission. Secondly, for more than four kanals of land, previous permission of the Revenue Minister or such Officer as may be authorised by him in this behalf is required to be obtained. (Para 14)

       

Judgment

Shah, J.-Leave granted.

2. These appeals are filed by Original Defendant No. 1, Mohammad Yousuf Magray, Defendant No. 3 (Manzoor Ahmed Magray, son of Mohammad Yousuf Magray) against the Judgment and decree dated 14th August, 1998 in CIA Nos. 6 & 8 of 1982 passed by the High Court of Jammu and Kash­mir, Srinagar. The dispute pertains to orchard land measuring 17 kanals and 2 marlas, comprised in Khasra No. 191/45, Khewat No. 43, situated at Shankerpora, Tehsil Chadoora, District Srinagar along with trees. It is the case of the plaintiff that Mohammad Yusuf Magray had entered into an agreement dated 14th July, 1971 for sale of suit land in favour of the plaintiff; the price of the land was fixed at Rs. 4,250/- per Kanal and the advance of Rs. 2,000/- was paid by the plaintiff to defendant No. 1; the sale transaction was to be completed within one and a half months. The agreement further stated that de­fendant No. 1 had an authority from his younger brother, defendant No. 2 to sell the land and was also entitled to transfer the same on behalf of his minor son, defendant No. 13. It was stated that the land was purchased by him. His younger brother and son (both minor) were benamidar co-owners. Out of the agreed sale consideration of Rs. 72,500/-, sum of Rs. 60,000/- was to be paid by the plaintiff to defendant No. 1 at the time of execution of the sale deed and delivery of possession. Balance amount was to be paid by the plaintiff at the time of registration of the sale deed. It was contended by the plain­tiff that as there was escalation in the prices of land, defendant No. 1 dishonestly refused to perform his part of the contract and, therefore, notice was issued for performance of the contract. As plaintiff apprehended that defendants were likely to alienate the suit land, plaintiff filed the suit for injunction in the court of IInd Additional Munsif, Srinagar. Thereafter, as the defendant refused to execute the sale deed, plaintiff had filed the present suit No. 22 of 1974 on 24th May, 1974 for specific performance of the contract before the High Court of Jammu and Kashmir.

3. On the day when the suit was filed, defendant No. 2 (brother of defendant No. 1) was major. However, defendant No. 3 was minor and, therefore, court appointed Sh. K.K. Dhar as guardian who appeared on his behalf during the course of trial. In the written statement filed by defendant No. 1, he has admitted the execution of the agreement dated 14th July, 1971. However, he denied that defendant Nos. 2 & 3 were his benamidars. It was contended that entire land did not belong to him but defendant Nos. 2 and 3 were co-owners. He submitted that he had offered to execute the sale deed in favour of the plaintiff qua his share but it could not materialise because plaintiff was unable to pursuade other defendants to similarly execute the sale deed of their respective shares. Lastly, it was contended that plaintiff had no ready money and he was not ready and willing to perform his part of the contract. Additionally, it was contended that as the agreement was not executed by all the co-owners, it could not be specifically en­forced. In his written statement, defendant No. 2 stated that land was purchased jointly and that all the three defendants were full fledged owners of the 1/3rd share each. Regarding the agreement to sale, he feigned ignorance. On behalf of the defendant No. 3, written submis­sion was filed contending that defendant No. 1 had no authority to permanently transfer his share in the land.

4. It has to be stated that at the time of trial, defendants never stepped into witness box. The learned Single Judge after considering the evidence on record partly decreed the suit of the plaintiff for specific performance of the contract so far it related to 1/3rd share of Mohammad Yusuf Magray (defendant No. 1) and dismissed the suit against defendant Nos. 2 & 3. Against the said judgment, Original Plaintiff Ghulam Hassan Aram preferred CIA No. 6 of 198













































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