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1990 Supreme(SC) 363

SUPREME COURT OF INDIA
L.M. SHARMA AND N.M. KASLIWAL, JJ.
BRIJ MOHAN AND OTHERS
Versus
SUGRA BEGUM AND OTHERS
Civil Appeal Nos. 1893 and 1894 of 1989{From the Judgment and Order dated September 24, 1987 of the Andhra Pradesh High Court in C.C.C.A. No. 152/84 and C.C.C.A. No. 150/84}, decided on July 19, 1990
Advocates appeared :
K. Parasaran and Shanti Bhushan, Senior Advocates (A.D.N. Rao and A. Subba Rao, Advocates, with them) for the Appellants; M.C. Bhandare and K. Madhava Reddy, Senior Advocates (Subodh Markandeya, Ms Chitra Markandeya, W.A. Nomani, G.S. Giri Rao, A.K. Raina and D. Prakash Reddy, Advocates, with them) for the Respondents.

Advocates:
A.D.N.Rao, A.K.RAINA, A.SUBBA RAO, CHITRA MARKANDEYA, D.PRAKASH REDDY, G.S.GIRI RAO, K.Madhava Reddy, K.PARASARAN ATTORNEY, M.C.BHANDARE, SUBODH MARKANDAYA, W.A.NAMANI

Headnote:

Urban Land Ceiling Act – Civil suit – Suit for specific performance of oral contract for sale of a building – Tenant - Whether plaintiffs have been able to prove that there was a concluded oral agreement between parties in order to seek decree for specific performance of contract in their favour - According to case as set up in plaint plaintiff 1 learnt some time in first week of April 1979 that defendant 1 (since deceased) was contemplating sale of property in question and that Shri Arif Ali, her advocate and income tax practitioner was assisting her in finding a purchaser - Shri Arif Ali had mentioned above intention of defendant 1 to Shri Ibrahim Moosa of M/s J. Moosa & Company who was known to plaintiff 1 - On learning from Shri Ibrahim Moosa plaintiffs 1 and 2 along with Shri Ibrahim met Shri Arif Ali. Shri Arif Ali gave details of property and also showed plans of property to them - Held, It is an admitted case of the plaintiffs themselves that negotiations failed and defendant 1 resiled to sign any of the receipts nor accepted any earnest/advance money nor any agreement was even typed on the stamp papers nor signed by defendant 1 - is therefore not possible to accept the contention of the appellant that oral agreement was ineffective in law because there is no execution of any formal written document - As regards other point, it is true that there is no specific agreement with regard to mode of payment but this does not necessarily make agreement ineffective - Further in the above case part of agreement had been performed i.e. partners having 98 shares had already executed sale deeds and this Court had believed oral agreement for sale of 137 shares - Thus above case is totally distinguishable and renders no assistance to appellants in case before us - Appeals dismissed.

JUDGEMENT

KASLIWAL, J.- The plaintiffs by special leave have filed these appeals against the judgment of Andhra Pradesh High Court, Hyderabad, dated September 24, 1987.

2. The four plaintiffs who are brothers filed the present suit on July 17, 1979 for specific performance of oral contract for sale of a building known as "Roshan Manzil" located in an area of 4165 sq. yards in Saifabad, Hyderabad M/s Gopi Hotel was the tenant in the premises. According to the case as set up in the plaint plaintiff 1 Brij Mohan learnt some time in the first week of April 1979 that defendant 1 Smt. Mahboobunnisa Begum (since deceased) was contemplating the sale of the property in question and that Shri Arif Ali, her advocate and income tax practitioner was assisting her in finding a purchaser. Shri Arif Ali had mentioned the above intention of defendant 1 to Shri Ibrahim Moosa of M/s J. Moosa & Company who was known to plaintiff 1. On learning from Shri Ibrahim Moosa plaintiffs 1 and 2, namely, Brij Mohan and Jagmohan along with Shri Ibrahim met Shri Arif Ali. Shri Arif Ali gave the details of the property and also showed the plans of the property to them. Shri Arif Ali stated that the defendant was expecting the price of Rs 10,00,000. Plaintiffs 1 and 2 offered Rs 7,00,000. Shri Arif stated that he will ascertain from the defendant her reaction to the said offer. A fortnight later i.e. in the third week of April 1979 plaintiffs 1 and 2 along with Shri Ibrahim Moosa and Shri Arif Ali went to the residence of the defendant, who was insisting on the payment of Rs 10,00,000 as the sale price. At the said meeting the husband of the defendant was also present. Plaintiffs 1 and 2 increased their price from Rs 7,00,000 to Rs 8,00,000. Defendant 1 said that she would think over and inform plaintiffs 1 and 2 through Shri Arif Ali. On May 3, 1979 plaintiffs 1 and 2 along with Shri Ibrahim Moosa met Shri Arif Ali. Arif Ali stated that the defendant was agreeable to sell the property to plaintiffs only for Rs 10,00,000 and not a pie less. Thereupon the plaintiffs agreed to pay Rs 10,00,000 as the sale price. Shri Arif Ali after getting the confirmation of acceptance of the said offer of plaintiffs 1 and 2 from defendant 1 said that plaintiffs 1 and 2 should meet the defendants on May 6, 1979 and that she would in the meanwhile purchase the stamp papers for making the formal agreement for sale incorporating the oral agreement arrived at.

3. It was further alleged in the plaint that on May 6, 1979 plaintiffs 1 and 2 along with Shri Ibrahim Moosa met defendent 1 and her husband in the presence of the said Shri Arif Ali. In the said meeting the amount of earnest money to be paid, time for registration of the sale deed etc. were decided. The said Shri Arif Ali prepared in his own handwriting a draft of the receipt incorporating the terms of the orally concluded agreement for sale. The draft was scrutinised by the husband of defendant 1 who suggested some alterations. The said Shri Arif Ali thereupon prepared final draft of the receipt in his own hand. He handed over the first and the final draft to plaintiff 1 to get the latter typed and duly stamped. He also delivered the stamp papers to plaintiff 1 for being used for typing of the formal agreement of sale.

4. It was further stated in the plaint that during the said meeting held on May 6, 1979, plaintiffs 1 and 2 were permitted to proceed with the publication of the notices in the newspapers. Accordingly, the contents of the publication were got prepared by them bona fidely anticipating that defendant 1 will execute the receipt after receiving the stipulated earnest money in the course of the day, i.e. May 6, 1979. However, for reasons known to herself defendant 1 deliberately and wantonly evaded meeting plaintiffs 1 and 2 to receive the advance and execute the receipt.

5. It was further stated in the plaint that after the public notice was published in the newspapers taking advantage of her wanton and deliberate act

























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