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1926 Supreme(SC) 35

Privy Council
Sir John Wallis, Ameer Ali, Carson, Justice Phillimore, JJ.
(Sheik) Nasiruddin and another -Appellant
Versus
Ahmad Husain and others -Resopndent
Privy Council Appeal No. 179 of 1924 and Allahabad Appeal No. 29 of 1922
Decided On : 16-07-1926

Advocates Appeared:
H.S.L. Polak, B.Dube, L. DeGruyther

Findings of fact by an appellate court on contract execution are upheld if fraud was not specifically pleaded. Subsequent purchasers discharging mortgages are entitled to a charge on the property, and non-party family members retain the right to challenge a manager's authority in a joint family sale.

Headnote:(A) Specific Performance of Contract - Sale of Joint Family Property - Execution of contract - Allegations of forgery and fraud - Finding of fact by appellate court - Where allegations of forgery or fraud are not specifically pleaded in the written statement or raised during the cross-examination of witnesses, the finding of the appellate court regarding the actual execution of the contract is unlikely to be reversed.

(B) Joint Family Property - Improvident Sale - Locus standi of subsequent purchasers - Where the sale price is found to be reasonable and handsome, the court may decline to pronounce upon whether subsequent purchasers have the standing to challenge the providence of a prior sale.

(C) Mortgage Discharge - Subsequent purchasers who discharge mortgages upon the property are entitled to stand in the shoes of the mortgagees and hold a charge upon the property for sums rightfully paid towards such discharge.

(D) Manager's Power - A decree for specific performance against the father/manager of a joint family does not preclude other family members from disputing the validity of the sale on the ground that it was made in excess of the manager's powers.

Facts of the case:
A suit was brought for the specific performance of a contract to sell land, based on two documents signed by the managing member and the father of a joint family. Subsequent purchasers of the property contested the suit, alleging that the contract was a forgery or a fraud and constituted an improvident sale. The trial court found the contract to be a forgery and an improvident sale, but the appellate court reversed this decision, holding that the contract was executed and the price was reasonable.

Findings of Court:
The court affirmed the appellate court's findings of fact regarding the execution of the contract and the providence of the bargain. It further determined that the subsequent purchasers, having discharged mortgages on the property, are entitled to a charge for those payments. Additionally, it held that the rights of other family members to challenge the manager's authority must be preserved.

Issues: The main issues were whether the contract was a forgery or fraud, whether the sale was improvident, and whether subsequent purchasers could raise the defense of improvidence.

Ratio Decidendi: The court reasoned that the defendants' failure to specifically plead fraud or forgery in their written statements or during cross-examination weakened their case, justifying the appellate court's finding of execution. Regarding improvidence, since the sale price was found to be fair, the court found no reason to reverse the decision or rule on the locus standi of the subsequent purchasers.

Result: Appeal dismissed.

Legal Category Hierarchy

  • property law
    • specific performance
    • hindu law
      • joint family property
        • manager's power
        • improvident sale
    • mortgages
      • charge
  • practice and procedure
    • pleadings
      • forgery and fraud

Lord Phillimore. -

This is a suit brought for the specific performance of an alleged contract to sell land. The contract is said to be contained in two documents, one stated to have been signed by the son of Defendant No. 3, who was the managing member of the Hindu family which owned the property ; the other, dated the next day, said to have been signed by the father. The suit was brought against the father and against two persons who claimed that they had purchased the property under a subsequent contract and who denied the existence and validity of the first con tract.

The Subordinate Judge found that the contract relied upon by the plaintiff was either a forgery or a fraud, and further, that it was an improvident sale which could not be supported against the other members of the family and for which, therefore, no specific performance could be decreed.

On appeal the High Court at Allaha bad came to a different conclusion. The Chief Justice and Gokul Prasad, J., held that the plaintiff had made out his case for the actual execution of the contract and that it was not an improvident sale. They further doubted whether the subse quent purchasers could raise the question of improvidence. It is from this decree that the present appeal is brought.

The first question is one of fact. There are many difficulties in the plaintiff's way and these were recognized by the Judges in the appellate Court and have been brought before their Lordships in a most forcible argument. But being so recognized by the appellate Court, they did not appear to the learned Judges to be sufficient to displace the case of the plaintiff or to counterbalance the diffi culties in the rival story. Their Lordships do not propose to refer these matters in de tail. Perhaps the most striking observation made by the Judges in the appellate Court is that the case of the defendants involving forgery or fraud was not poin tedly put in the defendants' written statement, and, though perhaps open under the general words of the defence and on the third issue, it was put without detail or colour, was not raised in the cross-examination of the plaintiff or his witnesses, and, as far as can be seen, was only disclosed when defendants' witnesses after an interval of several months, came into the witness box.

This being so their Lordships, on the whole cannot advise His Majesty to reverse the finding of the appellate Court on this point.

Then as to the question of the provi dence of the bargain, it should be ob served in limine, that the only appellants before the Board are the subsequent pur chasers. It is suggested on behalf of the appellants that under their purchase they acquired all the rights of the family and can use, therefore, any defence open to any members of the family. The Judges in the appellate Court thought that this was not so and that the point was one which could not be taken by the present appellants. Their Lordships are not satisfied that the Judges in the appel late Court were right upon this ; but they do not feel it necessary to pronounce upon this point or upon any point which may be said to involve the locus standi of the present appellants in this matter, because upon the whole, they cannot advise His Majesty to reverse the decision of the High Court on this second question of fact.

It is no doubt true that the present appellants, acting, as both Courts have found, with a knowledge of the plaintiff's claim, contracted for a larger sum of purchase money than the plaintiff had agreed for ; but there seems to have been a reason why they should be anxious to get the whip hand of the plaintiff, and if the matter be looked at apart from the question of the higher bid made by the appellants, the sale to the plaintiff would seem to have been at a handsome price.

The decree of the High Court must, therefore, stand.

There are, however, two points which may have been intended to have been provided for in the working out of the preliminary decree which the High Court has




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