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2017 Supreme(SC) 1140

A.K.SIKRI, ASHOK BHUSHAN
Dharmabiri Rana – Appellant
Versus
Pramod Kumar Sharma (D) Thr. Lrs. – Respondent


Advocates Appeared:
For the Appellants : Rakesh Khanna, Sr. Adv., Dr. L.S. Chaudhary, Ajay Chaudhary, Ms. Rakhi Tomar, Anurag Tomar, Parambir Singh, Viresh Chaudhary, Ms. Manju Jetley, Advs.
For the Respondents:Respondent-in-person, P.N. Gupta, Ms. Bharti Gupta, Manish Aggarwal, Ms. Runal Rastogi, Advs.

Judgement Key Points

Based on the provided legal document, the key points are as follows:

  1. A decree for specific performance of an agreement to sell can only be granted if the person executing the agreement has the legal right to transfer the property. This principle underscores that the transferor must have valid ownership or authority to transfer the property in question [judgement_subject].

  2. In the case discussed, both the trial court and appellate courts found that the defendant who purportedly entered into the agreement did not establish ownership or authority to sell the property. The defendant denied having any right, title, or interest in the property, and no conclusive evidence was presented to prove that the agreement was executed by someone authorized to transfer the property (!) (!) (!) .

  3. The courts highlighted that the alleged agreement was not proved to be executed by the defendant with the requisite authority. The absence of proof that the defendant had the right to transfer the property rendered the agreement unenforceable and illegal (!) (!) .

  4. Although an unregistered power of attorney was produced, the courts did not consider it sufficient to establish authority, especially since it was unregistered and not relied upon by the courts below. The validity of such a document was not conclusively established, and its consideration was deemed unnecessary in this appeal (!) (!) .

  5. The courts emphasized that for a specific performance order to be issued, the plaintiff must prove that the defendant had the legal capacity and right to transfer the property at the time of the agreement. Since this was not established, the courts rightly dismissed the suit (!) (!) .

  6. Overall, the courts reaffirmed that without proof of ownership or authority to transfer, a decree for specific performance cannot be granted, and the courts below correctly dismissed the suit. The appellate courts' findings that the agreement was not enforceable and that the defendant lacked the right to transfer the property were upheld (!) (!) .

These points collectively highlight the importance of establishing the legal right and authority to transfer property before granting specific performance in contract law.


JUDGMENT

Ashok Bhushan, J.

This Civil Appeal by the plaintiff has been filed against the judgment of High Court of Delhi dated 19.7.2005 dismissing the Regular Second Appeal of the appellant. Brief facts of the case necessary to be noted for deciding this Civil Appeal are:-

(a) The parties shall be referred to as described in the plaint. The plaintiff filed Suit No. 541 of 1990 praying for specific performance of a contract dated 04.01.1987. Plaintiff's case in the plaint was that defendant No. 2 representing himself to be power of attorney holder of defendant No. 1, his brother, entered into an agreement to sell dated 04.01.1987 for a plot of land measuring 150 sq. yds. for a consideration of Rs. 60,000/-. Rs. 5,000/- was paid by the plaintiff towards earnest money to defendant No.2. Plaintiff claims that possession was also handed over. On 07.01.1987, the terms of the agreement to sell were modified by enhancing the consideration from Rs. 60,000/- to Rs. 65,000/-. Plaintiff claimed to approach the defendant No.2 on 25.01.1987 for execution of Sale Deed, which was declined by defendant No.2 on the pretext of his brother having gone abroad and so defendant No.2 refused to accept the b






















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