SUPREME COURT OF INDIA
(From the High Court of Karnataka at Bengaluru)
K.M. JOSEPH, PAMIDIGHANTAM SRI NARASIMHA, JJ.
G.T. Girish – Appellant
Versus
Y. Subba Raju (D) By Lrs And Another – Respondent
Civil Appeal No. 380, 381 of 2022 [@ Special Leave Petition [C] No. 6857, 6858 of 2017]
Decided on : 18-01-2022
| Table of Content |
|---|
| 1. factual background of the property dispute. (Para 3) |
| 2. trial court's decision on specific performance. (Para 4) |
| 3. contention on maintainability of the suit. (Para 6) |
| 4. defendant's arguments against the validity of the agreement. (Para 7) |
| 5. legal framework of the property law pertinent to the case. (Para 8 , 9 , 10 , 11) |
| 6. implications of the lessee and tenant relationship. (Para 27) |
| 7. summary of correspondence leading to the suit. (Para 34) |
| 8. summary of trial court findings. (Para 46) |
| 9. conclusion on the enforceability of the agreement. (Para 112) |
| 10. final decision and order of the court. (Para 113 , 114) |
JUDGMENT :
K.M. JOSEPH, J.
1. Leave granted.
2. The appellants are defendant 1(a), defendant 1(b) and second defendant in a Suit filed for specific performance. Defendant 1(a) and Defendant 1(b) have filed SLP(C)No.6858 of 2017 while defendant No.2 has filed SLP(C)No.6857 of 2017. The Trial Court while refusing specific performance, directed the return of the amount paid by the plaintiff under the contract. By the impugned judgment, the High Court allowed the plaintiffs appeal and directed the appellants to execute the sale deed relating to the plaint schedule property in favour of the plaintiffs (legal representatives of original plaintiff). The parties will be hereinafter referred to by their status in the Trial Court.
A BRIEF OVERVIEW OF FACTS
3. On 04.04.1979, the plaint schedule property, which consisted of a site, was allotted to the first defendant (since deceased), by the Bangalore Development Authority (hereinafter referred to as, ‘the BDA’). Based on the allotment, a lease-cum-sale agreement was entered into between the BDA and the first defendant on 04.04.1979. The first defendant was put in possession on 14.05.1979. On 17.11.1982, the first defendant entered into the agreement with the plaintiff agreeing to execute the sale deed of the site within three months from the date on which, the plaintiff obtained the sale deed from the BDA. On 01.03.1983 and 26.04.1984, the plaintiff issued letters to the first defendant, calling upon her to execute the sale deed. The first defendant issued letter dated 08.05.1984, intimating that the plaintiff was in breach. The agreement itself had lapsed and the advance amount by the plaintiff was forfeited. After issuing Notice on 14.02.1985, the plaintiff instituted the Suit in question, seeking specific performance. The first defendant, after filing Written Statement on 14.08.1986, died pending the Suit, on 18.07.1994. The plaintiff impleaded the husband of the defendant as Defendant-1(a). A sale deed came to be executed by the BDA in favour of the son of defendant no.1 and defendant-1(a), on 19.06.1996. Thereafter, the son executed sale deed of the plaint schedule property in favour of the second defendant. It is further not in dispute that the son of the first defendant and defendant-1(a) was impleaded as defendant-1(b) in the Suit in the year 1997. The second defendant came to be impleaded as second defendant in the Suit in the year 1997. Both the defendant-1(b) and second defendant filed Written Statements.
4. The Trial Court did not decree the suit for specific performance but directed return of Rs.50,000/- with 9 per cent interest. The High Court found that the Suit is maintainable. It was further found that the second defendant is not a bonafide purchaser for value without notice of the Agreement to Sell dated 17.11.1982. It was further found by the High Court that, the alienation made in favour of the second defendant, was hit by the provisions of Section 52 of the Transfer of Property Act, 1882. Answering the point, whether the plaintiff was entitled to the relief of specific performance, it was found that, in the facts, when the entire sale consideration was paid by the plaintiff to the first defendant, nothing more remained to be done by the plaintiff,
The doctrine of lis pendens overrides the rights of bona fide purchasers when they acquire property during pending litigation concerning the same property, as established by case law.
An agreement to sell agricultural land without prior permission from the Collector is void and unenforceable under tenancy laws.
(1) Agreement to sell – Suit for Specific Performance – Decree for specific performance can be passed contingent upon grant of permission.(2) Prohibition on sale of agricultural lands – Embargo creat....
When a question arises in a suit for specific performance whether the agreement on which that suit is based is void on the ground that any acquisition made pursuant thereto would contravene or transg....
An agreement to sell is not void ab initio if it is subject to a condition that the seller will obtain the necessary permission from the authorities to convert the land from new tenure to old tenure ....
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