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2024 Supreme(SC) 692

SUPREME COURT OF INDIA
HRISHIKESH ROY, PRASHANT KUMAR MISHRA, JJ.
Krishnaveni – Appellant
Versus
M.A. Shagul Hameed & Anr. – Respondents
Civil Appeal No. 2591 of 2024 (Arising out of SLP(C) No.23655 of 2019)
Decided on : 15-02-2024

Advocates:
Advocate Appeared:
For the Appellant : Mr. B. Balaji, AOR, Mr. S. Arun Prakash, Adv.
For the Respondent: Mr. G.Sivabalamurugan, AOR, Mr. K S Nagakumaran, Adv., Mr. D Mohan, Adv., Mr. Selvaraj Mahendran, Adv., Mr. C Adhikesavan, Adv., Mr. P V Harikrishnan, Adv., Mr. S B Kamalanathan, Adv.

A contract entered into by a minor is void ab initio under Section 11 of the Indian Contract Act, 1872, and cannot be enforced unless the minor is represented by a guardian.

Headnote:

[MINOR CONTRACT] - [Specific Performance of Contract] - [Indian Contract Act, 1872 - Section 11] - [The court discussed the provisions of Section 11 of the Indian Contract Act, 1872, which states that a minor is not competent to enter into a contract, rendering such agreements void ab initio. The court emphasized that the appellant, being a minor at the time of the sale agreement, could not enforce the contract, and the reliance on previous judgments that suggested otherwise was misplaced. The interpretation of these legal provisions directly influenced the court's decision to dismiss the appeal.]

Fact of the Case:

The appellant, a minor, entered into a sale agreement to purchase immovable property. After the sellers refused to perform their part of the agreement, the appellant filed a suit for specific performance. The defendants contended that the agreement was void due to the appellant's minority at the time of execution.

Finding of the Court:

The court found that the sale agreement was void as the appellant was a minor and not represented by a guardian. The High Court upheld this finding, referencing established legal precedents that support the notion that contracts with minors are void.

Issues: Whether a minor can enforce a contract entered into by them and whether the agreement in question was void under the Indian Contract Act, 1872.

Ratio Decidendi: The court reiterated that under Section 11 of the Indian Contract Act, 1872, a contract with a minor is void ab initio. The court also highlighted that the minor must be represented by a guardian for any contract to be valid, and previous rulings suggesting otherwise were no longer applicable.

Final Decision: The appeal was dismissed, affirming the High Court's decision that the sale agreement was void due to the appellant's minority.

ORDER :

Leave granted.

2. Heard Mr. B. Balaji, learned counsel appearing for the appellant. Also heard Mr. G. Sivabalamurugan, learned counsel appearing for the respondents.

3. The appellant, was a minor (16+ years) at the time when the sale agreement dated 03.09.2007 (Annexure P-1) was executed with the respondents. Under the said agreement, the minor had agreed to purchase some immovable property. The sellers were given advance for the purchase of the property, as can be seen from the recital in the sale agreement.

4. The O.S. No. 924 of 2010 was filed by appellant- Krishnaveni (minor) through her mother (Gowri), seeking a direction to the defendants to perform their part of the contractual obligation, in terms of the sale agreement dated 03.09.2007. The defendants in the suit, who were the sellers in the sale agreement dated 03.09.2007, filed application under Order XII Rule 6 of the Civil Procedure Code based on admission of PW1 Gowri (appellant’s mother) that the appellant was a minor at the time of the sale agreement dated 03.09.2007 and therefore, no claim for specific performance can lie on the basis of such void sale agreement.

5. However, the learned II Additional Subordinate Judge at Tiruchirapalli, Tamil Nadu in his order dated 28.04.2017 (Annexure P-7) opined that the objections of the defendants can be considered during the trial of the suit and the same need not be considered as a preliminary issue and accordingly, the application filed by the defendants under Order XII Rule 6 of CPC, came to be dismissed.

6. The defendants then moved the Madurai Bench of the High Court of Madras by filing a Revision Petition. The learned Judge in the impugned order dated 02.01.2019 allowed the Revision Petition with the following order;

    “3. The simple point projected by the Revision Petitioners is that even as per the admission made by P.W.1, when the suit agreement dated 03.09.2017 (sic 03.09.2007) was entered into, the plaintiff Krishnaveni was a minor. A minor is not competent to enter into an agreement. It is void as per Section 11 of the Indian Contract Act, 1872. Therefore, the suit founded on the strength of such a void agreement is liable to be dismissed. The Court below declined to accept the said stand on the ground that a minor can be a beneficiary under an agreement.

    4. The learned counsel appearing for the Respondent placed reliance on the decision of the Delhi High Court rendered on 15.09.2017 in RFA No. 788 of 2017 & CM Nos.33659- 61/2017(Bhupinder Kaur & Ors vs. Davindar Kaur & Ors). He also contended that grant of relief in terms of Order 12 Rule 6 of CPC is rather discretionary. He relied on the decision of the Hon’ble Supreme Court reported in (2015) 8 SCC 428 (Raveesh Chand Jain vs. Raj Rani Jain) and the one rendered on 18.12.2003 in Appeal (Civil) No. 1036 of 2000 & Appeal (Civil) No. 4770 of 2001 (K.Balakrishnan vs. K. Kamalam & Ors.)

    5. I am of the view that as rightly contended by the learned counsel appearing for the revision petitioners, the case on hand is squarely covered by the decision of the Hon’ble Supreme Court reported in (2015) 5 SCC 622 (Mathai Mathai vs. Joseph Mary Alias Mary Kutty Joseph and Ors. Following a privy council decision, the Hon’ble Supreme Court held in categorical terms that a contract to which a minor is a party is void ab initio. In this case, admittedly, the plaintiff Krishnaveni was not represented by her natural guardian. A copy of the said agreement has been enclosed in the typed set of papers. Even the stamp documents have been purchased only in the name of Krishnaveni. Her mother Gowri who was a special power agent for filing the suit had deposed that Krishnaveni was a minor on the date when the suit agreement was entered into.

    6. Therefore, this Court has to necessarily hold that such a suit agreement is void. Such a void agreement cannot be enforced. In this view of the matter, the order impugned in this Civil Revision Petition is set aside. The Civil Revision Petition stands

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