Andhra Pradesh High Court
Judges : VISWANATHA SASTRY
Kalivarapu Kamayya - Appellant
Versus
Adapaka Appalanaidu - Respondent
Decided On : 03-19-75
SPECIFIC PERFORMANCE - AGREEMENT OF SALE - JOINT FAMILY PROPERTY - ANTECEDENT DEBTS - LEGAL NECESSITY - BENEFIT TO MINORS - ENFORCEABILITY.
Fact of the Case:
Father of minor defendants executed an agreement of sale of joint family property to discharge antecedent debts. Plaintiff sought specific performance of the agreement.
Finding of the Court:
1. Father can alienate joint family property for antecedent debts without legal necessity or benefit to minors. 2. Agreement of sale for discharge of antecedent debts does not bind minor sons unless legal necessity or benefit is established. 3. Specific performance cannot be decreed against minor sons for agreement of sale executed by father without legal necessity or benefit.
Issues: 1. Whether an agreement of sale of joint family properties by the father for discharge of his antecedent debts can be specifically enforced against the minors, even though legal necessity and benefit to the minors has not been established?
Ratio Decidendi: 1. Father's power to alienate joint family property is analogous to that of a manager for an infant heir. 2. Father can alienate joint family property for antecedent debts, but alienation must be for legal necessity or benefit of the estate. 3. Agreement of sale does not create an interest in the property in favor of the promisee. 4. Specific performance is a matter of discretion vested in the Court. 5. In the absence of legal necessity or benefit to the minors, specific performance cannot be decreed against them for an agreement of sale executed by the father.
Final Decision: Second appeal dismissed with costs.
( 1 ) PLAINTIFF Is the appellant in this second appeal. This appeal raises a question of law, viz. whether an agreement of sale of joint family properties by the father for discharge of his antecedent debts can be specifically enforced against the minors, even though legal necessity and benefit to the minors has not been established,
( 2 ) A few facts, which are necessary to appreciate his position are mentioned here under. The first defendant is the father of defendants 2 and 3. who are minors and who were represented by a court-guardian in the suit The first defendant for himseff and as guardian of defendants 2 and 3, 6x2 uted an agreement of sale, ex. A-1 on 3-10-1964 agreeing to sell four acres of joint family land to the plaintiff at a price of. Rs. 1,600/- peracre. Under the agreement che first defendant received Rs. 750/- as advance at the time of execution of the agreement, on the next day the first defendant received another sum of Rs. 250/- which has also been endorsed on the agreement marked as Ex. A-2. The balance was agreed to be utilised for the discharge of a mortgate debt due to the wife of the plaintiff in a sum of about Rs. 1,000/- and Rs. 1,500/-to be paid towards the mortgage debt due to the Land Mortgaed bank of Palakonda. The rest of the amount was agreed to be paid by 2-2-65, which was fixed as due date for the execution of the sale deed. The mortgage deed in favour of the wife of the plaintiff was marked as Ex. A-3 dated 26-2-1964, which was executed for the discharge of two earlier promissory note debts marked as Exs. A-4 and A-5 dated 5-11-1963 and 23-11 -1963 respectively for Rs. 300/- each.
( 3 ) ON 30-1-1965 the plaintiff issued the notice Ex. A-8 to the defendant intimating him that he was ready with the sale consideration and asking for the execution of the sale deed. The first defendant received the said notice and sent a reply Ex. A-10 on 23-2-65. In that reply it was stated by him that the said agreement of sale was executed at the pressure of the plaintiff and the plaintiff has agreed to receive Rs. 1,000/- taken as advance with interest and cancel the agreement of sale. Plaintiff applied to the land Mortgage Bank about the exact amount due by the defendant to the Bank he was Informed by the Bank that the amount due was Rs. 3. 200/- and not Rs. 1,500/ -. The letter of the Bank dated 29-4-1965 is marked as Ex. A-6 on 24-5-S965. The plaintiff again issued a notice Ex. A-11 to the defendants asking them to execute the sale deed. The first defendant again sent a reply Ex. A-12 on 15-7-65 reiterating his prior allegations contained in his first reply Ex. A-10. As the first defendant failed to execute a sale deed and put the plaintiff in possession of the scheduled lands, the plaintiff filed the suit for a specific performance of the agreement of sale and for possession.
( 4 ) THE first defendant filed a written statement stating that he received only Rs. 750/- on the date of the agreement of sale and there was no urgency or pressure for discharging the amount due to the Land mortgage Bank. He borrowed Rs. 4000/- from the Land Mortgage Bank and it was payable in 15 annual instalments. By the date of the agreement he had already paid eight instalments. Subsequent to the said agreement ha has aiso paid another instalment. The family of the defendant is quite solvent and is capable of discharging those debts In due course. The defendant merely borrowed Rs. 750/- from the plaintiff on the dite of the agreement, as Dasara was fast approaching. He promised to repay the same to the plaintiff by Telugu New years Day with interest. Plaintiff demanded a sum of Rs. 250/ or 15 putties of paddy by way of interest; Plaintiff exerted pressure on this defendant and stated that he could lend only, if the defendant executed an agreement of sale and that soon after payment of Rs. 1,000/- he would cancel the agreement and return the same. Out of confidence in the plaintiff he signed the agreement.
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