Andhra Pradesh High Court
Judges : NARASIMHAM, PARTHASARATHI, VAIDYA
Muthabathula Arjayya - Appellant
Versus
Rambala Venkata Surya Gopala Krishanamurthy - Respondent
Decided On : 04-14-71
SPECIFIC PERFORMANCE - AGREEMENT OF SALE - SERVICE INAM LAND - VALIDITY - SECTION 5 OF ACT III OF 1895 - SECTION 15 OF THE INAMS ABOLITION ACT - SECTION 18 OF THE SPECIFIC RELIEF ACT - APPLICABILITY.
Fact of the Case:
The plaintiff-appellant filed a suit for specific performance of an agreement of sale executed by the 2nd respondent, Ist defendant in the suit, on 24/10/1960 after obtaining full consideration for the sale from the plaintiff. The appellant was also put in possession of the suit property. It is agreed between the parties that the 2nd respondent will execute a sale deed within a period of two years. The case of the appellant is that the period of two years was stipulated in the agreement of sale as that was thought to be sufficient period in which the 2nd respondent would obtain a Ryotwari patta under the provisions of Andhra Pradesh (Andhra Area) Inams (Abolition and Conversion into Ryotwari) Act , hereinafter referred to as "the Inams Abolition Act. The 2nd respondent obtained the patta ; but instead of executing a sale deed in favour of the appellant , executed it in favour of the Ist respondent , the 2nd defendant in the suit. The appellant further averred that the Ist respondent purchased the suit property from the 2nd respondent having notice of the agreement of sale in favour of the appellant.
Finding of the Court:
The Court held that the agreement of sale was executed in the circumstances mentioned by the appellant in his plaint. It is in the light of this finding that the arguments advanced before us have to be considered and determined. The Court further held that the word "transfer" in the context of Section 5 will have to be interpreted as the transfer of right , title and interest in the property and therefore cannot take in an agreement of sale. The Court also held that in a case where possession is obtained under an agreement of sale in respect of a service inam land, the provisions of Section 53 -A of the Transfer of Property Act cannot be resorted to by the would-be vendee to maintain his possession. The Court also held that the agreement is to sell the property which would become vested in the inamdar after the grant of the ryotwari patta. The object of the agreement being to well the land after the 2nd respondent becomes entitled to sell it, it cannot be said that the object was unlawful or opposed to public policy. The Court also held that Section 18 of the Specific Relief Act is applicable to the case.
Issues: 1. Whether the inam tenure is abolished and converted into a ryotwari tenure from the date of commencement of the Inams Abolition Act : 2. Whether Section 15 of the Inams Abolition Act repeals Act III of 1895 ; 3. in case it is held that the land in question continued to be an inam land and is governed by the provisions of Act III of 1895 , whether Section 5 of the said Act applies , and 4. Assuming that the suit agreement of sale is not hit by Section 5 of Act III of 1895 , is it otherwise void ab intitio being contrary to public policy and is, therefore, not specifically enforceable.
Ratio Decidendi: 1. The inam tenure is not abolished and converted into a ryotwari tenure and converted into a ryotwari tenure patta. 2. Section 15 of the Inams Abolition Act does not abrogate the provisions of Act III of 1895. 3. Section 5 of Act III of 1895 continues to apply and Section 15 of the Inams Abolition Act does not abrogate the provisions of Act III of 1895. 4. An agreement of sale in respect of a service inam land is not hit by Section 5 of Act III of 1895. 5. An agreement of sale for an unlawful object or a sale for an unlawful considerations void. 6. Section 18 of the Specific Relief Act is applicable to the case.
Final Decision: The Second Appeal is , therefore , allowed with costs throughout. The judgment and decree of the Subordinate Judge of Amalapuram are set aside and those of the District Munsif of Amalapuram are restored.
( 1 ) THE plaintiff-appellant in this Second Appeal filed a suit for specific performance of an agreement of sale executed by the 2nd respondent, Ist defendant in the suit, on 24/10/1960 after obtaining full consideration for the sale from the plaintiff. The appellant was also put in possession of the suit property. It is agreed between the parties that the 2nd respondent will execute a sale deed within a period of two years. The case of the appellant is that the period of two years was stipulated in the agreement of sale as that was thought to be sufficient period in which the 2nd respondent would obtain a Ryotwari patta under the provisions of Andhra Pradesh (Andhra Area) Inams (Abolition and Conversion into Ryotwari) Act , hereinafter referred to as "the Inams Abolition Act. The 2nd respondent obtained the patta ; but instead of executing a sale deed in favour of the appellant , executed it in favour of the Ist respondent , the 2nd defendant in the suit. The appellant further averred that the Ist respondent purchased the suit property from the 2nd respondent having notice of the agreement of sale in favour of the appellant. The 2nd respondent in his written statement stated that the suit agreement of sale is not true, valid and binding on him. he alleged that he appellant had originally obtained a urfructuary lease for a period of five years from his mother for a sum of Rs. 350. 00 and in pursuance of it got into possession of the suit property. He denied that the appellant ever paid him an amount of Rs. 600. 00. He further contended that the plaintiff was aware that the suit land was a service inam and that any alienation of such a land would be invalid. Having come into possession of the suit property in the capacity of a usufactuary lessee, the appellant managed to obtain from him the alleged suit agreement which is only a nominal document. He averred that the Ist defendant is bona fide purchaser for value without notice of the agreement of sale in favour of the appellant. The Ist respondent also filed a separate written statement contending that he is a bona fide purchaser for value without notice of the agreement of sale. He also contended that he was informed by the 2nd respondent that the appellant was his tenant under a usufructuary lease which had expired with the year 1962-63 and that he had given up possession also. He contended that the suit agreement is invalid as it is opposed to Section 5 of the Madras Hereditary Village Offices Act (Madras Act III of 1895) , hereinafter referred to as Act III of 1895.
( 2 ) ON these pleadings, the trial Court framed the necessary issues and decreed the plaintiff suit for specific performance holding that the suit agreement is true and supported by consideration, and that the Ist respondent had notice of the suit agreement before the purchased the property from also held that the suit agreement is not hit by the provisions of Act III of 1895.
( 3 ) AGGRIEVED by this decision of the trial Court, the Ist respondent filed an appeal before the Subordinate Judge, Amalpuram. The learned Subordinate Judge held that the suit agreement is true, valid and supported by consideration , and that the Ist respondent had notice of the said agreement before he purchased the same from the 2nd respondent. He allowed the appeal on the ground that the suit agreement is hit by the provisions of Section 5 of Act III of 1895. Hence the plaintiff-appellant filed this Second Appeal.
( 4 ) WHEN this appeal came up for hearing before our learned brother , Ramachandra Rao, J. he ordered it to be posted along with writ Appeal No. 553/1968 as some of the questions arising in this appeal and also in the above writ appeal were common.
( 5 ) THE questions that arise for consideration in this second appeal are : (1) Whether the inam tenure is abolished and converted into a ryotwari tenure from the date of commencement of the Inams Abolition Act : (2) Whether Section 15 of the Inams Abolition Act rep
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