Andhra Pradesh High Court
Kommineni Veeramma - Appellant
Versus
Kommineni Appayya - Respondent
Decided On : 10-16-55
CONTRACT - SPECIFIC PERFORMANCE - STRANGER TO CONTRACT - RIGHT TO SUE - EXCEPTIONS - TRUST - FAMILY ARRANGEMENT - BENEFIT TO THIRD PARTY - ENFORCEABILITY.
Fact of the Case:
The plaintiff, Veeramma, was the daughter of Nagayya, who gifted his house and site to the defendant, K. Appayya, under Exhibit A-1. Differences arose between the plaintiff and the defendant, and the defendant filed a criminal complaint against the plaintiff's husband and others. The parties compounded the case under Exhibit A-3, which provided that the defendant should execute a dakhal deed conveying the house and site in favor of the plaintiff, who should thereafter maintain Nagayya in the house for his life. The plaintiff took charge of her father and maintained him till his death pendente lite. The defendant defaulted to execute a dakhal deed in her favor as agreed by him in Exhibit A-3. The plaintiff, therefore, sued for specific performance of the arrangement.
Finding of the Court:
The Court held that the plaintiff, being a stranger to the arrangement evidenced by Exhibit A-3, could not sue to enforce its terms. However, the Court also held that the plaintiff was entitled to specific performance as a beneficiary under the compromise arrangement and as one who had discharged her obligations thereunder.
Issues: 1. Whether a stranger to a contract can sue to enforce its terms? 2. Whether the plaintiff was a beneficiary under the compromise arrangement evidenced by Exhibit A-3? 3. Whether the plaintiff had discharged her obligations under the compromise arrangement?
Ratio Decidendi: 1. A stranger to a contract cannot sue to enforce its terms unless the case comes within one of the recognized exceptions, such as where the contract creates a trust in favor of a stranger or where the contract is a family arrangement intended to secure a benefit to a third party as a beneficiary. 2. The plaintiff was a beneficiary under the compromise arrangement evidenced by Exhibit A-3 because the arrangement was intended to secure a benefit to her as a member of the family. 3. The plaintiff had discharged her obligations under the compromise arrangement by maintaining Nagayya for the rest of his life.
Final Decision: The Court allowed the second appeal and restored the decree of the District Munsif, directing that the parties bear their own costs throughout.
( 2 ) IT appears to have been conceded by the advocate for the plaintiffin the lower appellate Court, in deference to authority that the plaintiff being a stranger to the arrangement evidenced by Exhibit A-3 could not sue to enforce its terms. It was argued before me that this admission was due to a misapprehension of the law. On question of fact parties are bound by the admissions of their advocates, whether made in the course of the trial or in the appellate Court, because an advocate s general powers in the conduct of a suit include the abandonment of aa issue of fact, which in his discretion, he thinks it inadvisable to press. Venkata v. Bhashyakarlu, (1902) L. R. 29 I. A. 56: I. L. R. 25 Mad. 367 (P. C. ). and Ulichi v. Nallamalli, A. I. R 1928 Mad. 900. Such admissions cannot be resiled from merely on the ground that the party or his advocate was not posted with all the facts at the time. Admissions of counsel on a point of law are, however, not binding on the parties as an estoppel and the Court is free to give effect to its view of the law irrespective of such admissions. Tagore v. Tagore, (1872) 9 Beng. L. R. 377, 401 (P. C. ). Beni Prasad v. Dhudnath, (1899) L. R. 26 I. A. 216 : I. L. R. 27 Cal. 156, 162-163. Societe Banqut etc. , v. Girdhari, A. I. R. 1940 P. C. 90. Muthusami v
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.