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1951 Supreme(Pat) 128

PATNA HIGH COURT
B.P.Jamuar and Rai JJ.
Karunamoy Banerji
Versus
Kumar Pashupati Nath Malia
Appeal From Appellate Decree No. 1390 of 1948 ;
Decided On : NOVEMBER 22, 1951

The manager of an estate under the Court of Wards does not have the authority to grant a lease without the sanction of the Member of the Board of Revenue, as required by Sections 18 and 39 of the Court of Wards Act, 1879.

Headnote:

SPECIFIC PERFORMANCE - LEASE AGREEMENT - COURT OF WARDS ACT, 1879 (BENGAL ACT IX OF 1879) - SECTIONS 18, 39 - SPECIFIC RELIEF ACT, 1877 - SECTIONS 27-A, 3 - INDIAN CONTRACT ACT, 1872 - SECTION 2(H) - MANAGER, COURT OF WARDS - AUTHORITY TO GRANT LEASE - WAIVER OF RIGHTS BY BOARD OF REVENUE - ENFORCEABILITY OF AGREEMENT.

Fact of the Case:

Plaintiffs sought specific performance of an agreement for a lease of coal mining rights from defendants, who were the owners of the estate where the coal lands were located. The agreement was entered into by the manager of the estate under the Court of Wards, and the plaintiffs claimed that the manager had the authority to enter into such an agreement. The defendants denied the validity of the agreement, arguing that the manager did not have the authority to grant a lease without the sanction of the Member of the Board of Revenue.

Finding of the Court:

The court held that the agreement was not enforceable because it was not sanctioned by the Member of the Board of Revenue, as required by Sections 18 and 39 of the Court of Wards Act, 1879. The court also held that the letter from the Secretary of the Board of Revenue to the Commissioner of the Burdwan Division, which stated that the Board had waived its right to sanction the lease, did not constitute a waiver of the Board's rights under the Act. The court further held that the manager of the estate did not have the authority to enter into an agreement to lease coal lands for mining purposes, and that the letter from the manager to the plaintiffs, which referred to the draft lease, did not create a valid agreement that could be enforced in the present action.

Issues: 1. Whether the manager of the estate under the Court of Wards had the authority to grant a lease without the sanction of the Member of the Board of Revenue. 2. Whether the letter from the Secretary of the Board of Revenue to the Commissioner of the Burdwan Division constituted a waiver of the Board's rights under the Court of Wards Act, 1879. 3. Whether the manager of the estate had the authority to enter into an agreement to lease coal lands for mining purposes.

Ratio Decidendi: 1. The court held that the manager of the estate under the Court of Wards did not have the authority to grant a lease without the sanction of the Member of the Board of Revenue, as required by Sections 18 and 39 of the Court of Wards Act, 1879. The court interpreted these sections to mean that the manager could only grant leases under the orders of the Court. 2. The court held that the letter from the Secretary of the Board of Revenue to the Commissioner of the Burdwan Division did not constitute a waiver of the Board's rights under the Court of Wards Act, 1879. The court interpreted the letter to mean that the Board had only waived its right to approve the lease, but that it had not waived its right to sanction the lease. 3. The court held that the manager of the estate did not have the authority to enter into an agreement to lease coal lands for mining purposes. The court interpreted Section 2(h) of the Indian Contract Act, 1872 to mean that an agreement enforceable by law is a contract, and that the agreement in the present case was not enforceable because it was not sanctioned by the Member of the Board of Revenue.

Final Decision: The court dismissed the plaintiffs' appeal and upheld the judgment and decree of the lower court.

Judgment

Rai, J.

1. The plaintiffs have come up in second appeal before this Court against the judgment and the decree of the Additional District Judge of Purulia upholding the judgment and the decree of the Subordinate Judge of Dhanbad.

2. The plaintiffs filed the suit out of which the present appeal arises for specific performance of an agreement directing the defendants to execute a lease of coal mining rights described in the schedule attached to the plaint on terms and conditions specified in a draft lease. The case of the plaintiffs was that the estate of defendants 1 and 2, namely, Siarsol Raj Estate, was under the supervision of the Court of Wards. In 1943 defendant No. 1, Kumar Pashupatinath Malia, was working as an Honorary Manager of the estate under the Court of Wards. In February 1943 the plaintiffs addressed a letter to the Manager Court of Wards for Siarsol Raj Estate, proposing for grant of lease of 41 bighas of coal lands in Mauza Bhaljhuria. After some correspondence defendant No. 1, in his capacity as the Manager of the Estate under the Court of Wards, agreed to settle the lands to the plaintiffs. In accordance with the settlement, the plaintiffs sent a cheque for Rs. 1,025 in full payment of the salami for grant of the lease. A draft of the indenture of the proposed lease was prepared. The proposal for the settlement of the land in question was referred to for approval of the member of the Board of Revenue but as the estate was released on the 14th of August 1944, the Secretary, Board of Revenue, Bengal, wrote to the Commissioner of the Burdwan Division that as the estate had been ordered to be released with effect from the 14th of August 1944, sanction of the Board to the proposal was not necessary. The case of the plaintiffs further was that after the release of the estate in favour of defendants 1 and 2 the latter agreed, through their Manager in charge of the coal and minerals, who informed them through a letter, dated the 2nd of September 1944, that the draft lease which had already been approved could be engrossed on proper stamp paper and asked the plaintiffs to verify the draft lease once more. But in spite of this agreement, as the defendants refused to execute and register the lease, it became necessary for the plaintiffs to institute the present suit.

3. The suit was contested by defendants 1 and 2 who pleaded that there was no valid agreement entered into between the plaintiffs and the defendants which could be enforced in the present action. They further pleaded that they had not agreed to lease the properties in dispute to the plaintiffs nor had they authorised any of their manager to ratify or agree to any agreement to lease. They raised several other pleas which it is not necessary to mention here.

4. Both the Courts below have held that there was no valid agreement in favour of the plaintiffs which could be enforced in the present action and have consequently dismissed the suit.

5. Mr. De for the plaintiffs contended before us that it is well established from evidence on record that defendant No. 1, in his capacity as the Manager of the Court of Wards of the Siarsol Estate had agreed to lease the properties in dispute on the terms incorporated in the draft lease and his Manager having subsequently accepted those terms alter the release of the estate, a valuable right had accrued in favour of his clients Which could, be enforced in the present action. He further contended that even without the sanction of the Member of the Board of Revenue, defendant No. 1 in his capacity as the Manager, Court of Wards, could have entered into an agreement to lease. According to him, it was only when the document of lease was to be executed that it would have been necessary to procure sanction of the Member of the Board of Revenue. In this connection he referred to the provisions of Sections 18 and 39 of the Court of Wards Act 1879, (Bengal Act IX of 1879). In my opinion, there is no force in the contention o




















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