PATNA HIGH COURT
Kanhaiya Singh and Ramratna Singh JJ.
Nathuni Mishra
Versus
Mahesh Misra
Appeal From Appellate Decree No. 1135 of 1958 ;
Decided On : NOVEMBER 05, 1962
SPECIFIC PERFORMANCE OF CONTRACT - CONTRACT OF SALE - HINDU MINORITY AND GUARDIANSHIP ACT, 1956, SEC. 11 - SALE DEED EXECUTED AFTER ACT - APPLICABILITY - SALE BY KARTA OF JOINT FAMILY - LEGAL NECESSITY - BENEFIT TO MINORS - NOTICE OF PRIOR CONTRACT.
Fact of the Case:
Plaintiff had a contract of sale for 9 kathas of land for Rs. 500 with defendant No. 1, who later executed a sale deed in favor of defendants second party for Rs. 400. Plaintiff filed a suit for specific performance of the contract, claiming that the sale deed was ante-dated and that defendants second party had notice of the prior contract.
Finding of the Court:
Both the trial court and the lower appellate court held that the contract of sale in favor of the plaintiff was genuine and for legal necessity, while the sale deed in favor of defendants second party was not genuine and was ante-dated. They also held that defendants second party were not bona fide purchasers and had notice of the contract of sale.
Issues: 1. Whether the contract of sale was binding on the minor defendants first party, considering that it was not for their benefit. 2. Whether the sale deed could be executed in favor of the plaintiff in view of the subsequent change in the law, specifically the Hindu Minority and Guardianship Act, 1956, Sec. 11. 3. Whether the sale in favor of the appellants was protected because they had paid consideration and had no knowledge of the contract for sale in favor of the plaintiff.
Ratio Decidendi: 1. The contention that the contract of sale was not binding on the minor defendants first party because it was not for their benefit was rejected, as the existence of legal necessity was sufficient to bind the minors. 2. Sec. 11 of the Hindu Minority and Guardianship Act, 1956, which prohibits a de facto guardian from disposing of a Hindu minor's property, does not apply to the disposal of the undivided interest of a minor in a joint Hindu family governed by the Mitakshara school of law. 3. The findings of the lower courts that the sale deed in favor of defendants second party was ante-dated, that no consideration was paid, and that they had notice of the prior contract of sale, were upheld.
Final Decision: The appeal was dismissed with costs.
Kanhaiya Singh, J.
1. This Second Appeal By the defendants arises out of a suit for specific performance of contract. In this case there is a competition between a contract of sale and a completed sale deed. The plaintiff had a contract of sale dated the 1st Chait, 1352 Jhasli, corresponding to the 9th March, 1955, executed in his favour by defendant No. 1. Defendant No. 1 had contracted to sell to the plaintiff 9 kathas of land for Rs. 500, and this contract of sale was entered into to raise money to meet the expenses of marriage of defendant No. 1 himself. It appears that the defendant No. 1 executed a sale deed in favour of defendants second party on the 17th of January, 1955, in respect of the suit land for a consideration of Rs. 400, which was subsequently registered on the 16th of May, 1955. In point of time, therefore, the sale deed in favour of defendants second party was prima facie earlier than the contract of sale in favour of the plaintiff.
The case of the plaintiff was that this sale deed was in fact executed after the contract of: sale in his favour and was ante-dated. Defendants first party, however, denied that they had executed any contract of sale in favour of the plaintiff, and they denied also the receipt of the consideration. They admitted the execution of the sale deed in favour of defendants second party. The latter also raised the same defence, and, in addition, pleaded that they were bona fide transferees for value without notice of the contract of sale in favour of the plaintiff. Both the Courts have concurrently held that the contract of sale in favour of the plaintiff was genuine and for consideration and also for legal necessity inasmuch as the marriage expenses of defendant No. 1 was in law a legal necessity. They also held that the sale deed in favour of defendants second party was not genuine and was in fact executed after the contract of sale in favour of the plaintiff and was ante-dated. They also held that defendants second party were not bona fide purchasers and had notice of the contract of sale and have not also paid the consideration. Accordingly, both the Courts have gratned the plaintiff a decree for specific performance of contract.
2. Before I proceed to consider the points urged in this appeal, it will be necessary to mention one more fact. From the Judgment and decree of the learned Munsif two appeals had been preferred, one by the defendants first party and the other by the defendants second party. In appeal defendants first party raised the same contentions as they had urged before the learned Munsif. Both the appeals were dismissed by the learned Subordinate Judge.
3. Mr. B. C. De appearing for the appellants contended that the contract of sale was not binding on the minor defendants first party inasmuch as it was not for the benefit of the minors. His contention is that the marriage expenses of defendant No. 1 may constitute legal necessity, but under the Hindu law, in order to bind the minors the existence of legal necessity was not adequate. The plaintiff had further to prove benefit to the minors. In support of his contention he referred to a decision of the Privy Council in the case of Subrahmanyam V, Subba Rao, reported in 75 Ind App 115: (AIR 1948 PC 95). Learned Counsel on behalf of the plaintiff respondent argued that this ground was not available to the appellants inasmuch as the appeal preferred by the defendants first party from the judgment and decree of the learned Munsif was dismissed, and no further appeal has been taken by them to this Court. And in support of his contention he referred to a decision of the Privy Council in the case of Bhup Narain Singh V/s. Gokul Chand Mahton, reported in 61 Ind App 115: (AIR 1934 PC 68). In my opinion, the contention of learned Counsel for the respondent is correct and must be upheld.
In that case the plaintiff brought a suit for specific performance of contract for sale of certain immovable property. An agreement was e
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.