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1954 Supreme(Cal) 96

HIGH COURT OF CALCUTTA
R. P. Mookerjee, Renupada Mukherjee
BAIJNATH - Appellant
Versus
KSHETRAHARI SARKAR - Respondent
A. F. O. D.  90  Of  1948
Decided On : MAY 18, 1954

Advocates Appeared:
ATUL CHANDRA GUPTA, SYAMA CHARAN MITTER, SYAMADAS BHATTACHARYA

A lessor is bound to give the lessee a title free from reasonable doubt, and where a prospective lessee demands title deeds from the prospective lessor for his investigation and approval, it cannot be said that there has been a final and concluded agreement between them, although, most other material terms may have been agreed upon by them.

Headnote:

SPECIFIC PERFORMANCE - LEASE - CONTRACT - CONCLUDED CONTRACT - ESSENTIAL TERMS - AGREEMENT ON ALL MATERIAL TERMS - INTENTION OF PARTIES - INVESTIGATION OF TITLE - WAIVER OF RIGHT - USUAL TERMS - SUPPLY OF MISSING TERMS FROM GENERAL LAW - HARDSHIP.

Fact of the Case:

Plaintiff sued for specific performance of a contract to lease certain immovable properties by the defendant in favour of the plaintiff. The defendant contested the suit, and it was dismissed by the Trial Court. The plaintiff appealed.

Finding of the Court:

1. The defendant intended to lease out the four municipal premises in their entirety without any reservation or exclusion. 2. The plaintiff failed to prove that the defendant had agreed to make out a good title to the property and to produce documents of title for the investigation of plaintiff's solicitor. 3. There was no binding or concluded contract between the parties on 13-12-1944. 4. There was no agreement between the parties that the lease would contain all usual terms which are generally incorporated in leases of this description. 5. There was no agreement between the parties as regards term (5) of Exhibit A, which required the defendant to give vacant possession of the entire premises on or before 31-12-1944 or before the execution of the lease whichever was earlier.

Issues: 1. Whether there was any concluded contract between the parties that Kshetra Hari Sarkar would lease out the disputed property to the plaintiff on the terms and conditions set forth in the plaint? 2. Whether the alleged contract is specifically en-forcible?

Ratio Decidendi: 1. A lessor is bound to give the lessee a title free from reasonable doubt, and where a prospective lessee demands title deeds from the prospective lessor for his investigation and approval, it cannot be said that there has been a final and concluded agreement between them, although, most other material terms may have been agreed upon by them. 2. The question of whether there was a binding contract between the parties is mainly one of intention. If the party sought to be charged intended to close a contract prior to the formal signing of a written draft, or if he signified such an intention to the other party, he will be bound by the contract actually made, though the signing of the written draft be omitted. 3. In the absence of an agreement on such matters as the payment of rent in instalments, the rate of interest on arrears of rent, the proportion of compensation to be apportioned between the parties in case of compulsory acquisition of the leasehold premises, and the repairs of the existing building, a conveyancer would not be able to work up a complete lease from the terms agreed upon between the parties and supply the "usual terms" from the general law of the land and from the customary rules of drafting in such a manner as to preclude the possibility of any reasonable objection by either party.

Final Decision: The appeal was dismissed with costs.

RENUPADA MUKHERJEE, J.

( 1 ) THIS is an appeal by the plaintiff, and it arises out of a suit for specific performance or a contract to lease out certain immovable properties described in the schedule of the plaint by the defendant in favour of the plaintiff. The suit was contested in the Trial Court by the defendant, and dismissed, and so the plaintiff has preferred this appeal. The facts of the case will appear from the body of the judgment.

( 2 ) BEFORE coming to the matters which are really in controversy between the parties, it will be useful to set out the following fact about which there is no dispute. Defendant Kshetra Hari Sarkar, since deceased, was the owner of municipal premises Nos. 12, 13, 14 and 15, Chingrihatta Lane, within police station Beliaghatta in the close suburbs of Calcutta. These premises comprise an area of about 20 bighas of land with a two storied building upon a portion. The rest of the land comprises mainly vacant land with three tanks and some tinroofed structures near the entrance gate. For reasons known to himself and not disclosed by evidence defendant Kshetra Hari wanted to give a long, term of lease of the premises on suitable terms, and for this purpose he engaged the services of one Gopeswar Mallik, an estate and house agent. On the 13th December, 1944, the defendant gave a letter of authority to Gopeswar (Exhibit 7 (a)) empowering him to secure a lessee of the above premises for a term of 81 years at a rent of Rs. 300/- per month and 'selami' of Rs. 30000/ -. The remuneration of the broker was fixed at Rs. 8000/-, and the letter of authority was to remain valid for a period of seven days from the date of issue. Plaintiff Baijnath Bajoria is a businessman having a large scale business in motor transport and also owning an agency under the Civil Supplies Department for storage of food grains. He required a large plot of land in the vicinity of Calcutta for business purposes, and he was also in communication with broker Gopeswar Mallik. Gopeswar communicated the terms of Kshetra Hari to the plaintiff on the 13th December, 1944, and they together inspected the premises in question on the same day at noon. The parties part company at this stage. It is the case of the plaintiff that the main terms of the lease were verbally settled direct between the parties on this day, and the case of the defendant is that beyond an, inspection of the locality by the plaintiff and some rambling discussion on some of the terms of the lease no - concluded agreement took place between the parties about the proposed lease. The defendant further contended that the negotiations for the lease took place only with regard to twelve bighas of vacant land from out of the four premises in question and not with regard to the premises in their entirety as alleged by the plaintiff. These contentions of the defendant will be dealt with in their appropriate place in the judgment.

( 3 ) TO proceed now with the undisputed facts of the case. The solicitors of the plaintiff wrote a letter to the defendant on 14-12-1944 (Exhibit A) embodying certain terms of a contract of lease said to have been concluded between the plaintiff and the defendant on the previous day and requiring the defendant to send his documents of title for investigation pursuant to one of the terms of the alleged agreement. This letter reached defendant Kshetra Hari on the 20th December, 1944, and his solicitor Sarojendra Kumar Dutt sent a reply on 2-1-1945 (Exhibit 1 (a)) denying on behalf of his client that there was any concluded contract between the parties and pointing out in particular that there was no agreement over some of the terms set forth in the letter of plaintiff's solicitor. After this there was some more correspondence between the solicitors of the parties until the defendants' solicitor finally repudiated the plaintiff's claim by a letter dated 27-1-1945 (Exhibit A (7) ). Thereafter the plaintiff instituted this suit on 7-3-1945, for specif


























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