1998 Supreme(Cal) 339
High Court Of Calcutta
Bhaskar Bhattacharya
ASHUTOSH JANA - Appellant
Versus
ANANTA KUMAR JANA - Respondent
S. A. 500 Of 1988
Decided On : 08/08/1998
JYOTIRMOY BHATTACHARYA, SUBHRAKAMAL MUKHERJEE, SUPRIYA CHATTOPADHYAY
A subsequent purchaser in a suit for specific performance of contract cannot dispute the genuineness of an agreement between the plaintiffs and the principal defendant, even if the principal defendant has not contested the suit or appealed the judgment, unless the subsequent purchaser can prove that they are bona fide purchasers for value without notice.
Headnote:
SPECIFIC PERFORMANCE OF CONTRACT - SECTION 16 (C) OF THE SPECIFIC RELIEF ACT, 1963 - SUBSEQUENT PURCHASER - BONA FIDE PURCHASER FOR VALUE WITHOUT NOTICE - AVAILABILITY OF PLEA.
Fact of the Case:
Plaintiffs filed a suit for specific performance of contract against the defendant No. 1, the owner of the suit property, and defendant No. 2, the subsequent purchaser. Defendant No. 1 did not contest the suit, while defendant No. 2 disputed the plaintiffs' case and claimed to be a bona fide purchaser for value without notice.
Finding of the Court:
The trial court disbelieved the plaintiffs' case and dismissed the suit. The first appellate court reversed the trial court's decision and decreed the suit for specific performance of contract in favor of the plaintiffs.
Issues: 1. Whether a subsequent purchaser can dispute the genuineness of an agreement between the plaintiffs and the principal defendant, even if the principal defendant has not contested the suit or appealed the judgment. 2. Whether a subsequent purchaser can take the plea that there was no prior agreement between the plaintiff and the principal defendant. 3. Whether the appellant was a bona fide purchaser for value without notice of the agreement between the plaintiffs and defendant No. 1.
Ratio Decidendi: 1. In view of the decision of the Supreme Court in Jugraj Singh and Anrs. v. Labh Singh and Ors., a subsequent purchaser is not entitled to take any other plea than that they are bona fide purchasers for value without notice. 2. Whether there was really any agreement between plaintiff and the principal defendent can be questioned only by the principal defendant. 3. Compliance of section 16 (c) of the aforesaid Act by a plaintiff gives jurisdiction to a court to pass a decree for specific performance in his favour. Since the apex court by the aforesaid decision has deprived a subsequent purchaser of such a plea relating to jurisdiction of the court, it goes without saying that a plea of non-existence of a prior agreement should also be available only to a principal defendant and not to a subsequent purchaser.
Final Decision: The appeal was allowed, the judgment and decree passed by the first appellate court was set aside, and the matter was sent back on remand to the trial court to frame an additional issue as to whether the defendant No. 2 was a bona fide purchaser for value without notice of the agreement between the plaintiffs and defendant No. 1.
( 1 ) THIS second appeal is at the instance of defendant No. 2 in a suit for specific performance of contract and is directed against the judgment and decree dated March 10, 1988 passed by the learned Additional District Judge, 3rd Court, Midnapore in other Appeal No. 500 of 1986 thereby reversing those dated April 30, 1986 passed by the learned Munsif, Additional Court at Contai in other Suit No. 35 of 1986.
( 2 ) THE parties to the instant proceeding are all brothers. The plaintiffs, two of the brothers, filed the aforesaid suit for specific performance of contract of sale of the property which was admittedly owned by defendant No. 1. According to the plaintiffs, the defendant No. 1 on November 6, 1976 entered into an Agreement for Sale of the suit property in their favour at the price of Rs. 2,500/- after receiving Rs. 2,000/- as earnest money. Subsequently the said defendant No. 1 sold away the suit property by a registered deed dated July 18, 1979 at a consi- deration of Rs. 4,490/- on the basis of an agreement for sale between defendant No. 1 and defendant No. 2 dated May 27, 1979.
( 3 ) THE aforesaid suit was not contested by defendant No. 1 but defendant No. 2, the subsequent purchaser, contested the same thereby disputing the case of the plaintiffs. The defendant No. 2 specifically asserted that the alleged agreement between plaintiffs and defendant No. 1 was a collusive ante-dated document and was created for the purpose avoiding the sale deed executed in favour of defendant No. 2. The further defence of the defendant No. 2 was that he was a bonafide purchaser for value without notice of any agreement for sale executed earlier by the defendant No. 1 and as such the suit was liable to be dismissed.
( 4 ) THE learned trial Judge on consideration of the materials on record disbelieved the case of the plaintiffs that any such prior agreement was entered into by defendant No. 1 in their favour agreeing to sell the suit property.
( 5 ) BEING dissatisfied, the plaintiffs preferred an appeal being other Appeal No. 500 of 1986 which was ultimately heard by the learned Additional District Judge, 3rd Court, Midnapore and by the judgment and decree impugned in the instant appeal the learned first appellate court set aside the judgment and decree passed by the learned trial Judge and decreed the suit for specific performance of contract in favour of the plaintiffs.
( 6 ) BEING dissatisfied, the defendant No. 2 has preferred the instant second appeal.
( 7 ) AT the time of admission of the instant second appeal, the Division Bench admitting the appeal under Order 41 Rule 11 of the Code decided to hear out the Instant appeal on all grounds taken in the Memorandum of Appeal. At the time of hearing of the instant appeal before this court, Mr. Roychowdhury, the learned senior advocate appearing in support of the instant second appeal prayed for permission to argue an additional ground. Mr. Roychowdhury contended that in the absence of any finding as to whether the appellant herein was a bona fide purchaser for value without notice of earlier agreement, the learned first appellate Court erred in law in passing a decree for specific performance of contract simply after holding that there was a valid agreement for sale between plaintiffs and defendant No. 1. Since the aforesaid question is a pure question of law, I permitted Mr. Roychowdhury to agitate the said point and accordingly a new point has been formulated to the aforesaid effect.
( 8 ) APART from the aforesaid point, Mr. Roychowdhury further submitted that the finding of the learned first appellate court that the agreement for sale between the plaintiffs and defendant No. 1 was a genuine one is based on total misconsideration of evidence on record, inasmuch as the witness for the plaintiffs gave evidence that the said agreement was made sometime in the year 1983 whereas the alleged agreement shows that the same was made in the year 1976. Thus, Mr. Roych