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1995 Supreme(Cal) 320

High Court of Calcutta
N.K. Batabyal, J.
Aurobindo Karuri – Appellant
Versus
Vishnu Prasad Karuri – Respondent
Appeal from Appellate Decree No. 472 of 1989
Decided On : Aug 22, 1995

Advocates Appeared:
Asoke Kumar Sen Gupta, Binayak Ghoshal, Prabir Mishra, Swadesh Bhusan Bhunia

Findings of fact by the lower courts cannot be re-appreciated in second appeal unless they are perverse, based on surmises or conjectures, or based on erroneous application of law.

Headnote:

SPECIFIC PERFORMANCE - CONTRACT FOR SALE - MAINTAINABILITY - URBAN LAND CEILING AND REGULATION ACT, 1976 - SECTION 27(1) - INTERPRETATION - ADMISSIBILITY OF EVIDENCE - SUBSTANTIAL ERROR OR DEFECT IN PROCEDURE - SECTION 100(1)(C) OF THE C. P. C. - INTERPRETATION - FINDINGS OF FACT - RE-APPRECIATION IN SECOND APPEAL - PRINCIPLES.

Fact of the Case:

Plaintiff filed a suit for specific performance of a contract for sale of a property, alternatively for damages, alleging that the defendants agreed to sell the property to him for Rs.20,000 and he paid Rs.201 as earnest money. The defendants denied the agreement and claimed it was subject to another agreement for sale with a third party. The trial court decreed the suit for specific performance. The first appellate court affirmed the decree.

Finding of the Court:

The High Court held that the suit was maintainable as the property in question, though situated within an urban agglomeration, had a building on it and hence did not come within the ambit of Section 27(1) of the Urban Land (Ceiling and Regulation) Act, 1976. The Court also held that the findings of the lower courts on the execution of the agreement for sale by the defendants were not perverse or based on surmises or conjectures and hence could not be re-appreciated in second appeal. The Court further held that the admission of evidence by the trial court was not erroneous and hence did not introduce any substantial error or defect in the procedure.

Issues: 1. Whether the suit was maintainable in view of the provisions of Section 4e of the West Bengal Land Reforms Act, 1955 and Section 27(1) of the Urban Land (Ceiling and Regulation) Act, 1976? 2. Whether the findings of the lower courts on the execution of the agreement for sale by the defendants were perverse or based on surmises or conjectures? 3. Whether the admission of evidence by the trial court was erroneous and introduced a substantial error or defect in the procedure?

Ratio Decidendi: 1. Section 4e of the West Bengal Land Reforms Act, 1955 and Section 27(1) of the Urban Land (Ceiling and Regulation) Act, 1976 do not apply to a property situated within an urban agglomeration which has a building on it. 2. Findings of fact by the lower courts cannot be re-appreciated in second appeal unless they are perverse, based on surmises or conjectures, or based on erroneous application of law. 3. Admission of evidence by the trial court is not erroneous unless it is patently erroneous and introduces a substantial error or defect in the procedure.

Final Decision: The High Court dismissed the second appeal with costs and affirmed the judgment and decree of the first appellate court.

Judgment

1. THIS second appeal is directed against the judgment and decree dated 22. 7. 1988 passed by the Ld. Addl. District judge First Court Howrah in Title Appeal No. 253/87 affirming those of the Ld. Assistant District Judge Second Court. Howrah passed on 20.1.1987 in Title Suit No. 58/82.

2. THE plaintiff-respondent filed a suit for specific performance of a contract, alternatively, for damages on the allegation that the defendant -appellants by an agreement dated 10.04.1981 agreed to sell the property in dispute to the plaintiff-respondent at a consideration of Rs.20,000. A sum of Rs.201 in cash was paid as 'earnest money by the plaintiff-respondent. Though the plaintiff-respondent was ready and willing to perform his part of the contract, the defendant-appellants were not willing to execute the sale deed in terms of the said agreement for sale. The plaintiff-respondent sent a lawyer's letter to the defendant-appellants to complete the transaction. As the defendant-appellants failed to comply with the agreement, therefore, the plaintiff-respondent filed a suit for specific performance, of the contract for sale with an alternative prayer for damages. The defendant-appellants filed a written statement to offer contest, "they denied the material plaint allegations. According to them, the suit was not maintainable in law and that the agreement for sale as mentioned in the plaint was subject to another agreement for sale entered into on the same day by and between the plaintiff and the defendants on one side as vendors and one Jajati Dutta and others on the other hand as vendees in respect of another portion of land measuring 15 bighas and 12 cottahs. The two transactions were entered into at the same time and one formed part of the other. The plaintiff-respondent backet out from the said agreement for sale with Jajati Dutta and others with a view to defraud the defendant-appellants. It was further alleged in the written statement that, the disputed agreement for sale between the parties la this appeal was never read over and explained to the appellants and the said agreement was manufactured an some blank papers upon which the plaintiff-respondent obtained signatures of the defendant-appellants on some plea. The said agreement was a product of fraud and was not enforceable in law. It was further alleged that no earnest money was paid by the plaintiff-respondent.

3. THE Ld. Trial Court after considering the facts and circumstances of the case and the submissions made by the Ld. Lawyers of both sides decreed the suit for specific performance of the contract for sale. Being aggrieved by and dissatisfied with the judgment and decree passed by the ld. Trial Judge, the defendant-appellants preferred an appeal before the ld. first Appellate Court. The Ld. Court below, lias been pleased to dismiss the appeal holding that there is no reason to interfere with the findings of the Ld. Trial Judge.

4. AGAINST that judgment of affirmation, the defendant-appellants have come before this Court on the grounds, inter alia, that the Ld. Court below erred in law in holding that the suit was maintainable, that the Ld. Court below misdirected itself on the principles of the question of validity of a written document on the ground of undue influence, fraud, misrepresentation etc. , and that the Ld. Court below erred in law holding that the impugned agreement for sale was not hit by the provisions of the w. B. L. R. Act, 1955 and the Urban Land Ceiling and Regulation Act, 1976. The appeal is hotly contested. Mr. Sengupta, Ld. advocate for the appellants relying upon the principles laid down in Ratanlal-Banshilal and Ors. v. Kishorilal Goyenka (97 CWN 227) has argued that there has been judicial misconduct in the assessment or admission of evidence or on assumptions and surmises and on evidence on which no reasonable man could draw such inference and there has been erroneous application of law which is otherwise well-settled. In that case, it was hel


























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