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1979 Supreme(Cal) 53

High Court Of Calcutta
B.N. Maitra, J.

Mujtri Mahatani : Appellant
Versus
Ghosal Kaibarta : Respondent
Decided On : Feb 15,1979

Advocates Appeared:
Biswajit Ghosh, Hari Narayan Mukherjee, Jayanta Bhattacharya,

An agreement to transfer property by an aboriginal, even without permission from the Deputy Commissioner, is not void and can be enforced in a court of law.

Headnote:

LAND REFORMS - TRANSFER OF PROPERTY - ABORIGINAL - AGREEMENT TO TRANSFER - VALIDITY - WEST BENGAL LAND REFORMS ACT, 1955, SECTION 14C - CHOTANAGPUR TENANCY ACT, 1908, SECTION 46 - TRANSFER OF PROPERTY ACT, 1882, SECTION 54 - INDIAN REGISTRATION ACT, 1908, SECTION 17(1) - BENGAL TENANCY ACT, SECTIONS 49B, 49F, 49G.

Fact of the Case:

Plaintiff alleged that the defendant Gobardhan Mahato agreed to sell him a disputed tank and its bank for Rs. 1,000/- and took an earnest money of Rs. 700/-. However, Gobardhan declined to execute a kobala and fraudulently transferred the property to defendants 2 and 3, who were aware of the agreement. Plaintiff sued for specific performance of the contract or damages of Rs. 1,000/-.

Finding of the Court:

The trial court and the lower appellate court found that the plaintiff's version of the agreement was true, and the defendants 2 and 3 were not bona fide purchasers for value without notice. The court held that the agreement to transfer the property was not void and the plaintiff could enforce it in a court of law.

Issues: 1. Whether the agreement to transfer the property was void due to the defendant being an aboriginal and the absence of permission from the Deputy Commissioner, Purulia, under the West Bengal Land Reforms Act, 1955, Section 14C? 2. Whether the plaintiff could enforce the agreement in a court of law?

Ratio Decidendi: 1. The court distinguished between the power to transfer property and the power to enter into an agreement to transfer property. While the former was restricted for aboriginals under the West Bengal Land Reforms Act, 1955, Section 14C, the latter was not. 2. An agreement to transfer property did not create any interest in the property and was not compulsorily registrable under the Transfer of Property Act, 1882, Section 54, or the Indian Registration Act, 1908, Section 17(1). 3. The amendment to Section 46 of the Chotanagpur Tenancy Act, 1908, by the West Bengal Act XXI of 1961, removed the bar on entering into any contract or agreement to transfer a holding by a raiyat. 4. The court relied on the Supreme Court decision in Chandni Wati v. C. Kotial, AIR 1964 SC 978, which held that a contract for sale of property was not contingent on obtaining permission from the government and could be enforced by the court. The court could also award damages in case permission was refused.

Final Decision: The court dismissed the appeal and upheld the lower court's decree for specific performance of the contract, subject to obtaining permission from the Deputy Commissioner, Purulia. In case permission was refused, the plaintiff would be entitled to damages.

JUDGMENT

1. THE plaintiff has alleged that the disputed tank and its bank belonged to the defendant Gobardhan Mahato. On the 3rd September, 1965, the latter executed a deed of agreement in his favour contracting to sell the disputed property to him for Rs. 1,000/- within chaitra, 1374 B.S. and took an earnest money of Rs. 700/ -. But he declined to execute a kobala He fraudulently transferred the property to the defendants nos. 2 and 3. Those two defendants were aware of such agreement made with him. Hence the defendants nos. 2 and 3 are bound by the agreement entered into with the plaintiff. The suit is for specific performance of contract. There is an alternative prayer for recovery if Rs. 1,000/- as damages.

2. THE defendant no1 died during the pendency of the suit and his heirs were brought on the record. The defendants filed a written statement denying the story of such agreement It has been stated that the defendants no. 2 and 3 are bonafide purchasers for value without notice of the plaintiff's alleged agreement.

The learned Munsif considered the matter accepted the plaintiffs version and decreed the suit. He took care to state that in case the Deputy Commissioner, Puralia, did not accord permission to sell the property, the plaintiff would get Rs. 1,000/- as damages.

3. THE defendants preferred an appeal and lost the same on the merits. But the learned Subordinate Judge stated that the claim for recovery of damages was excessive and hence the decree was modified and damages assessed at Rs. 800/- only. The appeal was, therefore, allowed in part. Hence this appeal by the defendant.

4. TWO-FOLD submissions have been made on behalf of the appellant. It has been stated that the plaintiff was a cosharer of the disputed tank and hence, it is immaterial whether he exercised possession in the property from her. The defendants nos. 2 and 3 are bona fide purchasers for value, without notice. They had no knowledge of the agreement arrived at between Gobardhan and the plaintiff. Sc, the appeal should be allowed. It has been next contended that the alleged agreement was arrived at with the plaintiff without obtaining any permission from the Deputy commissioner, Purulia. The defendant no. 1 (Gobardhan) is an aboriginal and hence there' was an absolute bar on his power to sell the property or to enter into any deed of agreement to transfer the same. Hence, the court should find that such alleged agreement is void abinitio.

The final, court of fact has stated that the story of the plaintiff's agreement is true and. the defendants nos. 2 and 3 had knowledge of the plaintiff's agreement. That court further found that those defendants were not bonafide purchasers for value without notice. This finding of fact cannot be challenged in second appeal.

5. THEN about the question of law. Reference may be made to the provisions of sections 49b, 49f and 49g of the Bengal Tenancy Act to show that regarding Santhals and other aboriginals, there is a restriction on their power of transfer. But there is no restriction whatever regarding their power to enter into an agreement to transfer the property. So, this distinction must not be lost sight of in arriving at a decision on this important question. It will be pertinent to point out that according to the provisions of section 54 of. the Transfer of Property act, a contract for sale does not? create any interest in the same. An agreement to transfer the property is also hot compulsorily registrable document Within the meaning of the provisions of section 17 (1) or the Indian Registration act. So, even if an agreement to transfer the property is registered, still. such registration will not operate as notice to the other side because section 3 of the Transfer of Property Act can be availed of in this regard where the deed is compulsorily registrable.

6. BUT the fact remains that the defendant no. 1, Gobardhan, was a mahato. According to the provisions of the section 14c of the West Bengal land Reforms Ac




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