IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
B.M. Trivedi, J.
Hardik Harshadbhai Patel - Appellant
Vs.
Amarsang Nathaji and Ors. - Respondents
Appeal from Order No. 489 of 2013
Decided On : 13-04-2016
Specific Performance - Agreements for Sale - Section 43 of the Tenancy Act - 43(1) and 43(2) - Summary of Acts and Sections: The court discussed the validity and enforceability of the agreements in question executed in violation of Section 43(1) of the Tenancy Act, which were held to be invalid and void under Section 23 of the Contract Act. The court also highlighted the requirement of readiness and willingness to perform the essential terms of the contract as per Section 16(c) of the Specific Relief Act.
Fact of the Case:
The appellant sought specific performance of agreements for the sale of land and setting aside of a sale deed executed in favor of other parties. The respondents denied the execution of the agreements and raised issues of delay, inadequate consideration, and violation of the Tenancy Act.
Finding of the Court:
The court found that the appellant failed to show readiness and willingness to perform the contract, rendering the suit not maintainable. The agreements were held to be invalid and void under Section 23 of the Contract Act. The court also noted the contradictory stands taken by the respondent No. 1 and directed a complaint against him for offenses affecting the administration of justice.
Issues: The issues included the maintainability of the suit, validity of the agreements, and the conduct of the respondent No. 1.
Ratio Decidendi: The court emphasized the requirement of readiness and willingness to perform the essential terms of the contract as per Section 16(c) of the Specific Relief Act. It also highlighted the invalidity and voidness of the agreements under Section 23 of the Contract Act and Section 43 of the Tenancy Act. The court's decision was influenced by the failure of the appellant to demonstrate readiness and willingness to perform the contract.
Final Decision: The Appeal from Order was dismissed, and a complaint was directed against the respondent No. 1 for offenses affecting the administration of justice.
B.M. Trivedi, J.
1. The present Appeal from Order is directed against the order dated 17.12.2013 passed by the Principal Sr. Civil Judge, Ahmedabad (Rural) (hereinafter referred to as "the trial Court") below Exh.5 in Special Civil Suit No. 28/2012, whereby the trial Court has dismissed the said Application Exh.5 filed by the appellant - plaintiff.
2. The chronology of the events as emerging from the documents on record and from the paper-book submitted by the learned Counsel for the parties may be narrated as under:-
(i) On 12.6.2007, the respondent No. 1 - defendant No. 1, Amarsang Nathaji allegedly executed a registered agreement to sell his 1/2 share in the land bearing Block No. 97, admeasuring 12697 sq. mtr., in favour of the appellant - plaintiff for a total consideration of Rs. 2,25,500/-. It was stated in the said agreement, inter alia, that the appellant - plaintiff had paid Rs. 1,25,500/- and that he had to pay the remaining amount, on the respondent No. 1 executing the sale deed in his favour. The validity of the said agreement was agreed to be for 12 months. It was also agreed that the respondent No. 1 would have to sign all the documents necessary for obtaining the permissions required under different Acts at the instance of the appellant, and that the possession of the land in question under the agreement would be handed over to the appellant on the execution of the sale deed.
(ii) On the same day i.e. on 12.6.2007, a supplementary agreement was allegedly entered into between the appellant and the respondent No. 1, stating, inter alia, that the possession of the land was handed over to the appellant. On the same day, other documents i.e. indemnity bond and declaration as well as general power-of-attorney and specific power-of-attorney were also allegedly executed by the respondent No. 1 in favour of one Mangaji Babaji Thakor for carrying out the acts and deeds as mentioned therein in respect of his 1/2 share in the said Block No. 97.
(iii) On 14.6.2007, the respondent Nos. 2/1 to 2/6 (defendant Nos. 2/1 to 2/6) allegedly executed a registered agreement in favour of the appellant - plaintiff in respect of the remaining 1/2 share in the land bearing Block No. 97, admeasuring 12967 sq. mtr., for the sale consideration of Rs. 2,25,000/- with similar terms and conditions as mentioned in the agreement dated 12.6.2007 executed by the respondent No. 1. The respondent Nos. 2/1 to 2/6 also allegedly executed similar other documents as were executed on 12.6.2007 in favour of the appellant in respect of the remaining 1/2 portion of the land in question.
(iv) On 17.12.2009, the District Collector, Ahmedabad granted permission to convert the said land bearing Block No. 97 (along with another land bearing Block No. 107) from new tenure to old tenure for agricultural purpose, on the payment of premium of Rs. 1,53,57,650/- at the instance of the application made by the respondent No. 1.
(v) On 15.12.2009, one sale deed came to be executed by the respondent No. 3 Sanjaybhai Jayantibhai Patel as the power-of-attorney holder of the respondent No. 1 and of the respondent Nos. 2/1 to 2/6, in favour of respondent Nos. 4 and 5, in respect of the said land bearing block No. 97 (along with block No. 107). The said sale deed was registered on 17.12.2009 in the office of Sub-registrar, Ahmedabad.
(vi) On 25.4.2011, a public notice came to be issued in the newspaper at the instance of respondent Nos. 4 and 5, inviting objections in respect of the title of Block Nos. 97 and 107.
(vii) On 30.4.2011, the District Collector, Ahmedabad passed the order, permitting the respondent No. 5 to use the land bearing Block Nos. 97 and 107 for non-agricultural purpose on the payment of premium of Rs. 6,91,02,000/-.
(viii) On 12.1.2012, the suit being Special Civil Suit No. 28/2012 came to be filed by the appellant - plaintiff seeking specific performance of the agreements dated 12.6.2007 and 14.6.2007 executed by the respondent No. 1 and the respondent No
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