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1967 Supreme(Goa) 28

Goa High Court
V.S.JETLEY
Jose Pedro Longuinhas Almeida Coutinho - Appellant
Versus
Vassanta Vitola Camotim and wife - Respondent
Decided On : 12/07/1967

Advocates:
M.P. Shinkre, for Appellant; V.M. Neurencar, for Respondents.

A wife is not liable on a contract for sale of immovable property executed by her husband as a vendor unless she gives consent or intervenes as a vendor.

Headnote:

CONTRACT - SALE OF IMMOVABLE PROPERTY - LIABILITY OF WIFE OF VENDOR - DEMARCATION OF AREA - CAVEAT EMPTOR - SUIT FOR DOUBLE EARNEST MONEY - INTERPRETATION OF ARTICLES 1548, 1114, 1115 OF THE CIVIL CODE AND ARTICLE 19(2) OF THE CIVIL PROCEDURE CODE.

Fact of the Case:

Appellant agreed to purchase immovable property from respondents. A sum of Rs. 5,000 was paid as earnest money. The balance was payable within 60 days. Before the expiry of this period, the appellant served a notice calling upon the respondents to sign a declaration for the purposes of tax and demarcate the area. The respondents appeared at the site but refused to demarcate the area. The appellant instituted a suit against the respondents and their wives for twice the amount of earnest money paid.

Finding of the Court:

The wives of the respondents were not liable for the suit-claim as they were not proper parties to the agreement. The appellant was responsible for failure to perform the terms of the agreement as he did not inspect the properties before entering into the agreement.

Issues: 1. Whether the wives of the respondents could properly be sued? 2. Whether the appellant or the respondents were responsible for the failure to perform the terms of the agreement?

Ratio Decidendi: 1. Article 1548 of the Civil Code provides that a wife will not be liable on a contract for purchase of an immovable property executed by her husband as a vendor unless she gives consent or intervenes as a vendor. 2. Article 1114 and 1115 of the Civil Code provide that the joint property of the married couple would be liable for a debt incurred when it is applied for the common benefit, but for crimes or civil wrongs arising out of failure to perform a contract, the party executing the contract would be liable and not his wife or husband. 3. The agreement did not mention that the respondents were bound to physically demarcate the properties agreed to be sold. 4. The appellant did not inspect the properties before entering into the agreement and could have discovered any defects or discrepancies.

Final Decision: The appeal was dismissed with no order as to costs.

JUDGMENT :- This appeal (apelacao) is directed against the judgment passed by the learned Comarca Judge, Margao, dated 14th July, 1965.

2. The facts leading to this appeal are that the appellant agreed to purchase from respondents Vassanta Vitola Camotim and Harinata Ramanata Poi Raiturcar immovable property mentioned in private agreement dated 14th July, 1964. The sale price stipulated was Rs. 35,000. The respondents received a sum of Rs. 5,000 as an earnest money. The balance of Rs. 30,000 was payable by the appellant within 60 days from the agreement. Before the expiry of this period, the appellant served a notice telegraphically calling upon these respondents to (1) sign a declaration for the purposes of tax (siza) on transfer of immovable property; and (2) demarcate the area (implantacao). The respondents appeared at the site as required by the appellant. They agreed to sign the declaration but refused to demarcate the area as required by the appellant. The appellant thereafter instituted the present suit against these respondents and their wives, who were also impleaded as respondents. This suit was in terms of Article 1548 of the Civil Code. The prayer of the appellant was that all these respondents should

be called upon to pay twice the amount of earnest money paid to the respondents Vassanta Vitola Camotim and Harinata Ramanata Poi Raiturcar on the ground that they were responsible for failure to perform the contract. The amount claimed was a sum of Rs. 12,000. This item comprised Rs. 5,000 paid as earnest money and, in addition, a sum of Rs. 1,000 stated to have been paid by the appellant to the respondents Vassanta Vitola Camotim and Harinata Ramanata Poi Raiturcar without obtaining any receipt. The suit was resisted by all the respondents. In their written statement it was pleaded that they were not bound to demarcate the area as the agreement does not require them to do so. It was also pleaded that the wives of the respondents Vassanta Vitola Camotim and Harinata Ramanata Poi Raiturcar are not liable for the suit-claim as they are not proper parties to the agreement. The learned Judge after satisfying himself that the Court was competent to decide the suit and

that it did not suffer from any procedural defect and also after considering the pleadings of the parties dismissed the suit by his order dated 14th July, 1965. The finding of the learned Judge was that the wives of the respondents cannot be sued and further the appellant (and not the respondents) was responsible for failure to perform the terms of the agreement. The appellant felt aggrieved by this decision and filed the present appeal.

3. Shri Shinkre, learned counsel for the appellant, attacks the judgment of the learned Comarca Judge on two broad grounds :- (1) that it was premature for the learned Judge to have decided the suit on merits. He should have permitted the parties to lead evidence and thereafter given decision; and (ii) that the wives of the respondents who were impleaded are liable along with their husbands to pay twice the amount of earnest money as claimed by the appellant.

4. I shall first deal with the second ground whether the wives of the respondents could properly be sued. Shri Shinkre invites my attention to paragraph 15 of the plaint wherein it is stated that the wives are proper parties because the earnest money received by their husbands was utilised for their common benefit. In this connection he relies on the provision of Article 19(2) of the Portuguese Civil Procedure Code. Shri Neurencar, learned counsel for the respondents, draws my attention to para unique of Article 1548 of the Portuguese Civil Code. The substance of this paragraph is that a contract for purchase of an immovable property has to be in writing. A wife will not be liable on such a contract to which her husband is a party as a vendor unless she gives consent or intervenes as a vendor. When there is no such consent or intervention then the husband alone as a vendor i











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