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2001 Supreme(Raj) 788

High Court Of Rajasthan
Judgename : J.C.VERMA
NARYAN - Appellant
Versus
MADAN - Respondent
C. R. P. 896 Of 1999
Decided On : 07/27/2001

Advocates Appeared:
D.K.GARG, KAMLA JAIN, S.K.GUPTA

Unregistered agreements can be relied upon for collateral purposes in a suit for specific performance.

Headnote:Specific Performance - Land Dispute - Registration Act, 1908 (Section 49), Transfer of Property Act (Section 53-A) - The court considered the admissibility of an unregistered agreement to sell land in a suit for specific performance. The petitioner argued that the possession had already been proved to be in their hands and that the legality of the agreement to sell was still to be determined. The petitioner relied on a judgment stating that unregistered agreements to sell land are admissible as evidence under Section 49 of the Registration Act. The respondent argued that Section 53-A of the Transfer of Property Act does not confer the right to seek temporary injunction based on an unregistered agreement for the sale of agricultural land. The court referred to various judgments and held that unregistered documents can be used for collateral purposes, such as showing possession or establishing estoppel. The court modified the order of interim injunction to maintain the status quo in regard to possession and alienation until the decision of the suit.

Fact of the Case:

The petitioner filed a suit for specific performance of an unregistered agreement to sell land. The trial court and the additional district judge dismissed the application for interim injunction based on the lack of registration of the agreement.

Finding of the Court:

The court held that unregistered agreements can be relied upon for collateral purposes, such as showing possession or establishing estoppel. The court modified the order of interim injunction to maintain the status quo in regard to possession and alienation until the decision of the suit.

Issues:

The admissibility of an unregistered agreement to sell land in a suit for specific performance.

Ratio Decidendi:

Unregistered agreements can be used for collateral purposes, such as showing possession or establishing estoppel.

Final Decision:

The court modified the order of interim injunction to maintain the status quo in regard to possession and alienation until the decision of the suit.

Judgment


J. C. VERMA, J.

( 1 ) THE revision petitioner was plaintiff in the suit for specific performance and has come up against the order dated 12-5-1999 passed by the Additional District Judge, Gangapur City whereby the order dated 23-11-1998 passed by the trial Court was confirmed in interim injunction application.

( 2 ) AS per the facts the petitioner plaintiff has filed a suit for specific performance against the respondents in regard to the land khasra No. 1180 measuring 1. 19 Hectors situated in village Gadhi Gopalpura and other land as mentioned in the suit. It was stated that earlier this land was in the Khatedari of one Ram Swaroop and the land was purchased by the present petitioner-plaintiffs on 20-3-1992 from respondent No. 2 Ram Swaroop and were also put in possession. The defendant Madan was also having half share in the land Khasra No. 1180. Even though the agreement is said to have been entered into between the parties. , but sale-deed was not executed for certain reasons and, therefore, suit for specific performance of contract was filed by the present petitioners along with the application for temporary injunction. The defendants had denied the execution of agreement to sell. Even the so called seller Ram Swaroop had also opposed the suit on the ground of limitation. The temporary injunction application was dismissed by the trial Court vide order dated 23-11-1998. On appeal having been filed the Additional District Judge also dismissed the same on 12-1-1999.

( 3 ) IT is the contention of the petitioner that even the suit filed by the other defendants before the SDO had also been dismissed and for the reason that the possession had already been proved to be in the hands of the petitioner-plaintiff and the matter of legality of agreement to sell was still to be gone into and for the reason that the plaintiff had already parted with the consideration amount as mentioned in the alleged agreement to sell, the petitioner submits that in such situation and as per the settled law, the plaintiff ought to have been granted the stay order and for the proposition relies on a judgment of this Court in the case of Smt. Pushpa Kanwar v. Suraj Prasad Gupta, 1977 WLC (Raj) (UC) 377 wherein it was held that unregistered agreement to sell land is admissible in eveidene under proviso of Section 49 of the Registration Act, 1908.

( 4 ) RELIANCE is also placed on the judgment reported in the case of Deenanath v. Chuni Lal, 1974 WLN 769 wherein it was held that there was no necessary to determine the question of vendors title and the fact that the title which the purchaser may acquire might be defeasible by sons of defendants was no ground for refusing spe- cific performance if the purchaser was willing to take such title as the vendors had.

( 5 ) COUNSEL for the respondent defendants relies on the judgment of this Court in the case of Smt. Devi v. Banwari Lal, (1998) 1 Rajasthan LR 680 on the fact that Section 53-A of the Transfer of Property Act does not confer right on transferee to move application for temporary injunction in a suit for specific performance of contract on the basis of unregistered agreement for sale of agriculture land. It only creates estoppel against transferor from enforcing any right in respect of the property against transferee. It was further held that u/s. 17 ( f) of the Registration Act, the transferee does not get any right to claim possession or any other right in the property on the basis of an unregistered agreement for sale. Such unregistered agreement for sale conferrd a statutory right on a transferee to defend his possession in a suit for recovery of possession filed by transferor any other person claiming under him.

( 6 ) YET in another judgment of this Court in the case of Smt. Jamna Bai v. Tulsi Ram, 1996 DNJ (Raj) 717 : (AIR 1997 Raj 85), it was held that production of unregistered document is not eligible for evidence even for collateral purposes.

( 7 ) RELIANCE is also placed in the










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