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2012 Supreme(Raj) 1096

RAJASTHAN HIGH COURT
Prashant Kumar Agarwal, J.
Ram Lal & Ors. - Appellants
Versus
Shri Bajrang Lal - Respondent
Civil First Appeal No. 385 of 2008
Decided On : 10-04-2012

Advocates:
Advocate Appeared:
For the Appellants : S.K. Singodiya
For the Respondent: S.N. Shah

An unregistered agreement to sell can be admissible in evidence and a suit for specific performance of contract can be maintainable based on such an agreement, as per the proviso to Section 49 of the Indian Registration Act.

Headnote:CIVIL FIRST APPEAL - AGREEMENT TO SELL - Code of Civil Procedure, Section 96 - The court discussed the following acts and sections: - Code of Civil Procedure, Section 96: This section allows for the filing of a civil first appeal against a judgment and decree passed by a trial court. - Indian Registration Act, Section 49: The proviso to this section allows for the admissibility of an unregistered agreement to sell in a suit for specific performance of contract. - Rajasthan Court Fees Act, Section 40: This section provides for the computation of court fees in a suit for specific performance of a contract of sale based on the amount of consideration. - Indian Stamp Act, Section 36: This section states that an objection regarding insufficiency of stamp duty cannot be taken if the document has been admitted and exhibited in evidence without objection.

Fact of the Case:

The plaintiff filed a suit for declaration, specific performance of agreement to sell, and permanent injunction against the defendant. The plaintiff claimed that the defendant agreed to sell his undivided share in two agricultural properties to the plaintiff and other defendants, and that the plaintiff had paid his share of the sale consideration. The defendant denied the existence of the agreement and claimed that the release deeds executed by him were valid.

Finding of the Court:

The trial court found that the defendant had agreed to sell his share in the properties to the plaintiff and other defendants, and that the plaintiff had paid his share of the sale consideration. The court held that the agreement to sell, although unregistered, was admissible in evidence and the suit for specific performance was maintainable. The court also declared the release deeds void to the extent of the share sold to the plaintiff.

Issues:

The main issues were whether the agreement to sell was valid and enforceable, whether the court fee paid by the plaintiff was sufficient, and whether the plaintiff was ready and willing to perform his part of the contract.

Ratio Decidendi:

The court held that the agreement to sell was valid and enforceable, as it clearly stated the intention of the parties to sell the defendant's share in the properties. The court also held that the court fee paid by the plaintiff was sufficient, as the reliefs of declaration and permanent injunction were ancillary to the main relief of specific performance. The court further held that the plaintiff had sufficiently pleaded and proved his readiness and willingness to perform his part of the contract.

Final Decision:

The court dismissed the appeal filed by the defendant, affirming the judgment and decree of the trial court.

JUDGMENT :

Prashant Kumar Agarwal, J.

The defendant-appellants have preferred this Civil First Appeal under Section 96 of the Code of Civil Procedure against the judgment and decree dated 26.07.2008 passed by Additional District Judge (Fast Track) No.1, Jhunjhunu in Civil Suit No.72/2006 whereby the learned trial Court has decreed the suit for declaration, specific performance of agreement to sell and permanent injunction filed by the plaintiff-respondent.

2. There is no dispute between the parties regarding following facts:

(i) Plaintiff-respondent and defendant-appellants are real brothers beings sons of one Shri Bhura Ram.

(ii) They are co-tenants of agricultural land comprising in Khasra Nos.677 and 678 (hereinafter to be referred as "suit property No. 1"), each brother having ?th undivided share in it. They are also co-tenants of one-half share of another agricultural land comprising in Khasra Nos.83 and 84 (hereinafter to be referred as the "suit property No.2"), each brother having ?th undivided share in it.

(iii) Defendant-appellant-Shri Ram Lal executed a registered release deed dated 14.07.2006 of his ?th share in suit property No.1 in favour of defendant-appellants-Shri Jwala Prasad and Kishan Lal. Similarly, he also executed a registered release deed on the same day of his share in suit property No.2 in favour of defendant-appellant Shri Jwala Prasad alone.

3. The plaintiff-respondent filed the suit with the averment that defendant- appellant-Shri Ram Lal agreed to sell his undivided share in both the suit properties in sale consideration of Rs. 1,20,000/- to plaintiff-respondent and remaining defendant- appellants and after receiving the aforesaid sale consideration from them, executed an agreement to sell on 02.08.2000 and also handed over possession of his share so sold to plaintiff-respondent and remaining defendant-appellants. According to plaintiff- respondent he paid his share of sale consideration of Rs. 30,000/- in cash to Shri Ram Lal whereas each of the remaining purchasers also paid his respective share of the sale consideration. It was also averred in the plaint that since the date of execution of agreement to sell i.e. 02.08.2000, plaintiff-respondent and remaining defendant-appellants are cultivating the share of suit properties so sold by the defendant-appellant-Shri Ram Lal to them. According to plaintiff-respondent he is purchaser of ¼th share of ?th share of Shri Ram Lal in suit property No.1 and ¼th share of ?th share of him in the suit property No. 2 and the defendant-appellant is bound by agreement to sell dated 02.08.2000 and sell ¼th share of his total share in both the suit properties to plaintiff-respondent and he is entitled for specific performance of the agreement to sell to that extent. It was also said in the plaint that both the release deeds dated 14.06.2006 are void, invalid and ineffective to the extent of share so sold by Shri Ram Lal to plaintiff-respondent and they are liable to be declared so. Relief of permanent injunction was also sought in the suit.

4. The defendant-appellants filed a joint written statement and it was contended by them that no agreement to sell dated 02.08.2000 was ever executed by defendant- appellant-Shri Ram Lal in favour of plaintiff-respondent and remaining defendant- appellants, no sale consideration was ever paid to Shri Ramlal and all the brothers are in joint possession of both the suit properties. It was also averred that as no such agreement to sell was ever executed, both the release deeds are validly executed documents and plaintiff-respondent has no right to challenge them. It was specifically averred that the agreement to sell dated 02.08.2000 being unregistered and insufficiently stamped is inadmissionble in evidence and cannot be acted upon and the suit is not maintainable on such a document.

5. The learned trial court after hearing both the parties and appreciating and evaluating the evidence available on record concluded as follows:

(i) Defendant-



























































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