SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1993 Supreme(All) 293

IN THE HIGH COURT OF ALLAHABAD
M. L. BHAT
INDRA PRASAD SAXENA - Appellant
Versus
CHAMAN LAL MALIK - Respondents
First Appeal 795 Of 1984
Decided On : 05/17/1993

Advocates Appeared:
K.L.GROVER, V.K.Gupta

A vendor is obliged to comply with the terms of the agreement and is willing to perform his part of the contract. Failure to do so may result in a breach of contract and the vendee may be entitled to specific performance of the contract, subject to compliance with the provisions of Section 26 of the Urban Land (Ceiling and Regulations) Act, 1976.

Headnote:

SPECIFIC PERFORMANCE - URBAN LAND (CEILING AND REGULATION) ACT, 1976 - SECTION 26 - SALE OF LAND - NOTICE TO COMPETENT AUTHORITY - COMPLETION OF NOTICE AND SUBMISSION TO COMPETENT AUTHORITY WITHIN ONE WEEK FROM DATE OF EXECUTION OF AGREEMENT - OBLIGATION OF VENDOR - BREACH OF CONTRACT - SPECIFIC PERFORMANCE DECREE SUBJECT TO COMPLIANCE WITH SECTION 26 OF THE ACT.

Fact of the Case:

An agreement of sale was executed for the sale of 200 sq. yards of land. The agreement stipulated that the vendor was to apply within one week for permission under the Urban Land (Ceiling and Regulation) Act, 1976 for transfer of the land. The vendor did not apply within one week and submitted an incomplete application much later, which was rejected by the competent authority. The vendee filed a suit for specific performance of the contract.

Finding of the Court:

The vendor was obliged to prove that he had complied with the terms of the agreement and was willing to perform his part of the contract. The vendor failed to apply within one week under Section 26 of the Act to the competent authority. The vendor's application, which was termed as a notice under Section 26 of the Act, was incomplete for want of details and was rejected by the competent authority. The vendor did not file any appeal when he was informed that his notice under Section 26 of the Act could not be considered for want of details. The vendor did not move in the matter, indicating that he was not willing to perform his part of the contract.

Issues: 1. Whether the vendor had complied with the terms of the agreement and was willing to perform his part of the contract. 2. Whether the vendor had applied within one week for permission under Section 26 of the Act to the competent authority. 3. Whether the vendor's application, which was termed as a notice under Section 26 of the Act, was incomplete for want of details and was rejected by the competent authority. 4. Whether the vendor had filed any appeal when he was informed that his notice under Section 26 of the Act could not be considered for want of details. 5. Whether the vendor had moved in the matter, indicating that he was not willing to perform his part of the contract.

Ratio Decidendi: 1. Section 26 of the Urban Land (Ceiling and Regulation) Act, 1976 requires notices to be given. It does not oust the jurisdiction of the Court to pass a decree for specific performance. 2. The specific performance decree could be executed or made workable only after Section 26 of the Act was complied with. 3. At the time of passing of the decree, the Court could impose a condition that execution of the sale deed by the vendor in favor of the vendee will be subject to the compliance with the provisions of Section 26 of the Urban Land (Ceiling and Regulations) Act, 1976. 4. If these provisions were not complied with, no sale deed could be executed.

Final Decision: The appeal was allowed. The appellant's suit for specific performance of the agreement dated 26-9-1980 was decreed. The execution of the sale deed by the respondent was made subject to the permission to be obtained by the respondent after giving notice under Section 26 of the Urban Land (Ceiling and Regulations) Act, 1976.

M. L. BHAT, J.


( 1 ) THE appellants suit for specific performance of contract of sale is dismissed by the Court below vide its judgment and decree dated 23-11-1984. The appellant has come up with an appeal against the said judgment and decree.

( 2 ) FROM the facts of the case it is revealed that an agreement of sale was executed by the respondents in favour of the appellant for sale of 200 sq. yards of land in consideration of Rs. 12,000. 00 Rs. 1,000. 00 is said to have been paid at the time of execution of the sale deed and balance was to be paid at the time of registration of the sale deed. According to the stipulations contained in the agreement respondent was to apply within one week for permission under the Urban Land (Ceiling and Regulation) Act of 1976 for transfer of the land. After the permission was granted sale deed was to be executed within two months by the defendant. It is contended by the appellant that the defendant did not apply within one week for the permission but he submitted an incomplete application much after to the concerned authorities. Said application was rejected and information of the same was conveyed to the appellant on 26-12-1982. The order rejecting the application filed by the respondent is placed on the record of the trial Court. By this order the competent authority had informed respondent that he had not given the proof in support of the application whereby notice of sale was given. Therefore, issuance of notice by the respondent was not competent. Under the provisions of Ceiling Act respondent had to give notice in writing of the intended transfer to the competent authority. The purpose of issuing the said notice is to give option of purchase of land to the State Government at a price calculated in accordance with the provisions of the Land Acquisition Act or on any other corresponding law for the time being in force and on receipt of the notice if the option is not exercised by the authority within 60 days from the date of receipt of the notice it is to be presumed that the competent authority has no intention to purchase the said land on behalf of the State Government and it shall be lawful for the said person to transfer the land to whomsoever he may like. Bar created by S. 26 for transfer of vacant land can be relaxed if notice is given for the transfer of land and thereafter option is not exercised by the State Government to purchase the land within 60 days of the notice. Along with the notice the person intending to transfer the land has to give details of the intending purchaser and his address etc. in the form which is part of the Act.

( 3 ) THE respondent in this case therefore had to make a complete application within one week to the competent authority. The notice which was to be given to the competent authority was to be complete in every respect and completion of the notice and its submission to the competent authority within one week from the date of execution of the agreement was the responsibility of the respondent. There is an express covenant to this effect in the agreement dated 26-9-1980. The notice is said to have been given by the respondent to the competent authority after a few months from the date of execution of the agreement and that notice was incomplete. There has been some exchange of notices between the parties on the subject of issuance of notice under S. 26 of the Ceiling Act. However, the relevant notice which is said to have been given by the respondent to the plaintiff is dated 27-1-1981. The respondent in this notice had said that he had written two letters to the appellant which were not replied by the appellant and the appellant was asked to give full and complete details of his sons and of the land possessed by him and his family members so that respondent is able to issue a notice under S. 26 of the Act. After the order of the competent authority respondent had a remedy under S. 33 of the Act to file an appeal to such authority as was prescribed. T

















Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

AI

SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top