IN THE HIGH COURT OF ALLAHABAD
A. P. SINGH
SARDAR - Appellant
Versus
RAM KHILAUNA - Respondents
SECOND APPEAL 1974 Of 1978
Decided On : 09/24/1996
SPECIFIC PERFORMANCE - AGREEMENT OF SALE - ALTERATION OF AGREEMENT - MATERIAL ALTERATION - VOID AGREEMENT - SECTION 41 OF TRANSFER OF PROPERTY ACT - SECTION 19 OF SPECIFIC RELIEF ACT - MATERIAL ALTERATION OF AGREEMENT BY INTRODUCING NEW WITNESSES - ALTERATION TO THE PREJUDICE OF VENDORS - AGREEMENT RENDERED VOID - SUIT FOR SPECIFIC PERFORMANCE DISMISSED - SUIT FOR DECLARATION OF RIGHTS OVER LAND IN SUIT DECREED.
Fact of the Case:
Covenantees filed a suit for specific performance of an agreement of sale against vendors for a land. Vendors denied the agreement and claimed that they sold the land to vendees. Vendees filed a separate suit for declaration of their title and possession over the land. Trial court and first appellate court decreed the suit of covenantees and dismissed the suit of vendees. Vendees appealed.
Finding of the Court:
The alteration made by the covenantors in the agreement deed was a material alteration as it was to the prejudice of the vendors who, in view of the testimony of those two witnesses, whose names were subsequently introduced in it, were faced with a difficult situation of failing in their endeavour to prove that the said agreement deed was fraudulently manufactured by covenantors on a document their signatures were obtained on the pretext of transfer of some other property.
Issues: Whether the transfer in favour of the vendees was protected by Section 41 of Transfer of Property Act and/ or Section 19 of the Specific Relief Act.
Ratio Decidendi: 1. Section 41 of the Transfer of Property Act protects transfers of immovable property made for consideration by an ostensible owner, provided the transferee took due care to ascertain the transferor's power to transfer and acted in good faith. 2. Section 19 of the Specific Relief Act empowers a holder of a contract of sale to enforce his contract even against a subsequent owner of the property, except if the subsequent owner purchased the property for value without notice of the contract and in good faith. 3. The alteration made by the covenantors in the agreement deed was a material alteration as it was to the prejudice of the vendors. 4. The agreement, therefore, cannot be enforced against the vendors for the reason of its having been altered without their knowledge and consent.
Final Decision: Both the appeals were allowed. The judgment and decree passed by the Courts below in both the suits were set aside. Suit No. 58 of 69 which was filed by covenantors for specific performance of the agreement deed was dismissed with costs throughout whereas Suit No. 58 of 71 which had been filed for declaration of the rights of the vendees over the land in suit was decreed with costs throughout.
( 1 ) TWO set of suits, one by respondents being suit No. 58 of 1969 which was filed by Ram Khilauna, Charni, Rathi, since deceased represented by legal representatives, hereafter called convenantees the term which has throughout been used by the Courts below as well, Covenantees sought the relief of specific performance of an agreement of sale against Ram Khilari and Nihal Singh, hereinafter addressed, like before by Courts below, as vendors. The case as set up by them was that vendors had entered into an agreement of sale with them in respect of Chak No. 92 measuring 23. 83 acres, which is the land in suit, on 19. 4. 69 for a sum of Rs. 14,000/- out of which vendors accepted a sum of Rs. 12,000. 00 as earnest money as advance payment of the price of the land settled between covenantees and vendors. In pursuance of the said agreement covenantees were put in possession over the land in suit and they put a hut on it and sowed sugarcane crop in one acre but on 7-5-69 the vendors sold the same land (land in suit) to Sardar and Sher Singh, hereinafter called as vendees for a sum of Rs. 15,000. 00 though the vendees know of the agreement of the sale between the covenantees and vendors inrespect of the land in suit but vendees still purchased it. Other averments of readiness and willingness and sending of notice etc. were also made by covenantees. The vendors, however, denied having ever agreed to sell the land in suit according to vendors they sold the land in suit to vendees whereafter covenantors with some persons approached them and protested against sale of land in suit to vendees and on the pressurisation of some senior citizen of the village they agreed to sell to the covenantors some other property which they wanted to purchase accordingly on their asking they signed the papers which covenantors have since misutilised by fraudulently preparing the agreement deed for the land in suit. Vendees also filed their separate written statement and denied knowledge of the agreement deed and also joined with vendors in denying execution of the agreement deed and settlement of contract of sale between vendors and covenantees for sale of the land in suit. This suit of covenantees was decreed by the trial Court and the decree of the trial Court was confirmed by the first appellate Court, hereafter called 1st appellate Court. Second Appeal No. 1974 of 78 has been filed by vendees impugning the decree passed by Courts below decreeing the suit of the covenantees (suit No. 58 of 69 ). Second suit being suit No. 58 of 71 was filed by vendees seeking declaration of their title and possession over the land in suit pursuant to attachment of the land in suit by the order of Executive Magistrate under Section 145 of the Cr. PC and its apprehended release in favour of the Covenantees. Suit No. 58 of 71 was dismissed by the trial Court and also by the 1st appellate Court. Both the Courts heard and decided the two suits jointly. second Appeal No. 1975 of 78 has been filed by vendees impugning the decree o the Courts below dismissing their said suit for declaration and possession of the land in suit. Vendees claimed title and possession over the land in suit under the sale deed dated 7. 5. 69 whereas covenantees claimed possession over it on the basis of the agreement deed dated 19. 4. 69 (Ext. 12) both of which were executed by the vendees for the same land.
( 2 ) AS observed above trial Court as well as the Ist appellate Court decreed covenantees suit and dismissed vendees suit. Finding arrived at by the Courts below was that the sale deed was dishonestly got executed to defeat the agreement of sale and that vendors plea that it was not executed by them which was fraudulently procured was disbelieved for want of proper proof. It was also found that vendees had prior notice of the agreement deed executed by vendors for sale of land in suit to covenantors and they purchased the land in suit in bad faith. Agreement deed was held proved ha
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