R.C. Lahoti, J. -- 1. The plaintiff/appellants have come up in appeal aggrieved by the judgments and decrees of the Courts below dismissing their suit for specific performance of a contract for sale.

2. The case of the plaintiffs is that their predecessors-in-interest namely late Shri Motilal and late Shri Prahlad Das had applied for purchase of a piece of land from the then Municipality of Gwalior in the year 1448. The Municipal Council resolved in favour of the prospective purchasers requiring them to deposit Rs. 58-6 Annas, which was done. The property was under litigation al that time. When the litigation was over and demand was made for executing the sale-deed, the municipality took up the plea that the land was Nazul land, the ownership vesting in the State and hence the municipality was not competent to execute the deed of sale.

3. On suit being filed, the defendant municipality did not file any written statement but the case was contested by the State Government. It was submitted that not only the title vested in the State but also that the Municipal Council now constituted under M.P. Municipalities Act, 1961 was not obliged to fulfil the obligations incurred by th