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1993 Supreme(MP) 552

1993 JLJ 777
A.R. Tiwari, J.
Basantilal v. Rameshwar Prasad and another
F.A. No. 45 of 1976; against the judgment and decree passed by Shri Mohan Lal Sharma, Additional District Judge, Mandsaur (Camp Garoth), in Civil Suit No. 4-B of 1974; Decided on 16.9.1993.

Advocates:
S.D. Sanghi with Upadhyaya for appellant; S.L. Garg and R.S. Garg for respondent No.1.

Headnote:(1) Civil P.C., 1908 -- Sch. I, forms 47 and 48 -- suit for specific performance -- has to conform to requirements under these forms – plaintiff has to plead that he has applied to defendant to perform but the defendant has not done so. 1969 (2) SCC 539 followed. [Para 7

       (2) Land Revenue Code, 1959 (M.P.) -- S. 165 (4) (b) -- prohibition of transfer contained under -- does not invalidate an agreement to be executed on payment of part-price after the deletion of the prohibition by subsequent amendment -- relevant date is date of suit and not the date of agreement. 1978 JLJ 206 and 1978 JLJ 507 relied on. 1979 (I) MPWN 303 distinguished. [Para 9

       (3) Contract Act, 1872 -- S. 23 -- whether a transaction is invalid being against any Law -- Court is required to notice subsequent events i.e. the change in law. AIR 1941 FC 5 relied on. AIR 1975 SC 1409 followed. [Para 9

       (4) Appeal -- appellate Court -- is bound to consider change in Law and other subsequent events. AIR 1975 SC 1409 followed. . [Para 9

       (5) Limitation Act, 1963 -- Art. 54 -- no time of performance of contract specified in the document of contract -- suit filed within three years from the date of having notice of refusal is within time. [Para 11

       (6) Specific Relief Act, 1963 -- Ss. 15 and 16 -- suit for specific performance -- on date of performance settled in agreement to sell -- suit within a period of three years from date of refusal is within limitation. [Para 11

       (7) Contract Act, 1872 -- S. 62 – novation -- plea of protective umbrella of novation -- not permissible in absence of mutuality. AIR 1957 Punj. 140 relied on. [Para 17

       (8) Evidence Act, 1872 – S. 92 -- plea of oral novation or modification in written document of agreement -- is hit by the provision under this section. [Para 17

       (9) Court -- is required to analyse the document and to do justice. (1956) AC 696 relied on. [Para 19

       (10) Statute -- prescribing particular mode or manner to do a thing -- other modes are excluded by implication-- thing should be done in the mode or manner prescribed. 1990 JLJ 11 (FB) relied on. [Para 20

       (11) Specific Relief Act, 1963 -- Ss. 16 and 15 -- plaintiff not coming with clean hands -- story of subsequent payment to agent falsely built upon -- possession obtained against terms of agreement -- such plaintiff is not entitled to a decree of specific performance. AIR 1971 AP 279 relied on. AIR 1989 SC 606 followed. AIR 1955 Cal. 65 distinguished. [Paras 22 to 25

       

JUDGMENT

A.R. Tiwari, J. -- 1. This First appeal, presented under section 96 of the Code of Civil Procedure (for short the 'Code') is directed against the judgment and decree dated 20.4.76 rendered by the Addl. Judge Mandsaur Camp Garoth to the court of the District Judge, Mandsaur in COS No. 4-B/74 (old No. 8-B/71), thereby granting the relief of specific performance of the contract as pleaded in the plaint

2. Briefly stated, the fact" of the case arc that survey Nos. 1280 and 1281 area 1.021 acres, owned by the appellant-defendant, are situated in village Shamgarh District Mandsaur. Excluding the portion of this land i.e. 60 feet in width on the Southern side near the fencing the remaining portion of these survey numbers was contracted to be sold on a consideration of Rs. 11,000/- on 13.9.63. This contract was preceded by earlier agreements on 30.9.61, 19.10.61, 6.11.61 and 29.5.62 Out of this consideration, the sum of Rs. 6,000/- was paid to the defendant whereas the balance consideration of Rs. 5,000/- was agreed to be paid between the period-1.1.64 and 1.5.64 in five instalments of Rs. 1,000/- each. The possession, subsequent to the contract dated 13.9.63 is with the respondent. It was pleaded that sum of Rs. 4,500/- was paid by the respondent to the appellant through his agent Shrikrishna Maheshwari and the balance sum of Rs. 500/- was agreed to be paid at the time of registration of the document. On demand, the appellant failed to execute the sale-deed whereas the respondent was always ready and willing to perform his part of the contract. On non-compliance, the respondent filed the suit claiming specific performance of the contract dated 13.9.63 after issuing the notice and receiving the intimation of refusal on 7.10.68. The appellant resisted the claim on number of grounds and asserted that the respondent committed the breach of the contract and was not even ready and willing to perform his part of the contract. The appellant, therefore, prayed for dismissal of the suit. On evaluation of the evidence, the trial Court decreed the suit for specific performance of the contract and directed the appellant to execute the sale-deed on receiving the balance consideration of Rs. 500/-. Aggrieved by this judgment and decree, the appellant-defendant has preferred this first appeal.

3. As noted above, this is defendant's appeal. He is aggrieved by the decree of specific performance of the contract dated 13.9.63 (Ex. P/3) which was preceded by the agreements dated 30.9.61, 19.10.61, 6.11.61 and 29.5.62, on consideration of Rs. 11,000/- out of which sum of Rs. 10,500/- is alleged to have been paid prior to the institution of the suit.

4. Shri S.D. Sanghi, learned Senior counsel with Shri N.K. Sanghi, has impugned the judgment and decree on grounds, prodigious in number, as categorised below-

a) The suit contract is hit by section 23 of the Contract Act as being contrary to law and is thus, unenforceable. It is luculent that transfer; was at the relevant time, i.e. 13.9.63, forbidden by 'law via section 165 (4) (b) of the M.P. Land Revenue Code. Although this constraint was deleted subsequently by amendment on 23.4.64, yet this could not validate the invalidity. Omission of section 165 (4) (b), requiring the Bhumiswami to own not less than ten acres of unirrigated land, by section 15 of the Act No. 25 of 1964, was inconsequential as the suit still remained one for the enforcement of the contract executed at a time when transfer had stood prohibited. Reliance was placed on 1979 (I). MPWN 303 (Burhia v. Gajiba), The full text of the judgment is made available. .

b) The trial Court erred in holding that the respondent was 'ready and willing' to perform his part of the contract. The respondent had clearly flouted the term as regards the schedule of payment of the balance consideration. He did not pay the sum of Rs. 5,000/- as agreed and elvishly showed that Rs. 4,500/- were paid via one Shri Kishanji-mode unconsented-and the sum of Rs. 500/-



























































































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