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2025 Supreme(Online)(MP) 9815

HIGH COURT OF MADHYA PRADESH
G. S. Ahluwalia, J
Babulal Jatav – Appellant
Versus
Santoshi Johri – Respondent
FIRST APPEAL No. 114 of 2002



Advocates:
For the Appellants/Petitioners: Sanjay Kumar Sharma
For the Respondents: None

A power of attorney holder, specifically a spouse who exclusively manages the affairs of the principal, is a competent witness to testify about the principal's 'readiness and willingness' to perform a contract in a suit for specific performance.

Headnote:(A) Specific Relief Act, 1963 - Suit for specific performance of contract - Power of Attorney - Competency of witness - Whether power of attorney holder can depose on behalf of principal regarding 'readiness and willingness' - Held, where affairs are exclusively managed by the spouse, such evidence is admissible as an exception under established legal principles. (Paras 11, 12, 15)

Facts of the case:
The respondent filed a suit for specific performance of a contract to sell a house for Rs. 1,13,000/-. The appellant contested the suit, alleging that the signatures were obtained on blank papers due to their illiteracy and that the consideration was inadequate. The trial court decreed the suit in favor of the respondent, which is challenged in this appeal.

Findings of Court:
The court observed that the husband of the respondent, being the power of attorney holder and having personal knowledge of the transaction, was a competent witness. The evidence established the execution of the agreement and the payment of advance amounts. The court dismissed the appeal and affirmed the trial court's judgment.

Issues: Whether the deposition of the power of attorney holder on behalf of the principal regarding the readiness and willingness to perform the contract is legally sustainable.

Ratio Decidendi: While a power of attorney holder cannot generally depose for the principal on matters within the principal's exclusive personal knowledge, an exception is recognized where the entire affairs of the party are managed by the attorney-holder, such as a spouse managing the affairs of the other.

Result: Appeal dismissed.

Table of Content
1. summary of trial court findings in a specific performance suit. (Para 1 , 2 , 3 , 4 , 5 , 6)
2. admissibility of evidence by power of attorney holder regarding personal knowledge. (Para 7 , 8 , 9 , 10 , 11 , 12)
3. application of the spousal exception for evidence regarding 'readiness and willingness'. (Para 13 , 14 , 15)
4. confirmation of trial decree and dismissal of appeal. (Para 16 , 17 , 18 , 19)

ORDER

This first appeal has been filed against the judgment and decree dated 29/4/2002 passed by XI Additional District Judge (Fast Track Court), Gwalior in Civil Suit No.10A/2001.

2. Appellants are the defendants, who have lost their case from the Court below.

3. Respondent filed a suit for specific performance of contract in respect of House No.10-B, Panchsheel Nagar, Gola Ka Mandir, Gwalior. It is the case of the plaintiff that defendant No.1 Babulal Jatav is the owner of the property in dispute, whereas defendant Nos. 2 and 3 are his sons. The description, as well as, boundaries of the disputed property were given in paragraph 2 of the plaint. It was the contention of plaintiff that defendants had jointly agreed upon to sell the house in question for a consideration amount of Rs. 1,13,000/- and, accordingly, an agreement to sell was executed on 28th of January 1994. An amount of Rs.10,000/- was received by way of advance and it was agreed upon that the remaining amount shall be paid at the time of execution of sale deed. The possession of disputed house was also agreed to be delivered at the time of registration of sale deed. It was agreed upon that after obtaining due permissions from Authorities, defendants would execute the sale deed within a period of six months, failing which plaintiffs shall have a right to get the sale deed executed from the Court. Thereafter, on the pretext that defendants require some more money, an amount of Rs.20,000/- was also received by defendants on 15/7/1994. It was claimed that plaintiff is ready and willing to perform her part of contract, but defendants did not take any step for obtaining permission from competent Authorities and now the defendants are trying to alienate the property to somebody else and, accordingly, the suit for declaration of title and permanent injunction was filed on 20/2/1995 which has been registered as Civil Suit No. 6A/95 and is pending before the Court of III Additional District Judge, Gwalior. It was further pleaded that defendants are avoiding the sale of the disputed house. Accordingly, a registered notice was given on 10/6/1995. Although the notice has been received by the defendant, but they have not executed the sale deed and, accordingly, a suit for specific performance of contract was filed.

4. Defendants filed their written statement and admitted that the house in dispute is owned and possessed by the defendants. The description of the disputed property, as given in the paragraph 2 of the plaint, was disputed. It was denied by defendants that they had ever executed an agreement to sell on 28/1/1994. It was also denied that defendants had ever taken Rs.10,000/- and Rs.20,000/- on 28/1/94 and 15/7/1994 respectively. It was claimed that the defendants are illiterate and innocent persons and, accordingly, the signatures of defendants were obtained on the agreement to sell which has been filed by the plaintiff. This document was never read out to the defendants. Defendants had not signed the document in presence of notary. Taking advantage of the fact that defendants merely know to sign, plaintiff wants to grab the property. The market value of the house is Rs.5,00,000/- but she wants to grab it for an amount of Rs.1,13,000/-. Defendants Nos. 2 and 3 had never given their consent for sale of house. Since Civil Suit No. 6A/1995 is already pending, therefore, the present suit is not maintainable and it should be stayed under section 10 of CPC. It was admitted that a notice dated 10th of February 1995 was given by the plaintiff. However, it was me

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