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2009 Supreme(Online)(Raj) 6

IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
H.R. Panwar, J
Banshi Lal – Appellant
Versus
Smt. Kamla Devi – Respondent
Civil Second Appeal No. 100/2009



Advocates:
For the Appellants/Petitioners: S.L. Jain
For the Respondents: Muktesh Maheshwari

A contract for the sale of property, executed when the vendor holds an imperfect title, becomes specifically enforceable if the vendor acquires a valid interest in the property subsequently, and the limitation period for such a suit commences upon the vendor's refusal to perform the agreement.

Headnote:(A) Specific Relief Act, 1963 - S. 13 and S. 16(c) - Agreement to sell - Suit for specific performance - Imperfect title at time of agreement - Vendor subsequently acquiring absolute title (Khatedari rights) - Held, purchaser may compel performance of contract out of such interest acquired subsequently. (Paras 7, 8, 20, 21)

(B) Limitation Act, 1963 - Art. 54 - Suit for specific performance - Limitation - Absence of time fixed for performance - Limitation commences from date of refusal to perform - Filing of suit within three years from notice of refusal is within limitation. (Paras 6, 15, 16, 17)

(C) Transfer of Property Act, 1882 - S. 43 - Transfer by person unauthorized to transfer subsequently acquiring interest - Held, transfer operates on any interest which transferor may acquire.

Facts of the case:
The respondent (plaintiff) and appellant (defendant) entered into an agreement to sell agricultural land on 14.5.1988, with part payment and possession transferred. The defendant later claimed the land was Gair Khatedari and lacked title. The trial court decreed a refund of the amount, but the first appellate court decreed specific performance. The defendant appealed, claiming the suit was barred by limitation and the contract was void due to lack of government consent for the transfer of Gair Khatedari land.

Findings of Court:
The court found that when a person contracts regarding property for which they possess an imperfect title, they are bound to fulfill the contract once they acquire valid interest. Additionally, the limitation period commences upon refusal to perform the contract.

Issues: Whether the suit was barred by limitation and whether an agreement to sell land without government consent in respect of Gair Khatedari land is specifically enforceable upon subsequent acquisition of Khatedari rights.

Ratio Decidendi: A contract for the sale of land, even if the vendor possesses an imperfect title at the time of execution, becomes specifically enforceable if the vendor subsequently acquires an absolute title, provided the suit is filed within the limitation period reckoned from the date of refusal to perform the contract.

Result: Second appeal dismissed.

Table of Content
1. overview of the background and facts of the case. (Para 1 , 2)
2. arguments surrounding limitation in specific performance suits. (Para 3 , 4 , 5 , 6)
3. enforceability of contracts concerning previously restricted land titles upon acquisition of absolute rights. (Para 7 , 8 , 9 , 10 , 11 , 12 , 13 , 15 , 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25)

H.R. Panwar, J.

This civil second appeal u/s 100 of CPC (for short ''the Code'' hereinafter) is directed against the judgment and decree dated 29.7.2009 passed by learned Additional District Judge (Fast Track), Anupgarh, Headquarter Suratgarh (for short ''the first appellate Court'' hereinafter) whereby the appeal filed by the respondent plaintiff against the judgment and decree dated 9.9.2004 passed by . Civil Judge (Sr, Div.), Suratgarh, District Sriganganagar (for short ''the trial Court'' hereinafter) in Civil Original Case No. 44/2000 was allowed.

2. Briefly stated the facts of the case to the extent they are relevant and necessary for the decision of the this second appeal are that the respondent plaintiff filed a civil suit before the trial Court for specific performance of agreement dated 14.5.1988 by which the appellant defendant agreed to sale agriculture land in favour of the respondent plaintiff. Before the trial Court, the appellant defendant filed his written statement and came with a plea that the document was not for agreement to sale but it was a document mortgaging the land. However, the appellant defendant admitted having received the part payment of consideration mentioned in the document agreement to sale Ex.l. The total amount of sale consideration was Rs. 31,500/-, out of which, a sum of Rs. 16,500/- was paid by the respondent plaintiff to the appellant defendant at the time of execution of the document agreement to sale as also the possession of the land, agreed to. be sold, was handed over to the respondent plaintiff. This fact has not been disputed by the appellant defendant that the possession of the land under agreement to sale was handed over to the respondent plaintiff at the time of receiving Rs. 16,500/- from respondent plaintiff and since 14.5.1988 the respondent plaintiff is in possession of the entire land covered by agreement to sale Ex.l. The trial Court framed issues and tried the suit. The plea of limitation was also taken in the written statement and therefore, issue as to whether the suit filed by the respondent ,plaintiff is barred by period of limitation was also framed as Issue No. 7. The Issue No. 7 came to be decided against the appellant defendant. The trial Court instead of decreeing the suit for specific performance of the agreement Ex.1 dated 14.5.1988 decreed the suit for the payment of Rs. 16,500/- in favour of the respondent plaintiff and against the appellant defendant. The respondent plaintiff filed an appeal before the first appellate Court being Appeal No. 4/08 (4/04). By the judgment and decree impugned dated 29.7.2009, the first appellate Court allowed the appeal filed by the respondent plaintiff for specific performance of the agreement dated 14.5.1988 Ex.l and directed the appellant defendant for specific performance of contract i.e. agreement to sale dated 14.5.1988 and to get the document deed of sale executed and registered in favour of respondent plaintiff within two months from the date of judgment and decree in respect of the land Chak 13 S.D. Tehsil Suratgarh Murabba No. 118/396, Kila No. 4 to 6 and 13 to 16 measuring 7 bighas and at the time of getting the document deed of sale registered, the balance amount of consideration shall be paid by the respondent plaintiff to the appellant defendant and the expenses for registration of the deed of sale shall be borne by the respondent plaintiff. If the appellant defendant fails to comply with the directions of the Court, then it will be open for the respondent plaintiff to get the document for deed of sale registered through Court. Hence this appeal.

3. I hav

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