As per case facts, a suit was filed for specific performance of a contract for sale of property between the plaintiff (tenant) and defendant no. 1 (landlord). An advance payment ...
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IN THE HIGH COURT OF JHARKHAND AT RANCHI
S.A. No. 182 of 1991 (R)
1. Naresh Pathak, S/o Late Jugal Kishore, Substituted vide order
dated 21.04.2022
1(a). Mahendra Pathak @ Ram Kinkar Pathak, aged about 58 years
(already appellant no. 5), S/o Late Naresh Pathak, R/o Kokar Chowk,
P.O. – Kokar, P.S. – Sadar, District – Ranchi, Jharkhand.
1(b). Sushma Devi, aged about 55 years, W/o Satrughan Mishra, D/o
Naresh Pathak, R/o Village- Ramdhanpur, Narhan Kothi, P.O. –
Railway Station, P.S. – Kotwali, District – Gaya, Bihar.
1(c). Krishna Kinkar Pathak, aged about 50 years, S/o Late Naresh
Pathak, R/o Village- Karidih @ Mada, P.O. – Kuba, P.S. – Hunterganj,
District- Chatra. (Dead) Substituted vide order dated 29.09.2022
1(c)(i) Upma Devi, W/o Late Krishna Kinkar Pathak, aged about 53
years.
1(c)(ii) Priyanka Mishra, W/o Manoj Mishra, D/o Late Krishna Kinkar
Pathak.
1(c)(iii) Avinash Kumar Pathak, S/o Late Krishna Kinkar Pathak, aged
about 26 years.
1(c)(iv) Abhishek Kumar Pathak, S/o Late Krishna Kinkar Pathak, aged
about 24 years.
1(c)(v) Preeti Kumari Pathak, D/o Late Krishna Kinkar Pathak, aged
about 22 years.
1(c)(vi) Ashish Kumar Pathak, S/o Late Krishna Kinkar Pathak, aged
about 14 years, represented through its natural guardian mother Upma
Devi, W/o Late Krishna Kinkar Pathak.
All R/o Karidih @ Mada P.O. – Kubba, P.S. – Hunterganj, Chatra,
Jharkhand 825401.
1(d). Hari Kinkar Pathak, aged about 46 years, S/o Late Naresh Pathak,
R/o Karidih @Mada P.O. – Kubba, P.S. – Hunterganj, District- Chatra.
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1(e). Ravi Kinkar Pathak, aged about 44 years, S/o Late Naresh Pathak,
R/o Kokar Chowk, P.O. – Kokar, P.S. – Sadar, District – Ranchi,
Jharkhand.
2. Smt. Suraj Kumari Devi, D/o Late Jugal Kishore Pathak. Substituted
vide order dated 21.04.2022.
2(a). Niraj Kumar Pathak, S/o Late Dhirendra Pathak and grandson of
Late Bindeshsari Pathak.
2(b). Suraj Kumar Pathak, S/o Late Dhirendra Pathak and grandson of
Late Bindeshsari Pathak, S/o Late Dhirendra Pathak and grandson of
Late Bindeshsari Pathak.
2(c). Sanjay Kumar Pathak, S/o Late Dhirendra Pathak and grandson of
Late Bindeshsari Pathak.
2(d). Mirtunjay Kumar Pathak, S/o Late Dhirendra Pathak and grandson
of Late Bindeshsari Pathak.
R/o Karidih @ Mada, P. O. Kuba, P.S. – Hunterganj, Chatra.
2(e). Sachi Devi, W/o Late Prakash Mishra, D/o Late Bindeshwari
Pathak, R/o Village- Augila, P.O. – Lakhna, District- Patna, Bihar.
2(f). Sushila Devi, W/o Shri Uday Nath Pathak, D/o Late Bindeshwari
Pathak, R/o Village- Boga Sadam, P. O. – Domal Ichak, District-
Chatra.
2(g). Nirmala Devi, W/o Shri Sudhir Pathak and D/o Late Bindeshwari
Pathak, R/o Village- Sriyama, P.O.- Mohanpur, District Gaya, Bihar.
3. Smt. Bhanu Devi @ Bhanu Mati Devi, D/o Late Jugal Kishore Pathak,
R/o Quarter No. DT 2121, Dhurwa, H.E.C., P.S. – Jagarnathpur,
District- Ranchi. (Wife of Shri Dineshwar Pathak.) (Deleted vide order
dated 16.08.2018)
4. Denesh Pathak, S/o Late Chandrama Pathak, R/o Quarter No. 2121,
Dhurwa, P.S. – Jagarnathpur, Ranchi. (Deleted and substituted vide
order dated 16/ 04/ 1996)
4(a). Debendra Kumar Pathak
4(b). Birendra Kumar Pathak
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4(c). Sheo Kumar Pathak
4(d). Arun Kumar Pathak
All Sons of Denesh Pathak, at present resident of Mohalla of Ranchi
town P.S. District Ranchi
4(e). Smt. Usha Pathak, W/o Shree Hirdyanand Pandey, resident of Qr.
No. B-II 325 Dhurwa, P.S. Jagarnnathpur, District Ranchi
5. Ram Kishore Pathak, S/o Shri Naresh Pathak, R/o Village- Karidih @
Made, P.S. – Hatarganj, District- Hazaribagh
…. Defendants / Appellants / Appellants
-Versus-
1. Shri Narayan Prasad Sharma, S/o Late Murlidhar Sharma, R/o Village-
Kokar, P.S. – Sadar, District- Ranchi. (Dead) Substituted vide order
dated 17/ 03/ 1998
1(a). Urmila Devi, W/o Shree Gopal Prasad Sharma, D/o Late Narayan
Prasad Sharma.
1(b). Nirmala Devi, W/o Shree Bijoy Sharma, D/o Late Narayan Prasad
Sharma. (Dead) Substituted vide order dated 14/ 11/ 2022
1(b)(i) Narendra Joshi, Husband of Late Nirmal Joshi
1(b)(ii) Ashish Joshi, S/o Late Nirmala Joshi
1(b)(iii) Uma Vyas
1(b)(iv) Jaya Dadhich
1(b)(v) Neha Sharma
1(b)(vi) Shital Sharma
1(b)(vii) Swati Mehra
1(b) (iii) to 1(b) (vii) D/o Late Nirmala Joshi,
All are R/o 5 Raj Ballabh Shah Lane, Howrah, Kolkata, W.B – 711101.
1(c). Renu Sharma, W/o Dilip Kumar Sharma, D/o Late Narayan Prasad
Sharma.
Resp. Nos. 1(a) to 1(c) are residents of C/o Late Narayan Prasad Sharma
of village Kokar, H.B. Road, P.S. Sadar, District Ranchi
……Plaintiffs/ Respondents/ Respondents
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2. Smt. Prabha Devi, D/o Late Jugal Kishore Pathak and W/o Shri Naresh
Pathak, R/o Village- Bansbigha, P.S.- Kabiganj, District- Aurangabad.
…. Defendant/ Appellant/ Proforma Respondent
---
CORAM: HON'BLE MRS. JUSTICE ANUBHA RAWAT CHOUDHARY
---
For the Appellants : Mr. Rajeev Kumar, Advocate
Mr. Bhaiya V. Kumar, Advocate
For the Respondents : Mr. Vishal Kumar Tiwary, Advocate
Mr. Manjeet Kumar Choudhary, Advocate
Mr. Imran Beig, Advocate
---
Reserved On: 04.02.2026 Pronounced On:01.06.2026
1. This second appeal has been filed against judgment 09.07.1991 (decree
signed on 29.07.1919) in Title Appeal No. 79 of 1988, T. R. No. 15 of 1989
passed by the learned Additional Judicial Commissioner, Ranchi confirming
the judgment and decree dated 02.08.1988 passed by the learned Sub- Judge
– II, Ranchi in Title Suit No. 297 of 1982.
2. The defendants lost in both the courts and consequently they are the
appellants before this Court.
3. This second appeal was admitted vide order dated 04.09.1992 by
framing substantial question of law No.(i) and thereafter, an additional
substantial question of law was framed on 03.9.2015 i.e. substantial question
of law No.(ii), and thereafter on 16.08.2018 substantial question of law No.
(iii) was framed. Further, vide order dated 23.12.2025, I.A. No. 12912 of 2025
was filed for rectification of the substantial question of law No. (i) and
considering the submission, the substantial question of law No. (i) framed vide
order dated 04.09.1992 was modified. Thus, following are the three
substantial questions of law to be answered in this case: -
(i) Whether the concurrent finding recorded by both
the courts that the plaintiff was ready and willing to
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perform his part of the contract suffers from any
perversity?
(ii) Whether the agreement dated 18.09.1982 (Exhibit-
2) executed by defendant No.1 in favour of plaintiff or
agreement dated 20.08.1982 (Exhibit-B) executed by
defendant No.3 in favour of defendant No.2 shall prevail
and given effect to?
(iii) Whether the receipt cum extension of time of the
agreement for specific performance of contract marked as
Exhibit 2/1 was inadmissible in evidence for the same
being not duly stamped?
4. Case of Plaintiffs: -
(a) Title Suit No. 297 of 1982 was instituted on 11.12.1982.
(b) The sole plaintiff was Sri Narayan Prasad Sharma against the sole
defendant Jugal Kishor Pathak. However, vide order dated
25.03.1983, other defendants, namely, Dinesh Pathak and Ram
Kinkar Pathak were added as defendant nos. 2 and 3 respectively.
(c) The suit was filed for specific performance of contract with respect
to Schedule-B property which was a part of Schedule-A property.
(d) The defendant no. 2 was added on account of the fact that after the
filing of the suit, the grandson of the sole defendant, namely, Ram
Kinkar Pathak executed sale deed in favour of Dinesh Pathak,
defendant no. 2, who was the own son-in-law of the sole defendant
and it was alleged that the transaction was a sham transaction.
(e) The suit was for a direction upon the defendants by a decree of
specific performance to execute and register a deed of sale in
respect of the suit property described in Schedule-B to the plaint
in pursuant to the agreement dated 18.09.1982 and a further prayer
was made that the defendants be perpetually restrained from
making any dealing or agreement in respect of the suit property
with any person other than the plaintiff.
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(f) Schedule-A and Schedule-B of the plaint are quoted as under: -
Schedule ‘A’
The land with house Kuchha and Pucca situated in
village Kokar P.S. Sadar District Ranchi bearing
Khata no. 239 Plot No. 652 Municipal Holding No.
873 an area of 10 decimals.
Schedule ‘B’
All that the land with Kuchha and Pucca house
situated in Mohalla Kokar, P.S. Sadar, District Ranchi
bearing Khata no. 239, Plot no. 652 Municipal
Holding No. 873 (which is the part of the land of
Schedule ‘A’) which is 15 ft east to west in the
southern side and northern side and 50 ft (approx.)
north to south in the eastern and western side
comprising with three rooms one verandah one court
yard (in the middle) and a gali (north to south in the
western side and a latrine. And which is bounded and
butted as follows: -
North :- Jatru Oraon
South: - Hazaribagh Road
East: - Part of the same house of the Vendor
West: - Dineshar Pathak’s house.
Address of the plaintiff: -
At & village Kokar, Hazaribagh Road, Ranchi, Police
Station Sadar, District & Sub-Judge-Ranchi
(g) It was the specific case of the plaintiff that Schedule-A property
was the self-acquired property of the defendant no. 1 who was a
school teacher and the defendant no. 1 had let out different
portions of Schedule-A property to the tenants and the plaintiff
was a month-to-month tenant with respect to portion of the
property and used to pay rent regularly. The portion in occupation
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of the plaintiff as tenant has been described in Schedule-B to the
plaint.
(h) The defendant no. 1 resided at Hazaribagh at the address given in
the plaint and used to regularly visit Ranchi to collect rent and to
do other works relating to management of his properties. All this
was causing inconvenience to defendant no. 1 and therefore he
approached the plaintiff in the month of September 1982 and
represented that he was in urgent need of money and offered to sell
the property to the plaintiff at a consideration amount of Rs.
10,000/- and the plaintiff accepted the offer. The parties decided
to reduce the terms of agreement in writing by executing a formal
agreement and therefore they engaged the services of Sri Kashi
Prasad Sahu, Advocate, who on 18.09.1982, prepared an
agreement in his writing on a proper stamp paper. The agreement
was explained and read over to the parties in presence of the
witnesses where both the parties and witnesses signed the
agreement and a sum of Rs. 2,000/- only was paid by the plaintiff
to the defendant as advance against the agreed consideration
amount. A copy of the agreement was annexed to the plaint.
(i) It was the case of the plaintiff that as per the agreement, the sale
was to be completed within one month. Before expiry of the
stipulated period of one month, the defendant no. 1 came to the
plaintiff and asked for further sum of Rs. 1,000/- as advance
against consideration money and that the period of completion of
sale be extended till 17.11.1982. The plaintiff and the defendant
again went to Sri Kashi Prasad Sahu, Advocate on 11.10.1982 and
on their instruction, the payment of further advance and extension
of time on the back of agreement dated 18.09.1982 was made and
Rs. 1,000/- was paid by the plaintiff to the defendant.
(j) It was the case of the plaintiff that he made it known to the
defendant no. 1 that he was ready and willing to perform his part
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of the agreement by paying the balance consideration amount, but
the defendant avoided to execute the sale deed on one pretext or
the other pretext. On plaintiff’s insistence that the sale deed should
be executed immediately, the defendant started pressing that
period for execution of sale deed be extended up to 30.11.1982 and
ultimately both the plaintiff and the defendant again went to Sri
Kashi Prasad Sahu, Advocate on 16.11.1982 and in his presence,
the parties agreed to extend the period for execution of the sale
deed till 30.11.1982 and a memorandum to that effect was
prepared and signed on 16.11.1982. A photocopy of the
memorandum was annexed to the plaint.
(k) However, the plaintiff on 27.11.1982 received a registered letter
from an Advocate, namely, M. L. Pathak acting on behalf of one
Ram Kinkar Pathak claiming to be the grandson of the defendant
no. 1, whereby Ram Kinkar Pathak sought to enquire whether any
agreement has been entered into between the plaintiff and the
defendant regarding the suit property. In response to such letter,
the plaintiff claimed that a reply was sent through his lawyer on
30.11.1982 and a copy of the same was also served on the
defendant no. 1 on 30.11.1982 itself. However, in spite of receipt
of the said letter, whereby it was categorically made known that
the plaintiff was always and still ready and willing to pay the
consideration balance amount and get the sale deed in respect of
the suit property executed and registered and will wait up to
10.12.1982 and then initiate appropriate legal proceeding if the
defendant no. 1 did not execute the sale deed.
(l) Ultimately, the plaintiff filed the suit seeking specific performance
of agreement dated 18.09.1982 which was the first agreement
entered into between the defendant no. 1 and the plaintiff.
However, the plaintiff came to know that with full knowledge
about filing of the present suit, one Ram Kinkar Pathak, who was
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the grandson of the sole defendant, executed a deed of sale with
respect to the suit property in favour of Dinesh Pathak, who was
the own son-in-law of the defendant no. 1 and therefore it was
alleged that the sale deed executed in favour of Dinesh Pathak was
a sham transaction.
(m) Since the suit property was sold in favour of Dinesh Pathak during
the pendency of the suit and with full knowledge about the
pendency of the suit, the plaintiff sought to amend the plaint which
was allowed vide order dated 25.03.1983 and Dinesh Pathak and
Ram Kinkar Pathak were added as defendant nos. 2 and 3
respectively.
5. It appears from the records of this case that defendant no. 1 did not file
any written statement and as such the case was fixed ex-parte against the
defendant no. 1 on 23.06.84. However, the suit was contested by the defendant
no. 2, namely, Dinesh Pathak, Son of Chandramani Pathak and also by
defendant no. 3, namely, Ram Kinkar Pathak.
6. Case of the Defendant No. 2.
(i) The defendant no. 2, in the written statement, took a plea that the
plaintiff was only a tenant, but payment of monthly rent was
denied. He asserted that he had purchased the property by
registered deed upon payment of consideration amount of Rs.
15,000/-. He also stated that the defendant no 3 Ram Kinkar Pathak
was the grandson of the defendant no. 1 and the defendant no. 1
way back in the year 1977 had executed a power of attorney in
favour of defendant no. 3, which was registered on 13.07.1977 and
the said power of attorney was valid. A photocopy of the power of
attorney was annexed along with the written statement.
(ii) The defendant no. 2 further asserted that on the strength of power
of attorney, the defendant no. 2 and 3 on 20.08.1982 entered into
an agreement with respect to the suit property and the property was
purchased by defendant no. 2 on 20.12.1982 and the remaining
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consideration amount was paid. It was asserted that the defendant
no. 3 had got his name mutated in the municipality and after
hearing the defendant no. 2, the property was mutated in the name
of defendant no. 2. The defendants asserted that they were the valid
owner of the property by virtue of purchase through registered
deed and they have been wrongly made party in the proceedings.
(iii) The defendant no. 2 gave the description of the purchased property
which contained holding no. 873 old and holding no. 868 new.
7. Case of the Defendant No. 3.
I. So far as defendant no. 3 Ram Kinkar Pathak is concerned, he has
also filed a separate written statement stating that the suit was
barred by limitation and other preliminary objections were taken.
The defendant no. 3 admitted that the plaintiff is a tenant in
Schedule-B property and it was defendant no. 3, who was
managing all the tenants and collecting rent by virtue of the
registered general power of attorney. The defendant no. 1 was his
own paternal grandfather, who had solely entrusted the
management and transferred all his legal responsibilities regarding
Schedule-A and Schedule-B property by executing a registered
power of attorney in the year 1977 in favour of defendant no. 3
keeping in view of his old age, mental condition and other factors.
It was asserted that if there was any agreement in the year 1982,
said to have been made by defendant no. 1 in favour of plaintiff,
the same is illegal, void, without consideration, inoperative and
sham transaction. It was asserted that the defendant no. 1 had no
right, title or any power to enter into any such agreement without
revoking the registered power of attorney of 1977 and the said
power of attorney was still valid. The said agreement was tainted
with fraud undue influence and coercion. The defendant no. 1 had
no mental capacity and had no legal right to enter into any such
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agreement in the year 1982. It was asserted that the question of
agreement of sale was false and the consideration amount of Rs.
10,000/- was also too less.
II. It was asserted that the defendant no. 1 never entered into any such
agreement and the plaintiff prevailed over defendant no. 1, took
advantage of his weak state of mind and health and if there be any
signature in any agreement, it has been obtained by the plaintiff by
practicing fraud, coercion and undue influence and by suppressing
materials facts and documents. It was asserted that the defendant
no. 1 had neither any legal right to enter into any such agreement
nor had the right to accept such money. It was also asserted that
the plaintiff had full knowledge of the registered power of attorney
of the year 1977 executed by defendant no. 1 in favour of
defendant no. 3. It was asserted that the plaintiff by introducing
Kashi Prasad Sahu, Advocate had tried to collect evidence from
apprehending to guard his knowledge or ignorance regarding
existence of general power of attorney of the year 1977.
III. The specific case of the defendant no. 3 was that the general power
of attorney of the year 1977 shall prevail and the same having not
been revoked, the alleged agreement of the plaintiff, if any, was
illegal, tainted with fraud and hit by the principles of Indian
Contract Act and the question of part performance of the plaintiff
did not arise and the agreement had no force in the eyes of law.
IV. It was also asserted that the plaintiff had played a trick to gamble
with the money to gain a stake knowing fully well about the
registered general power of attorney of the year 1977 and about
the sale by defendant no. 3 to defendant no. 2 and about the Ranchi
Municipal Mutation in the name of defendant no. 2 and all other
facts of dealing and management of the Schedule-A and B
property of the plaint. The defendant no. 3 reiterated that the
defendant no. 1 had no right, no interest, no status to enter into any
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such agreement on the face of general power of attorney and the
plaintiff had full knowledge of this fact.
V. The defendant no. 3 asserted that the agreement of sale dated
18.09.1982, if any, is void, inoperative and has no force in the eyes
of law. The defendant no. 3 has asserted that he had no knowledge
about the filing of this suit at the time when he sold the property
to defendant no. 2. The plaintiff had full knowledge of the fact that
defendant no. 1 had no right to enter into any agreement for sale
in view of registered general power of attorney and about the sale
by the defendant no. 3 to defendant no. 2. It has been asserted that
the sale by defendant no. 3 to defendant no. 2 is real and legal sale
for consideration and it was not a sham transaction.
VI. Upon perusal of the entire written statement of defendant no. 3, it
is apparent that no statement has been made with respect to any
agreement of sale entered into between the defendant no. 3 and
defendant no.2, though the defendant no.2 had made a specific
reference to an agreement of sale entered into between the
defendant no. 2 and defendant no. 3 on 20.08.1982 and has
asserted that this agreement of sale was ultimately translated into
the sale deed dated 20.12.1982 executed by defendant no. 3 in
favour of defendant no. 2.
8. The learned Trial Court decreed the suit.
9. Being aggrieved by the judgement and decree dated 02.08.88 passed by
the Learned Sub- Judge II in Title Suit No. 297 of 1982 filed by the plaintiff -
respondent, the appellants filed Title Appeal No. 79 of 1988. The learned 1
st
appellate court gave concurrent findings and dismissed the appeal.
10. Arguments on behalf of the appellants representing the heirs of
original defendant no. 1
I. Issue no. 3 relating to cause of action was neither decided by the
trial court nor by the learned 1
st
appellate court.
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II. P.W. 1 was examined, but his examination was expunged and
P.W. 2 had exhibited the agreement for sale dated 18.09.1982
(Exhibit-2) which was marked with objection as is apparent from
paragraph 4 of his examination-in-chief and as per his evidence
the agreement of sale (exhibit-2) had two witnesses, one was
Ram Singh Pandey and other was Raj Kumar Kavya, but P.W. 2
is not the witness to the agreement of sale.
III. The learned counsel for the appellants has submitted that as per
Order 13 Rule 3 and 4 of C.P.C, if a document is marked with
objection, then the admissibility of the document if objected, is
to be decided by the Presiding officer, but the Presiding officer
did not decide on the admissibility of exhibit-2. He has further
submitted that since P.W. 2 is not a witness to exhibit-2, therefore
he could not have exhibited the exhibit-2.
IV. The learned counsel has further referred to the finding of the
learned trial court with respect to exhibit-2 at paragraph 10 and
has submitted that the onus of proof has been wrongly cast upon
the defendants. He submits that once the contesting defendants
asserted that the agreement of sale was obtained by fraud and
misrepresentation, it was for the plaintiff to prove that the
agreement of sale was valid. He submits that the person who
propounds the document has to prove it. He has referred to the
judgment passed by the Hon’ble Supreme Court reported in
(2008) 4 SCC 530 (Thiruvengadam Pillai vs. Navaneethammal
& Ors.) paragraph 19 on this point.
V. The plaintiff pleaded from paragraph 6 to 9 and 13 about his
readiness and willingness to perform his part of the contract but
no particular dates have been mentioned. The learned counsel has
then referred to section 16(c) of the Specific Relief Act to submit
that in case of suit seeking specific performance of contract,
readiness and willingness to perform the agreemen has to be
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shown, right from the date of execution of the agreement till the
date of decree.
VI. He has then referred to Sections 37, 38 and 48 of the Contract
Act and submits that the provision has to be read into the Specific
Relief Act and for this purpose, he has referred to Section 9 of
the Specific Relief Act. He has submitted that as per Section
38(2), the offer to perform the contract has to be made at proper
place and proper time. He submits that paragraph 7 of the plaint
does not provide any specific date and place where the plaintiff
offered to perform his part of the contract. He submits that the
defendant was residing at Hazaribag and therefore the proper
place where the plaintiff could have offered for performance of
his part of the contract was at Hazaribagh only. He submits that
there is no averment in the plaint that the plaintiff went to
Hazaribagh to offer performance of his part of the contract.
However, during the course of argument, it transpired that the
property is located at Ranchi and the plaintiff was the tenant
under defendant no. 1 and the plaintiff has stated that defendant
no.1 used to come to Ranchi to collect rent.
VII. He has further submitted that P.W. 3 in paragraph 14 has stated
that Jugal Kishore Pathak (defendant no.1) resides in Durga
Mandir. He submits that the plaintiff in order to show his
bonafide should have shown that he had visited Hazaribagh or
had sent a letter to Hazaribagh.
VIII. He had then referred to exhibit-3 to submit that at the end it does
not contain the address of defendant no. 1, however, a receipt of
exhibit-3 has been exhibited on the 1
st
page of Exhibit-3. He has
referred to the findings recorded by the learned Trial Court in
paragraph 11 of its judgment and by the learned 1
st
Appellate
Court in paragraphs 9 to 11 thereof on the point of the plaintiff's
readiness and willingness to perform his part of the contract.
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IX. He has also submitted that exhibit 2/2 also shows that address
mentioned is only of Hazaribagh and no address of the defendant
no. 1 has been mentioned at Ranchi. There is no evidence to show
that the plaintiff ever visited Hazaribagh to show his readiness
and willingness to perform his part of the contact.
X. The learned counsel has submitted that no issue was framed by
the learned trial court on the point of readiness and willingness.
XI. The learned counsel has submitted that the learned 1
st
appellate
court has relied upon the judgment reported in AIR 1970 SC 1238
which is equivalent to (1970) 3 SCC 140 and has submitted that
this judgment was subsequently considered by the Hon’ble
Supreme Court in judgment reported in (2003) 10 SCC 390
(Manjunath Anandappa vs. Tamannasa & Others) paragraph
17 to 21. He has submitted that paragraph 13 to 21 would be
relevant for the purposes of the present case.
XII. He has also referred to the judgment with respect to Section 16
of the Specific Relief Act reported in (1995) 5 SCC 115 and has
submitted that factum of readiness and willingness to perform the
part of the contact by the plaintiff was to be considered under the
facts and circumstances of the case. The court may infer from the
facts and circumstances as to whether the plaintiff was ready and
always willing to perform his part of the contract. He submits that
the term used in Section 16(c) is ‘always willing’ and this always
willing has to be demonstrated right from the date of the
agreement till the date of passing of the decree.
XIII. On the point of unstamped exhibit 2/1, he submits that the same
was the receipt and being unstamped was not admissible in
evidence. He has referred to the judgement passed by the Hon’ble
Supreme Court reported in (2009) 2 SCC 532 (Avinash kumar
Chauhan vs. Vijay Krishna Mishra) paragraph 14,17 and 32 and
also judgment reported in (2024) 7 SCC 719 (G.M. Shahul
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Hameed vs. Jayanthi R. Hegde) paragraph 21 to submit that the
admissibility of unstamped document has to be necessarily
examined by the court. The learned counsel has also submitted
that the judgment has also been passed on the point of admission
by the defendant. He has referred to paragraph 10 of the trial
court’s judgment. He then referred to the judgment reported in
(2015) 12 SCC 403 (Gujrat Maritime Board vs. G. C. Pandya)
paragraph 13 and 14 to submit that even if there is admission, it
is for the plaintiff to prove his case. The learned counsel has also
submitted that P.W. 4, who is the plaintiff himself, at paragraph
8 of his examination has stated that he stopped paying rent to the
defendant after agreement and the defendant also gave up the
demand the rent. He submits that the status of the plaintiff was
that of a tenant and his conduct is not bonafide as he was under
an obligation to pay rent till the sale deed is executed.
Apart from the aforesaid, a written notes of arguments have also been
filed by the appellant no. 1 wherein following points have been
mentioned.
Short Summary of arguments
XIV. The learned trial court has held that the plaintiff has proved that
he was always ready and willing to perform his part of the
contract by relying upon Ext.2, 2/1, 2/2, 3 and 3/1, and in para 6
to 9 and 13 of plaint, the plaintiff has made averment about his
readiness and willingness to perform his part of the agreement
and refusal of Defendant No. 1, which has led to the cause of
action. Compliance of Section 16 (c) has been mentioned in Para-
11 of Trial Court’s Judgment, and in Para 9 to 11 of 1
st
Appellate
Court’s Judgement.
XV. So far as Ext. 2 is concerned, it was introduced by P.W. 2 in para
4 with objection, but no such endorsement of objection was made
on Ext. 2. There is neither any such endorsement in the Ext. 2,
2026: JHHC: 15952
17
nor the order sheet dated 03/09/1986 mentions this fact. This is
contrary to Order 13 Rule 3 & 4 of C.P.C. In the entire judgment
of the learned Trial Court, there is no discussion about this aspect
the matter. The trial court has discussed about exhibit-2 while
recording that P.W. 3, Kashi Prasad Sahu, Advocate “Who
prepared the deed of Agreement dated 18.09.1982 Marked Ext-2
in this suit” [in para 8 page 5 in last two lines only] and the other
line is in the same para at page 6 just six lines ahead of para 9
‘P.W. 2 Baleshwar Prasad had also supported the plaintiff’s case
in his evidence’.
XVI. P.W. 2, in para 23 of the deposition, has agreed that he had not
received any summons to depose and he had come on call of
plaintiff. In para 5 of the plaint, there was a mention of
plaintiff/defendant no. 1, his lawyer Kashi Prasad Sahu and
witnesses, who have signed the agreement (Raj Kumar Kabra and
Ramashish Pandey) only those who have signed. There is no
mention about it in the judgment. It was most crucial document
the very basis of the suit suffers with perversity and the finding
based upon it is para 11 of the Trial Court judgment and that of
First Appellate Court approving finding of Trial Court in para 16
was also perverse due to non-consideration of the evidence in
relation to Ext. 2.
XVII. So far as Ext. 2/1 is concerned, that is an unstamped receipt
defined u/s 2(23) of the Stamp Act which cannot be looked into
in evidence in view of Section 36 of Stamp Act as held mandatory
in the decision of (2024) 7 SCC 719, para 21 and 30.
XVIII. Ext. 2/2 is a document which shows that the address of the
defendant no. 1 was of Hazaribagh only. Thus, document read
with para 4 of the plaint shows that the Defendant no. 1 resided
at Hazaribagh. So, there should have been averments and proof
that offer to perform was made at Hazaribagh address, but there
2026: JHHC: 15952
18
is nothing in para 6-9 &13 of the plaint and there is not even a
whisper in the deposition.
XIX. In the plaint, the plaintiff has stated that Defendant No. 1 resided
at Hazaribagh, at the address mentioned in cause title. Therefore,
in terms of Section 38(2) r/w section 48 of Indian Contract Act,
a pleading should have been there in relation to offer of
performance, either orally or in writing, at Hazaribagh, which is
clearly absent in para 6-9 and 13 of the plaint and there is no
whisper in any of the depositions. Thus, the suit for specific
performance ought to have failed on account of non-compliance
of aforementioned law and non-compliance of Appendix A-
Form 47 and 48.
XX. The learned 1
st
Appellate Court relied upon the judgement
reported in AIR 1971 SC 1238, though this decision was per in
curium of earlier decision in Ouseph Varghese v. Joseph Aley
(1969) 2 SCC 539, para 17 &18, where the Hon’ble Apex Court
held that it is mandatory requirement to comply with Form 47 &
48 of the schedule-A to the CPC as held in Manjunath
Anandappa case. Manjunath Anandappa Versus Tammanasa
and Others (2003) 10 SCC 390, para 13-21, 23, 27.
XXI. In nutshell, there is no finding that Ext. 2 was proved and
brought on record, though it was most crucial document. The
very basis of the suit suffers with perversity and the finding based
upon it is para 11 of the Trial Court’s judgment and that of First
Appellate Court approving finding of Trial Court in para 16 is
also perverse due to non-consideration of the evidence in relation
to Ext.2.
XXII. Thus, reliance upon Ext. 2/1 & Ext.2/2 is against the mandate of
law and consequently perverse.
XXIII. In para-11 of the judgement, the learned 1
st
Appellate
Court referred to the evidence of P.W.4, para-18, but failed to
2026: JHHC: 15952
19
discuss that this statement was dehors the pleadings in the plaint
as also this was an abrupt statement bereft of the factual details,
and also hit to order VI Rule-2 of CPC.
XXIV. A point to note would be that 1
st
witness was examined on
02/09/1986 who proved a half page document. The statement of
this witness was expunged. So, there is neither any
whisper/mention about this witness nor any mention about Ext.1.
XXV. In the decision reported in (2024) 11 SCC 351 para to 36,
Ramakant Ambalal Choksi v. Harish Ambalal Choksi & Ors.,
any order made in conscious violation of pleading and law is a
perverse order.
XXVI. A finding which stems out on a complete misreading of
evidence is also perverse. It was further held that safest approach
on perversity is the classic approach on the reasonable man’s
inference on the facts. To him, if the conclusions on the facts in
evidence made by the court is possible, there is no perversity. If
not, the finding is perverse. Inadequacy of evidence or a different
reading of evidence is not perversity the word “perversity” has
been elaborately dealt with. One of it is not arrive at such
conclusion by as arrived out by court. Firstly- Any order made in
conscious violation of pleading and law is a perverse order
Secondly- Showing deliberate determination to behave in a way
that most people think is wrong, unacceptable or unreasonable.
The finding was thus in violation of pleading because judge
found, which were not in pleading/assertion not as per law.
Moreover, though an issue were framed on cause of action but no
finding was given on it. Since the cause of action mentioned in
para 13 specifically mentions that it in 13/09/1982 and on such
subsequent dates when the plaintiff requested for execution of
deed, which was neglected/refused by the Defendant.
2026: JHHC: 15952
20
XXVII. It is true that a hyper-technical view of pleadings should
not be taken; however, it is equally well settled that pleadings
must not be in tautological symmetry with statutory provisions
or consist of mere repetition of legal phrases. Pleadings must
disclose the necessary factual matrix, which is a sine qua non for
establishing continuous readiness and willingness from the
execution of the agreement up to the stage of decree, as mandated
in (1995) 5 SCC 115.
11. The arguments of appellant no. 4 (defendant no.2), the purchaser
of the property during the pendency of the case by virtue of registered
sale deed dated 20.12.1982
A. The appellant no. 4 is claiming the property by virtue of prior
agreement of sale i.e. agreement dated 20.08.1982 (exhibit-B)
executed by defendant no. 3 (power of attorney of defendant no.
1) in favour of defendant no. 2. The agreement of sale of the
plaintiff was dated 18.09.1982 (exhibit-2) and the agreement of
sale of the appellant no. 4 was dated 20.08.1982 (exhibit-B) and
the sale deed was registered on 20.12.1982 (Exhibit-G). The
learned counsel has submitted that P.W. 4, the plaintiff in
paragraph 18 of his evidence, has stated that the defendant no. 1
came to registry office and fled away after getting the deed
drafted on stamp paper and ultimately the stamp paper was
returned. He submits that the sale deed so drafted has not been
exhibited. He has further submitted that from perusal of
paragraph 18 of the evidence, it appears that it was the defendant
no. 1 who had purchased the stamp paper and therefore there was
no occasion for the plaintiff to return the stamp paper and
therefore the story of the plaintiff that he returned the stamp
paper cannot be believed. He has then submitted that the suit was
filed with a court fee of One Rs. fifty paise which was deficient
2026: JHHC: 15952
21
and ultimately the court fees were filed in the year 1983. The
learned counsel submits that the mutation was done in favour of
the appellant no. 4 after purchase and possession was also handed
over. He has submitted that the plaintiff had left the property and
the defendant no. 2 came in possession of the same. However, he
could not substantiate this fact from any of the materials placed
on record.
B. At this, the learned counsel for the appellant no. 4 has submitted
that primarily it has to be seen as to whose agreement would
prevail, whether the agreement of the plaintiff dated 18.09.1982
(exhibit-2) or the agreement of the defendant no. 2 i.e. dated
20.08.1982 (exhibit-B).
12. Apart from the oral arguments, a written notes of arguments have
also been filed on behalf of appellant no. 4 series/defendant no. 2 and
following points have been mentioned: -
C. The case of the defendant No. 2 is that he is a bona fide purchaser
of suit property by virtue of registered sale deed dated
20.12.1982 (Ext. G). He has stated in paragraph 8 & 9 of the
written statement that after going through the contents of power
of attorney (Ext. A) in favour of defendant No. 3, he entered into
an agreement for sale (Ext. B) with respect to the suit property
on 20.08.1982 and after payment of balance consideration
purchased the same by registered sale deed dated 20.12.1982
(Ext. G). After said purchase, the defendant No. 2 has got his
name mutated in the office of Ranchi Municipal Corporation
(Ext. F) and has been paying the rent on proper receipt (Ext. D &
E).
First Substantial Question of Law: -
Whether concurrent finding recorded by both the
courts that the plaintiff was ready and willing to
2026: JHHC: 15952
22
perform his part of the contract suffers from any
perversity?
D. In this connection it is pertinent to point out and refer the
evidence of the plaintiff who deposed as P.W. 4 in the suit. This
witness at paragraph 18 of his deposition has stated, “जुगल
किशोर रकजस्ट्री िार्ाालर् में आर्ा। उसने स्ट्ाम्प िागज़ खरीदा,
किक्रीनामा कलखवार्ा। इसिे िाद वह िहीीं चला गर्ा ।”
He further stated “मैंने वह स्ट्ाम्प पेपर वापस िर कदर्ा और
उसिी राकश मुझे प्राप्त हो गई थी। मुिदमा दार्र होने िे पश्चात
मैंने उस स्ट्ाम्प पेपर िो ट्रेजरी में जमा िर कदर्ा था।”
E. In his entire deposition, P.W-4 has not uttered a word that at the
time of getting the sale deed registered he was having the entire
consideration amount to be paid to the defendant No. 1 before
the District Sub Registrar. Further when the plaintiff has stated
that the stamp paper was purchased by the defendant No. 1, then
as to why and under what circumstances the plaintiff got it
deposited in treasury and received the amount of the stamp paper.
It is quite unbelievable and impossible that if the stamp paper
was purchased by the defendant No. 1, the authority of treasury
will refund the value of a stamp paper to the plaintiff. Since the
plaintiff has failed to bring on record, by exhibiting the said
written stamp paper in the shape of sale deed, the court ought to
have taken adverse inference against the plaintiff.
F. In this connection, it is submitted that actually the stamp paper
was purchased by the plaintiff himself and the sale deed was got
prepared by the plaintiff himself who might have got written in
the sale deed that entire consideration amount has already been
paid and looking to such endorsement the defendant No.1
smelling something fishy, went back from the Registry Office.
2026: JHHC: 15952
23
G. Had the stamp paper for the contemplated sale deed had not been
purchased by the plaintiff in his name, it could not be taken back
by treasury from the plaintiff and the treasury could have not
refunded the amount of the stamp paper to the plaintiff.
H. Readiness and willingness are not one but two separate
elements. Continuous readiness and willingness on the part of
buyer from the date of execution of the agreement to sell till the
date of decree is a condition precedent for grant of relief of
specific performance.
I. The suit was filed on 11.12.1982 and with certainty it can be said
that the plaintiff had not even the court fee amount to be paid on
the value of the suit and the plaintiff had not even rupees two
therefore at the time of filing of the suit, he has paid stamp of Rs.
1.50 on the plaint against the court fee and after long interval
after arranging the amount he filed the deficit court fee on
17.02.1983.
J. The plaintiff was examined in the suit as PW4 on 30.07.1987
wherein on his examination in chief in the last line of paragraph-
6 he has stated that “मैं उसिे कलए मुनाकसि पैसा देने िे कलए तैर्ार
हूँ।”, which shows that the plaintiff was not willing to pay the rest
of the consideration amount. Even on the date of his deposition,
he showed his intention that he was ready to pay the appropriate
amount to get the sale deed registered.
K. This proves that plaintiff had no sufficient fund even to pay the
court fee on 11.12.1982 when the suit was filed and the
contention is that at the time of alleged sale deed at the Registry
Office, the plaintiff had no fund what to speak of entire
consideration amount.
Second Substantial Question of Law: -
Whether the agreement dated 18.09.1982 (Exhibit-2)
executed by defendant No.1 in favour of plaintiff or
2026: JHHC: 15952
24
agreement dated 20.08.1982 (Exhibit-B) executed by
defendant No.3 in favour of defendant No.2 shall prevail
and given effect to?
L. The case of defendant No. 3 is that the defendant No. 3 was
having valid power of attorney (Ext. A) duly executed by
defendant No.1 in favour of defendant No. 3 to deal with the suit
property and the defendant No.3 being the constituted power of
attorney holder by virtue of registered power of attorney dated
13.07.1977 entered into agreement for sale (Ext. B) with
defendant No. 2 on 20.08.1982 and accordingly the sale deed was
executed on 20.12.1982 (Ext. G) in favour of defendant No. 2 by
the defendant No. 3.
M. Now the question arose as to which agreement will prevail and
to meet the above substantial question of law in view of the
reported judgment of Hon’ble Andhra Pradesh High Court
reported in AIR 2004 AP 110 it has been held that the earlier
agreement has to be preferred.
Third Substantial Question of Law
Whether the receipt cum extension of time of the
agreement for specific performance of contract marked
as Exhibit 2/1 was inadmissible in evidence for the same
being not duly stamped?
N. The plaintiff in his plaint has not made any averment as per
Appendix -A, Form 47 & 48 appended to the First Schedule
Forms. In paragraph-7 of the plaint, it is stated “that the plaintiff
categorically made it known to defendant that he is ready and
willing to perform his part of agreement by paying the balance
amount of consideration money. The defendant however went on
avoiding execution of sale deed in respect of the suit property on
one pretext or other. On plaintiff’s insistence that sale deed
should be executed immediately, the defendant started pressing
2026: JHHC: 15952
25
that period for execution of sale deed be extended up to
30.11.1982 and ultimately both the plaintiff and defendant again
went to Shri Kashi Prasad Sahu, Advocate ono 16.11.1982 and
in his presence and on his mediation, the parties agreed to extend
the period for execution of sale deed till 30.11.1982 and a
memorandum to that effect was prepared and signed on
16.11.1982”.
O. However, this fact was not proved by any legal evidence. Thus,
the alleged document dated 16.11.1982 extending the time of the
agreement (Ext.-2), marked as Ext.-2/1, being inadmissible in
evidence and having not been duly proved, cannot be looked into
in support of the plaintiff’s contention.
13. Arguments on behalf of the plaintiff/respondent
I. Important dates of SA/182/1991
a. Suit being Title Suit No. 297/1982 filed on 11.12.1982.
b. Exhibit 2- Agreement by Defendant No. 1 in favour of Plaintiff
-18.09.1982.
c. Exhibit -B- So called Agreement by Defendant No.3 in favour
of Defendant No.2-20.08.1982.
d. Exhibit C- Sale deed in favour of Defendant No. 2-
20.12.1982.
e. The Defendant No. 2 and Defendant No. 3 added as party vide
order dated 25.03.1983.
f. Exhibit 5- Partition Suit No. 278/1982-filed by Defendant No.
3 against Defendant No. 1 (his own grandfather) on
25.11.1982
g. Exhibit 6- Partition Suit withdrawn by Defendant No. 3 on
02.08.1983.
II. Substantial question of Law No. 1
2026: JHHC: 15952
26
Whether the concurrent finding recorded by both the Courts
that the Plaintiff was ready and willing to perform his part of
contract suffers from and perversity?
a. In paragraph Nos. 10, 11 and 16 of the Appellate Court’s
Judgement, there is discussion of readiness and willingness
and the Appellate Court has opined that the Plaintiff was ready
and willing to perform his contract.
b. That there is specific pleading in the plaint in paragraph Nos.
7, 9 and 11 about readiness and willingness of the Plaintiff.
c. In reply to notice dated 30.11.1982 which is Exhibit 3, the
same has been reiterated by the plaintiff in para7.
d. In the deposition of plaintiff (P.W. 4), he has stated about his
readiness and willingness in several paragraphs including 3 to
6.
e. There was no pleading by the Defendants that the plaintiff was
financially incapable.
f. The plea of payment of Rs. 1000 is supported by P.W. 2 and
P.W. 3 as well in Exhibit 2/1 where the signature of defendant
no. 1 is not disputed.
g. The defendant No. 1, who is the land owner as well as executor
of Exhibit -2 i.e. the agreement of sale dated 18.09.1982 in
favour of the plaintiff, has neither appeared in the suit, did not
file Written Statement nor opposed the plaintiff by giving his
deposition in the Trial Court.
h. P.W. 2, who is the witness of the execution of the agreement,
has also supported the plaintiff in paragraph No. 5 of his
deposition.
i. P.W. 3, who is an Advocate Kashi Prasad Sahu, and this
agreement was drafted by him, paragraph No. 5 of his
deposition is relevant.
2026: JHHC: 15952
27
j. The plaintiff was in occupation of the premises in part
performance of the contract which goes to show that he is
always ready and willing to perform his part of contract.
k. From the entire written statement, deposition of Defendant
witness and the Exhibits as a whole, it is very much evident
that defendant Nos. 2 and 3 specially defendant No. 3 never
wanted that his grandfather Jugal Kishore Pathak may sell his
property to the original plaintiff.
l. In view of above, the concurrent finding of the fact by both the
courts that the plaintiff was always ready and willing to
perform his part of the contract and as such no interference by
the Hon’ble Court is required as the judgements of both the
Courts are perfectly legal and valid in the eyes of law.
Judgement: (2019) 3 SCC 520 paragraphs No. 20 &21.
III. Substantial Question of law No. 2
Whether the agreement dated 20.08.1982 (Exhibit. B) executed
by Defendant No. 3 as constituted attorney of Defendant No. 1
shall prevail upon the subsequent agreement dated 18.09.1982
(Exhibit-2) by defendant No.1 himself.
i. The Exhibit-B which is agreement dated 20.08.1982 is
doubtful and same never existed and has been created by
Defendant No. 2 and defendant No. 3 only to defeat the claim
of the plaintiff and to mislead the Court by giving wrongful
facts.
ii. The defendant No. 3 in his written statement has not taken any
plea regarding the existence of any agreement dated
20.08.1982 which is absolutely fatal as no amount of evidence
can be looked into in absence of pleading which is as settled
principle of law.
iii. No such issue was framed by the Trial Court and moreover this
is not a substantial question of law rather it is an issue which is
2026: JHHC: 15952
28
required to be framed by the Trial Court at the instance of the
parties.
iv. The issue could have been decided by the facts of the case by
the Trial Court and Appellate Court and the issue could have
been re-casted even at the Appellate stage but the same was not
done by the Defendants and therefore, when the issue was not
framed, the same was not decided and the same is also hit by
abandonment of issue.
v. For the first time, this plea has been raised in the 2nd Appellate
stage which is impermissible in the eyes of law.
vi. Exhibit 3/1 is the notice by defendant No. 3 dated 20.11.1982,
there is no such mention of the agreement. Rather, Defendant
No.3 says in para 3 that “there is no any urgent need or any
necessities of the family at present for money”. Therefore,
when there was no need for money, how he entered into
agreement with defendant No. 2 on 20.08.1982 which goes to
show that Exhibit-B is a forged and fabricated document
created only to the purpose of suit.
vii. Exhibit-5 which is a partition suit filed by defendant No. 3 and
plaint of partition suit No. 278/1983 has been exhibited and the
same has been filed on 25.11.1982 also doesn’t mention about
the agreement to sale Exhibit-B dated 20.08.1982.
viii. In Paragraph 5 of exhibit-5, which is the plaint of partition suit,
it is stated by defendant No. 3 that there is no any urgent need
of any necessity of the family for money.
ix. Even in the memo of appeal in the appellate court, no such
ground has been taken about the prior agreement that is
exhibit-B.
x. Exhibit-3/2 is a notice issued by Defendant-2 to the Plaintiff
on 20.07.1983, but in this notice also, there is no mention of
2026: JHHC: 15952
29
prior agreement dated 20.08.1982 and it only speaks about the
sale deed dated 20.12.1982.
xi. In the entire deposition of plaintiff there is no suggestion put
by defendant No. 2 to the plaintiff on the point of previous
agreement by defendant no. 3 in favour of defendant No. 2.
xii. That in view of entire facts mentioned here in above goes to
show that there was no previous agreement dated 20.08.1982
(Exhibit-B) which was executed in favour of defendant No. 2
by defendant No. 3 and as such which the defendants have tried
to mislead the court by bringing on record forged, fabricated
and non-existing document to mislead the court, this
substantial question of law is required to be answered in favour
of plaintiff/respondent.
IV. Substantial Question of law No. 3
Whether the receipt cum extension of time of the agreement for
specific performance of contract marked as Exhibit 2/1 was in
admissible in evidence for the same being not duly stamped.
(i) To answer this, the respondent has relied upon the judgement
of Hon’ble Supreme Court of India reported in (2006) 11 SCC
331 paragraphs No. 16 & 19.
(ii) The signature of the defendant No. 1 on the agreement
(Exhibit-2) has not been disputed by the other defendants,
neither the defendant No. 1 filed his written statement, nor he
has deposed in the court against the Plaintiff.
(iii) The conduct of defendant No. 1 goes to show that he had
executed the agreement for sale on his own free will which is
also supported by Naresh Pathak who has deposed as D.W. 2
and happens to be father of defendant No. 1 Jugal Kishor
Pathak and in paragraph No. 6 he has specifically stated about
the physical and mental status of his father who is Defendant
No.1 and how he moves from one place to another and that too
2026: JHHC: 15952
30
on local bus. This goes to show that defendant No. 1 was fully
fit mentally and physically.
(iv) Defendant No. 3 has tried to depose falsely in his
deposition in paragraph 3 that his grandfather was more than
100 years although he retired in 1962 and the age comes to 85
years from the date of deposition that is 04.08.1987.
(v) Defendant No. 3 has specifically stated that he never consulted
his grandfather for filing the written statement.
(vi) On the above background, it is very much evident that
there was a valid agreement and the entire agreement doesn’t
get vitiated because the same is not duly stamped rather the
deed of agreement is itself on a revenue paper which is evident
from exhibit-2 and the same has not been objected by the
defendants and the revenue paper of Rs. 3 and Rs. 2 was
purchased for reducing the agreement in writing and it is
evident that there is no objection over exhibit-2 which is an
agreement and even if exhibit-2/1 is not taken into
consideration, the same will have no bearing in the outcome of
the case and as such this substantial question of law is required
to be decided in favour of the plaintiff/respondent.
14. The Defendants’ case is a classic attempt of “double – selling
“Defendant No.1 took money from a tenant, and then the family (via
Defendant No.3) attempted to sell the same property to another family
member (Defendant No. 2- fufa of Defendant No.3) for a higher price, using a
5-years-old POA as a convenient legal excuse.
15. Equity follows the law, the plaintiff has acted in good faith, paid a
substantial advance, and followed every legal avenue. Therefore, the Plaintiff
is entitled to a decree for Specific Performance. The appeal be dismissed.
Findings of this Court.
2026: JHHC: 15952
31
16. The suit was filed on 11.12.1982 for specific performance of contract
for sale of Schedule-B property (part of Schedule-A property) dated
18.09.1982 (exhibit-2) for total consideration amount of Rs.10,000/- entered
into between the plaintiff and the defendant no.1 in which the plaintiff was the
tenant and defendant no.1 was the landlord. Initially there was only one
plaintiff and one defendant. However, by virtue of amendment in the suit,
further two defendants were also added. The defendant no.2 had purchased
the schedule B property during the pendency of the suit vide registered sale
deed dated 20.12.1982 (exhibit-G) from defendant no.3 (registered power of
attorney of the defendant no.1 executed in the year 1977).
17. It was the case of the defendant no.2 that the sale deed executed in his
favour was preceded by an agreement of sale dated 20.08.1982 (exhibit-B)
executed by the defendant no.3 (power of attorney of the defendant no.1) in
favour of defendant no.2 and for total consideration amount of Rs.15,000/-
and part payment was made at the time of agreement of sale dated 20.08.1982
(exhibit-B) and upon payment of balance consideration, the sale deed was
executed on 20.12.1982 (exhibit-G). However, the defendant no.3 did not
refer to any agreement of sale entered into between the defendant no. 3 and
defendant no.2, much less any agreement of sale dated 20.08.1982 (exhibit-
B), but asserted that the defendant no.1 having executed the power of attorney
in his favour had no right to enter into any agreement with the plaintiff and
further asserted that the defendant no. 1 was not fit mentally and physically to
enter into an agreement of sale with the plaintiff and hence the agreement of
sale dated 18.09.1982 (exhibit-2), if any, was obtained by fraud, coercion,
misrepresentation etc. It was also asserted that the consideration of Rs.
10,000/- was on a much lower side. Defendant no.3 asserted that he has rightly
executed the sale deed in favour of the defendant no.2 in the capacity of power
of attorney of the defendant no.1 for a consideration money of Rs. 15,000/-.
It is important to note that the defendant no.1 did not file written statement
and the proceedings were set ex-parte against the defendant no.1. It is also
important to note that the defendant nos. 2 and 3, who filed separate written
2026: JHHC: 15952
32
statements, neither they questioned the capacity of the plaintiff to pay the
balance consideration amount nor they challenged the readiness and
willingness on the part of the plaintiff to pay the balance consideration amount
to the defendant no.1. The plaintiff has made specific statement in the plaint
that the plaintiff was throughout ready and willing to perform his part of the
agreement of sale, but the defendant no.1 , on account of one reason or the
other, got the extension of time for execution of sale deed executed and lastly
it was extended till 30.11.1982 and inspite of requests, the defendant no.1 did
not execute the sale deed in favour of the plaintiff which lead to filing of the
suit on 11.12.1982.
18. Some of the relevant facts/dates as pleaded by the plaintiff and as
pleaded by the defendant nos. 2 and/or 3 are as under: -
Plaintiff Defendant Nos. 2 and/or
defendant no.3
Defendant no. 1 is the owner of
schedule A property and the suit
property is schedule B property
which is a part of schedule A
property. Defendant no.1 was a
school teacher. The plaintiff was a
tenant in the schedule B property.
Defendant no. 1 is the owner of
schedule A property and the suit
property is schedule B property
which is a part of schedule A
property. Defendant no.1 was a
school teacher.
18.09.1982 (Ext.-2): - agreement of
sale was entered into between the
plaintiff and defendant no. 1 for a
total consideration amount of Rs.
10,000/- and Rs. 2,000/- was paid as
advance as per the agreement. The
sale was required to be completed
within one month, that is by
17.10.1982.
1977 (exhibit-A) - defendant no.1
executed a power of attorney in
favour of the defendant no.3. The
defendant no. 1 is the grandfather of
defendant no. 3 and defendant no.2
is the son-in-law of defendant no.1.
11.10.1982 -At the instance of
defendant no. 1, the plaintiff further
paid Rs. 1,000/- against
consideration and period to execute
the sale deed was extended up to
17.11.1982. The defendant no. 1 and
the plaintiff got noted the payment
of Rs. 1,000/- by Sri Kashi Prasad
Sahu, Advocate on their instructions
at the back side of the agreement
20.08.1982 (exhibit-B)- defendant
no. 3, being the power of attorney of
the defendant no. 1, entered into an
agreement of sale with defendant
no.2 with respect to schedule B
property for a consideration amount
of Rs. 15,000/- and Rs. 500/- was
shown to have been paid at the time
of the agreement. This was stated by
the defendant no.2 in his W.S and
2026: JHHC: 15952
33
dated 18.09.1982 and the defendant
no. 1 signed the same. The noting
was marked as exhibit- 2/1.
not by the defendant no.3 in his
W.S.
16.11.1982 - The plaintiff made the
defendant no. 1 known that the
plaintiff was ready and willing to
perform his part of the agreement by
paying balance consideration
amount, but the defendant further
asked the plaintiff to extent the
period of sale up to 30.11.1982.
Thus, on 16.11.1982, both the
plaintiff and defendant no. 1 went to
Sri Kashi Prasad Sahu, Advocate,
who wrote a note extending the
period of sale till 30.11.1982 and the
same was signed by defendant no. 1
on the same day. This noting was
marked exhibit- 2/2
20.12.1982 (exhibit-G) - defendant
no. 3, being the power of attorney of
the defendant no.1, executed sale
deed in favour of the defendant no. 2
for a consideration amount of Rs.
15,000/- and the consideration
amount was shown to have been paid
in cash before the registrar. The sale
deed mentions about the agreement
of sale dated 20.08.1982 (exhibit- B)
On 27.11.1982 (exhibit-3/1) the
plaintiff received a Pleader notice on
behalf of defendant no. 3 enquiring
from the plaintiff as to whether any
agreement of sale was entered into
between the plaintiff and defendant
no. 1 or not. It was also stated that
the defendant no.1 was medically
and mentally incapable of executing
any agreement for sale and was also
legally incompetent to execute any
agreement of sale and if such an
agreement has been entered, the
same is illegal and void. Defendant
no. 3 also called upon the plaintiff to
settle the matter amicably.
The defendant no. 2 referred to
agreement of sale dated 20.08.1982
entered into between defendant no. 2
on the one hand and defendant no. 3,
being the power of attorney holder of
defendant no.2, on the other hand.
Defendant no. 2 claimed to be the
bonafide purchaser of the suit
property by virtue of registered deed
of sale dated 20.12.1982.
The defendant no. 3 in his written
statement has referred to the
registered power of attorney of
1977, but has not referred to the
agreement of sale dated 20.08.1982.
The specific case was that once the
power of attorney was executed by
the defendant no. 1 in favour of
defendant no.3, defendant no. 1 had
no right to enter into any agreement
of sale and therefore the agreement
of sale entered into between the
plaintiff and defendant no. 1, if any,
is void and non-est.
It was asserted that the defendant no.
1 neither had the mental capacity nor
had the legal right to enter into any
2026: JHHC: 15952
34
agreement once the power of
attorney was executed in the year
1977 in favour of defendant no. 3.
On 30.11.1982, the plaintiff sent a
reply (exhibit-3) with a copy to
defendant no. 1 and in the reply, the
plaintiff narrated the entire fact
about his agreement with defendant
no.1 and the payments made and
extension of time to execute the sale
deed and also stated that he was still
ready and willing to pay rest of the
consideration money and to get the
sale deed executed in his favour. It
was also stated that if no reply is
received by 10
th
of December 1982,
appropriate steps will be taken. A
copy of the reply served upon the
defendant no.1 showing the receipt
of the defendant no.1 has been
marked exhibit- 1/1.
11.12.1982 -suit was filed against
the defendant no.1 seeking specific
performance of contract of sale
asserting that the plaintiff was still
ready and willing to perform his part
of the contract.
1983- suit was amended to make
defendant no. 2 and 3 as party and
an allegation was made that the sale
deed was a sham transaction made
for the purpose of adversely
affecting the plaintiff’s decree in the
suit.
19. The followings issues were framed by the learned trial court: -
1. Is the suit as framed maintainable?
2. Is the suit barred by limitation, waiver, estoppel and
acquiescence?
3. Whether the plaintiff has got valid cause of action for the
suit?
4. Whether there is valid agreement for sale between the
plaintiff and the defendant no. 1?
2026: JHHC: 15952
35
5. Whether the plaintiff is entitled to a decree of specific
performance of contract?
6. To what relief or reliefs, if any, is the plaintiff entitled?
20. Issue nos. 1 and 2 were not pressed and issue nos. 4,5 and 6 were taken
up together and decided in favour of the plaintiff and it was also held in
paragraph no. 12 of the judgement that the plaintiff had a valid cause of action
and the plaintiff was entitled to the relief as prayed for and it was also held
that the sale deed executed by the defendant no.3 in favour of the defendant
no.2 was hit by the doctrine of lis-pendens as provided under Section 52 of
the Transfer of Property Act, 1882.
21. The learned trial court after considering the materials gave a clear
finding that agreement of sale was entered into between the plaintiff and
defendant no. 1 with respect to the suit property, in which the plaintiff was a
tenant, for consideration amount of Rs. 10,000/- and Rs. 2,000/- was
immediately paid as mentioned in the agreement itself and further amount of
Rs. 1,000/- was paid by the plaintiff to the defendant no. 1 on 11.10.1982 and
subsequently endorsement to that effect along with extension of time was
made at the backside of Exhibit-2 itself and the said endorsement was marked
Exhibit-2/1. The defendant no. 1 again asked for further extension of time till
30.11.1982 and this time again, the endorsement was made at the backside of
the agreement marked Exhibit-2/2 and the defendant no. 1 signed the same.
Thus, the agreement of sale dated 18.09.1982 remained valid till 30.11.1982.
22. The suit seeking specific performance of contract was filed on
11.12.1982 and the suit property was sold by registered deed by defendant no.
3 (power of attorney of defendant no.1) in favour of defendant no. 2 on
20.12.1982 immediately after institution of the suit. The defendant no. 3 had
executed the agreement of sale on 20.08.1982 (Ext.-B) in favour of defendant
no. 2 and thereafter the registered sale deed dated 20.12.1982 (Ext.-G) was
executed by the defendant no. 3 in favour of defendant no. 2.
23. The plaintiff was examined as P.W.-4 and the learned trial court has
thoroughly discussed his evidence in the judgement. The learned trial court
2026: JHHC: 15952
36
further recorded that the plaintiff has been cross-examined at length, but the
court did not find any material contradiction to disbelieve his testimony.
24. The learned trial Court recorded that P.W.-3 is Sri Kashi Prasad Sahu,
Advocate, who had prepared the deed of agreement dated 18.09.1982 marked
Exhibit-2 in the suit and he has thoroughly supported the plaintiff’s case in his
evidence and he had written the agreement in presence of both the parties. The
agreement was read over and explained to them and both of them signed the
agreement and the consideration amount was fixed at Rs. 10,000/- and the
plaintiff paid Rs. 2,000/- as advance at the time of execution of agreement. He
has also stated that the defendant no. 1 was quite fit and healthy at the time of
execution of agreement. He has also supported the case of the plaintiff that the
defendant no. 1 and the plaintiff had come to him seeking extension of time
of agreement of sale twice and endorsement was made twice in his writing
and on 11.10.1982, an amount of Rs. 1,000/- was paid and the agreement of
sale was extended for one month and thereafter again on 16.11.1982, the
agreement of sale was extended till 30.11.1982 and endorsement with respect
to that was also made.
25. The learned trial court thereafter referred to the evidence of the
defendants, who had examined altogether six witnesses and in particular
referred to power of attorney of the year 1977 executed in favour of defendant
no. 3 by the defendant no. 1; agreement of sale dated 20.08.1982 between
defendant no. 3 and defendant no. 2 (Exhibit-B) followed by the registered
sale deed dated 20.12.1982 (Exhibit-G).
26. The plea of the defendants taken in the written statement that the
plaintiff got the agreement of sale dated 18.09.1982 (Exhibit-2) executed in
his favour by practicing fraud, coercion and misrepresentation on defendant
no. 1 was rejected by the learned court and the learned court observed that the
defendants had not produced any evidence in support of this fact and no
written statement was filed on behalf of defendant no. 1 and the proceeding
was set ex-parte against defendant no. 1. The learned court observed that
failure on the part of the defendant no. 1 to file written statement clearly goes
2026: JHHC: 15952
37
to show that the defendant no. 1 admitted the assertions made in the plaint and
further the execution for agreement for sale dated 18.09.1982 was not denied
by the defendant no. 1 and under such circumstances, the plea of practicing
fraud, coercion and misrepresentation was not maintainable at all.
27. The plea of the defendants that the plaintiff had not paid Rs. 1,000/- on
11.10.1982 was also rejected taking into consideration that the defendant no.
1, to whom the money was paid, has neither denied this fact nor filed any
written statement nor he had come before the Court to depose. The learned
court observed that the contesting defendants was not at all competent to say
that no payment was made on 11.10.1982 particularly when they did not make
any such statement in their evidence as D.Ws. 1 and 3. On being specifically
asked, these defendants during cross-examination in paragraph 11 denied
having any talk with defendant no. 1 with respect to receipt of money and in
addition to the aforesaid, the learned court also relied upon Exhibit-2/1 and
was of the view that no adverse inference could be drawn on account of non-
production of the receipt with regard to payment of Rs. 1,000/-.
28. The learned court also recorded that the plaint of the Partition Suit No.
278/1982 against defendant no. 1 filed by defendant no. 3 was also exhibited
and marked Exhibit-5, which was subsequently withdrawn on 02.08.1983 and
the plaint goes to show that the defendant no. 3 came to know on 20.09.1982
that the defendant no. 1 had executed agreement for sale in favour of plaintiff
on 18.09.1982 and in paragraph 13 of the plaint, it has been mentioned that
the agreement had taken effect on 18.09.1982. The plea of the contesting
defendants that they had no knowledge about the agreement was falsified by
Exhibit-5 and 6. Exhibit-6 was the order of withdrawal of Partition Suit No.
278/1982. The learned court, upon appreciation of the materials, also recorded
that admittedly the defendant no.3 had knowledge of the agreement of sale
much prior to the filing of the suit and the plea of the defendants that they had
no knowledge of the agreement of sale dated 18.09.1982 was rejected.
29. The learned trial court ultimately recorded that the agreement for sale
dated 18.09.1982 executed by defendant no. 1 in favour of the plaintiff was a
2026: JHHC: 15952
38
valid and genuine document and the plaintiff had paid consideration amount
of Rs. 2,000/- on 18.09.1982 on which day the agreement of sale was executed
and further payment was made on 11.10.1982 to the extent of Rs. 1,000/-.
Further findings of the learned trial court in paragraph 11 and 12 of the
judgment based on the evidences brought on record are quoted as under: -
“11. After consideration of entire oral and documentary evidence
brought on record I find that the plaintiff has paid Rs. 2000/- on
18.9.82 on which date the agreement for sale was executed by
defendant no. 1 in favour of plaintiff and again Rs. 1000/- was paid
on 11.10.82 vide Ext. 2/1, Exts. 2/1, Exts. 2/2 and 3 and 3/1 clearly
show that the plaintiff was always ready and willing to perform his
part of contract. The agreement for sale dated 18.9.82 executed by
defendant no.1 in favour of the plaintiff is quite valid and genuine
document and the plaintiff is entitled to a decree for specific
performance of contract with respect to the suit properties fully
described in Schedule B of the plaint. Thus, these issues are
accordingly disposed of in favour of the plaintiff.
12. Issue no. 6: It has been contended on behalf of the Defendant
no. 2 and 3 that the plaintiff has not sought for any relief against
defendant no. 2 and 3 in the plaint. From record I find that
defendant no. 2 has purchased the suit property from defendant no.
3 during the pendency of the suit vide Ext. C dated 20.12.82. The
suit was filed on 11.12.82. The aforesaid sale is clearly hit by
doctrine of lis pendence as provided in Section 52 of the T.P. Act.
The sale is bad in law and cannot have any legal effect. Under the
circumstances no declaration is necessary for cancellation of the
sale deed dated 20.12.82. Thus, the plaintiff has got valid cause of
action for the suit and he is entitled to the reliefs prayed for against
the defendant no. 1.”
The suit was decreed.
30. The defendants filed 1
st
appeal. The learned 1
st
appellate Court
considered the issues framed by the learned Trial Court and dismissed the 1
st
appeal.
31. Before the learned 1
st
appellate court, the defendants raised only the
following three points: -
(a) the plaintiff has not pleaded and proved readiness and
willingness.
2026: JHHC: 15952
39
(b) the plaintiff did not produce receipt showing payment of
Rs. 1,000/- on 11.10.1982 and therefore adverse inference has
to be drawn.
(c) failure of defendant no. 1 to file written statement does not
mean admission of the assertions in the pliant.
32. The learned 1
st
appellate court recorded in paragraph 10 that it was
incorrect to say that the plaintiff had not pleaded readiness and willingness
and was of the view that readiness and willingness cannot be treated as a strait
jacket formula and it has to be determined on the entirety of the facts and
circumstances of a case.
33. The learned court referred to paragraph 9 and 11 of the plaint and
observed that the plaintiff had made necessary amendments about his
readiness and willingness. Further recorded that in paragraph 7 of exhibit-3
(notice to Ram Kinkar Pathak and Jugal Kishor Pathak), it has been mentioned
that the plaintiff was still ready and willing to complete the sale deed. Further
the learned court recorded that the plaintiff examined as PW-4 and in
paragraph 6 of his evidence stated that he was ready and willing to pay the
reasonable money due from him. The learned court further referred to the
timeline which also demonstrated the conduct of the plaintiff showing his
readiness and willingness: -
(i) 18.09.1982 – Agreement executed and sale was to be
completed within one month i.e. by 17.10.1982 Ext. 2.
(ii) 11.10.1982 – Period extended up to 17.11.1982 at the
request of defendant no. 1. Ext. 2/1
(iii) 16.11.1982 – period extended up to 30.11.1982 at the
request of defendant no. 1. Ext. 2/2.
(iv) 27.11.1982 – plaintiff received letter from Ram Kinkar’s
lawyer M. L. Pathak, Advocate. Ext. 3/1.
(v) 30.11.1982 – plaintiff gives reply to Ext. 3 and copy of
notice served on defendant Ext. 1/1
(vi) 11.12.1982 – suit filed.
2026: JHHC: 15952
40
34. The learned court then referred to the judgment of the Hon’ble Supreme
Court wherein it has been held that for specific performance, the plaintiff has
to prove that throughout he was prepared to do his part of the contract and the
preparedness may not be mere verbal. The learned court also recorded that
there was no pleading or evidence by the defendants that the plaintiff was
financially incapable. The evidence of PW-5 paragraph 18, revealed that a sale
deed was prepared in stamp paper and after coming to registration office, the
defendant no. 1 flew away. The learned court recorded that this intendment
made in cross-examination does not mean that the defendant no. 1 went away
because the plaintiff had no money. The learned court recorded that no
suggestion was given to the effect in cross-examination of P.W.-4 and there is
no pleading to that effect in the written statement. The learned court recorded
that the plaintiff’s readiness and willingness averred in paragraph 11 of the
plaint has been dealt with in written statement in paragraph 15 of the defendant
no. 3 and paragraph 4 of the defendant no. 2 and there is no denial whatsoever,
either expressly or impliedly, that the plaintiff was not ready and willing to
perform his part of the contract.
35. After having observed as aforesaid, the learned 1
st
appellate court dealt
with plea regarding payment of Rs. 1,000/- on 11.10.1982 dealing with failure
to produce the money receipt and further with respect to endorsement Exhibit-
2/1. The learned court observed that a party is required to produce the best
evidence and that the payment of Rs. 2,000/- on 18.09.1982 was proved by
Exhibit-2 and further payment of Rs. 1,000/- was proved by Exhiit-2/1 and
that both the parties had agreed for extension of time till 30.11.1982 on
16.11.1982.
36. The evidence of PWs were discussed by the learned 1
st
appellate court.
The learned court recorded that even after receipt of notice dated 30.11.1982,
the payment was not denied. Further DWs. 1, 2 and 3 admitted that they did
not ever talk with defendant no. 1, therefore, the plea that further Rs. 1,000/-
was not paid is only surmise. The learned court also recorded that DW-1 Ram
Kinkar Pathak had clearly stated that he will examine defendant no. 1 on
2026: JHHC: 15952
41
commission, but even after that neither the defendant no. 1 was examined nor
any steps were taken for his examination. Hence, adverse inference could not
be drawn for non-produce of the receipt. The learned court further recorded
that non-production of money receipt regarding payment of Rs. 1,000/- on
11.10.1982 was explained as the receipt was lost by the plaintiff who was
examined as P.W.-4. The learned court upon appreciation of evidence
recorded that it could not be said that the plea of payment of Rs. 1,000/- was
false.
37. Apart from the aforesaid findings, some of further findings of the
learned 1
st
appellate court are quoted as under: -
13. the receipt granted for payment of Rs. 1000/- on 11.10.1982 was
not filed in court because the same got lost. (PW-4 para 3 end, para
14, para 16). The factum of payment of Rs. 1000 has been proved by
the evidence i.e. Ext.-2/1 and by evidence of eye witness PW-2 and
PW-3. Therefore, it cannot be said that the plea of payment of Rs.
1000/- can be said to be false.
No adverse inference can be drawn for non-filing of separate receipt
as the same is not in possession of the plaintiff. I am of the opinion
that the learned court below has rightly recorded that there is
written document (Ext.-2/1) showing payment of Rs. 1000/- by the
plaintiff to the defendant no. 1. The defendant no. 1 has signed the
same making endorsement. The decision reported in AIR 1968 SC
1413 does not apply. For drawing adverse inference, it has to be on
record that the document is in custody of the person and he
deliberately failed to produce it. In the decision reported in AIR
1961 SC 1277, it has been held “non-production of important
document-presumption-document not in possession or power of
party – No adverse inference. Where in the course of trial, the court
is satisfied that a document having an important bearing as the
dispute which is pending trial is withheld by a party, an inference
adverse to the party with holding the document that if produced, the
document would not support that party’s case, may properly arise.
But where there is no evidence on the record to show that the
document was with the plaintiff or within their power and that it was
withheld from the court, the court would refuse to raise an adverse
inference against the plaintiff.
2026: JHHC: 15952
42
14. The plaintiff/respondent has proved that he paid Rs. 2000/- on
18.09.1982 and Rs. 1000/- on 11.10.1982. Above all, plaintiff has
stated in his evidence that he is ready to pay reasonable money (PW
4 para 6 end). Under the circumstances, no adverse inference can
be drawn for non-production of the receipt.
15. The defendants have taken a plea in the written statement that
the plaintiff got agreement for sale dated 18.09.1982 (Ext.-2)
executed in his favour by practicing fraud, coercion and
misrepresentation on defendant no. 1.
The plea about the agreement of sale dated 18.09.1982 between
plaintiff and defendant no. 1 (Ext.-2) being a sham and collusive
document was not supported by defendant no. 3 (as DW-1) and
defendant no. 2 (as DW-3) in their evidence in court.
The defendant no. 3 did not give any detail as to how, when and
under what circumstances, fraud, undue influence or coercion was
practiced. In para 4 of his deposition as DW-1, defendant no. 3
stated that he came to know later on that plaintiff got executed some
rent properties. There is no evidence about fraud, undue influence
etc. and the plea raised in written statement of defendant no. 3 is to
be ignored. According to defendant no. 3 himself, it was on
20.09.1982 that he came to know about agreement for sale dated
18.09.1982 between plaintiff and defendant no. 1.
Exhibit-3/1 (notice dated 20.11.1982) para 2.
Exhibit-5 (plaint in partition suit) para 5
The material witnesses examined by defendants are DW1 (Ram
Kinkar Pathak) DW (Ram Kinkar’s father Naresh) and DW-3
(Jugal’s son-in-law Dineshwar). All of them stated that they did not
talk to Jugal Kishor Pathak about his agreement with plaintiff.
16. In written statement of defendant no. 3, it has been pleaded that
(i) because of old age and ill health, Jugal Kishor Pathak was not
mentally competent to enter into contract; (ii) because of having
executed power of attorney in 1977 in favour of defendant no. 3,
Jugal Kishor Pathak was not legally competent to enter into any
contract without revoking the power. The defendant no. 3 as DW-1
stated in paragraph 3 of his evidence that being about 100 years in
age, Jugal Kishor Pathak cannot walk and hence he cannot come to
court and his eye sight is also poor. This claim is falsified by
admission in paragraph 18 that Jugal Kishor Pathak can talk, move
around in his house and can be examined as a witness on
commission. DW-3 has stated in paragraph 8 that in April 1982
2026: JHHC: 15952
43
Jugal Kishor Pathak was mentally fit. DW-2 stated in his evidence
that Jugal Kishor Pathak moves around between Chatra and Gaya
by bus. Hence, plea of mental incompetence has no basis. As regards
legal incompetence, in memo of appeal and in the submissions
during arguments in the appeal, this court is not perused. The plea
of legal incompetence as raised in the written statement is restrict
to the effect of power of attorney in 1977 and non-revocation
thereof. By merely executing power of attorney, defendant no. 1 did
not divest himself of his right to deal with his property. In a Full
Bench decision reported in AIR 1981 (NOC) All, it has been held
that while delegating power, a person does not divest himself of his
powers but only creates a concurrent authority with himself for the
exercise of power.
16. On consideration of oral and documentary evidence discussed
above, I find that the plaintiff has paid Rs. 2,000/- on 18.09.1982 on
which date the agreement for sale was executed by defendant no. 1
in favour of plaintiff and again Rs. 1000/- was paid on 11.10.1982
vide Ext.-2/1. Exts. 2/1, 2/2 and 3 and 3/1 clearly show that the
plaintiff was always ready and willing to perform his part of
contract. Hence, I fully agree with the issue expressed by the learned
court below that the agreement for sale dated 18.09.1982 executed
by defendant no. 1 in favour of the plaintiff is valid and genuine
document. I also find that the learned court below rightly hold that
the plaintiff is entitled to a decree for specific performance of
contract with respect to the suit properties fully described in
Schedule-B of the plaint.
17. Issue no. 6. It has been contended on behalf of defendant nos. 2
and 3 that the plaintiff has not sought for any relief against
defendant nos. 2 and 3 in the plaint. The plaint was amended after
the defendant no. 3 sold the suit property to defendant no. 2 during
the pendency of the suit. The suit was filed on 11.12.1982 and the
sale was made on 20.12.1982 (Ext.-G). This sale is hit by the
doctrine of lis-pendens as provided in Section 52 of the Transfer of
Property Act. This position of law will appear from the decision
reported in AIR 1964 Mysore (Full Bench). The sale is bad in law
and cannot have any legal effect. The plaintiff has amended the
plaint and prayed in the relief that all the defendants be directed to
specifically perform the agreement dated 18.09.1982 (Ext.-2). It
cannot therefore be said that no relief has been sought against
defendant nos. 2 and 3. The plaintiff has in paragraph 17 and 18 in
2026: JHHC: 15952
44
the amended plaint clearly mentioned as to how defendant nos. 2
and 3 have got involved in the suit. Therefore, it cannot be said that
there is no cause of action against defendant nos. 2 and 3. So, the
learned court below rightly held that the plaintiff has got valid cause
of action for the suit and he is entitled to the reliefs prayed for
against defendant no. 1.
18. In the light of the discussions made above, I find that the learned
court below has rightly decreed the suit ex-parte against defendant
no. 1 and decided in presence of and on contest against defendant
nos. 2 and 3 with cost and directed defendant no. 1 to execute the
sale deed in favour of the plaintiff with respect to the suit property
fully described in Schedule-B of the plaint within two months, failing
which the plaintiff is at liberty to get the same executed by the
process of the court. Accordingly, I find no merit in the appeal and
it fails. In the result, this appeal is dismissed with cost.”
1
st
substantial question of law
Whether the concurrent finding recorded by both the courts that
the plaintiff was ready and willing to perform his part of the
contract suffers from any perversity?
38. The learned counsels for the appellants have argued that the agreement
of sale dated 18.09.1982 (Ext.-2) has not been properly proved. This Court is
of the view that such plea is not available to the appellants considering the
scope of the substantial question of law to be decided in the appeal. Otherwise
also, the learned courts have discussed the pleadings and evidences in details
with respect to Exhibit-2 entered into between the plaintiff and the defendant
no. 1 and has recorded concurrent findings that there was an agreement of sale
dated 18.09.1982 (Exhibit-2) entered into between the plaintiff and defendant
no. 1 with respect to Schedule-B property for consideration of Rs. 10,000/-
and Rs. 2,000/- was shown to have been paid as per the agreement of sale
itself. This is over and above the fact that neither the defendant no. 1 filed
written statement nor contested the suit nor was examined as a witness. The
records reveal that the defendant nos. 2 and 3, who are the close relatives of
the defendant no.1, were to get defendant no. 1 examined through appointment
of commissioner, but for that no steps were taken by the contesting
2026: JHHC: 15952
45
defendants. The contesting defendants asserted that the agreement of sale was
forged and fabricated and was obtained by coercion and misrepresentation as
defendant no. 1 was not mentally and physically fit, but no evidence was led
by the contesting defendants, who were close relative of defendant no. 1 to
substantiate such allegation. The plaintiff through oral and documentary
evidences has proved Exhibit-2 and exhibit-2 has been accepted to have been
duly proved by both the courts. All arguments relating to legality, validity and
proof of Exhibit-2 are beyond the substantial question of law and hence cannot
be entertained.
39. The learned counsels for the appellants have also submitted that
necessary pleadings with respect to specific performance of contract in terms
of Form 47 and 48 of Appendix A of CPC have not been made and such
omission is fatal to the case of the plaintiff. For this, reliance has been placed
on the judgment passed by the Hon’ble Supreme Court reported in (2003) 10
SCC 390 (supra). In the said judgment reported in (2003) 10 SCC 390
(supra), Section 16(c) of Specific Relief Act has been quoted in paragraph 13
and it has been observed that in terms of Section 16(c), it is incumbent upon
the plaintiff both to aver and prove that he had all along been ready and willing
to perform the essential terms of the contract which was required to be
performed by him. It has been observed in paragraph 15 of the judgment that
Form 47 and 48 of Appendix-A of CPC prescribes the manner in which such
averments are required to be made by the plaintiff and in the facts of the said
case, it was not disputed that the plaintiff had not made the necessary
averments as required by law. The Hon’ble Supreme Court referred to the
earlier judgment reported in (1969) 2 SCC 539 (Ouseph Varghese vs. Joseph
Aley) in paragraph 17 of the aforesaid judgment, which is quoted as under: -
“17. The requirement to comply with the mandatory provisions
of Section 16(c) of the Specific Relief Act came up for consideration
of this Court in Ouseph Varghese vs. Joseph Aley & Ors. [(1969) 2
SCC 539] wherein it was held:
"The plaintiff did not plead either in the plaint or at any
subsequent stage that he was ready and willing to perform the
2026: JHHC: 15952
46
agreement pleaded in the written statement of defendant. A suit
for specific performance has to conform to the requirements
prescribed in Forms 47 and 48 of the 1st Schedule in the Civil
Procedure Code. In a suit for specific performance it is
incumbent on the plaintiff not only to set out agreement on the
basis of which he sues in all its details, he must go further and
plead that he has applied to the defendant specifically to
perform the agreement pleaded by him but the defendant has
not done so. He must further plead that he has been and is still
ready and willing to specifically perform his part of the
agreement. Neither in the plaint nor at any subsequent stage of
the suit the plaintiff has taken those pleas. As observed by this
Court in Pt. Prem Raj v. D.L.F. Housing and Construction (P)
Ltd [AIR 1968 SC 1355] it is well settled that in a suit for
specific performance the plaintiff should allege that he is ready
and willing to perform his part of the contract and in the
absence of such an allegation the suit is not
maintainable.”(emphasis supplied)
40. So far as the present case is concerned, this Court, upon perusal of the
plaint right from paragraph 5 to paragraph 11, finds that it has been clearly
averred that agreement of sale dated 18.09.1982 was entered into between the
plaintiff and the defendant no. 1 for consideration amount of Rs. 10,000/- out
of which Rs. 2000/- was paid and sale was to be executed within one month,
but it was extended twice at the instance of the defendant no. 1, firstly on
11.10.1982 upon payment of Rs. 1000/- it was extended till 17.11.1982 and
secondly on 16.11.1982 the agreement of sale was extended till 30.11.1982.
It has been asserted that prior to 30.11.1982, on 27.11.1982, the plaintiff
received a Pleader notice from defendant no. 3, grandson of defendant no.1,
who sought to enquire whether any agreement has been entered into between
the plaintiff and the defendant no. 1 and in response, the plaintiff, on
30.11.1982 itself, sent reply through advocate referring to the agreement of
sale and it was categorically made known that the plaintiff was always and
still ready and willing to pay the balance consideration amount and get the
sale deed executed and that he would wait up to 10.12.1982 for a response
failing which legal action will be initiated. It has been asserted that the reply
2026: JHHC: 15952
47
was also served upon the defendant no. 1 on 30.11.1982 itself and having no
response, the suit was immediately filed on 11.12.1982. All the events till
30.11.1982 happened during the subsistence of the agreement as the time
period of agreement dated 18.09.1982 was extended till 30.11.1982 vide
Exhibit-2/2.
41. This Court is of the considered view that the required averments for
seeking specific performance of agreement of sale dated 18.09.1982 (Ext.-2)
was duly pleaded in the plaint and the same was in consonance with the law
laid down by the Hon’ble Supreme Court in the judgment reported in (2003)
10 SCC 390 (supra) which in turn had relied upon earlier judgment reported
in (1969) 2 SCC 539 (supra).
42. The argument of the learned counsel for the appellants that,
necessary averments to seek specific performance of contract have not been
made when seen in the light of Forms 47 and 48 of Appendix-A of CPC, is
devoid of any merits, hence rejected.
43. The plaintiff has pleaded readiness and willingness to perform his part
of the contract including readiness and willingness even on the last date of
the agreement on 30.11.1982 by way of reply dated 30.11.1982 (exhibit-3) to
legal notice dated 20.11.1982 served on 27.11.1982 (exhibit-3/1) and it was
also personally served upon the defendant no. 1 on 30.11.1982 which was
within the subsistence of the agreement dated 18.09.1982 (exhibit-2) read with
exhibit 2/2. The plaintiff has also proved that the agreement of sale was
extended at the instance of the defendant no. 1 twice. The defendant no. 1 did
not even file his written statement to refute the averments of the plaintiff and
did not participate in the trial to refute or question the averments and evidences
of the plaintiff.
44. This Court finds that the evidences placed on record and as discussed
by the learned courts reveal that the learned courts have appreciated the
materials on record and have duly come to a finding that the plaintiff was
throughout ready and willing to perform his part of the contract and the offer
to perform was made even in writing vide exhibit- 3 which was personally
2026: JHHC: 15952
48
served upon the defendant no.1 who duly received and signed exhibit-3 and
his signature was marked as exhibit- 1/C . This happened when the agreement
was subsisting on the last day that is on 30.11.1982 (exhibit-3), to which the
plaintiff did not receive any response and filed the suit on 11.12.1982. The
argument of the learned counsel for the appellants that the offer to perform
was not made by the plaintiff at proper place and time at Hazaribagh has no
relevance as the offer to perform and get the sale deed executed was made in
writing by the plaintiff to the defendant no.1 and personally served during the
subsistence of the agreement, but the defendant no. 1 did not respond.
45. This Court is of the considered view that the readiness and willingness
to perform his part of the contract throughout was duly pleaded and duly
proved by the plaintiff who was examined as P.W-4 and also by the other
witnesses examined by the plaintiff. This is over and above the fact that the
defendant no.1, with whom the plaintiff had entered into agreement for sale
and who was the owner of the suit property, never filed written statement and
never appeared as witness in the suit and never participated in the suit
proceedings and the suit was set ex-parte against him. The power of attorney,
defendant no.3, contested the suit in his individual capacity as he had entered
into another agreement of sale with defendant no.2 and ultimately sold the suit
property to the defendant no.2. The defendant nos. 2 and 3 filed their separate
written statement and neither the financial capacity of the plaintiff was in
dispute nor the plea of readiness and willingness on the part of the plaintiff to
perform his part of the contract was in dispute. This Court is of the considered
view that the learned courts have considered the pleadings and materials on
record to come to finding that the plaintiff was ready and willing to perform
his part of the contract throughout and this court does not find any perversity
in the matter of such findings arrived at by the learned courts in favour of the
plaintiff. The totality of the evidence reveal that the plaintiff was ready and
willing to perform his part of the contract throughout.
46. The 1
st
substantial question of law is accordingly decided in favour of
the plaintiff and against the appellants (defendants) and it is held that the
2026: JHHC: 15952
49
concurrent findings recorded by both the courts that the plaintiff was ready
and willing to perform his part of the contract does not suffer from any
perversity.
3
rd
substantial question of law.
Whether the receipt cum extension of time of the agreement
for specific performance of contract marked as Exhibit 2/1
was inadmissible in evidence for the same being not duly
stamped.
47. Considering the arguments of the respective parties, this Court finds
that exhibit-2/1 is the endorsement regarding extension of time by one month
and also endorses receipt of Rs.1000/- and was made at the back side of the
exhibit-2 (the agreement of sale dated 18.09.1982). In view of the judgement
relied upon by the learned counsel for the appellants, the same was required
to be stamped and in the absence of being stamped the same could not be taken
into evidence. However, as per both the courts, the agreement as contained in
exhibit-2 was duly proved and the 2
nd
extension by which the period of the
agreement was extended till 30.11.1982 (exhibit-2/2) was also duly proved
which has neither been disputed by the other defendants nor the defendant
No. 1 filed his written statement, nor he has deposed in the court against the
plaintiff. Moreover, the evidence on record show that a separate money receipt
was prepared with respect to payment of Rs.1000/- but the plaintiff failed to
produce the same as he had stated in his evidence that the same was lost.
Defendant No. 3 has specifically stated that he never consulted his grandfather
(defendant no.1) for filing the written statement. This Court finds that from
the materials on record it is very much evident that there was a valid agreement
and the entire agreement doesn’t get vitiated because the exhibit-2/1 (1
st
extension) is not duly stamped. The deed of agreement is itself on a revenue
paper which is evident from exhibit-2 and the same has not been objected by
the defendants and the revenue paper of Rs. 3 and Rs. 2 was purchased for
reducing the agreement in writing and it is evident that there is no objection
2026: JHHC: 15952
50
over exhibit-2 which is an agreement and even if exhibit-2/1 is not taken into
consideration the same will have no bearing in the outcome of the case.
48. Thus, while answering the 3
rd
substantial question of law it is held
that the receipt cum extension of time of the agreement for specific
performance of contract marked as Exhibit 2/1 was inadmissible in evidence
for the same being not duly stamped. However, as discussed above, the
agreement of sale and its validity till 30.11.1982 was duly proved on the basis
of other materials on record and hence the answer to 3
rd
substantial question
of law, though decided in favour of the appellants (defendants), has no
bearing the matter and does not help the appellants in any manner.
2
nd
substantial question of law
Whether the agreement dated 18.09.1982 (Exhibit-2) executed by
defendant No.1 in favour of plaintiff or agreement dated
20.08.1982 (Exhibit-B) executed by defendant No.3 in favour of
defendant No.2 shall prevail and given effect to?
49. So far as the 2
nd
substantial question of law is concerned, it is not in
dispute that the agreement of sale dated 20.08.1982 (Ext.-B) executed by
defendant no. 3, as constituted attorney of defendant no. 1, was prior in point
of time as compared to the agreement of sale dated 18.09.1982 (exhibit-2)
executed by defendant no. 1 in favour of the plaintiff. It is further not in
dispute that no such issue was framed either before the learned trial court or
before the learned 1
st
appellate court as to whether the agreement of sale dated
20.08.1982 (Ext.-B) would prevail upon the agreement of sale dated
18.09.1982 (Ext.-2). However, both the parties were thoroughly cross-
examined in connection with their respective agreement of sale. It is important
to note that Exhibit-2 as well as Exhibit-B both were duly proved before the
learned court and no substantial question of law has been framed with respect
to proof of Exhibit-2 and/or proof of Exhibit-B. There can be no doubt that
even if no specific issue was framed as to which of the two agreements of sale
would prevail but there was appropriate materials before the courts which led
to a finding about existence of both the agreements of sale, that is, exhibit-2
and exhibit-B and the substantial question of law no.2 is essentially relating
2026: JHHC: 15952
51
to impact of existence of two agreements of sale and which one would prevail.
Thus, there is no legal impediment to decide the substantial question of law
no.2 even if no specific issue in this connection was ever framed by the learned
trial court or by the learned 1
st
appellate court but the existence of two
agreements of sale, that is exhibit- 2 and exhibit-B, were duly pleaded and
proved by the concerned parties.
50. The fact remains that the title suit was filed by the plaintiff on
11.12.1982 seeking specific performance of contract with respect to
agreement of sale dated 18.09.1982 (Exhibit-2) making the defendant no. 1 as
the sole defendant and subsequently when the sale deed was executed by
defendant no. 3 (power of attorney of defendant no.1) in favour of defendant
no. 2 on 20.12.1982 (exhibit-G) the plaintiff filed petition seeking amendment
of the plaint. The registered sale deed dated 20.12.1982 (exhibit-G) also
referred to the agreement of sale between the defendant no. 3 and defendant
no. 2 dated 20.08.1982 (exhibit-B). The plaintiff filed petition seeking
amendment in the suit to make the defendant nos. 2 and 3 as a party in the suit
and also to introduce certain averments with respect to execution of sale deed
dated 20.12.1982 (exhibit-G) by the defendant no. 3 in favour of defendant
no. 2. The amendment was allowed vide order dated 25.03.1983 and the
defendant nos. 2 and 3 were added as party and following averments were
inserted from the side of the plaintiff as paragraph 16, 17 and 18: -
“16. That the plaintiff has filed the present suit for specific
performance of agreement dated 18.09.1982 executed by and
between the plaintiff and the defendant. The suit was filed on
11.12.1982.
17. That with full knowledge about the filing of the present suit one
Ram Kinkar Pathak who is the grandson of the defendant executed
a deed of sale as respect to suit property in favour of Dinesh
Pathak, S/o not known, resident of Qr. No. DT 2121, near Pani
Tanki, (Water Tower), Dhurwa, Ranchi-4.
18. That Dinesh Pathak is the own son-in-law of the defendant and
therefore the sale deed executed in his favour is a sham transaction
2026: JHHC: 15952
52
made for the purpose of adversely affecting the plaintiff’s decree
in suit.
51. The prayer in the suit was also adequately amended to include relief
against all the defendants.
52. It is important to note that though the plaint was amended after
execution of the sale deed dated 20.12.1982 and the sale deed itself referred
to the previous agreement of sale between defendant nos. 2 and 3 dated
20.08.1982, but there was no assertion introduced in the plaint through
amendment making any allegation of wrongfully preparing the agreement of
sale dated 20.08.1982 for the purpose to defeat the relief of the plaintiff based
on subsequent agreement of sale dated 18.09.1982 (exhibit-2) . It is equally
important to note that the defendant no. 2 while filing the written statement
had specifically referred to the agreement of sale dated 20.08.1982 entered
into between defendant nos. 2 and 3 followed by the execution of registered
sale deed dated 20.12.1982. Still the plaintiff did not take any steps to
amendment to plaint so as to assail the agreement of sale dated 20.08.1982.
53. It is further important to note that so far as the defendant no. 3 is
concerned, he did not refer to the agreement of sale dated 20.08.1982 in his
written statement, but certainly this agreement of sale was referred to in the
registered sale deed dated 20.12.1982 executed by defendant no. 3 in favour
of defendant no. 2. The defendant no. 3 in his written statement took a specific
plea that once the power of attorney was given to the defendant no. 3 way
back in the year 1977 by the defendant no. 1, the defendant no. 1 had no legal
right to enter into any agreement of sale with anybody whomsoever including
the plaintiff. This was in furtherance to the assertion that the agreement of sale
entered into between the plaintiff and the defendant no. 1 was fraudulently
obtained through misrepresentation by the plaintiff and therefore such
agreement, if any, was void.
54. The learned courts by concurrent finding have held that the defendant
no. 1 had entered into agreement of sale with the plaintiff dated 18.09.1982
and the agreement of sale dated 18.09.1982 was a valid agreement between
2026: JHHC: 15952
53
the plaintiff and the defendant no. 1. The learned courts have rejected the plea
of the defendant no. 3 that once the power of attorney was executed by
defendant no. 1 in favour of defendant no. 3, the defendant no. 1 completely
lost his right to deal with the property. The learned court have taken note of
the fact that the defendant no. 2 had proved the agreement of sale entered into
between the defendant no. 3 and defendant no. 2 dated 20.08.1982 which was
prior in point of time as compared to the agreement of sale entered into
between the plaintiff and the defendant no. 1 dated 18.09.1982, but have not
considered the impact of such a prior agreement entered into between the
defendant no. 2 and defendant no. 3 (power of attorney of defendant no.1).
The records of the case reveal that there is no substantial cross-examination
with respect to the agreement of sale dated 20.08.1982 except the fact that
stamp paper with respect to the agreement of sale dated 20.08.1982 was
purchased in the month of March 1982 and the agreement was entered on
20.08.1982, to which the defendant no. 2 in his cross-examination had tried to
explain that though the negotiations were on, but the necessary finances were
not available with the defendant no. 2 and the agreement of sale was entered
only on 20.08.1982 upon payment of part consideration of Rs. 500/-.
55. The learned counsel for the plaintiff has tried to allege by referring to
the evidences on record that the agreement of sale dated 20.08.1982 (Exhibit-
B) was itself doubtful and it never existed and the same was created by
defendant nos. 2 and 3 only to defeat the claim of the plaintiff and to mislead
the court by giving wrongful facts and for that they have also pointed out that
the defendant no. 3 in his written statement had not taken any such plea
regarding the existence of agreement of sale dated 20.08.1982 and such
omission was absolutely fatal as no amount of evidence could be looked into
in absence of pleading which was as settled principle of law. It has also been
sought to be argued that in the notice issued by the defendant no. 3 dated
20.11.1982, there was no such mention of the agreement of sale dated
20.08.1982. Rather in the notice, the defendant no. 3 had stated that there was
no any urgent or any necessity of the family for money at that time. A
2026: JHHC: 15952
54
reference has also been made to Exhibit-5, which is a plaint of partition suit
filed by the defendant no. 3 on 25.11.1982 and the same also does not mention
the agreement of sale dated 20.08.1982 (Ext.-B).
56. The learned counsel for the plaintiff has tried to suggest that the
agreement of sale dated 20.08.1982 (Ext.-B) was a forged and fabricated
document. However, this court is of the considered view that such plea cannot
be entertained in view of the fact that in spite of the defendant no. 2 having
taken specific plea with regard to existence of agreement of sale dated
20.08.1982 (Ext.-B), no attempt was made by the plaintiff to amend the plaint
so as to challenge/assail that the agreement of sale dated 20.08.1982 (Ext.-B)
to be a forged and fabricated document or was created by collusion of
defendant nos. 2 and 3 only to defeat the claim of specific performance of
contract by the plaintiff. It is also important to note that no such substantial
question of law has been framed even by this Court as to whether the
agreement of sale dated 20.08.1982 (Ext.-B) was a forged and fabricated
document.
57. The argument of the plaintiff that the agreement of sale dated
20.08.1982 (Ext.-B) was a forged and fabricated document is not only beyond
the pleadings of the parties, but is also beyond the substantial question of law
as framed by this Court and therefore such a plea is not tenable. This Court
has to only examine the impact of a prior agreement of sale dated 20.08.1982
(Ext.-B) entered into between defendant no. 3 [in the capacity of power of
attorney holder of defendant no. 1] and defendant no. 2 vis-à-vis the
agreement of sale entered into directly between defendant no. 1 and the
plaintiff on 18.09.1982 (exhibit-2).
58. The perusal of Exhibit-B reveals that no specific timeline has been
mentioned for the purposes of execution of the sale deed. However, the sale
deed was executed on 20.12.1982 within a span of four months from the date
of agreement of sale dated 20.08.1982.
59. In the aforesaid factual scenario, this Court is of the considered view
that once there was already an agreement of sale entered into by the power of
2026: JHHC: 15952
55
attorney holder (defendant no. 3) in favour of defendant no. 2 on 20.08.1982,
such agreement of sale was certainly binding upon the defendant no. 1, who
had executed the registered power of attorney in favour of defendant no. 3
way back in the year 1977 which was still subsisting and under such
circumstances, the subsequent agreement of sale, entered into by the
defendant no. 1 directly in favour of the plaintiff on 18.09.1982, has to give
way to the prior agreement of sale dated 20.08.1982 and it was this agreement
of sale dated 20.08.1982 which ultimately culminated in execution of
registered sale deed by defendant no. 3 in favour of defendant no. 2 on
20.12.1982 (Ext.-G).
60. In view of the aforesaid facts and circumstances, the 2
nd
substantial
question of law is hereby decided in favour of the appellants and this Court
is of the considered view that the agreement of sale dated 20.08.1982 (Ext.-
B) executed by defendant no. 3, as constituted attorney of defendant no. 1,
shall prevail upon the subsequent agreement of sale dated 18.09.1982 (Ext.-
2) executed by the defendant no. 1 himself in favour of the plaintiff. This
crucial aspect of the matter, that is, impact of exhibit- B, was not taken care
of by both the learned courts, although both the learned courts have taken note
of the fact that there was previous agreement of sale dated 20.08.1982, but did
not record any finding that the same was a collusive or a fraudulent document
and rightly so, in view of the fact that no such plea was raised by the plaintiff
with respect to agreement of sale dated 20.08.1982. Merely taking a plea that
the sale deed executed in favour of defendant no. 2 was a sham transaction
made for the purposes of adversely affecting the plaintiff’s decree in the suit
does not amount to taking a plea that the agreement of sale dated 20.08.1982
was collusive or a fraudulent document.
61. Accordingly, it is held that the agreement of sale dated 20.08.1982
(Ext.-B) executed by defendant no. 3 [as constituted attorney of defendant no.
1] in favour of the defendant no.2, shall prevail upon the subsequent
agreement of sale dated 18.09.1982 (Ext.-2) executed by the defendant no. 1
himself in favour of the plaintiff. Thus, the learned courts were not justified
2026: JHHC: 15952
56
in decreeing the suit on the strength of agreement of sale dated 18.09.1982
(Ext.-2) executed by the defendant no.1 in favour of the plaintiff once it was
brought on record that there was a previous agreement of sale dated
20.08.1982 (Ext.-B) executed by defendant no. 3 [as constituted attorney of
defendant no. 1] in favour of the defendant no.2 and it was this agreement of
sale dated 20.08.1982 which culminated into sale deed dated 20.12.1982
(exhibit- G) executed by the defendant no.3 (power of attorney of defendant
no.1) in favour of the defendant no.2 and thus , the sale deed dated 20.12.1982
(exhibit- G) was not hit by lis pendens.
62. Consequently, the decree for specific performance of agreement of sale
dated 18.09.1982 (Ext.-2) granted by the learned trial court and upheld by the
learned 1
st
appellate court cannot be sustained in law and are accordingly set-
aside.
63. Summary: -
Substantial question of law Answer/findings of this court
(i) Whether the concurrent
finding recorded by both the
courts that the plaintiff was
ready and willing to perform
his part of the contract suffers
from any perversity?
The concurrent findings recorded
by both the courts that the plaintiff
(respondent) was ready and
willing to perform his part of the
contract does not suffer from any
perversity.
(ii) Whether the agreement dated
18.09.1982 (Exhibit-2) executed
by defendant No.1 in favour of
plaintiff or agreement dated
20.08.1982 (Exhibit-B) executed
by defendant No.3 in favour of
defendant No.2 shall prevail and
given effect to?
The agreement of sale dated
20.08.1982 (Ext.-B) executed by
defendant no. 3 [as constituted
attorney of defendant no. 1] in
favour of the defendant no.2, shall
prevail upon the subsequent
agreement of sale dated
18.09.1982 (Ext.-2) executed by
the defendant no. 1 himself in
favour of the plaintiff.
Consequently, the decree for
specific performance of
2026: JHHC: 15952
57
subsequent agreement of sale
dated 18.09.1982 (Ext.-2) granted
by the learned trial court and
upheld by the learned 1
st
appellate
court cannot be sustained in law
and are accordingly set-aside.
As a result, the suit seeking
specific performance of
agreement dated 18.09.1982
(Ext.-2), being subsequent in point
of time as compared to the
agreement of sale dated
20.08.1982 (exhibit-B), is
dismissed.
It is important to note that
registered sale deed dated
20.12.1982 (exhibit-G) as a sequel
to agreement of sale dated
20.08.1982 (exhibit-B) has been
executed.
(iii) Whether the receipt cum
extension of time of the agreement
for specific performance of
contract marked as Exhibit 2/1
was inadmissible in evidence for
the same being not duly stamped?
The receipt cum extension of time
of the agreement for specific
performance of contract marked
as Exhibit 2/1 was inadmissible in
evidence for the same being not
duly stamped. However, the
agreement of sale and its validity
till 30.11.1982 was duly proved on
the basis of other materials on
record and hence the answer to 3
rd
substantial question of law,
though in favour of the appellants
(defendants) has no bearing the
matter and does not help the
appellants in any manner.
64. In view of the answer to the 2
nd
substantial question of law against the
plaintiff (respondent) and in favour of the defendants (appellants), this 2nd
appeal is allowed and the suit seeking specific performance of the agreement
dated 18.09.1982 (Ext.-2) is dismissed.
65. Pending interlocutory application, if any, is closed.
2026: JHHC: 15952
58
66. Let the records be immediately sent back to the court concerned.
67. Let a copy of this order be communicated to the court concerned
through ‘e-mail/FAX’.
(Anubha Rawat Choudhary, J.)
Dated: 01.06.2026
Uploaded On: 02.06.2026
Mukul/-
In a significant judgment (S.A. No. 182 of 1991 (R), 2026: JHHC: 15952), the High Court of Jharkhand at Ranchi, presided over by Hon'ble Mrs. Justice Anubha Rawat Choudhary, has provided crucial clarity on the complexities surrounding specific performance contracts and the interplay with a power of attorney in real estate transactions. This detailed analysis, now available on CaseOn, outlines the court's decision on the priority of agreements and the essential elements required for seeking specific performance.
The case originated from Title Suit No. 297 of 1982, filed by Shri Narayan Prasad Sharma (the Plaintiff) seeking specific performance of a contract for the sale of a property (Schedule-B, part of Schedule-A). The initial suit was against Jugal Kishor Pathak (Defendant No. 1), the original owner and landlord to the plaintiff, based on an agreement of sale dated 18.09.1982 (Exhibit-2).
The plot thickened when other defendants were added. Ram Kinkar Pathak (Defendant No. 3), the grandson of Defendant No. 1 and holder of a registered Power of Attorney (POA) from 1977 (Exhibit-A), claimed to have entered into an agreement of sale dated 20.08.1982 (Exhibit-B) with Dinesh Pathak (Defendant No. 2), the son-in-law of Defendant No. 1. This agreement subsequently led to a registered sale deed dated 20.12.1982 (Exhibit-G) in favour of Defendant No. 2 during the pendency of the plaintiff's suit.
The plaintiff argued that the sale deed to Defendant No. 2 was a 'sham transaction' intended to defeat his claim. Conversely, the defendants asserted that Defendant No. 1 lacked the mental capacity to enter into a contract directly with the plaintiff and that the POA given to Defendant No. 3 was valid and operational, thus validating the prior agreement and sale to Defendant No. 2.
The High Court framed three substantial questions of law:
The court considered several key legal principles:
The High Court meticulously reviewed the plaintiff's case. It noted that the plaintiff had clearly pleaded his readiness and willingness in the plaint (paragraphs 7, 9, 11) and reiterated it in a notice (Exhibit-3) sent to the defendants. The plaintiff's testimony as PW-4 further supported this claim, detailing payments (Rs. 2,000/- initially, then Rs. 1,000/-) and extensions of time, all at the instance of Defendant No. 1.
Crucially, Defendant No. 1 did not file a written statement or contest the suit, and the other defendants (D2 and D3) did not dispute the plaintiff's financial capacity or readiness/willingness. The court affirmed that the continuous conduct of the plaintiff, including filing the suit promptly after the final extended deadline, demonstrated his genuine intent. Therefore, the High Court found no perversity in the concurrent findings of the lower courts on this issue.
The document Exhibit 2/1, a receipt cum extension of time for the agreement, was found to be unstamped. The High Court, adhering to the Stamp Act, ruled that this document was indeed inadmissible in evidence. However, the court emphasized that the original agreement of sale (Exhibit-2) was duly stamped and proved. The extensions and payments were also established through other evidence, including Exhibit-2/2 and witness testimonies. The court concluded that while Exhibit 2/1 was inadmissible, this fact had no bearing on the validity of the main agreement or its extensions, which were sufficiently proven by other materials on record. This shows how CaseOn.in's 2-minute audio briefs simplify understanding complex evidentiary rulings and their impact on a broader **specific performance contract** case, assisting legal professionals in quickly grasping the nuances of such judgments.
This was the pivotal issue. The court observed that the lower courts had noted the existence of both agreements (Exhibit-2 and Exhibit-B) but had failed to analyze their 'impact' or decide which should prevail. The High Court found this to be a crucial omission.
The key timeline was:
The High Court clarified that while granting a POA, the principal does not lose their right to deal with their property; rather, it creates a concurrent authority. However, in this scenario, the agreement executed by the POA holder (D3) in favour of D2 on 20.08.1982 predated the agreement executed by the principal (D1) in favour of the plaintiff on 18.09.1982.
Crucially, the plaintiff, despite amending his plaint after the sale deed to D2 (Exhibit-G) was executed, *did not challenge* the prior agreement (Exhibit-B) as being forged, fabricated, or collusive. His challenge was limited to the sale deed (Exhibit-G) being a 'sham transaction' due to 'lis pendens.' The court noted that without specifically pleading against the validity of Exhibit-B, the plaintiff could not challenge it at a later stage. Since Exhibit-B was prior in time and executed by a valid POA holder, it would bind the principal.
Therefore, the High Court concluded that the earlier agreement (Exhibit-B) made by the POA holder (D3) in favour of D2 must prevail over the later agreement (Exhibit-2) made directly by D1 with the plaintiff.
The High Court allowed the appeal, setting aside the concurrent decrees of specific performance granted by the lower courts. The suit seeking specific performance of the agreement dated 18.09.1982 (Exhibit-2) was dismissed. The court ruled that the agreement dated 20.08.1982 (Exhibit-B) executed by Defendant No. 3 (as constituted attorney of Defendant No. 1) in favour of Defendant No. 2 shall prevail.
The registered sale deed dated 20.12.1982 (Exhibit-G), being a culmination of the prior valid agreement (Exhibit-B), was held not to be hit by the doctrine of lis pendens, as the agreement it stemmed from predated the plaintiff's contract.
This judgment underscores the critical importance of the chronological sequence of agreements in property disputes. It reaffirms that a prior, valid agreement executed by a power of attorney holder can take precedence over a subsequent agreement by the principal, especially when the prior agreement is not duly challenged in pleadings.
This ruling is an essential read for lawyers and law students dealing with **specific performance contracts** and **power of attorney in real estate** for several reasons:
This judgment provides valuable insights into the intricate details that can turn the tide in property litigation, reinforcing the need for meticulous legal strategy and drafting.
All information provided in this article is for informational purposes only and does not constitute legal advice. While efforts have been made to ensure accuracy, readers are advised to consult with a qualified legal professional for advice on specific legal issues.
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