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Thursday, May 12, 2011

specific performance - partition - opportunity to the non- excutant agreement of sale , to purchase the entire property from the holder of agreement of sale.


As   a   matter   of   fact,   agreement   of   sale   dated   02.05.1988 



does   not   refer   to   Defendant   No.   3   at   all   or   his   share   in   the 



property.  However, in the plaint, the plaintiff clearly admitted 



the   share   of   Defendant   No.   3   who   was   a   minor   and   the   fact 



that no guardian was appointed for the minor and Defendant 



No. 2 was not his natural guardian.  Without Defendant No. 3 



joining   the   other   co-sharers,   no   agreement   of   sale   could   be 



entered with the plaintiff for the entire property including the 



minor's   share.     Consequently,   the   agreement  of   sale   covering 



the entire property was void and ineffective.   



9)     It  is  settled   law  that  Section   20   of  the   Specific  Relief   Act, 



1963   confers   discretionary   powers.   [vide:  M.   Meenakshi   &  


Ors.  vs.  Metadin   Agarwal  (2006)   7   SCC   470,  Nirmala  


Anand vs. Advent Corporation (P) Ltd. & Ors. (2002) 5 SCC 

                                                                                   

481,      Parakunnan   Veetill   Joseph's   Son   Mathrew  vs.                                           


Nedumbara Karuvila's Son & Ors.   (1987) Supp. SCC 340]. 


It   is   also   well   settled   that   the   value   of   property   escalates   in 



urban   areas   very   fast   and   it   would   not   be   equitable   to   grant 



specific performance after a lapse of long period of time.  



10)     Apart   from   all   these   material   aspects   before   the   High 



Court,   both   parties   including   the   plaintiff/present   appellant 



agreed   for   a   reasonable   market   valuation.     This   factual 



position is clear from paragraph 7 of the High Court judgment 



which reads as under:-



        "7.     The   counsel   for   appellants   and   respondents   submitted 

        that the market value of property is Rs. 300/- per sq. ft. The 

        total   area   of   property   is   4,655   sq.   ft.   (48'   x   90').     The   total 

        market   value   of   property   would   be   Rs.   13,96,500/-.     The 

        value of 9/11th  share would be Rs. 11,42,590/-.   Defendant 

        No. 3 proposes to purchase the 9/11th share by paying value 

        to   the   plaintiff.     The   counsel   for   the   plaintiffs   with   the 

        instructions from the plaintiff agreed to the said proposal on 

        the condition that the Defendant  No. 3 should pay the said 

        amount   within   three   months.     In   the   event   of   default,   the 

        plaintiff   would   be   entitled   to   the   relief   of   specific 

        performance.     The   Defendant   Nos.   1,   2   and   4   to   7   shall 

        execute sale deed of their share to the extent of 9/11 area in 

        the   suit   property   by   making   convenient   division   of   the 

        property.  Accordingly, the appeal is disposed of."    





11)  The statement made by the counsel before the High Court, 



as   recorded   in   the   impugned   judgment   and   order,   cannot   be 





                                                                                                       7

challenged before this Court.[vide:  State of Maharashtra  vs. 


Ramdas   Shrinivas   Nayak   &   Anr.  (1982)   2   SCC   463, 


Shankar   K.   Mandal   &   Ors.  vs.  State   of   Bihar   &   Ors. 


(2003) 9 SCC 519, Roop Kumar vs. Mohan Thedani (2003) 6 



SCC   595,  Guruvayoor   Devaswom   Managing   Committee   &  


Anr. vs. C.K. Rajan & Ors. (2003) 7 SCC 546]


12)     It   is   also   clear   that   the   High   Court   has   recorded   in   the 



impugned judgment dated 03.03.2009 that the counsel agreed 



with   instructions  from   the   plaintiff   and  reiterated  this  fact  in 



its order dated 28.08.2009 in Misc. Civil No. 13474 of 2009 in 



the   above-mentioned   RFA   while   rejecting   the   plea   of   the 



counsel   for   the   appellant   herein   that  he  did  not  give   consent 



that   he   had   no   instructions   from   his   clients     A   concession 



made   by   a   counsel   on   a   question   of   fact   is   binding   on   the 



client, but if it is on a question of law, it is not binding. [vide: 


Nedunuri Kameswaramma  vs  Sampati Subba Rao & Anr. 


(1963)   2   SCR   208,   225,  B.S.   Bajwa   &   Anr.   vs.   State   of  


Punjab & Ors. (1998) 2 SCC 523, 525-526]

                                                                                  

13)     As   stated   earlier   and   the   reading   of   the   impugned 



judgment and order of the High Court, more particularly, para 



7,   which   is   concluding   paragraph,   clearly   show   that   it   is   a 



consent   order.     As   per   Section   96   (3)   of   the   Civil   Procedure 



Code,   no   appeal   lies   from   a   decree   passed   by   the   court   with 



the consent of the parties.  



14)   For all these reasons, more particularly, the statement of 



fact as noted in para 7 of the impugned judgment and order of 



the High Court, under Article 136, generally this Court will not 



interfere   with   the   order   of   the   High   Court   which   has   done 



substantial justice.



15)     Since   this   Court   has   stayed   the   impugned   order   of   the 



High Court while ordering of notice on 08.07.2010, Defendant 



No. 3 is granted 3 months' time from today to pay the amount 



as noted in para 7 of the impugned judgment and in the event 



of   default,   the   directions   of  the   High   Court   in   the   same   para 



are to be applied and implemented.  Defendant Nos. 1, 2, 4 to 



7 are directed to return the sum of Rs.1,53,000/- which they 



have   received   towards   sale   consideration   with   interest   at   the 

                                                                                

rate of 9 per cent from the date of payment within a period of 



eight weeks from today to the plaintiff.  


                                                           REPORTABLE

      

                   IN THE SUPREME COURT OF INDIA


                     CIVIL APPELLATE JURISDICTION


             CIVIL APPEAL NOs. 4279-4280          OF 2011

          (Arising out of SLP (Civil) Nos. 16595-16596 of 2010





Vimaleshwar Nagappa Shet                                   .... Appellant(s)



                 Versus



Noor Ahmed Sheriff & Ors.                                    .... Respondent(s)





                               J U D G M E N T 


P. Sathasivam, J.


1)         Leave granted.



2)         These   appeals   are   directed   against   the   final   judgment 



and   orders   dated   03.03.2009   and   28.08.2009   of   the   Division 



Bench of the High Court of Karnataka at Bangalore in R.F.A. 



No. 52 of 2000 and Misc. Civil No. 13474 of 2009 in R.F.A. No. 



52   of   2000   respectively   whereby   the   High   Court   disposed   of 



the appeal and dismissed the application.





                                                                                1

.
3)     Brief facts:


(a)    The  property   in  question   originally   belonged   to  one   C.S. 



Abdul   Momin   Sheriff   and   he   died   leaving   behind   his   wife 



Hajiba   Tabsasum   and   Defendant   Nos.   1,   2   and   4   (sons), 



Defendant Nos.   5 to 7 (daughters) and Defendant No. 3, who 



is the son of Late Ismail Sheriff, son of Abdul Momin Shariff. 



After   his   demise,   each  of   the   surviving   sons   succeeded   to   an 



extent of 2/11th share and each of the daughters succeeded to 



1/11th share in the property.   As the division in the scheduled 



property   was   impractical,   Defendant   Nos.   1,   2   and   4   to   7 



desired   to   sell   the   schedule   property   and   to   distribute   sale 



proceeds   between   them.   On   02.05.1988,   they   agreed   to   sell 



the   property   to   one   Vimaleshwar   Nagappa   Shet-plaintiff 



(appellant   herein)   for   a   consideration   of   Rs.3,10,000/-, 



executed   agreement   of   sale   and   received   advance 



consideration   of   Rs.10,000/-.     Subsequently,   on   06.05.1988, 



the wife of C.S Abdul Momin Sheriff died.  



(b)    Till   15.06.1989,   the   plaintiff   paid   a   sum   of 



Rs.1,53,000/-, in all, on various dates.  As the defendants did 



not execute the sale deed, the plaintiff filed a suit for specific 




                                                                              2

.
performance being O.S. No. 91 of 1991 in the Court of the Civil 



Judge at Chikmangalur.   By order dated 01.10.1999, the trial 



Court   decreed   the   suit   in   favour   of   the   plaintiff   and   directed 



the defendants to execute the sale deed in terms of agreement 



of sale dated 02.05.1988.  Aggrieved by the said judgment and 



decree   of   the   trial   Court,   Defendant   Nos.   2,   3   and   7   filed 



appeal   being   R.F.A.   No.   52   of   2000   before   the   High   Court   of 



Karnataka at Bangalore.  



(c)    The High Court taking into account the submission of the 



counsel  for  the  appellants  and  respondents,  fixed  the  market 



value   of   property   at   Rs.300/-   per   sq.   ft.     The   total   area   of 



property is 4,655 sq. ft. (48' x 90'), therefore, the total market 



value of property would be Rs.13,96,500/-.     The High Court, 



by   its   judgment   dated   03.03.2009,   while   holding   that   as 



Defendant   No.3   was   not   a   party   to   the   agreement   and   he 



proposes to purchase the 9/11th  share by paying value to the 



plaintiff   and   the   value   of   9/11th  share   would   be   Rs. 



11,42,590/-   and   the   counsel   for   the   plaintiff   on   the 



instruction   from   the   plaintiff   agreed   to   the   said   proposal   on 



the condition that Defendant No.3 would pay the said amount 




                                                                                 3

.
within three months, in default, the plaintiff would be entitled 



to   the   relief   of   specific   performance   disposed   of   the   appeal 



directing   defendant   Nos.   1,2   and   4   to   7   to   execute   the   sale 



deed   of   their   share   to   the   extent   of   9/11   area   in   the   suit 



property by making convenient division of the property.  



(d)    Thereafter,   an   application   being  Misc.   Civil   No  13474   of 



2009   in   R.F.A.   No.   52   of   2000   was   filed   for   deleting   some 



words   from   the   judgment   and   the   same   was   dismissed. 



Challenging the judgment of the High Court in appeal and the 



order made in the application, the appellant-plaintiff has filed 



these   appeals   by   way   of   special   leave   petitions   before   this 



Court.



4)  Heard Mr. S.N. Bhat, learned counsel for the appellant and 



Mr. P.P. Rao, learned senior counsel for the respondents.



5)   It is not in dispute that the property in question belonged 



to Abdul Momin Sheriff.  After his death, each of the surviving 



sons   succeeded   to   an   extent   of   2/11th  share   and   each   of   the 



daughters succeeded to 1/11th share.  It is also not in dispute 



that   the   agreement   of   sale   was   executed   only   by   Defendant 



Nos. 1, 2 and 4 to 7.   The total share of Defendant Nos. 1, 2 




                                                                                4

.
and 4 to 7 is 9/11 and the share of the Defendant No. 3 who 



did not join the execution of agreement of sale would be 2/11. 



Inasmuch   as   the   Defendant   No.   3   was   not   a   party   to   the 



agreement,   he   is   not   bound   by   the   agreement   executed   by 



other defendants to the extent of his share.



6)     From   the   evidence   and   the   materials,   it   is   clear   that   the 



suit property is dwelling house.  In that event, Section 4 of the 



Partition Act, 1893 is relevant which reads as under:-



       "4. Partition suit by transferee of share in dwelling-house.--



       (1)   Where   a   share   of   a   dwelling-house   belonging   to   an 

       undivided family has been transferred to a person who is not 

       a   member   of   such   family   and   such   transferee   sues   for 

       partition, the court shall, if any member of the family being a 

       shareholder   shall   undertake   to   buy   the   share   of   such 

       transferee, make a valuation of such share in such manner 

       as   it   thinks   fit   and   direct   the   sale   of   such   share   to   such 

       shareholder,   and   may   give   all   necessary   and   proper 

       directions in that behalf.



       (2)     If  in  any   case   described   in  sub-section   (1)  two   or   more 

       members   of   the   family   being   such   shareholders   severally 

       undertake   to   buy   such   share,   the   court   shall   follow   the 

       procedure prescribed by sub-section (2) of the last foregoing 

       section."   





In   view   of   the   above   provision,   Defendant   No.   3   has   right   to 



purchase to exclude the outsider who holds an equitable right 



of purchase of the shares of other defendants.  





                                                                                              5

.
7)     It   is   pertinent   to   point   out   that   plaintiff   was   aware   that 



Defendant No. 3 who was a minor had a share in the property 



and   the   application   made   by   the   other   defendants   before   the 



Civil Court for appointment of Defendant No. 2 as guardian of 



the said minor was not pursued and in fact it was dismissed, 



consequently, his share remained unsold to the plaintiff.



8)     As   a   matter   of   fact,   agreement   of   sale   dated   02.05.1988 



does   not   refer   to   Defendant   No.   3   at   all   or   his   share   in   the 



property.  However, in the plaint, the plaintiff clearly admitted 



the   share   of   Defendant   No.   3   who   was   a   minor   and   the   fact 



that no guardian was appointed for the minor and Defendant 



No. 2 was not his natural guardian.  Without Defendant No. 3 



joining   the   other   co-sharers,   no   agreement   of   sale   could   be 



entered with the plaintiff for the entire property including the 



minor's   share.     Consequently,   the   agreement  of   sale   covering 



the entire property was void and ineffective.   



9)     It  is  settled   law  that  Section   20   of  the   Specific  Relief   Act, 



1963   confers   discretionary   powers.   [vide:  M.   Meenakshi   &  


Ors.  vs.  Metadin   Agarwal  (2006)   7   SCC   470,  Nirmala  


Anand vs. Advent Corporation (P) Ltd. & Ors. (2002) 5 SCC 




                                                                                    6

.
481,      Parakunnan   Veetill   Joseph's   Son   Mathrew                                            vs. 


Nedumbara Karuvila's Son & Ors.   (1987) Supp. SCC 340]. 


It   is   also   well   settled   that   the   value   of   property   escalates   in 



urban   areas   very   fast   and   it   would   not   be   equitable   to   grant 



specific performance after a lapse of long period of time.  



10)     Apart   from   all   these   material   aspects   before   the   High 



Court,   both   parties   including   the   plaintiff/present   appellant 



agreed   for   a   reasonable   market   valuation.     This   factual 



position is clear from paragraph 7 of the High Court judgment 



which reads as under:-



        "7.     The   counsel   for   appellants   and   respondents   submitted 

        that the market value of property is Rs. 300/- per sq. ft. The 

        total   area   of   property   is   4,655   sq.   ft.   (48'   x   90').     The   total 

        market   value   of   property   would   be   Rs.   13,96,500/-.     The 

        value of 9/11th  share would be Rs. 11,42,590/-.   Defendant 

        No. 3 proposes to purchase the 9/11th share by paying value 

        to   the   plaintiff.     The   counsel   for   the   plaintiffs   with   the 

        instructions from the plaintiff agreed to the said proposal on 

        the condition that the Defendant  No. 3 should pay the said 

        amount   within   three   months.     In   the   event   of   default,   the 

        plaintiff   would   be   entitled   to   the   relief   of   specific 

        performance.     The   Defendant   Nos.   1,   2   and   4   to   7   shall 

        execute sale deed of their share to the extent of 9/11 area in 

        the   suit   property   by   making   convenient   division   of   the 

        property.  Accordingly, the appeal is disposed of."    





11)  The statement made by the counsel before the High Court, 



as   recorded   in   the   impugned   judgment   and   order,   cannot   be 





                                                                                                       7

.
challenged before this Court.[vide:  State of Maharashtra  vs. 


Ramdas   Shrinivas   Nayak   &   Anr.  (1982)   2   SCC   463, 


Shankar   K.   Mandal   &   Ors.  vs.  State   of   Bihar   &   Ors. 


(2003) 9 SCC 519, Roop Kumar vs. Mohan Thedani (2003) 6 



SCC   595,  Guruvayoor   Devaswom   Managing   Committee   &  


Anr. vs. C.K. Rajan & Ors. (2003) 7 SCC 546]


12)     It   is   also   clear   that   the   High   Court   has   recorded   in   the 



impugned judgment dated 03.03.2009 that the counsel agreed 



with   instructions  from   the   plaintiff   and  reiterated  this  fact  in 



its order dated 28.08.2009 in Misc. Civil No. 13474 of 2009 in 



the   above-mentioned   RFA   while   rejecting   the   plea   of   the 



counsel   for   the   appellant   herein   that  he  did  not  give   consent 



that   he   had   no   instructions   from   his   clients     A   concession 



made   by   a   counsel   on   a   question   of   fact   is   binding   on   the 



client, but if it is on a question of law, it is not binding. [vide: 


Nedunuri Kameswaramma  vs  Sampati Subba Rao & Anr. 


(1963)   2   SCR   208,   225,  B.S.   Bajwa   &   Anr.   vs.   State   of  


Punjab & Ors. (1998) 2 SCC 523, 525-526]





                                                                                    8

.
13)     As   stated   earlier   and   the   reading   of   the   impugned 



judgment and order of the High Court, more particularly, para 



7,   which   is   concluding   paragraph,   clearly   show   that   it   is   a 



consent   order.     As   per   Section   96   (3)   of   the   Civil   Procedure 



Code,   no   appeal   lies   from   a   decree   passed   by   the   court   with 



the consent of the parties.  



14)   For all these reasons, more particularly, the statement of 



fact as noted in para 7 of the impugned judgment and order of 



the High Court, under Article 136, generally this Court will not 



interfere   with   the   order   of   the   High   Court   which   has   done 



substantial justice.



15)     Since   this   Court   has   stayed   the   impugned   order   of   the 



High Court while ordering of notice on 08.07.2010, Defendant 



No. 3 is granted 3 months' time from today to pay the amount 



as noted in para 7 of the impugned judgment and in the event 



of   default,   the   directions   of  the   High   Court   in   the   same   para 



are to be applied and implemented.  Defendant Nos. 1, 2, 4 to 



7 are directed to return the sum of Rs.1,53,000/- which they 



have   received   towards   sale   consideration   with   interest   at   the 





                                                                                 9

.
rate of 9 per cent from the date of payment within a period of 



eight weeks from today to the plaintiff.  



16)    Accordingly, the appeals fail and the same are dismissed 



with the above direction.  No order as to costs.  





                                        ...............................................J. 

                                        (P. SATHASIVAM)                                 



                                             

                                       ...............................................J. 

                                       (H.L. GOKHALE) 


NEW DELHI;

MAY 11, 2011.               





                                                                                            1