Case Note & Summary
The dispute arose from a land sale agreement involving Sarwan Singh and Kankar Singh, with Zorawar Singh and Devinder Singh as subsequent purchasers. Sarwan Singh claimed to have entered into an agreement to sell with Kankar Singh on 3.3.1971, paying an advance of Rs. 61,100. However, Kankar Singh sold the land to Zorawar Singh on 17.3.1971, leading Sarwan Singh to file a suit for specific performance. The Trial Court initially ruled in favor of Sarwan Singh, but this was overturned by the High Court. The Supreme Court remanded the case back to the High Court for reconsideration, focusing on whether Zorawar Singh and Devinder Singh were bona fide purchasers without notice of Sarwan Singh's agreement. The Division Bench of the High Court ruled in favor of the defendants, but the Supreme Court found that the Division Bench misapprehended the evidence regarding the prior agreement and the burden of proof. The Supreme Court restored the Trial Court's decree for specific performance, emphasizing the importance of the earlier agreement and the defendants' failure to prove their bona fide status. The appeal was allowed, and the order of the Division Bench was set aside, reinstating the original decree of the Trial Court.
Headnote
A) Property Law - Specific Performance - Agreement to Sell - Transfer of Property Act, 1882, Section 41 - The court examined whether defendants No. 2 and 3 were bona fide purchasers for value without notice of the prior agreement to sell between the plaintiff and defendant No. 1. The Division Bench's conclusion was found erroneous as it overlooked the evidence of an earlier agreement and the burden of proof regarding bona fide purchase was not met by the defendants. Held that the findings of the learned Single Judge were to be restored (Paras 1-6).
Issue of Consideration
Whether defendants No. 2 and 3 were bona fide purchasers for value without notice of the agreement to sell between the plaintiff and defendant No. 1.
Final Decision
The Supreme Court allowed the appeal, set aside the order of the Division Bench, and restored the judgment and decree of the Trial Court in favor of Sarwan Singh for specific performance.
Law Points
- Specific performance
- bona fide purchaser
- agreement to sell
- burden of proof
- Transfer of Property Act
