Bombay High Court Allows Appeal in Specific Performance Suit — Agreement to Sell Not Proved as Genuine. Court finds that the plaintiff failed to discharge the burden of proving the execution and validity of the agreement to sell, and the suit was barred by limitation under Article 54 of the Limitation Act, 1963.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
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Case Note & Summary

The appellant, Zainab Rafiullah Shaikh, was the original defendant No.3 in a suit for specific performance filed by the respondent, Puthenveedu Joseph Mathew, who claimed to be the plaintiff. The suit sought specific performance of an alleged agreement to sell dated 01.10.2004 for a property in Mumbai. The plaintiff claimed that the defendant No.1 (Labh Singh) had agreed to sell the property for Rs. 1,20,00,000 and that the plaintiff had paid an advance of Rs. 10,00,000. The defendant No.3 (appellant) was impleaded as a subsequent purchaser. The trial court decreed the suit in favor of the plaintiff, holding that the agreement was genuine and that the suit was within limitation. The appellant challenged the decree. The High Court analyzed the evidence and found that the plaintiff had not examined the attesting witness to the agreement, and the defendant No.1 had denied his signature. The court noted that the trial court had relied on its own comparison of signatures under Section 73 of the Evidence Act, which was improper without expert evidence. The court also held that the suit was barred by limitation as the agreement did not fix a date for performance and the plaintiff failed to prove any refusal within three years before the suit. The court allowed the appeal, set aside the trial court's decree, and dismissed the suit.

Headnote

A) Civil Procedure - Specific Performance - Burden of Proof - Agreement to Sell - The plaintiff must prove the execution and genuineness of the agreement to sell. In this case, the plaintiff failed to discharge the burden as the attesting witness was not examined and the defendant denied the signature. The court held that mere production of the document is not sufficient; the plaintiff must prove its execution by leading cogent evidence. (Paras 20-30)

B) Limitation - Specific Performance - Article 54 of the Limitation Act, 1963 - Suit for specific performance must be filed within three years from the date fixed for performance. Where no date is fixed, the suit must be filed within three years from the date of notice of refusal. In this case, the agreement did not fix a date for performance, and the plaintiff failed to prove any refusal within limitation. The suit was held to be barred by limitation. (Paras 31-40)

C) Evidence Act - Section 73 - Comparison of Signatures - The court can compare signatures but should not base its decision solely on such comparison without expert evidence. In this case, the trial court relied on its own comparison, which was held to be improper. The appellate court held that the trial court erred in relying on its own comparison without expert opinion. (Paras 25-28)

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Issue of Consideration

Whether the plaintiff proved the execution and genuineness of the agreement to sell dated 01.10.2004? Whether the suit for specific performance was within limitation?

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Final Decision

The High Court allowed the appeals, set aside the trial court's decree, and dismissed the suit for specific performance.

Law Points

  • Burden of proof
  • Specific performance
  • Limitation
  • Agreement to sell
  • Execution of document
  • Genuineness of document
  • Adverse inference
  • Section 73 of the Indian Evidence Act
  • 1872
  • Article 54 of the Limitation Act
  • 1963
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Case Details

2024 LawText (BOM) (04) 40

Appeal No.34 of 2020 in Notice of Motion No.987 of 2014 in Suit No.717 of 2013, Appeal No.35 of 2020 in Notice of Motion No.302 of 2013 in Suit No.695 of 2012, Appeal (L) No.138 of 2020 in Notice of Motion No.302 of 2013 in Suit No.695 of 2012

2024-04-02

2024:BHC-OS:5508-DB

Zainab Rafiullah Shaikh

Puthenveedu Joseph Mathew & Ors.

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Nature of Litigation

Civil suit for specific performance of an agreement to sell immovable property.

Remedy Sought

The plaintiff sought specific performance of the agreement to sell dated 01.10.2004 and possession of the property.

Filing Reason

The plaintiff claimed that the defendant No.1 agreed to sell the property but failed to execute the sale deed despite receiving advance consideration.

Previous Decisions

The trial court decreed the suit in favor of the plaintiff, holding the agreement genuine and the suit within limitation.

Issues

Whether the plaintiff proved the execution and genuineness of the agreement to sell dated 01.10.2004? Whether the suit for specific performance was within limitation under Article 54 of the Limitation Act, 1963?

Submissions/Arguments

The appellant argued that the plaintiff failed to prove the execution of the agreement as the attesting witness was not examined and the defendant denied his signature. The appellant argued that the suit was barred by limitation as no date for performance was fixed and the plaintiff failed to prove refusal within limitation. The respondent argued that the agreement was genuine and the suit was within limitation as the plaintiff was always ready and willing to perform.

Ratio Decidendi

The plaintiff must prove the execution and genuineness of the agreement to sell by leading cogent evidence, including examination of attesting witnesses. The court cannot base its decision solely on its own comparison of signatures under Section 73 of the Evidence Act without expert evidence. The suit for specific performance must be filed within three years from the date fixed for performance or from the date of notice of refusal; failure to prove limitation results in dismissal.

Judgment Excerpts

The plaintiff has not examined the attesting witness to the agreement. The defendant No.1 has denied his signature. In such circumstances, the plaintiff has failed to discharge the burden of proving the execution of the agreement. The trial court erred in relying on its own comparison of signatures under Section 73 of the Evidence Act without expert evidence. The suit is barred by limitation as the agreement does not fix a date for performance and the plaintiff has not proved any refusal within three years before the suit.

Procedural History

The plaintiff filed Suit No.695 of 2012 for specific performance. The trial court decreed the suit. The defendant No.3 filed Appeal No.34 of 2020 and Appeal No.35 of 2020 against the decree. The High Court heard the appeals along with interim applications and allowed the appeals, dismissing the suit.

Acts & Sections

  • Indian Evidence Act, 1872: Section 73
  • Limitation Act, 1963: Article 54
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