Case Note & Summary
The appellant, Shantaram Babu Longale, filed Regular Civil Suit No. 71 of 1981 against the respondents for specific performance of an agreement for sale dated 18th March 1980 and for a declaration that a subsequent sale deed between defendant nos. 1 and 2 was null and void. The suit land was Gat No. 47, Hissa No. 1(a) at village Garpoli, Taluka Karjat, District Raigad, admeasuring one acre and 20 gunthas out of total 2 Hectares 40R. The full consideration of Rs. 6,000 was paid at the time of the agreement. The land was subject to the Bombay Prevention of Fragmentation and Consolidation Holdings Act, 1947, and the agreement was conditional upon the defendants obtaining permission from the Collector for transfer. Despite repeated requests, the defendants did not obtain permission and instead, on 18th November 1981, defendant no. 1 sold the entire land to defendant no. 2. The appellant filed the suit for specific performance. The trial court decreed the suit, directing specific performance. The respondents appealed. The High Court framed a substantial question of law: whether the agreement for sale was enforceable when it was conditional upon obtaining permission from the Collector under the Fragmentation Act. The court held that the condition was for the benefit of the vendor and could be waived by the purchaser. The appellant was ready and willing to perform his part. The decree for specific performance was upheld, and the second appeal was dismissed with costs.
Headnote
A) Specific Performance - Agreement for Sale - Condition Precedent - Vendor's Obligation - The agreement for sale of agricultural land was conditional upon the vendor obtaining permission from the Collector under the Bombay Prevention of Fragmentation and Consolidation Holdings Act, 1947. The vendor failed to obtain the permission. The court held that the condition was for the benefit of the vendor and could be waived by the purchaser. The purchaser was ready and willing to perform his part. The decree for specific performance was upheld. (Paras 1-14) B) Bombay Prevention of Fragmentation and Consolidation Holdings Act, 1947 - Transfer of Agricultural Land - Permission from Collector - The Act requires permission for transfer of fragmented holdings. In this case, the agreement was executed on condition that the vendor would obtain such permission. The vendor's failure to do so did not absolve him of liability, and the purchaser could seek specific performance. (Paras 1-14)
Issue of Consideration
Whether the agreement for sale of agricultural land, which was subject to the Bombay Prevention of Fragmentation and Consolidation Holdings Act, 1947 and required permission from the Collector, could be specifically enforced when the vendor failed to obtain such permission.
Final Decision
Second appeal dismissed with costs. Decree for specific performance upheld.
Law Points
- Specific performance
- Agreement for sale
- Condition precedent
- Bombay Prevention of Fragmentation and Consolidation Holdings Act
- 1947
- Permission from Collector
- Vendor's obligation
- Readiness and willingness
