Bombay High Court Allows Second Appeal in Specific Performance Suit — Agreement for Sale Found Not Genuine and Unenforceable. The Court held that the agreement for sale dated 2nd June 1975 was not genuine and enforceable, reversing the concurrent findings of the courts below.

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

The case involves a second appeal filed by the original defendant, Rajubai w/o. Atmaram Dagade, against the judgment and decree of the lower appellate court which affirmed the trial court's decree for specific performance of an agreement for sale dated 2nd June 1975 in favour of the original plaintiff, Dashrath Shripati Bhusare (Respondent No.1). The agreement stipulated that the appellant was to obtain permission to sell the suit land from the Sub Divisional Officer, and the sale deed was to be executed within two months from obtaining such permission. The appellant contended that the agreement was not genuine and was unenforceable. The High Court framed a substantial question of law as to whether the courts below erred in affirming the genuineness and enforceability of the agreement. After hearing the counsel, the Court allowed the appeal, holding that the agreement was not genuine and enforceable, thereby setting aside the decrees of the courts below.

Headnote

A) Specific Performance - Agreement for Sale - Genuineness and Enforceability - The substantial question of law was whether the courts below erred in affirming the genuineness and enforceability of the agreement for sale dated 2nd June 1975 executed by the Appellant in favour of the Respondent No.1, in the light of the facts and circumstances of the case. The Court held that the agreement was not genuine and enforceable, and allowed the appeal. (Paras 1-2)

B) Specific Performance - Agreement for Sale - Permission to Sell - The agreement for sale contained a condition that the Appellant was to obtain permission to sell the suit land from the Sub Divisional Officer, and the sale deed was to be executed within two months from the date of obtaining permission. The Court considered the failure to obtain such permission as a factor affecting enforceability. (Para 3)

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Issue of Consideration

Whether the courts below erred in affirming the genuineness and enforceability of the agreement for sale set up by the Respondent in the light of the facts and circumstances of the case.

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Final Decision

The High Court allowed the second appeal, setting aside the judgment and decree of the lower appellate court and the trial court, and dismissed the suit for specific performance.

Law Points

  • Specific performance
  • agreement for sale
  • genuineness of document
  • burden of proof
  • permission to sell
  • Section 16(c) Specific Relief Act
  • 1963
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Case Details

2005 LawText (BOM) (03) 156

Second Appeal No.590 of 1988

2005-03-23

A.S. Oka, J.

Shri A.A. Kumbhakoni for the Appellant, Shri M.R. Katikar for Respondent No.1, Shri Nitin Jamdar for Respondent No.2

Rajubai w/o. Atmaram Dagade

Dashrath Shripati Bhusare

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Nature of Litigation

Second appeal against concurrent decrees for specific performance of an agreement for sale.

Remedy Sought

The appellant sought to set aside the decrees for specific performance and dismissal of the suit.

Filing Reason

The appellant challenged the genuineness and enforceability of the agreement for sale dated 2nd June 1975.

Previous Decisions

The trial court decreed the suit for specific performance, which was affirmed by the lower appellate court.

Issues

Whether the agreement for sale dated 2nd June 1975 was genuine and enforceable.

Submissions/Arguments

The appellant argued that the agreement was not genuine and was unenforceable. The respondent contended that the agreement was genuine and the courts below correctly decreed specific performance.

Ratio Decidendi

The agreement for sale was not genuine and enforceable, and the courts below erred in affirming its genuineness and enforceability.

Judgment Excerpts

The substantial question of law being whether the Courts below erred in affirming the genuiness enforceability of the agreement set up by the Respondent in the light of the facts and circumstances of the case. I have heard the Counsel appearing for the parties on the substantial question of law as framed.

Procedural History

The suit for specific performance was decreed by the trial court. The defendant appealed to the lower appellate court, which affirmed the decree. The defendant then filed a second appeal in the High Court, which was admitted on 21st December 1988 on the substantial question of law regarding the genuineness and enforceability of the agreement. The High Court allowed the appeal on 23rd March 2005.

Acts & Sections

  • Specific Relief Act, 1963: Section 16(c)
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