Case Note & Summary
The appellant, Randhir Kaur, filed a suit for specific performance of an agreement to sell dated November 5, 2004, for land measuring 193 kanals 18 marlas at Rs.1,27,000 per acre. An earnest money of Rs.13,50,000 was paid to defendant Nos. 1 and 2 at the time of execution. The date for registration of the sale deed was fixed as January 30, 2005. The suit was filed on April 3, 2006. The trial court decreed the suit on April 13, 2010, and the first appellate court dismissed the appeal on August 11, 2012, affirming the decree. However, in second appeal, the High Court declined the relief of specific performance and instead granted a decree for recovery of Rs.13,50,000 with 12% interest. The High Court held that the plaintiff was ready and willing to perform the contract but that Dhanwant Singh, the plaintiff's son who acted on her behalf, was not authorized by a power of attorney at the time of the agreement. The Supreme Court examined the scope of interference in second appeal under Section 41 of the Punjab Courts Act, 1918, which is pari materia with the old Section 100 of the Code of Civil Procedure, 1908. The court noted that the first appellate court had recorded a finding that the plaintiff was ready and willing to perform her part of the contract, which is a finding of fact. The High Court could not reverse this finding unless it was contrary to law or based on a substantial error in procedure. The Supreme Court also noted that the defendants had not raised any plea in the written statement that Dhanwant Singh was not authorized. The subsequent power of attorney dated September 14, 2005, ratified all acts of Dhanwant Singh, including the purchase of property. The court held that the High Court exceeded its jurisdiction by reversing the concurrent findings of fact. The appeal was allowed, the High Court's judgment was set aside, and the decree for specific performance passed by the trial court and affirmed by the first appellate court was restored.
Headnote
A) Civil Procedure - Second Appeal - Section 41 Punjab Courts Act, 1918 - Scope of Interference - The High Court in second appeal under Section 41 of the Punjab Courts Act, 1918 cannot reverse concurrent findings of fact unless the decision is contrary to law or there is a substantial error or defect in procedure. The provision is pari materia with old Section 100 CPC. The court held that the High Court exceeded its jurisdiction by interfering with findings of fact on readiness and willingness and authority of the attorney. (Paras 9-12) B) Contract Law - Specific Performance - Readiness and Willingness - Finding of Fact - The question of readiness and willingness to perform a contract is a finding of fact based on oral and documentary evidence. The first appellate court's finding that the plaintiff was ready and willing cannot be interfered with in second appeal unless perverse. (Paras 9-10) C) Contract Law - Specific Performance - Power of Attorney - Ratification - A subsequent power of attorney can ratify prior acts of the attorney. The High Court erred in holding that Dhanwant Singh was not authorized to act on behalf of the appellant, as the defendants received the earnest money from him and the subsequent power of attorney ratified his acts. (Paras 5-6)
Issue of Consideration
Whether the High Court in second appeal under Section 41 of the Punjab Courts Act, 1918 could reverse the concurrent findings of fact regarding the plaintiff's readiness and willingness to perform the contract and the authority of Dhanwant Singh to act on behalf of the appellant.
Final Decision
The Supreme Court allowed the appeal, set aside the judgment of the High Court, and restored the decree for specific performance passed by the trial court and affirmed by the first appellate court.
Law Points
- Second appeal jurisdiction under Section 41 of Punjab Courts Act
- 1918 is pari materia with old Section 100 CPC
- High Court cannot reverse concurrent findings of fact
- readiness and willingness is a finding of fact
- power of attorney ratification can cure lack of authority
