Case Note & Summary
The appellant, Babasaheb Dhondiba Kute, a non-tribal, entered into an agreement dated 31.07.2001 with the respondent, Radhu Vithoba Barde, a tribal, for the purchase of agricultural land measuring 80 R. situated at Block No.41/1, Mandve (Bk.), Tq. Sangamner, for a total consideration of Rs.2,25,000/-. An earnest amount of Rs.1,55,000/- was paid, and a deemed conveyance on full stamp duty was executed. In 2003, possession was delivered to the appellant, and an additional consideration of Rs.65,000/- was paid, totaling Rs.2,20,000/-. The respondent failed to comply with the terms, leading the appellant to file Spl. Civil Suit No. 11/2005 for specific performance of contract and, in the alternative, for refund of earnest money with interest. The respondent denied the agreement, alleging fraud and that the suit land was of restricted tenure and could not be alienated without prior permission. The trial court decreed the suit for specific performance, directing the respondent to execute the sale deed within two months, failing which the appellant could get it executed through court. The respondent appealed to the District Court, which reversed the decree, holding that the agreement was void for want of prior permission under Section 36A of the Maharashtra Land Revenue Code. The appellant then filed the present second appeal. The High Court framed the pure question of law: whether a decree for specific performance of land to be transferred from tribal to non-tribal can be granted subject to obtaining permission under Section 36A. The court held that an agreement for sale is not a transfer and does not require prior permission. The court can grant a decree for specific performance subject to the condition that the parties obtain permission from the competent authority within a stipulated time. The decree holder must apply for permission, and if permission is refused, the contract becomes void and the plaintiff is entitled to refund of consideration. The High Court allowed the appeal, set aside the judgment of the District Court, and restored the decree of the trial court with the modification that the sale deed shall be executed only after obtaining permission under Section 36A of the Maharashtra Land Revenue Code. The appellant was directed to apply for permission within one month, and the respondent was directed to cooperate. If permission is refused, the appellant would be entitled to refund of Rs.2,20,000/- with interest at 6% per annum from the date of suit till realization.
Headnote
A) Specific Performance - Tribal Land Transfer - Permission under Section 36A - Agreement for sale of tribal land to non-tribal does not require prior permission under Section 36A of Maharashtra Land Revenue Code, as it is not a transfer. The court can grant a decree for specific performance subject to the condition that the parties obtain necessary permission from the competent authority within a stipulated time. The decree holder must apply for permission, and if refused, the contract becomes void and the plaintiff is entitled to refund of consideration. (Paras 1, 6-8)
Issue of Consideration
Whether a decree for specific performance of land to be transferred from tribal to non-tribal can be granted subject to obtaining permission under Section 36A of Maharashtra Land Revenue Code?
Final Decision
Second appeal allowed. Judgment of District Court set aside. Decree of trial court restored with modification that sale deed shall be executed only after obtaining permission under Section 36A of Maharashtra Land Revenue Code. Appellant to apply for permission within one month; respondent to cooperate. If permission refused, appellant entitled to refund of Rs.2,20,000/- with interest at 6% per annum from date of suit till realization.
Law Points
- Specific performance of contract for sale of tribal land to non-tribal can be granted subject to obtaining permission under Section 36A of Maharashtra Land Revenue Code
- Agreement for sale is not a transfer and does not require prior permission
- Court can direct parties to apply for permission within stipulated time
