Bombay High Court Allows Second Appeal in Specific Performance Case — Agreement Not Binding on Minor Coparceners. Karta's alienation of joint family property without legal necessity or benefit is not binding on minors; readiness and willingness cannot be considered for first time in appeal without issue framed.

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

The appellants, original defendants 1 to 5, are members of a joint Hindu family. Respondent 1, Kiran Avachat, filed Special Civil Suit 78/2006 for specific performance of an agreement dated 30.06.2005 for sale of joint family property, allegedly entered into by defendant No.1 (Pundalik Gujarkar) as karta. The trial court (Joint Civil Judge, Senior Division, Wardha) partly decreed the suit on 30.08.2010, rejecting specific performance but directing refund of earnest money of Rs.3,00,000 with 18% interest. Respondent 1 appealed, and the District Judge, Wardha, in Regular Civil Appeal 222/2015, reversed the trial court's judgment and decreed specific performance. Aggrieved, the original defendants 1 to 5 filed this second appeal under Section 100 CPC. The High Court framed two substantial questions of law: (1) whether the agreement was binding on minor defendants 3 to 5, and (2) whether the appellate court could consider the plaintiff's readiness and willingness for the first time in appeal without an issue framed. The High Court held that the karta's power to alienate joint family property is limited to legal necessity or benefit of the estate, and the appellate court failed to consider this. Since the agreement was not for legal necessity or benefit, it was not binding on the minor coparceners. Further, the trial court did not frame an issue on readiness and willingness, and the appellate court could not consider it without remanding the matter. The High Court allowed the appeal, set aside the appellate decree, and restored the trial court's judgment.

Headnote

A) Hindu Law - Karta's Power of Alienation - Binding Effect on Minor Coparceners - Agreement for Sale of Joint Family Property - The karta of a joint Hindu family can alienate joint family property only for legal necessity or for the benefit of the estate. An agreement to sell entered into by the karta without such necessity or benefit is not binding on minor coparceners. The appellate court erred in holding that the agreement was binding on minor defendants 3 to 5 without considering the lack of legal necessity or benefit. (Paras 3-5)

B) Civil Procedure - Specific Performance - Readiness and Willingness - Issue Framing - Under Order 14 Rule 1 CPC, an issue must be framed on readiness and willingness in a suit for specific performance. If no such issue is framed by the trial court, the appellate court cannot consider it for the first time in appeal without remanding the matter. The appellate court's consideration of readiness and willingness was improper. (Paras 3-5)

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Issue of Consideration

Whether the appellate court rightly held that the agreement dated 30.06.2005 entered into by defendant No.1 was binding on defendant Nos.3 to 5 who were minors; and whether in absence of any issue as to plaintiff's readiness and willingness having been framed by the trial court, the same could have been considered for the first time in appeal.

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Final Decision

The High Court allowed the second appeal, set aside the judgment and decree of the District Judge, Wardha in Regular Civil Appeal 222/2015, and restored the judgment and decree of the Joint Civil Judge, Senior Division, Wardha in Special Civil Suit 78/2006.

Law Points

  • Specific performance
  • Joint Hindu family property
  • Karta's power of alienation
  • Minor coparceners
  • Readiness and willingness
  • Substantial question of law under Section 100 CPC
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Case Details

2018 LawText (BOM) (12) 126

Second Appeal No.493 of 2018

2018-12-22

Rohit B. Deo, J.

Shri K.R. Lule for Appellants, Shri Anand S. Joshi for Respondent 1

Pundalik s/o Sadashiv Gujarkar, Sau. Latabai w/o Pundalik, Nikhil s/o Pundalik Gujarkar, Shubham s/o Pundalik Gujarkar, Shital d/o Pundalik Gujarkar

Kiran s/o Rameshwar Avachat, Vitthal Sadashiv Gujarkar

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Nature of Litigation

Second appeal against decree of specific performance of contract for sale of joint family property.

Remedy Sought

Appellants (original defendants 1 to 5) sought to set aside the appellate decree granting specific performance and restore the trial court's decree rejecting specific performance.

Filing Reason

The appellate court reversed the trial court's judgment and decreed specific performance, holding the agreement binding on minor defendants and considering readiness and willingness without an issue framed.

Previous Decisions

Trial court (Joint Civil Judge, Senior Division, Wardha) partly decreed suit on 30.08.2010, rejecting specific performance but directing refund of earnest money with interest. Appellate court (District Judge, Wardha) in Regular Civil Appeal 222/2015 reversed and decreed specific performance.

Issues

Whether the agreement dated 30.06.2005 entered into by defendant No.1 was binding on defendant Nos.3 to 5 who were minors? Whether in absence of any issue as to plaintiff's readiness and willingness having been framed by the trial court, the same could have been considered for the first time in appeal?

Submissions/Arguments

Appellants argued that the agreement was not binding on minor coparceners as it was not for legal necessity or benefit of the estate. Appellants argued that the appellate court erred in considering readiness and willingness without an issue framed by the trial court.

Ratio Decidendi

A karta of a joint Hindu family cannot alienate joint family property without legal necessity or benefit to the estate, and such alienation is not binding on minor coparceners. Further, in a suit for specific performance, an issue on readiness and willingness must be framed; if not framed, the appellate court cannot consider it for the first time without remanding the matter.

Judgment Excerpts

The appellants are arrayed as defendants 1 to 5 in Special Civil Suit 78/2006 for specific performance of contract... Whether the appellate Court has rightly held that the agreement dated 30.06.2005 that was entered into by the defendant No.1 was binding on the defendant Nos.3 to 5 who were minors? In absence of any issue as to plaintiff's readiness and willingness having been framed by the trial Court, whether the same could have been considered for the first time in appeal?

Procedural History

Special Civil Suit 78/2006 filed by respondent 1 for specific performance. Trial court partly decreed on 30.08.2010, rejecting specific performance but ordering refund. Respondent 1 appealed in Regular Civil Appeal 222/2015, which was allowed by District Judge, Wardha, decreeing specific performance. Appellants filed Second Appeal No.493 of 2018 under Section 100 CPC, which was allowed by the High Court on 22.12.2018.

Acts & Sections

  • Code of Civil Procedure, 1908: Section 100, Order 14 Rule 1
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