Case Note & Summary
The dispute arose from a conditional sale deed executed on August 5, 1977, by late Kishori Lal Sahu in favor of Indira Devi, which allowed the vendors to repurchase the property by July 1984 upon returning the sale consideration of ₹ 5000. Kishori Lal Sahu later executed a gift deed on February 14, 1983, in favor of his daughter-in-law, Veena Gupta, which included the property sold to Indira Devi, allowing Veena Gupta to repurchase it. The respondents filed a civil suit in 1983 seeking specific performance of the sale deed and possession of the property, which was initially dismissed by the Trial Court and upheld by the lower appellate court. However, the High Court reversed these decisions, framing substantial questions of law regarding the assignment of rights and the nature of the deeds involved. The appellant contended that the right to repurchase was personal and could not be assigned, while the respondents argued that the right was assignable and had been validly transferred through the gift deed. The Supreme Court analyzed the relevant legal principles and precedents, concluding that the right to repurchase was indeed assignable and that the High Court's judgment was correct. The appeal was dismissed, affirming the High Court's ruling without costs.
Headnote
A) Property Law - Conditional Sale Deed - Assignability of Right - Specific Relief Act, 1963, Section 15(b) - The court held that the right to repurchase in a conditional sale deed is assignable unless explicitly stated otherwise in the document. The court found no terms in the sale deed prohibiting assignment, thus affirming the High Court's decision that the right was validly assigned to the respondent (Paras 10-24).
Issue of Consideration
Whether the vendor can assign the right contained in a sale deed to get the property registered back or the right being personal cannot be assigned.
Final Decision
The Supreme Court dismissed the appeal, affirming the High Court's judgment that the right to repurchase was assignable and validly transferred to the respondent.
Law Points
- assignability of rights
- conditional sale deed
- specific performance
- gift deed
- landlord-tenant relationship
