Supreme Court of India
KAMMANA SAMBAMURTHY (D) BY LRS.versusKALIPATNAPU ATCHUTAMMA (D) AND ORS.
- Citation
- 2010 INSC 697
- Decided
- 8 October 2010
- Disposal
- Dismissed
- Bench
- P SATHASIVAM
Holding
The contract of sale is enforceable only against the vendor to the extent of his half‑share, as he lacked authority to sell his wife's undivided share and Section 12 of the Specific Relief Act does not preclude specific performance of his share.
Summary
The vendee, Kammana Sambamurthy, entered into a sale agreement with the vendor, Kalipatnapu Kamaraju, for an entire house, paying an advance of Rs.10,000. The vendor's wife, Kalipatnapu Atchutamma, later claimed a half‑share in the property under Section 14 of the Hindu Succession Act and sought cancellation of the agreement. The trial court ordered specific performance of the sale deed; the High Court modified the decree to grant specific performance only to the extent of the vendor's half‑share, holding that the vendor lacked authority to sell his wife's share. On appeal, the Supreme Court affirmed the High Court, ruling that Section 12 of the Specific Relief Act does not bar enforcement of the contract against the vendor for his share, and that Sections 41 of the Transfer of Property Act, 4 of the Partition Act, and the concept of ancestral property were inapplicable. The appeals were dismissed, leaving the decree for specific performance of the vendor's share intact.
Issues considered
- Whether the sale agreement binds the vendor's wife who holds an undivided half‑share.
- Whether specific performance can be granted for the whole contract or only for the vendor's share.
- Applicability of Section 12 of the Specific Relief Act, 1963 to the case.
- Applicability of Section 41 of the Transfer of Property Act, 1882.
- Applicability of Section 4 of the Partition Act, 1893.
- Whether the property is ancestral under the Hindu Succession Act, 1956.
- Whether the vendor had authority to alienate the entire property.
Legislation cited
- Hindu Succession Act, 1956s. 14
- Partition Act, 1893s. 4
- Specific Relief Act, 1963s. 12
- Transfer of Property Act, 1882s. 41, s. 44
Subjects
specific performancesale agreementpart performanceSection 12 Specific Relief ActTransfer of Property ActPartition ActHindu Succession Actancestral propertyco‑ownershipvendor authority
Judgment
[201 O] 12 S.C.R. 772
A KAMMANA SAMBAMURTHY (0) BY LRS.
v.
KALIPATNAPU ATCHUTAMMA (0) AND ORS.
(Civil Appeal No. 6088 of 2003)
OCTOBER 8, 2010
B
[P. SATHASIVAM AND R.M. LODHA, JJ.]
Specific Relief Act, 1963: s. 12 - Applicability of -
Specific performance of contract - Agreement of sale of a
C house - Representation by vendor that he was absolute
owner of the house - Receipt of advance money by vendor -
Vendor's wife sought cancellation of agreement on the ground
that the vendor was not absolute owner of the house and she
owned half share in the house which, by virtue of s. 14 of Hindu
D Succession Act, was received by her on death of her son -
Suit for specific performance of contract by vendee - Held:
Vendee cannot seek specific performance of contract of entire
house, and decree for specific performance can be granted
only to the extent of vendor's share in the house - The
E husband under such circumstances, in the absence of any
express authority from the wife could not alienate or otherwise
dispose of her Streedhana property - It was not a case of the
performance of a part of the contract but the whole of the
contract insofar as the vendor was concerned since he had
F agreed to sell the property in its entirety but it later turned out
that vendor had only half share in the property and his wife
held the remaining half - Thus, the agreement was not binding
on the vendor's wife - s. 12 was not applicable in facts of the
case -s. 41 of the Transfer of Property Act was a/so not
G applicable since it was not the case of the vendee that the
vendor was the ostensible owner of the property - Right to
invoke s. 4 of the Partition Act a/so not available to the vendee
- Transfer of Property Act, 1882 - s.41 - Partition Act, 1893
- s. 4 - Hindu Succession Act, 1956 - s. 14 - Contract.
H 772
KAMMANA SAMBAMURTHY (D) BY LRS. v. 773
KALIPATNAPU ATCHUTAMMA (D)
The original defendant no.1-vendor entered into an A
agreement of sale with the original plaintiff-vendee in
respect of the suit house for a consideration of Rs.1 lac.
The vendee paid Rs.10,000/- as advance and agreed to
pay remaining consideration of Rs.90,000/- by 20.6.1984
whereupon sale deed was to be executed and registered. B
On 24.3.1984, the defendant no.2-vendor's wife sent a
notice to the vendee as well as to the vendor calling upon
them to cancel the agreement as she held half share in
the property having devolved upon her on the death of
her son. She also stated in the notice that she was not c
willing to sell her share and was ready to purchase the
share of her husband-vendor. The vendee sent reply to
her notice that the agreement was binding on her and
notice given by her was in collusion with the vendor. His
correspondence with the vendor failed and he filed the 0
suit for specific performance of the agreement against the
vendor and his wife. He prayed for a direction to them to
execute the sale deed and in the alternative, he prayed
for refund of the advance amount along with interest.
The vendor and his wife filed separate written E
statements. The vendor admitted execution of agreement
and receipt of advance amount of Rs. 10,000/-. The
vendor further averred that he had one son, who had half
share in the property; the son died intestate and after his
death, his half share devolved upon his wife and, thus F
vendodr did not have absolute title to the property and,
therefore, was unable to execute the sale deed. The trial
court decreed the suit with a direction to the vendor and
his wife to execute registered sale deed as per the terms
of the sale agreement. Aggrieved, the vendor's wife filed G
appeal before the High Court. The High Court recorded
the findings that the property was ancestral property in
which the deceased son had half share on whose death
that share devolved upon the vendor's wife; the vendee
H
774 SUPREME COURT REPORTS [2010] 12 S.C.R.
A could not be said to have any knowledge that the
vendor's wifo had half share and in the absence of any
express authority from his wife, the vendor could not
alienate or otherwise dispose of her share in the property.
The High Court finally held that the agreement of sale
B although covered the entire property but as the vendor
had only half share and interest in the property, the decree
for specific performance could only be granted to the
extent of the vendor's share in the property. The instant
appeals were filed by the legal representatives of the
c vendee and also by the vendor's wife challenging the
order of the High Court.
Dismissing the appeals, the Court
HELD: 1. It was not in dispute that the agreement was
0 an agreement of sale and there was concluded contract
in this regard between the vendor and vendee. The
vendor in his reply to the notice received from the vendee
had not disputed the nature of the agreement. As a matter
of fact, in view of the admitted position between the
E parties, particularly, the vendor and the vendee about the
agreement, no issue was struck by the trial court in this
regard nor any argument was advanced on behalf of the
vendor before the trial court that the agreement was not
an agreement of sale or that the same did not tantamount
F to concluded contract. Insofar as the vendor was
concerned, he did not challenge the judgment passed by
the trial court. It was only vendor's wife who filed appeal
before the High Court. Even before the High Court, no
plea was raised by the vendor's wife or the vendor that
G the agreement was not a concluded contract for sale of
the property. [Paras 15, 16] [784-C; 785-C-E]
2. The finding of the two courts was divergent
regarding question whether the property was ancestral
H
KAMMANA SAMBAMURTHY (0) BY LRS. v. 775
KALIPATNAPU ATCHUTAMMA (0)
property or not. The trial court held that the property was A
not the ancestral property but the High Court on re-
appraisal of the evidence did not agree with that finding.
The High Court concluded that under section 14 of the
Hindu Succession Act, the share devolved upon the
mother and it would become her Streedhana property. B
The husband under such circumstances, in the absence
of any express authority from the wife, cannot alienate or
otherwise dispose of her Streedhana property. The High
Court correctly considered this aspect and there is no
justifiable reason to take a view different from the High c
Court. (Para 17] (785-F; 786-8-C]
3. As regards applicability of Section 41 of the
Transfer of Property Act, 1882, the High Court rightly
observed that it was not even the case of th~ vendee that
the vendor was the ostensible owner of the property and, 0
therefore, Section 41 has no application. In view of the
findings of the High Court, the conclusion that the
vendee is not entitled to seek specific performance of the
agreement to the extent of half share of vendor's wife
cannot be faulted. [Para 18] [786-F, G] E
4. As regards the question whether the agreement
could be enforced against the vendor to the extent of his
half share, the terms of the agreement would show that
the vendor represented to the vendee that he was F
absolute owner of the property that fell to his share in the
partition effected with his brothers and he did not have
any male child. The vendor assured the vendee that
excepting him none had got any right over the property
and he would obtain the witness signatures of his
G
daughters and get their voluntary consent letters in his
favour. It is clear from the evidence that the vendee had
no knowledge that vendor's wife had half share in the
property which devolved upon her on the death of her
son intestate. Section 12 of the Specific Relief Act, 1963
H
776 SUPREME COURT REPORTS (2010) 12 S.C.R.
A prohibits specific performance of a part of a contract
except in the circumstances under sub-sections (2), (3)
and (4). The circumstances mentioned in these sub-
sections are exhaustive. Section 12 is not attracted in the
facts and circumstances of the instant case. The instant
B case is not a case of the performance of a part of the
contract but the whole of the contract insofar as the
vendor is concerned, since he had agreed to sell the
property in its entirety but it later turned out that the
vendor had only half share in the property and his wife
C held the remaining half. The agreement is binding on the
vendor as it :s without being fractured. As regards him,
there is neither segregation or separation of contract nor
creation of a new contract. In the facts and
circumstances, there was no impediment for enforcement
of the agreement against the vendor to the extent of his
0
half share in the property. [Paras 19, 21, 24] [786-H; 787-
A, B; 788-F-H]
Kartar Singh v. Harjinder Singh & Ors. (1990) 3 SCC
517; Manzoor Ahmed Magray v. Ghulam Hassan Aram &
E Ors. (1999) 7 SCC 703; Abdul Rashid Khan (Dead) & Ors.
v. PA.K.A. Shahul Hamid & Ors. (2000) 10 SCC 636 - relied
on.
HPA International v. Bhagwandas Fateh Chand Daswani
F & Ors. (2004) 6 SCC 537, distinguished.
5. The High Court rightly concluded that Section 4 of
the Partition Act, 1893 was not attracted. It is only after
the sale deed is executed in favour of the vendee that right
under Section 4 of the Partition Act, 1893 may be
G available. Similarly, insofar as vendee is concerned, he
has right to apply for partition of the property and get the
share demarcated only after the sale deed is executed in
his favour. Section 44 of the T.P. Act is also of no help to
the case of vendor's wife. [Para 26] [797-F]
H
KAMMANA SAMBAMURTHY (D) BY LRS. v. 777
KALIPATNAPU ATCHUTAMMA (0)
Ghantesher Ghosh v. Madan Mohan Ghosh & Ors. A
(1996) 11 SCC 446; Pramod Kumar Jaiswal and Ors. v. Bibi
Husn Bano and Ors. (2005) 5 SCC 492;
Shanmughasundaram & Ors. v. Diravia Nadar (Dead) By
LRs. & Anr. (2005) 10 SCC 728, referred to.
B
6. The balance sale consideration of Rs. 90,000/- was
deposited by the vendee on July 18, 1991 before the trial
court and was lying there for more than 19 years.
Therefore, there was no merit in the contention of the
vendor's wife that it was not proved that vendee was C
ready and willing to purchase the property all along. The
plea that the decree granted by the High Court would
result in hardship since the vendor and vendor's wife are
dead and their 10 daughters had been residing in the
property was also not accepted since the facts do not
constitute hardship justifying denial of decree for specific D
performance to the extent of vendor's half share in the
property. [Paras 27, 28] [797-G; 798-D, E]
Case Law Reference:
(1990) 3 sec 517 relied on Para 21 E
(1999) 1 sec 103 relied on Para 22
(2000) 1o sec 636 relied on Para 23
(2004) 6 sec 537 distinguished Para 24
(1996) 11 sec 446 referred to Para 25 F
(2005) 5 sec 492 referred to Para 25
(2005) 1o sec 728 referred to Para 25
CIVIL APPELLATE JURISDICTION : Civil Appeal No.
6088 of 2003. G
From the Judgment & Order dated 23.12.2002 of the High
Cout of A.P. at Hyderabad in AN No. 287 of 1994.
WITH
H
778 SUPREME COURT REPORTS [2010] 12 S.C.R.
A C.A. No. 7265 of 2003.
Sudha Gupta and A.T.M. Sampath for the appearing
parties.
The Judgment of the Court was delivered by
B
R.M. LODHA, J. 1. The original contesting parties are
dead. They are now represented by their legal representatives.
This is not unusual when litigation goes on for more than 25
years.
c 2. These two appeals, one by the legal representatives of
Kammana Sambamurthy (original plaintiff) and the other by
legal representatives of Kalipatnapu Atchutamma (original
defendant no. 2) are directed against the judgment and decree
dated December 23, 2002 passed by the High Court of
D Judicature, Andhra Pradesh, at Hyderabad. The High Court
modified the judgment and decree dated July 2, 1991 passed
by the Subordinate Judge, Anakapalli in a suit for specific
performance of the contract. The husband of defendant no. 2
- Kalipatnapu Kamaraju - was original defendant no. 1; he is
E also dead. For convenience, we shall refer to the original
plaintiff, 'the vendee'. the original defendant no. 1, 'the vendor'
and the original defendant no. 2, 'the vendor's wife'. The facts,
as we find them, are shortly as follow.
F 3. On February 19, 1984, the vendor entered into an
agreement of sale (for short, 'the agreement') with the vendee
in respect of a tiled house consisting of six rooms, verandah,
three mulgis upstair portion consisting of one room, hall and
verandah inclusive of entire area pertaining to the house along
G with the entire vacant site situate in door no. 9 .118 bearing
assessment 116 at village Payakaraopet, District
Visakhapatnam (for short, 'the property') for a consideration of
Rs. 1,00,000/-. The vendee paid Rs. 10,000/- in advance and
the remaining consideration of Rs. 90,000/- was agreed to be
H paid at the time of execution and registration of the sale deed.
KAMMANA SAMBAMURTHY (D) BY LRS. v. 779
KALIPATNAPU ATCHUTAMMA (D) [R.M. LODHA, J.]
The vendor in the agreement represented that he was absolute A
owner of the property. The agreement reads as follows :
"SALE AGREEMENT DATED 19-2-1984
Absolute Sale Agreement for Rs. 100000/- (Rupees one
lakh) in respect of the immovable property i.e. tiled house, B
building upon the tiled house inclusive of entire vacant site
pertaining to the house got executed and delivered on 19-
2-84 in favour of Kommana Samba Murthy S/o Kommana
Adaiah r/o Namavaran Village, Nekkapalli Tq.
Visakhapatnam District. c
By
Kalipatanapu Kamaraju s/o Kalipatnapu
Suryanarayana r/o Payakaraopet Village, Ditto Tq. Ditto D
District is as follows :-
II. As regard~ the property mentioned in para no. Ill in
schedule hereunder wherein I have possessed absolute
right and enjoyment and which fell to my share in the
partition effected in respect of immovable property with my E
brothers about forty years back and ever since has been
in my possession and enjoyment and situated in southern
\row of G.N.T. road of Payakaraopet village i.e. the tiled
house, six rooms, verandah, 3 mulgis upstair portion
consisting of one room, hall and verandah inclusive of F
entire area pertaining to the house along with the entire
vacant site there of belonging to me. I have settled to sell
the same to you for the reason that I attained old age and
did not have any male children and with intention to spend
my rest of life with any one of my daughters and thinking G
that it is better to augment the cash balances a~ you
offered today higher price, then I agree9 there to and
settled to sell the property to you.
Having regard for a sale consideration of Rs. 100000/-
(Rupees one lakh only) this agreement of sale has been H
780 SUPREME COURT REPORTS [2010] 12 S.C.R.
A executed and delivered to you. Out of the sale
consideration you have paid Rs. 10000/- as advance in
the presence of undersigned witnesses at the time of
execution of this sale agreement and the same was
received by me. Therefore starting from this date you are
B requested to pay by 20-6-84 the balance sale
consideration of Rs. 90000/- payable to me and shall get
the sale deed executed as per your plan on your name or
the name chosen by you on a proper stamp paper and
shall get the same registered and delivered to you at your
c expense. Havin[J assured you to the effect that excepting
me, none have ~iot any right over this property and having
proved that the measurements, boundaries and
circumstances in respect of the property are proper and
correct and that this property had not been subjected to
any alienation by way of mortgages etc. and that it is an
D
undisputed property and after making you to so believe this
sale agreement has been executed and delivered to you.
The say situated on the rear side of the house i.e. an extent
of 3.9 feet in width and 91 feet in length happens to be
the common passage to this property and also to Nudala
E Chekeenam Chokka Rao. As requested by you I shall
obtain the witness signatures of my daughters who are
near to me and those who are living in far of areas, I shall
get their voluntary consent letters in your favour.
F Ill. Situated in door No. 9.118 bearing assessment 116 a
tiled house consisting of six rooms, verandah, 3 mulgis,
upper terrace portion consisting of a room, hall and
verandah together with entire vacant site there of situated
in southern row of G.N.T. road of Payakaraopet village and
G which has been included in Payakaraopet grama
panchayat limits in Nekkapalli Tq. Visakhapatnam District
and the bcmndaries whereof are as follows :-
East : 196 feet vacant site belonging to Venkata
Ramalinga Swamy and others
H
KAMMANA SAMBAMURTHY (D) BY LRS. v. 781
KALIPATNAPU ATCHUTAMMA (0) [R.M. LODHA, J.]
South : 54 feet houses belonging to Nemmi Gouraiah and A
others
West : 196 feet house, site belonging to Bekivalla
Bapi Raju
North : 37 feet, G.N.T. Road. B
The house and vacant site comprising within the
aforesaid boundaries has been sold to you. This is the
absolute sale agreement get executed and delivered with
my consent."
c
4. On March 24, 1984, the vendor's wife sent a notice to
the vendee as well as vendor calling upon them to cancel the
agreement as she held half share in the property having
devolved upon her on the death of her son K. Appala
Suryanarayana Murthy. She stated in the notice that she was
0
not willing to sell her share and was ready to purchase the share
of the vendor (her husband) .
./
5. On March 28, 1984, the vendee replied to the notice
sent to him by the vendor's wife and asserted that the
agreement was binding on her and the notice has been given E
in collusion with the vendor.
6. On March 30, 1984, the vendee sent a notice to the
vendor calling upon him to receive the balance sale
consideration of Rs. 90,000/- from him and execute the sale
deed along with his wife (if she has any right in the property) F
as per the terms of the agreement failing which he may be
constrained to initiate action for necessary reliefs.
7. On April 21, 1984, the vendor sent reply to the vendee's
notice dated March 30, 1984 informing him that he was unable G
to execute sale deed in the vendee's favour and he may take
back sum of Rs. 10,000/- that was paid in advance.
8. The vendee then filed a suit for specific performance of
the agreement against the vendor and his wife. He prayed for
a direction to them to execute sale deed as per the terms of H
782 SUPREME COURT REPORTS [2010] 12 S.C.R.
A the agreement and get it registered after taking the remaining
sale consideration of Rs. 90,000/- and if they fail to execute the
same as per the directions of the court. then court may execute
the sale deed after the vendee deposits the balance sale price
within time allowed by the court. In the alternative, the vendee
B prayed for refund of the advance amount along with interest.
9. The vendor and his wife filed separate written
statements. The vendor admitted execution of agreement and
receipt of advance amount of Rs. 10,000/-. The vendor averred
that he had one son, K. Appala Suryanarayana Murthy who had
C half share in the property; he died intestate and after his death,
his half share devolved upon his wife and thus he does not have
absolute title to the property and unable to execute the sale
deed.
10. The vendor's wife mainly set up the plea that her son
0
died intestate and she succeeded to his share; her husband
is not the absolute owner of the property; she is not willing to
part with her share and she has already asked her husband to
sell his share to her.
E 11. The Subordinate Judge, Anakapalli in light of the
pleadings of the parties framed issues and after recording the
evidence and hearing the parties decreed the suit in the
following manner :
"In the result, the suit is decreed with costs and with a
F direction that the defendants 1 and 2 shall execute
registered sale deed as per the terms of the sale
agreement dated 19-2-84 in favour of the plaintiff after
taking the remaining sale consideration of Rs. 90000/- on
or before 2-9-91 at the costs of the plaintiff and the plaintiff
G is hereby directed to be get ready with the remaining sale
consideration by Rs. 90000/- and expenses for registration
on or before 3-9-1991 by informing the defendant for its
registration ....... "
H 12. The vendor's wife being not satisfied with the judgment
KAMMANA SAMBAMURTHY (D) BY LRS. v. 783
KALIPATNAPU ATCHUTAMMA (0) [R.M. LODHA, J.]
and decree dated July 2, 1991 passed by the Subordinate A
Judge, Anakapalli preferred first appeal before the High Court.
The High Court in view of the contentions raised before it
formulated the following points for determination :
"(1) Whether the suit house is the ancestral property of
B
the first defendant?
(2) Whether the suit house contract of sale binds the
second defendant?
(3) Whether the second defendant has got the rightto c
purchase the half share of the first defendant?
(4) Whether the suit contract of sale is not voidable
having been made by the ostensible owner, the first
defendant and as the plaintiff acted in good faith?
D
(5) To what relief?"
13. The High Court recorded the findings namely, that on
the basis of the factual matrix and the evidence adduced by
the defendants, it was made out that the vendor and his wife E
had a son who died intestate and that the property was
ancestral property in which the deceased son had half share
and that share devolved upon the vendor's wife; the vendee
cannot be said to have any knowledge that the vendor's wife
had half share and in the absence of any express authority from
F
his wife, the vendor could not alienate or otherwise dispose of
her share in the property. The High Court did not accept the
plea of the vendee that vendor had implied authority or that
vendor's wife was estopped from raising the plea that the
agreement did not bind her. The High Court finally held that the G
agreement of sale although covered the entire property but as
the vendor had only half share and interest in the property, the
decree for specific performance could only be granted to the
extent of the vendor's share in the property. The High Court,
accordingly, allowed the appeal preferred by vendor's wife to
H
784 SUPREME COURT REPORTS [2010] 12 S.C.R.
A 1he extent of half share in the property and the judgment and
decree of the Subordinate Judge was confirmed to the extent
of half share of the vendor in the property.
14. We heard Mrs. Sudha Gupta, learned counsel for the
legal representatives of the vendee and Mr. A.T.M. Sampath,
8
learned counsel for the legal representatives of the vendor's
wife.
15. Mr. A.T.M. Sampath, learned counsel for the vendor's
wife would have us believe thdt the agreement is not an
C agreement of sale but an invitation to offer as it is only signed
by the vendor. We are not impressed. That the aqreement is
an agreement of sale and there has been concluded contract
in this regard between the vendor and vendee has not at all
been in dispute. The vendor in his reply dated April 21, 1984
O to the notice received from the vendee did not dispute the
nature of the agreement. In the plaint, the vendee made the
following averment with regard to the agreement:
" ...... .The 1st defendant offered to sell the plaint schedule
house and site representing that he has got absolute title
E
in them and that no others have got title in the said
property. The plaintiff accepted to purchase the property
after making due inquiries. After mutual deliberations the
plaintiff offered to purc;hase the suit schedule property for
one lakh rupees. The first defendant ~xecuted sale
F agreement on 19-2-1984 in favour of the plaintiff, agreeing
to sell the suit property to plaintiff for the said sum of one
lakh and also agreeing to receive the balance of
consideration on or before 20-6-1984 and to execute
registered sale deed at the expense of the plaintiff in
G favour of plaintiff or to his order and also undertaking to
get his daughters and make them attest the sale deed. The
plaintiff paid Rs. 10000/- (Rupees ten thousand only) as
advance at the time of the said sale agreement. The first
defendant undertook to deliver possession of the suit
H schedule property on the date of sale deed ....... "
KAMMANA SAMBAMURTHY (D) BY LRS. v. 785
KALIPATNAPU ATCHUTAMMA (D) [R.M. LODHA, J.]
The vendor filed written statement and therein he admitted A
execution of the agreement in the following words :
" ..... Ttie averments that this defendant executed a sate
agreement on 19-2-1984 in favour of plaintiff offering to
sell the schedule house and site for a sale consideration B
of Rs. 100000/- (one lakh) agreeing to receive the balance
of sale consideration on or before 20-6-1984 and to
execute a sale deed at the expense of the plaintiff and that
on the date of sale agreement received an amount of Rs.
10000/- towards sale consideration are true ..... "
c
16. As a matter of fact, in view of the admitted position
between the parties, particularly, the vendor and vendee about
the agreement, no issue was struck by the trial court in this
regard nor any argument was advanced on behalf of the vendor
before the trial court that the agreement was not an agreement D
of sale or that the same did not tantamount to concluded
contract. Insofar as vendor is concerned, he did not challenge
the judgment and decree passed by the trial court. It was only
vendor's wife who filed appeal being not satisfied with the
judgment and decree dated July 2, 1991 passed by the E
Subordinate Judge before the High Court. Even before the High
Court, no plea was raised by the vendor's wife or the vendor
that the agreement is not a concluded contract for sale of the
property. The submission of Mr. A.T.M. Sampath that the
agreement is not an agreement of sale but an invitation to offer F
is afterthought and does not merit further consideration.
17. As to whether the property is ancestral property or not,
the finding of the two courts is divergent. The trial court held.
that the property was not the ancestral property but the High
Court on reappraisal of the evidence did not agree with that G
finding. The High Court considered the matter thus :
" ....... Whatever may be the reason behind in getting Ex.A2
notice issued while seeking to avoid Ex.A2 transaction, the
legal position cannot be doubted that half share in the suit H
786 SUPREME COURT REPORTS (2010] 12 S.C.R.
A house was devolved upon the second defendant on
account of the death of her son, in as much as by birth,
the son got half share along with his father in the ancestral
property and the- mother succeeded to the same as Class
I heir. It is also clear that under section 14 of the Hindu
B Succession Act, the share devolved upon the mother would
become the Streedhana property. The husband under such
circumstances, in the absence of any express authority
from the wife cannot alienate or otherwise dispose of the
Streedhana property of his wife ....... "
C In our view, the High Court has considered this asoect in the
right perspective and we find no justifiable reaso to take a
view different from the High Court.
18. Having regard to the conclusion that the vendor's wife
D has got half share in the property and that she is not executant
to the agreement, what needs to be considered is, whether the
agreement binds the vendor's wife. According to vendee, the
vendor had implied authority to enter into agreement of the
property and the vendor's wife was clearly aware of that
E agreement and, therefore, she is estopped from raising the plea
that she is not bound by that agreement. The High Court
considered the evidence on record and held that no express
or implied authority by the wife in favour of her husband is
discernible from the facts and evidence. We agree. As regards
F applicability of Section 41 of the Transfer of Property Act, 1882
(T.P. Act), the High Court obseNed that it was not even the case
of the vendee that the vendor was the ostensible owner of the
property and, therefore, Section 41 has no application. We think
that High Court is right and in view of the aforenoticed findings
G of the High Court, the conclusion that vendee is not entitled to
seek specific performance of the agreement to the extent of
half share of vendor's wife cannot be faulted.
19. The crucial question in the case is whether the
agreement could be enforced against the vendor to the extent
H of his half share in the property. The terms of the agreement
KAMMANA SAMBAMURTHY (D) BY LRS. v. 7.37
KALIPATNAPU ATCHUTAMMA (D) [R.M. LODHA, J.]
show that the vendor represented to the vendee that he was A
absolute owner of the property that fell to his share in the
partition effected with his brothers and he did not have any male
child. The vendor assured the vendee that excepting him none
has got any right over the property and he would obtain the
witness signatures of his daughters and get their voluntary B
consent letters in his favour. It is clear from the evidence that
the vendee had no knowledge that vendor's wife has half share
in the property which devolved upon her on the death of her son
intestate.
20. Section 12 of the Specific Relief Act, 1963 reads as C
follows:
"S.- 12. Specific performance of part of contract.-
(1) Except as otherwise hereinafter provided in this section, D
the court shall not direct the specific performance of a part
of a contract.
(2) Where a party to a contract is unable to perform the
whole of his part of it, but the part which must be left
unperformed by only a small proportion to the whole in E
value and admits of compensation in money, the court
may, at the suit of either party, direct the specific
performance of so much of the contract as can be
performed, and award compensation in money for the
deficiency. F
(3) Where a party to a contract is unable to perform the
whole of his part of it, and the part which must be left
unperformed either-
(a) forms a considerable part of the whole, though G
admitting of compensation in money; or
(b) does not admit of compensation in money;
he is not entitled to obtain a decree for specific H
788 SUPREME COURT REPORTS [2010] 12 S.C.R.
A performance: but the court may, at the suit of the other
party, direct the party in default to perform specifically so 1
much of his part of the contract as he can perform, if the
other party-
(i) in a case falling under clause (a}, pays or has paid the
B
agreed consideration for the whole of the contract reduced
by the consideration for the part which must be left
unperformed and a case falling under clause (b), pays or
had paid the consideration for the whole of the contract
without any abatement; and
c
(ii) in either case, relinquishes all claims to the
performance of the remaining part of the contract and all
right to compensation, either for the deficiency or for the
loss or damage sustained by him through the default of the
D defendant.
(4) When a part of a contract which, taken by itself, can
and ought to be specifically performed, stands on a
separate and independent footing from another part of the
same contract which cannot or ought not to be specifically
E
performed, the court may direct specific performance of
· the former part."
21. Section 12 prohibits specific performance of a part of
a contract except in the circumstances under sub~sections (2),
F (3) and (4). The circumstances mentioned in these sub-sections
are exhaustive. Is Section 12 attracted in the facts and
circumstances of the present case? We do not think so. The
present case is not a case of the performance of a part of the
contract but the whole of the contract insofar as the vendor is
G concerned since he had agreed to sell the property in its
entirety but it later turned out that vendor had only half share in
the property and his wife held the remaining half. The
agreement is binding on the vendor as it is without being
fractured. As regards him, there is neither segregation or
H separation of contract nor creation of a new contract. In Kartar
KAMMANA SAMBAMURTHY (D) BY LRS. v. 789
KALIPATNAPU ATCHUTAMMA (D) [R.M. LODHA, J.]
Singh v. Harjinder Singh & Ors. 1, this Court was concerned A
with a case where vendor-brother and a sister had each half
share in the suit properties. The agreement for the sale was
executed by the brother concerning the suit properties in which
the sister had half share. The sister was not executant to the
agreement; rather she refuse:_d_ to accept the agreement. The B
question for consideration before this Court was-whether
agreement could be enforced against the vendor-brother /
to
.'
the extent of his half share. This Court considered Section 12
and held as under :
"5. We are, therefore, of the view that this is not a case
c
which is covered by Section 12 of the Act. It is clear from
Section 12 that it relates to the specific performance of a
part of a contract. The present is not a case of the
performance of a part of the contract but of the whole of
the contract so far as the contracting party, namely, the D
respondent is concerned. Under the agreement, he had
contracted to sell whole of his property. The two contracts,
viz. for the sale of his share and of his sister's share were
separate and were severable from each other although
they were incorporated in one agreement. In fact, there was E
no contract between the appellant and the respondent's
sister and the only valid contract was with respondent in
respect of his share in the property.
6. As regards the difficulty pointed out by the High Court, F
namely, that the decree of specific performance cannot be
granted since the property will have to be partitioned, we
are of the view that this is not a legal difficulty. Whenever
a share in the property is sold the vendee has a right to
apply for the partition of the property and get the share G
demarcated. We also do not see any difficulty in granting
specific performance merely because the properties are
scattered at different places. There is no law that the
properties to be sold must be situated at one place. As
regards the apportionment of consideration, since
H
790 SUPREME COURT REPORTS [2010] 12 S.C.R.
A admittedly the appellant and respondent's sister each have
half share in the properties, the consideration can easily
be reduced by EiO per cent which is what the first appellate
court has rightly done."
22. Kartar Sin9h 1 has been followed by this Court in
8
Manzoor Ahmed Magray v. Ghulam Hassan Aram & Ors. In
Manzoor Ahmed Magray2, this Court considered the matter in
the context of Section 15 of J & K Specific Relief Act, 1977
which is pari materia to Section 12 of Specific Relief Act, 1963.
This Court said :
c
" ....... Hence, there is no bar for passing the decree for
specific relief with regard to 1/3rd or 2/3rds share owned
by the contracting party for which he can execute the sale
deed. For the share of Ghulam Rasool (brother of
D Defendant 1) admittedly, no decree is passed by the High
Court. Dealing with the similar contention where agreement
was for sale of property belonging to a brother and sister
each having a half share, the Court in Kartar Singh v.
Harjinder Singh held that when the absentee vendor, for
E some reason or the other refused to accept the
agreement, there is no reason why the agreement should
not be enforced against the vendor who had signed and
his property is identifiable by specific share. The Court
further held that such case is not covered by Section 12
F of the Specific Relief Act, 1963 which relates to specific
performance of a part of a contract. Such type of case
would be the case of specific performance of the whole
of the contract so far as the contracting party is concerned.
Further, whenever a share in the property is sold the
vendee has the right to apply for the partition of the property
G
and get the share demarcated. Hence there would not be
any difficulty in granting specific performance of the
contract to the extent to which it is binding between the
1. (1990)3SCC517
H 2. (1999) 7 sec 703
KAMMANA SAMBAMURTHY (0) BY LRS. v. 791
KALIPATNAPU ATCHUTAMMA (0) [R.M. LOOHA, J.]
parties." A
23. In the case of A. Abdul Rashid Khan (Dead) & Ors.
v. P.A.K.A. Shahul Hamid & Ors., 3 this Court held that even
where any property is held jointly and once any party to the
contract has agreed to sell such joint property by agreement,
B
then, even if the other co-sharer has not joined, at least to the
extent of his share, the party to the contract is bound to execute
the sale deed. In that case, the suit property originally belonged
to one Aziz Khan. On his death, his heirs under the Muslim
law-nine sons and two daughters inherited that property. The
sons agreed to sell that property to the first respondent therein. C
However, some dispute arose between the parties and that
necessitated the first respondent therein to file the suit for
specific performance in which the executants of the agreement
as well as the two daughters of Aziz Khan were irnpleaded as
defendants. It was ~dmitted case that the daughters of Aziz 0
Khan had not joined in the agreement of sale. The trial court
dismissed the suit by holding that the agreement was indivisible
and could only be enforced if the daughters of Aziz Khan
agreed. The first respondent therein preferred an appeal before
the High Court against the judgment and decree of the trial E
court. The High Court held that he had not pleaded and proved
that the daughters of Aziz Khan had agreed to sell the suit
property and hence, it cannot be held that the said agreement
was by all the heirs of Aziz Khan. The two daughters of Aziz
Khan were held not bound by the agreement. However, the High F
Court held that insofar as the executants of the agreement (sons
of Aziz Khan) were concerned they were bound by it and valid
and enforceable contract existed between the first respondent
and the sons of Aziz Khan. The High Court, accordingly,
granted decree for specific performance to the extent of 5/6th G
shares which Aziz Khan's sons had in the property. This Court
affirmed the decree of the High Court and it was held that
plaintiff's suit for specific performance to the extent of 5/6th
3. (20ooi 10 sec 636
H
792 SUPREME COURT REPORTS [2010] 12 S.C.R.
A share was rightly decreed by the High Court warranting no
interference. While holding so, this Court relied upon earlier
decision in the case of Manzoor Ahmed Magray.
24. In view of the above decisions of this Court and the
facts and circumstances which have already been noticed by
8
us, in our opinion, there is no impediment for enforcement of
the agreement against the vendor to the extent of his half share
in the property. However, Mr. A.T.M. Sampath, learned counsel
for the vendor's wife placed great reliance upon HPA
International v. Bhagwandas Fateh Chand Daswani & Ors. 4
C and, particularly, the following paragraphs of the report.
"67. If the vendee intended to seek conveyance separately
of the life interest of the vendor, the earliest opportunity for
him was when he had received notice dated 11-9-1979
D sent through the lawyer by the vendor cancelling the
contract. Assuming that at that time he could not opt for
lesser relief as the suit for sanction was pending, he could
have, in any case, opted for conveyance of life interest of
the vendor soon after he came to know of the negotiations
E for sale with Bob Daswani, which took place in the
presence of one of the partners of the plaintiff vendee. Even
after deriving the knowledge of the execution of the sale
deed dated 29-12-1979 Ext. D-1, the option to obtain
lesser relief of transfer of life interest was not exercised. It
was exercised as late as on 25-11-1986 by filing an
F
affidavit and at the time when pleadings of the parties were
completed and the joint trial in the two suits had already
commenced. During long pendency of the suits between
1979 to 1986, the parties interested in the property
changed their positions. The vendor by executing a
G
registered sale deed in favour of the subsequent vendee
got his public dues paid to relieve the pressure on the
property and obtained market price of the property. After
H 4. (2004) 6 sec 537
KAMMANA SAMBAMURTHY (D) BY LRS. v. 793
KALIPATNAPU ATCHUTAMMA (D) [R.M. LODHA, J.]
obtaining possession of the properw..pursuant to the sale A
deed, the subsequent vendee has raf~ed construction and
inducted tenants. Accepting the le'ga' 'stand based on
Sections 90, 91 and 92 of the Indian Trusts Act that the
subsequent vendee, being a purchaser with knowledge of
prior agreement, is holding the property as a trustee for B
the benefit of the prior vendee, the vendor, who changed
his position by effecting a subsequent sale cannot be
compelled to convey his life interest when such lesser relief
was not claimed at the earliest opportunity and the terms
of the contract did not contemplate transfer of life interest c
alone."
98. he above argument has no merit and the aforesaid
decision is hardly of any help to the vendee. This is not a
case where the vendor had only right of spes successionis
and after execution of agreement of sale, he subsequently D
acquired full interest in the property to be held bound by
Section 43 of the Transfer of Property Act. In the case
before us, the reversioners were not parties to the
agreement of sale. When in the St;Jit for sanction to transfer
their interest they were made parties and were noticed, E
they expressly objected to the proposed transfer. No
principle of estoppel or provisions of Section 43 of the
Transfer of Property Act can, therefore, operate against
them. So far as the subsequent vendee is concerned, in
the course of suit, he was pushed to a position in which F
he could not take a stand that he had no knowledge of the
prior agreement with the vendee but he has separately
purchased life interest from the vendor and obtained
separate release deeds, on payment of consideration,
from the reversioners. The reversioners being not parties G
to the sale agreement, Ext. P-1 entered into with the
vendee, the latter could not enforce the contract, Ext. P-1
against the former."
It is sufficient to say that the agreement of sale and the facts
H
794 SUPREME COURT REPORTS [2010] 12 S.C.R.
A which their Lordships had to consider in the case of HPA
lnternationa/ 4 were in many respects different from the
agreement in the present case. In that case vide agreement of
sale (Exhibit P1) therein, full interest in the property, i.e. life
interest of the vendor and spes successionis of reversioners
B with sanction of the court was agreed to be sold. The
reversioners were not parties to the sale agreement that was
entered with the vendee therein. The parties were conscious
that the vendor had only life interest in the property and he could
not convey more than his own interest. The court found that
c vendee entered into a speculative deal for obtaining full interest
in the property depending upon the sanction to be granted by
the court. In the backdrop of these facts, this Court observed
in paragraphs 68, 69 and 70 of the report thus :
"68. On duly appreciating the evidence on record,
D construing specific terms of the contract and considering
the conduct of the parties, we have arrived at the
conclusion that the rescission of the contract, due to non-
g rant of sanction by the Court within two years after
execution of the contract and filing of the suit for sanction,
E was not an act of breach of contract on the part of the
vendor to justify grant of relief of specific performance of
the contract to the prior vendee.
69. We are also of the view that the plaintiff vendee, by
F his own act in the pending suits, was responsible for
rendering the suit for sanction as infructuous. He was guilty
of lapse in not seeking conveyance of life interest of the
vendor at the earliest opportunity when notice of rescission
of the contract was received by him and later when he
derived the knowledge of execution of registered sale
G
deed in favour of the subsequent vendee. The option was
exercised conditionally in the midst of the joint trial of the
two suits.
70. There was one integrated and indivisible contract by
H
KAMMANA SAMBAMURTHY (0) BY LRS. v. 795
KALIPATNAPU ATCHUTAMMA (0) [R.M. LODHA, J.]
the vendor to convey full interest in the property i.e. his own A
life interest and the interest of the reversioners with
sanction of the Court. As the Court had not granted the
sanction, the contract could not be specifically enforced.
The lesser relief of transfer of life interest was not claimed
within a reasonable time after the vendor had intimated that B
the contract, as agreed for full interest, was not possible
of performance. We find that neither equity nor law is in
favour of the plaintiff vendee."
The Court further observed in paragraph 100 of the report
as follows : C
"100. In the case before us, ·we have not found that the
vendor was guilty of rendering the suit for sanction
infructuous. It did terminate the contract pending the suit
for sanction but never withdrew that suit The vendee o
himself prosecuted it and rendered it infructuous by his
own filing of an affidavit giving up his claim for the interest
of reversioners. In such a situation where the vendor was
not in any manner guilty of not obtaining the sanction and
the clause of the contract requiring the Court's sanction for E
conveyance of full interest, being for the benefit of both the
parties, the contract had been rendered unenforceable with
the dismissal of the sanction suit"
HPA lnternationa/4 , thus, have no considerable bearing on the
case in hand. F
25. Mr. AT.M. Sampath, learned counsel for vendor's wife
also argued that she had offered as joint owner to the undivided
entire property to purchase the half share of her husband under
the Partition Act, 1893 and Hindu Succession Act, 1956. He G
would submit that at the earliest point of time both in a notice
as well as in the written statement she has raised the plea of
pre-emption to buy her husband's share and demanded the
vendee as well as her husband to sell undivided half share to
her. In this regard, he further submitted that the property is an H
796 SUPREME COURT REPORTS [2010] 12 S.C.R.
A undivided dwelling house and the court should not grant specific
performance against the co-owners of the family dwelling house.
He relied upon Ghantesher Ghosh v. Madan Mohan Ghosh
& Ors. 5 , Pramod Kumar Jaiswal and Ors. v. Bibi Husn Bano
and Ors6 . and' Shanmughasundaram & Ors. v. Oiravia Nadar
B (Dead) By LRs. & Anr. 1_
26. The above submission was also canvassed before the
High Court. The High Court considered this aspect in the
following manner :
"It is too premature for tbe defendant to have invoked the
c provisions of section 4 of the Partition Act. The plaintiffs
right has not been crystallizea yet and he cannot at this
stage be cohsidered as a purchaser of the undivided
interest of the first defendant. In order to validly invoke
section 4 of the Partition Act, the following five conditions
D have to be satisfied :
1. A co-owner having undivided share in the family dwelling
house should effect transfer of his undivided interest
therein;
E 2. The transferee of such undivided interest of co-owner
should an outsider or stranger to the family;
3. Such transferee much sue for partition and separate
possession of the undivided share transferred to him by
the co-owner concerned;
F
4. As against such a claim of the stranger transferee, any
member of the family having undivided share in the
dwelling house should put forward his claim of preemption
by undertaking to buy out the share of such transferee and;
G 5. While accepting such a claim for preemption by the
existing co-owners of the dwelling house belonging to the
5. (1996) 11 sec 446
6. (2005) 5 sec 492
H 7. (2005J 10 sec 728
KAMMANA SAMBAMURTHY (D) BY LRS. v. 797
KALIPATNAPU ATCHUTAMMA (D) [R.M. LODHA, J.]
undivided family, the. Court should make a valuation of the A
transferred share belonging to the stranger transferee and
made the claimant co-owner pay th_e value of the share of
the transferee so as to enable the claimant co-owner to
purchase by way of pre-emption and said transferred share
of the stranger transferee in the dwelling house belonging B
to the undivided family so that the stranger-transferee can
have no more claim left for partition and separate
possession of his share in the dwelling hou_se and
accordingly can he effectively.deny entry in any part of such
family dwelling house. c
The whole object seems to be to p~eserve the
privacy of the family members by not allowing a stranger
to enter in a part of the.family dwelling house. Such is not
the situation obtaining in this case having regard to the
context. I am reinforced in my above view by the judgment D
of the Apex Court in Babula/ V. Habibnoor Khan, 2000
(5) sec 662. The apex ~ourt placLng reliance upon its
earlier judgment in Ghantesher GhoshV. Madan Mohan
Ghosh, 1996 (11) SCC ·445 reiterated the five essential
requisites. For the foregoing reasons, the contention of the E
..
learned counsel m·erits no consideration."
In our opinion, the H_igh Court has rightly concluded that at the
present stage, Section 4 of the Partition Act, 1893 is not
attracted. It is only aftetihe sale.deed is executed in favour of
the vendee that right under Section 4 of the Partition Act, 1893 F
may be available. Similarly, insofar as vendee is concerned,
he has right to apply.for partition of the property and get the
share demarcated only after sale deed is executed in his
favour. Section 44 otthe T.P. Acfis also of no help to the case
of vendor's wife. G
27. There are two other points raised by Mr. A.T.M.
Sampath. Learned counsel for the vendor's wife would contend
that it has not been proved that vendee has been ready and
willing to purchase the property all along; the vendee did not
produce passbook showing that he had sufficient funds and the H
798 SUPREME COURT REPORTS [2010] 12 S.C.R.
A vendee did not deposit the remaining consideration of Rs.
90,000/- within three months of the decree granted by the trial
court. The argument of Mr. A.T.M. Sampath has no merit at all
and seems to have been raised in desperation. As a matter of
fact, as early as on March 30, 1984, the vendee sent a notice
B to the vendor calling upon him to receive the balance sale
consideration of Rs. 90,000/- from him and execute the sale
deed. In the plaint, a specific averment with regard to readiness
and willingness has been made by the vendee which was not
even controverted by the vendor in the written statement. No
C such issue has been raised nor it was pressed by the vendor
before the trial court. Even the vendor's wife in the appeal
before the High Court did not raise any argument in this regard.
At the time of hearing of these appeals, we were informed by
the counsel for the vendee that the balance sale consideration
of Rs. 90,000/- has been deposited by the vendee on July 18,
D 1991 vide T.R. Challan No. 1159 before the trial court and has
been lying there for more than 19 years. This argument of Mr.
A.T.M. Sampath is, therefore, rejected.
28. The other point argued by Mr. A.T.M. Sampath is that
E the decree granted by the High Court would result in hardship
since the vendor and vendor's wife are dead and their 10
daughters are residing in the property. We are afraid these
facts hardly constitute hardship justifying denial of decree for
specific performance to the extent of vendor's half share in the
F property.
29. In all fairness to Mr. A.T.M. Sampath, it must be said
that he cited some English decisions but, in our view, these
decisions have no bearing at all in the present case and it is
for this reason that we have not burdened this judgment by
G referring to those decisions.
30. In view of the above, we agree that the decision of the
High Court is right and, consequently, both the appeals must
be dismissed and are dismissed with no order as to costs.
H D.G. Appeals Dismissed.
Search Indian case law
Ask in plain English, not just keywords. 25,000 AI words free, no card.
Try "specific performance"Sign in to search