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Supreme Court of India

MOHAMMEDIA COOP. BUILDING SOCIETY LTD.versusLAKSHMI S. COOP. BUILDING SOCIETY LTD & ORS.

Citation
2008 INSC 588
Decided
6 May 2008
Disposal
Appeal(s) allowed

Holding

The sale agreement executed by the Mujawars without prior Board sanction and without compliance with Rule 12 is void; consequently, specific performance of the contract cannot be ordered.

Summary

The dispute concerned a 35‑acre wakf land in Vijayawada. The Wakf Board had appointed eight ‘Mujawars’ to manage the Dargah, and they entered into a sale agreement on 2 August 1982 with Mohammedia Co‑op Building Society Ltd. The sale required prior sanction of the State Wakf Board and publication of the proposed transaction under Rule 12 of the Andhra Pradesh Wakf Rules, 1974, which did not occur; the alleged sanction letter dated 30 June 1982 was later found to be forged. The trial court and the Andhra Pradesh High Court decreed specific performance of the sale, but the Supreme Court held that the Mujawars, not being Mutawallis, had no authority to sell wakf property without the statutory sanction, making the agreement void and rendering specific performance impermissible under the Specific Relief Act, 1963. Consequently, the appellate judgments were set aside.

Issues considered

  • The statutory authority of Mujawars/Mutawallis to sell wakf property under the Wakf Act, 1954.
  • Whether the sale agreement is void for lack of prior sanction under Section 36A and non‑compliance with Rule 12 of the Andhra Pradesh Wakf Rules, 1974.
  • Whether specific performance can be granted under Section 17 of the Specific Relief Act, 1963 when the seller lacks title.
  • The mandatory nature of Gazette publication of the proposed transaction.
  • The authenticity of the alleged sanction letter dated 30 June 1982.
  • The effect of State Government orders (G.O. 343, 1986) on the validity of the transaction.

Legislation cited

Subjects

Wakf propertyMujawarsMutawalliSpecific performanceContract validitySection 36ARule 12Statutory complianceForgeryState supervisory jurisdictionAdministrative law

Judgment

                           (2008] 7 S.C.R 762
                                                                        )-


A      MOHAMMEDIA COOP. BUILDING SOCIETY LTD.
                             v.
     LAKSHMI S. COOP. BUILDING SOCIETY LTD & ORS.
              (Civil Appeal No. 3329 of 2008)
                             MAY 6, 2008
B
     (S.B. SINHA AND LOKESHWAR SINGH PANTA, JJ.)

         Wakf Act, 1954:
        ss.3(f). 36(2)and36-Aandr 12ofAP WakfRules. 1974
c - Mutawallis/Mujawars - Functions and duties of - Alienation
  of wakf property- Mujawars entering into an agreement of sale
  of Wakf property - Later in a public auction property sold to
  the highest bidder- Suit by earlier vendee society for specific
  performance of contract - Decreed by trial court - Decree
D affirmed by High Court-HELD: Mutawal/is have no ownership
  right or estate in Wakf property unless deed of wakf says so -
  Agreement of sale by Mujawars without prior sanction of Wc:xf
  Board which is imperative, is void - Procedure laid down in
  r 12 regarding publication of proposed sale in offic. ...,; gazette
E and receiving objections was not complied v-ith - When a
  procedure is laid down for performance of a statutory function,
  same must be done in the manner laid down therein - There
  is a serious doubt regarding agreement of sale with plaintiff
  and the order of sanction - Therefore, suit for specific
F performance of contract could not have been decreed - Issue           'f-.
  required serious consideration at hands of courts below -
  Impugned judgments set aside - Administration of justice -
  Equity - Andhra Pradesh Wakf Rules, 1974- r 12.
         Specific Relief Act, 1963.·
G
         ss. 17 and 20 - Contract to self immovable property -
    HELD: "Mujawars of Wakf property having no authority to self          t •
                                                                        >-
    property, agreement of sale couid net have been directed to
    be specifically performed - Besides, court ordinarily would not

H                                 762
  ""
                   MOHAMMEDIA COOP. BUILDING SOC. LTD. v. L.S.             763
                       COOP. BUILDING SOC. LTD. & ORS.

                 grant any relief in favour of person who does not approach the   A
                 Court with clean hands - Equity
                      Administrative Law:
                      Statutory body - Wakf Board - Jurisdiction of State
                 Government to supervise and oversee functions of Board -         B
                 Government remaining not vigilant in its role in supervising
                 transaction of Wakf property - State Government advised to
                 hold an inquiry into transactions effected by .Wakf Board.,..
                 Andhra Pradesh Wakf Rules, 1974.
                       The suit property was a wakf property and c
                  respondent nos. 2 to 9 were appointed by the Andhra
                  Pradesh Wakf Board as 'Mujawars' thereof. On 25.2.1982,
                  a notification was issued inviting objections to proposed
                  sale of the suit property. Several Co-operative Societies
                  made their offers and the offer made by respondent no. 1, D
                 Co-operative Society was accepted by letter dated
                  30.6.1982. On 2.8.1982 respondent nos. 2 to 9 allegedly
                 entered into an agreement of sale with respondent no. 1
                 to transfer the suit land at a price of Rs.70,000/- per acre.
                 On 19.8.1982 the Wakf Board in a meeting was stated to E
                 have resolved that the offer was too low. Thereafter
                 respondent no. 1 raised the offer to Rs.1,26,000/- per acre,
                 The appellant was stated to have offered the highest bid

-                of Rs.1,28,000/- per acre. Government Order No. 773 dated
                 4.5.1983 was issued according permission to the Wakf F
                 Board to sell the suit land to the appellant as per its bid. A
                 Notification pursuant thereto was purported to have been
                 issued on 26.5.1983. A deed of sale was executed by
                 respondent nos. 2 to 9 as also the Wakf Board in favour
                 of the appellant Society.
                                                                                G
                       Respondent no. 1 filed Original Suit No. 200 of 1983
       ~ ~
                 for permanent injunction contending that pursuant to the
---:I". . _...   agreement of sale dated 2.8.1982 it had been put in
                 possession. The case of respondent no. 1 was that later
                 it was dispossessed. Therefore, respondent no. 1 filed H
    764      SUPREME COURT REPORTS                 (2008] 7 S.C.R.


A another suit bearing O.S. No. 449 of 1984 claiming specific
  performance of the contract. During the pendency of the
  suit another G.O. dated 8.3.1985 was Issued and pursuant
  thereto layout was approved and plots were allotted. The
  trial court by its judgment dated 19.10.2005, decreed Suit
B No. 449 of 1984. Suit No. 200 of 1983 was dismissed as
  not maintainable. Three appeals against the decree of the
  trial court in Suit no. 449 of 1984 were filed - one by the
  appellant Society, the second by Dargah concerned and
  the third by the Wakf Board. The appeals having been
c dismissed, the three appellants in the High Court filed the
  instant appeals.
        It was contended, inter alia, for the appell~nts that the
  agreement of sale deed 2.8.1982 (Exh.A-31) was wholly
  illegal as 'Mujawars' had no right, title or iriterest to execute
D the same in terms of the provisions of the Wakf Act, 1954
  or otherwise; that the extended definition of 'Mujawars'            {

  as contained in Section 3(4) was not applicable in the
  instant case as the same had been brought into force by
  way of amendment in the year 1986 and, thus, they being
F not Mutawallis, could not have exercised the same power
  under the Act. Section 36A of the Act requiring to obtain
  previous sanction of the Board as regards sale of Wakf
  property, and Rule 12 of the Wakf Rules being imperative
  in character, no deed of sale could have been executed
F in violation thereof and in that view of the matter, the
  impugned judgments could not be sustained; that the
                                                                           -
   purported letter dated 30.6.1982 issued by the Chairman
  of the Wakf Board was a forged and fabricated document
  and was not in existence on the date of the agreement of
  sale dated 2.8.1982.
G
        Allowing the appeals, the Court
         HELD: 1.1 'Mt..iawars' or a person or a Committee                ••
    were included in the dP.finition of 'Mutawalli' in the Wakf       ""· .
    Act, 1954 only by way 01 /\et 69 of 1984. A 'Mutawalli' is a
H
   MOHAMMEDIA COOP. BUILDING SOC. LTD. v. LS.           765
       COOP. BUILDING SOC. LTD. & ORS.

 manager or trustee of the property. Mujawars were not A
 even that. Mujawars, prior to the amendment of the Act,
 were not even authorized to enter into the agreement for
 sale. That was not the purpose for which they were
 appointed. They were appointed as the Dargah in
 question was not being properly looked after and the then B
 surviving Mutawallis failed and/or neglected to perform
 their statutory duties. The functions of the Mutwalli and/
 or Mujawars in the light of the provisions of the Wakf Act
 and the Rules framed thereunder must be viewed in the
 context of the statute and on the basis of the common c
 concept. Mutwallis have no ownership right or estate in
 the Wakf property unless the deed of Wakf says so. [Para
 29 and 35] [787-A; 790-F-H]
     Bibi Saddiqa Fatima v. Saiyed Mohammad Mahmood
 Hasan (1978) 3 SCC 299; and Nawab Zain Yar Jung (since        D.
 deceased) & Ors. v. Director of Endowments & Anr. AIR 1963
 SC 985 - relied on.
       1.2 Section 36A which prescribed duties of mutwallis
  and was inserted in the Wakf Act, 1954 by Act 34 of 1964
  provided for prior sanction of the State Wakf Board before E
  a Wakf property is transferred. By Act 69 of 1984,
· alienations without the sanction are to be void. When an
  application for grant of sanction to transfer the Wakf
. property is filed by a Mutawalli, the particulars relating to
  transaction are required to be published in the official· F
  Gazette 'inviting objections and suggestions in regard
  thereto. and on receipt of such objections and
  suggestions, as also upon consideration thereof only,
  sanction could be. accorded upon formation of the opinion
  that such transactions fulfill the criteria as laid down in G
  clauses (i) to (iii) of sub-section (2) of Section 36 of the
  Wakf Act. [para 29 & 30] [787-8-H; 788-A-B]
      1.3 It is only when a sanction is granted, the sale is
 to be held by public auction. Such public auction shall       H
    766     SUPREME COURT REPORTS                (2008] 7 S.C R.


A also be subject to confirmation by the State Wakf Board.
  However, Board for reasons to be recorded in writing may
  permit sale otherwise than by public auction if it is of the
  opinion that it is necessary so to do in the interest of the
  wakf. [para 30] [788-8-C]
B       2.1 Rule 12 of the Andhra Pradesh Wakf Rules, 1974
  provides conditions and restrictions subject to which the
  Wakf Board may transfer a wakf property. It provides for
  publication of the proposed transaction in the State
  Gazette as also the District Gazette in which the property
C is situated. It is beyond any doubt or dispute that the
  purported sanction has not been published in the State
  Gazette or the District Gazette. The purported order of
  sanction is in the form of a letter dated 30.6.1982 (Ext. A-
  49) purported to have been issued by the then Chairman
o of the Wakf Board. Ex facie, the said letter does not satisfy
  the statutory requirements. [para 32 and 33) [789-E, G;
  790-C]
       2.2 It cannot be said that publication of the order of
  sanction in the Gazette is not mandatory but only directory.
E By reason of the provisions of Section 36A of the Act, a
  prior sanction is imperative for effecting a sale
  transaction. Furthermore, Rule 12 specifies the manner
  in which such sanction is to be granted. Keeping in view
  the nature and purport for which the said provisions have
F been made, it is clear that the Rules are imperative in
  character. [para 34) [790-D-E]
       2.3 Furthermore, when a procedure is laid down for
  performance of a statutory function, the same must be
  done in the manner laid down therein. Sub-rule (3) of Rule
G 12 lays down that minimum 30 days time should be given
  for receipt of objection. The trial court as also the High
  Court committed a serious error in holding that as
  objections had not been received within a period of 30           "-.'
  days, the notification issued under sub-rule (2) of Rule 12
H became final. [para 35 & 36] [791-B-C]
       MOHAMMEDIA COOP BUILDING SOC LTD. v. L.S.               767
           COOP. BUILDING SOC. LTD. & ORS.

           3.1 The agreement of sale dated 2.8.1982 is titled 'Sale    A
      Deed cum Handed Over Possession Agreement'. The
      name of one of the Mujawars is not the same as described
      in the cause title of the plaint. The number of Mujawars
      who were parties to the agreement and number of
      mujawars-defendants are different. [para 30] [788-E-G]           B
           3.2 The witnesses examined on behalf of the
      Mujawars categorically denied and disputed that the
      agreement of sale was entered into after obtaining
      permission of the Wakf Board or possession of the major
      portion of the property was handed over to the plaintiff        C
      society. 'Mujawars' appeared to have received the entire
      consideration in cash. Why in a transaction which was
      governed by a statute, such a huge amount was handed
      over in cash gives rise to a suspicion. There are
      documents on record to show that all the members of the         D
      plaintiff society deposited a huge amount by cash only
      on a single date, namely 2.8.1982. The stamp paper for
      agreement for sale was purchased on 2.12.1981 in favour
      of the President of the plaintiff society. [para 31] [788-H;
      789-A-B]
                                                                      E
           3.3 Furthermore, the then Chairman of the Wakf
      Board, examined himself as DW-6. He, in no uncertain
      terms, stated that he was not the author of the letter
      dated 30.6.1982. Besides, there are some intrinsic
      evidences on record to suggest that the said purported          Fi
•     letter dated 30.6.1982 was not in existence when the
      agreement for sale dated 2.8.1982 was entered into.
      [para 36] [791-C, D, F]
          3.4 The issues required serious considerations at the
      hands of the courts below keeping in view the fact that         G
      the suit filed by the plaintiffs was one for specific
••    performance of contract. In any event, as the said
 -"   purported letter dated 30.6.1982 was neither published in
      the Gazette nor was issued upon receipt of objections
      and offers from the other societies, the same could not         :-J
    768      SUPREME COURT REPORTS                 [2008] 7 S.C.R.


A have been treated to be a final order as envisaged under
  sub-rule (4) Rule 12 of the Rules. [para 36] (791-E]
       3.5 If Mujawars have no authority to sell the property,
  in view of s. 17 of the Specific Relief Act, 1963 the
  agreement of sale could not have been directed to be
8 specifically performed. In any event, as no permission had ·
  been granted by the Wakf Board, the Courts below had
  committed a serious error in passing the impugned
  judgment. There is a serious doubt as to whether the
  agreement dated 2.8:1982 as also the purported order
C dated 30.6.1986 were genuine documents. In that view of
  the ma.tter, the suit for specific performance of contract
  should not have been decreed. [para 41 and 43] (793-E;
  794-D]
       3.6 Grant of a decree for specific performance of
0
  contract is a discretionary relief. There cannot be any
  doubt whatsoever that the discretion has to be exercised
  judiciously and not arbitrarily. But for the said purpose,
  the conduct of the plaintiff plays an important role. The
  Courts ordinarily would not grant any relief in favour of
E the person who approaches the court with a pair of dirty
  hands. [para 43] (794-H; 795-A]
       4.1 It is neither in doubt nor in dispute that rightly or
  wrongly allotments have been made in favour of a large
F number of allottees. Some of the allottees may be the
  Mujawars themselves or their nominees but it is stated
  that at least eight deeds of sale were executed on
  24.4.1984, prior to the institution of the r.ivil suit. All deeds
  of sale, therefore, were not hit by the doctrine of lis
G pendens. Even otherwise while exercising a discretionary
  jurisdiction as envisaged under Section 20 of the Specific
  Relief Act, the same fact should have been taken into
  consideration. [para 43] (794-F-G]                                  ••
      4.2 Keeping in view the peculiar facts and circums-
H tances of the case, the impugned judgment cannot be
        MOHAMMEDIA COOP. BUILDING SOC. LTD. v. L.S.             769
            COOP. BUILDING SOC. LTD. & ORS.
~
       sustained. They are set aside accordingly. [para 43] [795-C]    A
            5.1 The manner in which the Government and the
       Wakf Board as also the Mujawars acted requires to be
       seen. The State Government had issued GOMs No.343 as
       also the memo dated 25.10.1986. On what basis and under
       what provisions of law, it interfered with the functioning      B
-~     of the Wakf Board is not known. The manner in.which the
       purported transactions were entered into by and between
       the Mujawars and the plaintiff society, depict a sordid state
       of affairs. [para 44] [795-D-E]
                                                                       c
             5.2 More reprehensive is the conduct of the State as,
       despite issuance of GQMs No.343 and memo dated
       25.10.1986, no action has yet been taken. The State's
       jurisdiction in the matter is supervisory in nature. The
       State Wakf Board is a statutory body. It is the duty of the
                                                                     D
       State to oversee its functions. Why for 22 years, no
 >-    enquiry was conducted and why no action had been taken
       pursuant to the said GOMs dated 25.10.1986 is a matter of
       serious concern. The Government should have taken the
       purport of its orders and memos issued by it to their logical
       conclusion. They failed to do so. The State Government E
       would be well advised to cause an enquiry to be made
       into the entire affairs of the State Wakf Board and others
       concerned vis-a-vis the transactions carried out in the
       matter, albeit after giving an opportunity of hearing to the
       parties. The State Government would initiate appropriate F
-t     proceedings and take appropriate action against all
       concerned including its own officers as also those of the
       Board and Dargah and the allottees in the event they are
       found guilty. [para 44] [795-F-H; 796-A-D]
                                                                       G
           CIVIL APPELLATE JURISDICTION : Civil Appeal No.
       3329 of 2008 .
••
 _.J        From the final Judgment and Order dated 25.1 2007 of
       the High Court ot l>ndhra Pradesh at Hyderabad in A.S. No.
       686 of 2005.                                               H
    770        SUPREME COURT REPORTS                    (2008] 7 S.C.R.


A                                  WITH
          Civil Appeals No. 3337-3338 and 3339 of 2008.
        M.N. Rao, Jaideep Gupta, TR. Andhyarujina, l.V. Narayana,
  Nagendra Rai, TN. Rao, Manleet Kirpoal. Paramjeet Singh, A.
B Ramesh, D. Bharat Kumar, Anand, Aziz H. Laskar, M. lndrani,
  Abhijit Sengupta, Pratap Venugopal, Surekha Raman, Dileep
                                                                               )'
  P. (for M/s. K.J. John & Co.) GVR Chaudary, K. Shivraj
  Choudhuri, Manoj Saxena, Rajnish Singh, Rahul Singh, Krishnan
  Venugopal, Indra Makwana, TV. Ramna, TV. George, Vishal
c Arun, G.V. Chandrasekhar, N.K. Verma, Anjana Chandrashekar,
  Ravhavahiah, Javed M. Rao and A. Vinayangam Balan for the
  appearing parties.
          The Judgment of lhe Court was delivered by
          S.B. SINHA, J. 1. Leave granted.
0
       2. Application of the Wakf Act, 1954 and the Rules framed
  by the State of Andhra Pradesh as regards a suit for specific            '
  performance of contract is in question in this appeal which arises
  out of a judgment and order dated 25.1.2007 passed by a
E Division Bench of the High Court of Judicature at Andhra
  Pradesh at Hyderabad in AS No.686 of 2005, 743/05 and
  125/06.

          3. The property in question indisputably is a wakf property.
    It admeasures Ac.35.20 cents pertaining to Survey No.63 of
F   village Bhavanipuram in the town of Vijaywada. Vijaywada is
    one of the biggest commercial hubs in the State of Andhra              -+-
    Pradesh. There exists a Dargah known as Dargah of Hazrat
    Galib shaheed. Inter alia, on finding that the Mutwallis appointed
    for the said Dargah had not been performing their duties in a
G   proper and efficient manner. the Andhra Pradesh Wakf Board
    appointed respondent Nos.2 to 9 as 'Mujavars' by an order dated
    27 7 1973, stating
                                                                               ••
          "According to the enquiry report first cited, it is noted that   "
          the Dargah Hazrata Ghalab Shaheed at Bhavanipuram
H
         MOHAMMEDIA COOP. BUILDING SOC. LTD. v. L.S.                   771
        COOP BUILDING SOC. LTD. & ORS. (S.B. SINHA, J]

           village, Talaq, Krishna District; is a notified 'Nakf in the       A
           AP. Gazette Part II dated 28.6.1962. On page 710 and
           711 at Serial No.747. The total extent of land notified in
           the Gazette is 116 acres 11 cents. The notified Mutavallies
           are (1) Sri Abdul Khuddus (2) Sri Abdur Rahman and (3)
           Sri Abdul Hakeem...                                                B

           Among them the first Mutavalli was residing m Guntur. The
           second died and the third was seriously laid down with
           paralysis and not in a position to move out. None of them
           were performing legitimate duties unaer Section 36 and
           rendering services to the said Dargah Tt1erefore, it was           C
           proposed to initiate enquiry under Section 45 and to take
           action under Section 43 against the two living Mutavallies
           No.(1) and (3).

           As per latest report of the I.A fifth cited it is noted that the
                                                                              0
           living Mutavallies also died. Automatically. the post of fell
           vacant and therefore the enquiry has become fractious. In
           the circumstances, in view of the Resolution of D VV.C
           Krishna third cited and recommendation of the president
           D.W.C. Krishna sixth cited, I, the Secretary. A.P. Wakf            ::::
           Board in exercise of the Powers conferred on me through
           Resolution No.14/69 of the Wakf Board vi de A. P Gazette
           notification Part II dated 24.2. 1972 on page 205, under
           Section 43(2) of Wakf Act, hereby appoint the Managing
           Committee for managementof affairs of the said Dargah
           consisting of the following persons with immediate                 F
           effect :-

            1.       Sri Shaik Ibrahim                  President
            2       Sri Gulam Ali Akbar                 Secretary
            3.       Sri Mohd. lbranhim                 Treasurer             G


,   .
    ~
           4.
            5.
                     Sri Abdul Jaleel
                    Sri Mahd. Haneef
                    Sri Abdus Salam
                                                        Member
                                                        Member
                                                        Member
           6.
            7       Sri Abdul Waheed                    Member"               H
    772          SUPREME COURi REPORTS                  [2008] 7 S.C.R.


A           4. First respondent is a co-operative society. On or about
    2.8.1982, the respondent Nos.2 to 9 allegedly entered into an
    agreement for sale with the first respondent herein agreeing to
    transfer the said 35 acres 20 cents of land at a price of
    Rs:70,000/- per acre.
B       5. Allegedly, a sum of Rs.4,00,000/- in cash was paid as
    advance, a receipt wherefor is said to have been issued.

         6. It is also not in dispute that the authority, if any, on the
    part of the Mujavars to sell the said lands, were subject to
c   permission granted by the Wakf Board.

          7. On or about 25.2.1982, a notification was issued
    inviting objections within one month from the date of the said
    notification subject to confirmation by the Government which
    reads as under :
D
            "M/s. Srinivasa Cooperative Building Society (G.No.2705)
            Vijayawada, have offered to purchase an extent of Acres
            35.20 cents of the land bearing Sy.No.63 situated
            Bhavanipuram Village Vijayawada Taluk, Krishrta District,
            belonging to Dargah of Galib Shaheed Rs.70,000/- per
E           acre.

            The full particulars of the land are shown below:-
     I)      Nature and purpose of the             Sale for the
             Proposed transaction                  construction of
F                                                  the houses.
     II)     Amount of consideration                                       -+-
     1) a) Price in case of sale                   Rs.24,64.000/-
            b) Rental in case of lease
G    Ill)    Current Description of Properties :
     1)
     a)
     b)
             Agriculture Lands:
             Rs. No.     63
             Area : Acres 35.20 cents.
                                                                           ....
                                                                                  '   .
H    c)      Land Revenue Assessment               Rs.226.70
             MOHAMMEDIA COOP. BUILDING SOC. LTD. v. L.S.                   . 773
  ~         COOP. BUILDING SOC. LTD. & ORS. [S.B. SINHA, J.]

             d)      Boundaries :                                                  A
             i)      North:                        Galib Shaheed
                                                   Dargah and
                                                   MujaV;Jars Houses.

  ~
             ii)    Area:                          Housing Board Colony.
                                                                                   B
            iii)    East :                         Brahmin Ashram.

            iv)     West :                         Bhawanipuram
                                                   village Vijayawada
                                                   Taluk
                                                                                   c
            IV) Any encumbrances to which the properties relating to the
                proposed transaction are subject to NIL

            V)      This sale will be subject to the following conditions :

    ,).-           1)   That the sale is subject to the confirmation by the
                                                                                   D
                        Government.

                   2)   That the sale proceeds should be invested in a
                        Scheduled or Nationalized Bank in interest yielding
                        deposit.
                                                                                   E
                   3)   That the sale deed should be executed at the
                        expenses of the purchaser or purchasee.

                   4)   That the sale proceeds should be utilized for the 1
                        objects of Wakf and for re-building the corpus affected
  .......               by the transfer.                                           F
                   5)   That the sale proceeds shall not be utilized for raising
                        loans.

                   Any person having any interest in or objection to the
                   proposed transfer of Wakf property may file his or her G
                   representation to the Secretary. Andhra Pradesh Wakf
••--"·             Board within one month from the date of publication of this
                   Notification in the State/District Gazette. No representation
                   received after the expiry of the prescribed date will be
                   entertained."
                                                                                 H
    774        SUPREME COURT REPORTS                  (2008] 7 S.C.R.

A         8. Allegedly, upon publication of the said advertisement
    several co-operative societies made their respective offers. Th~
    offer made by the first respondent was said to have been
    accepted. It was communicated to the first respondent by a letter
    dated ~0.6.1982 purported to have been written by Shaik Syed
B   Hussain, IAS which is in the following terms :

          "After careful consideration of the subject, the Board has
          been pleased to grant permission to the Mujavars
          Association Dargah of Hazrath Galib Shaheed

c
          Bhavanipuram, Vijayawada to enter into an agreement in
          written to sell the land of an extent of Ac.35-20 cents in
          R.S. No.63 situated at Bhavanipuram, Vijayawada to the
                                                                            ..
          Lakshmi Srinivas Cooperative Building Society Ltd. G.
          No.2705 at Vijayawada at Rs.70,000/- per acre after taking
          an earnest money of not less than Rs.4,00,000/-. The
D         building Society may be addressed to come forth to enter
          into a written agreement on making payment of earnest             )
          money of Rs.4,00,000/- within a month. The agreement
          may be got drafted with usual terms and conditions of
          sale of wakf property. You are hereby instructed to obtain
E         permission from the urban ceiling authority for the sale of
          above said property."                                             .~·


         9. Only thereafter, the said agreement for sale dated
    2.8.1982 was executed. It was, however, contended by the
    appellant as also the respondent Nos.2 to 9 that the said
F   agreement was a forged document. It was furthermore
    contended that the said letter dated 30.6.1982 is also a forged
    document. Shaik Syed Hussain, IAS Officer examined himself
    before the learned Trial Judge as DW-6 the denied his
    signatures.
G
         10. It, however, appears that the Wakf Board purported to
    have resolved in a meeting held on 19.8.1982 that the offer of
    Rs.70,000/- was too low. It intended to secure better offer, at
                                                                        '   .
    least to the extent of Rs.100,000/- per acre in the following
    terms:
H
                                                                                •
 MOHAMMEDIA COOP. BUILDING SOC. LTD. v. L.S.              775
COOP. BUILDING SOC. LTD. & ORS. [S.S. SINHA, J.]

       "Item:                   Resolution No.120/82
    F.No.9134/H1/LA/           The proposal for the sale of
KST/81                         land belonging to Dargah
 Proposal       for     the    Hazrat Ghalib Shaheed, at
acquisition position of the    Bhavanipuram, Vijaywada          E
Dargah land in R.S. No.10      to Srinivasa Co-operative
Bhavanipuram for the           House Building Society,
purpose of class           I   Vijayawada               and
employees and Harijans of      Mohammadia Co-operative
Vijaywada Corporation-         House Building Society,          c
Reg.                           Vijaywada @ Rs.70,000/-
                               per acre was discussed
                               Janab Sultan Saheb,
                               Hon'ble Member informed
                               the Board that the offer of      D
                               Rs.70,000/- per acre was
                               too low and that he was sure
                               of getting better offer of not
                               less than Rs.1,00,000/- per
                               acre.                            E

                               RESOLVED to request
                               Janab R. Sultan Saheb,
                               Hon'ble Member of the
                               Board to visit Vijayawada to     F
                               secure better offer as
                               promised by him and place
                               the same in the next Board
                               meeting for consideration in
                               respect of Sy.No.63 and          G
                               Sy.No.10 of the land
                               belonging to Dargah
                               Hazarath Ghalib Shaheed
                               Rn. Vijaywada."
                                                                H
    776        SUPREME •'OUR- ' EPORTS                 [2008] 7 S.C.R.


A        11. One Noor Housing Society, made an offer at
    Rs.1,26,000/- per acre. Some correspondences had allegedly
    passed between the first respondent (plaintiff) arid the Wakf
    Board whereby and whereunder the first respondent is said to
    have raised its offer from Rs.70,000/- to Rs.1,00,000/- by a letter
B   dated 16.8.1982 and then to Rs.1,26,000/- by a letter dated
    23.10.1982, stating :

          "Our Society has given an offer to purchase the land
          belonging to Dargah Hazarat Ghalib Shaheed,
          Bhawanipuram, Vijayawada, O.S. No.63 to the extent of
c         35.20 acres at the rate of Rs.1,00,000/- (Rupees one lakh
          only) per acre. We also assure you that while allotting the
          plots to the members of our Society, we will give preference
          to Muslims.

          In this connection, I would like to submit that we are hereby
D
          revising our offer that is to say that our offer and make it
          Rs.1,26,000/- (Rupees one lakh twenty six thousand only)
          per acre. And, therefore, request you to please treat our
          offer as Rs.1,26,000/- (Rupees one lakh twenty six
          thousand) per acre.
E
          This offer is made without prejudices to our rights.

          Be pleased to consider."

          12. Appellant herein also said to have initially made an
F   offer of Rs.1,26,000/-. A bid was conducted wherein the appellant
    offered the highest bid of Rs.1,28,000/-.
          13. At this stage, the State of Andhra Pradesh intervened.
    It issued a Government Order bearing No. 773 on or about
    4.5.1983 which reads as under :
G
          "In the circumstances stated by the A.P. Wakf Board in the
          letters read above, Government have examined the matter         ••
          carefully and they hereby accord permission to A.P. Wakf
          Board to sell the land Ac.35-20 cents belonging to O;:irgah
          Hazrath Galib Shaheed in S.No.63 of Bhavanipurarn \v),
H
 MOHAMMEDIA COOP. BUILDING SOC. LTD. v. L.S.                 777
COOP. BUILDING SOC. LTD. & ORS. [S.B. SINHA, J.]

     Vijayawada Taluk, Krishna District to M/s. Mohammadia           A
     Co-operative Building Society, Vijayawada at
     Rs.1,28,000/- (Rupees one lakh twenty eight thousand
     only) per acre which is the highest bidder, subject to the
     following condition :
     (1) That the sale proceeds should be invested through           B
     the Secretary, Wakf Board in a scheduled or estimalised
     Bank in interest yielding deposit;

     (2) That the sale deed should be executed at the expense
     of the.purchaser or purchasers.                                 c
     (3) That the sale proceeds should be utilized exclusively
     for the subjects of said Wakf institution and also for re- .
     building the corpus effected by the transfer."
     14. A notification pursuant thereto was purported to have
                                                                   0
been issued on 26.5.1983. Allegedly, however, no advertisement
was issued prior thereto and, thus, no offer was called T~ '(et, a
purported sanction was granted.
      First Respondent questioned the said Government Order
No.773 dated 4.5.1983 by filing a writ petition. The said writ       E
petition was dismissed having become infructuous.
      15. The Government, however, in the mean time, purported
to have accorded sanction by issuing G.O. 773 dated 4.5.1983
to sell the said land in favour of the appellant society.
                                                                     F
     16. A deed of sale was thereafter executed by the
respondents 2 to 9 as also the Wakf Board in favour of the
appellant society.
        First Respondent contended that pursuant to the said
purported agreement for sale dated 2.8.1982, it had been put         G
in possession but it was threatened to be dispossessed, It, on
the said premise, filed a suit for permanent injunction which was
marked as O.S. No.200of1983. Allegedly, it was dispossessed.
It filed a suit for specific performance of the contract. The said
suit was marked as suit No.449 of 1984; the prayers made             H
    778         SUPREME COURT REPORTS                    [2008] 7 S.C.R.

A wherein were:
          "a)   For specific performance of the suit contract of sale
                dated 2.8.1982 against the defendant 1 to 9 and 13
                directing them all or these when the Court finds
                necessary and proper to execute and register sale
B               deed or deeds in favour of the plaintiff or its nominees
                at their expense for the plaint schedule property in
                whole or in parts as they choose, or in the alternative,
                if the defendant 1 to 9 and 13 refuse to do so, for a
                direction that the Court or any officer of the Court as
c               directed by the Court do so execute and register the
                sale deed or sale deeds.
          b)    In the alternative for recovery of possession of the
                plaint schedule property, if the plaintiff is found not to
                be in possession Added as per order in l.A.6980/91
D
                dated 24.6.1992.
          c)    For a permanent injunction contesting the defendants
                1 to 10 and 13 interfering with the plaint schedule
                property and plaintiff possession thereof;
E                                   and
                For costs of the suit and such other orders as are
                deemed jut and necessary."
         17. Although, the plaint proceeded on the basis that the
F first respondent was in possession, an amendment was carried
  out in the year 1992 'in terms whereof prayer 'B' was added.               ""'
  Both the suits were consolidated."
        18. Writ petition filed by Respondent No.1 was dismissed
G by a learned Single Judge by an order dated 28.8.1984. A writ
  appeal was preferred thereagainst wherein it was held that the
  issues were required to be decided by the Civil Court and, thus,
  it was not necessary to decide the same.                                     •~
          19. During the pendency of the suit, another Government
H Order was issued on 8.3.1985, giving time limit to sell the suit
            MOHAMMEDIA COOP. BUILDING SOC. LTD. v. L.S.                  779
           COOP. BUILDING SOC. LTD. & ORS. [S.B. SINHA, J.]

 ....J.    lands pursuant whereto lay out was approved and plots were A
           allotted.

                20. The learned Trial Judge by a juc;lgment and order dated
           19.10.2005 decreed the said OS No.449 of 1984, stating :

                "In the result, the suit"is decreed with costs holding th.at the B
                plaintiff is entitled for the relief of the Specific Performance
 .......        sale deed, dated 2.8.1982 on its depositing the balance
                sale consideration of Rs.20,64,000/- within ONE MONTH
                from this day and on such deposit 0.10 to 0.12 are directed
                to issue the necessary orders for execution of sale deed c
                in favour of the plaintiff required under the Wakf Act and
                ULC Act within 30 days after the plaintiff depositing the
                balance sale consideration and on receipt of such orders
                from the defendants 10 to 12, the defendant No.1
                represneted by its Mujavars and 0.13 to execute regular
                                                                                 D
                sale deed in favour of the plaintiff within ONE MONTH
                thereafter and deliver possession of the plaint schedule
                property to plaintiff and in default the plaintiff is at liberty
                to get the sale deed executed through the process of the
                Court. The 0.1 and its Mujavars with permission of 0.10
                are at liberty to substitute any other land other than plaint E
                schedule property to 0.13 society."
                 OS No.200 of 1983 was dismissed holding that the same
           was not maintainable as the plaintiff had already prayed for grant
           of relief for recovery of possession along with a decree for         F
           specific performance of the contract.
  >             21. Three appeals were preferred before the High Court
           thereagainst. They have been dismissed by reason of the
           impugned judgment.
                                                                                G
                  22. Before us, not only three separate appeals have been
           filed; one by the society, the second by Dargah of Hazarth Galib
           Shaheed and the third by the Wakf Board but also a large number
; I
      .I
           of applications have been filed for intervention and impleadment
           on behalf of the allottees.
                                                                                H
    780       SUPREME COURT REPORTS                   [2008] 7 S.C.R.


A         We may place on record that at one point of time, the first
    respondent filed an application for impleadment of the allottees
    who were about four hundred in number in the suit but the same
    was however, not pressed. Some of the allottees have allegedly
    purchased the land before 24.4.1984, i.e., prior to institution of
B   the suit. Most of the applicants, however, have purchased
    thereafter, namely, during the pendency of the suit. Appellant
    society also allotted lands in favour of Mujjavardars and/or their
    relatives.

        23. The State of Andhra Pradesh, however, itself issued
C G.O. No.343 on or about 25th October, 1986 stating that there
  had been no advertisement and as such the requirements of
  law as envisaged under the Act had not been complied with on
  the basis of the purported complaints received by it from various
  quarters. The Government examined the records of the Wakf
D Board and inter alia found that it was necessary to initiate an
  enquiry with regard to the matters specified therein. It also took
  notice of the fact that an enquiry had been pending before the
  Special Officer and the Competent Authority, Urban Land
  Ceilings, Vijayawada as also the fact that the interim orders
E had been passed by the High Court in writ appeal No.3191 of
  1984. It was directed :
          "4. Pending further enquiries into the above irregularities
          noticed and the allegations, Government after careful
          consideration hereby order that all further proceedings in
F         pursuance of the G.0.Ms. No.773, Revenue (Wakf)
          Department, at 4.5.1983 and G.O.Ms. No.250 Revenue
          (UC-1) Department, dated 8.3.1985 are be and hereby
          stayed.
          5. The Secretary, A.P. Wakf Board and the Secretary
G
          Jammat-e-Mujavars Association of Hazrath Galib
          Shaheed Dargah, Vi~yawada are directed to take
          immediate follow up action not to proceed further in
          pursuance of the above Government orders cited at 2nd          .'
          and 3rd above, pending enquiry by the approrpaite
       MOHAMMEDIA COOP. BUILDING SOC. LTD. v. L.S.                 781
      COOP. BUILDING SOC. LTD. & ORS. [S.B. SINHA, J.]

           authorities into the irregularities and the allegations A
           mentioned above, they will acknowledge the receipt of
           this memorandum by return of the post."
            24. However, the Government by a communication dated
      17.11.1992 purported to have directed that the necessary action
      may be initiated for cancellation of the orders of exemption 8
      issued in terms of G.O. No.250 dated 8.3.1985 stating that
      transactions are null and void in terms of the provisions of the
      Urban Land (Ceiling and Acquisition) Act, 1976. However, as
      noticed hereinbefore, admittedly, in the meantime, a deed of
      sale was executed on 20.4.1985 by the Wakf Board and the C
      Mujavars in favour of the appellant society. Indisputably, the
      respondent No.1 herein in the said O.S. No.449of1984 although
      proceeded on the basis that it was in possession of the lands in
      question, a prayer for amendment was made in the year 1992
      whereby and whereunder a decree for recovery of possession D
      of the plaint schedule property was prayed for and allowed by
      order dated 24.6.1992.
            25. The High Court in its judgment, inter alia, opined that
      as the fact that some of the Mujavars with their family members     E
      became members of the appellant society by itself indicates
      strong circumstances to hold that the majority of the Mujavars,
      the then Chairman of the Wakf Board and the President of the
      District Wakf Property have substantial interest in the plaint
      schedule property having been allotted plots not only for
      themselves but also for their family members and only for the       F
      said purpose the defendants tilted towards the appellants
      (defendant No.13 - society). It was furthermore held that the
      Mujavars were parties to the agreements although they made
      attempts to deny or dispute the same.
                                                                          G
             The contention that the permission granted by the
      Government stood canceUed upon taking into consideration
      GO Ms No.343 staying the operation of GO Ms No. 773 wherein
t i
      a large number of irregularities were recorded including the one
      that the Wakf Board did not follow the procedure laid down under    H
    782          SUPREME COURT REPORTS                  [2008] 7 S.C.R.


A Rule 12 of the Rules read with Section 36A of the Act was
  accepted. Deed of sale executed by the appellant society in
  favour of the allottees was also held to be hit by the doctrine of
  lis pendens. The sale transactions effected in favour of the
  appellant society were declared to be null and void and on the
B said premise, the contention that all transactions having already
  been completed, no further direction should be issued, was                 ,J..
  furthermore rejected.

          The High Court also took into consideration that exemptions
    had been granted in terms of Section 20 of the Urban Land
c   (Ceiling and Regulations) Act, 1976 to come to the conclusion :
          "It is well known principle of law that the suit relief can be
          moulded appropriately in order to do complete and
          efficacious justice in appropriate cases. No doubt, as a
          general principle, the Courts shall not grant the relief, which
D
          was not specifically sought for. But, in peculiar and
          exceptional facts and circumstances, like the present case,        "·
          it is justified and absolutely appropriate for the courts in
          order to do so substantial justice, while granting the
          required relief, to mould the relief appropriately, in the
E         interest of justice."
          The said appeals were dismissed on the aforementioned
    findings.
          26. Learned counsel for the appellants in all the three
F appeals, inter alia, would submit :

          (i)    The agreement of sale deed 2.8.1982 (Exh.A-31)             .....
                 was wholly illegal as Mujavars had no right, title or
                 interest to execute the same in terms of the provisions
                 of the Wakf Act, 1954 or otherwise.
G
          (ii)   The extended definition of 'Mujavars' as contained
                 in Section 3(4) was not applicable in the instant case
                 as the same had been brought into force by way of          ...
                                                                                  . ~



                 amendment in the year 1986 and, thus, they being
H                not Mutwallis, could not have exercised the same
            MOHAMMEDIA COOP. BUILDING SOC. LTD. v. L.S.                    783
           COOP. BUILDING SOC. LTD. & ORS. [S.B. SINHA, J.]

 ...J.                 power under the Act.                                       A

               (iii)   Section 36A of the Act postulates compliance of the
                       requirements of obtaining previous sanction of the
                       Board as regards the sale of wakf property, inter
                       alia, on its satisfaction that :
                                                                                  B
                       i)     It is necessary or beneficial to the wakf;
                       ii)    The sale is consistent with the objects of the
                              wakf; and
                       iii)   The consideration is reasonable and adequate        c
                              and the said requirements having not been
                              complied with, the same was illegal.
                       (iv)   Section 36A of the Act and Rule 12 of the Wakf
                              Rules being imperative in character, no deed
                              of sale could have been executed in violation D
                              thereof and in that view of the matter, the
                              impugned judgment cannot be sustained.
                       (v)    The purported letter dated 30.6.1982 issued
                              by the Chairman of the Wakf Board is an
                                                                                  E
                              outcome of forgery as the then incumbent of
                              the said Board while examining himself as OW-
                              6 categorically stated so.
                       (vi)   The purported order dated 30.6.1982 (Exhibit
                              A-49) is fabricated document and was not in         F
                              existence on the date of the agreement of sale
                              dated 2.8.1982, as :
                              (1)   no reference thereto was made in the
                                    agreement for sale;
                                                                                  G
                              (2)   The stamp papers were purchased on
                                    2.12.1981, i.e., eight months prior to
' ;                                 entering into the said agreement from
      _j                            Vyyuru, although the parties were residents
                                    of Vijayawada.
                                                                                  H
    784          SUPREME COURT REPORTS                  [2008] 7 S.C.R.

A         (vii) Both the courts below have committed a serious               )....

                illegality insofar as they failed to take into
                consideration the question as regards the validity of
                agreement (Exh.A-13), inter alia, in the light of Section
                17 of the Specific Relief Act, 1963
B
          (viii) The courts below should have held that the agreement
                 was executed under suspicious circumstances and            .......
                 in that view of the matter the relief of specific
                 performance being a discretionary relief should not
                 have been granted.
c
          (ix)   From various correspondences passed between the
                 parties, it was evident that the plaintiff society also
                 offered a bid of Rs.1,26,000/- per acre and on the
                 said premise the courts below should have held that
                 the first respondent was estopped and precluded
D
                 from contending contra.
          (x)    No action having been taken pursuant to the                '
                 purported notification dated 25.10.1986 as regards
                 the irregularities in the proceedings of Wakf Board;
E                the same could not have been formed the basis for
                 passing the impugned judgments, as G.O. No.773
                 was passed on wrong premises.
          (xi)   In view of the resolution of the Wakf Board dated
                 19.8.1982 that the offer of Rs.70,000/- was too low
F                and bid was invited to secure a better offer, the High
                 Court should have allowed the application for               ~
                 adduction of additional evidence.
          (xii) As the allottees were not parties to the suit, no decree
                for specific performance against them could have
G
                been granted.
          (xiii) There are intrinsic evidences on record to show that
                 the purported agreement for sale was a forged               '-
                                                                                      ''
                 document and no advance for a sum of Rs.4,00,000/
H                - have been or could have been paid by the plaintiff.
              MOHAMMEDIA COOP. BUILDING SOC. LTD. v. L.S.                   785
.....        COOP. BUILDING SOC. LTD. & ORS. [S.B. SINHA, J.]

                  27. Mr. Andhyarujina, learned senior counsel appearing           p.
             on behalf of the plaintiff-respondent, on the other hand, urged:

                  (1)    The property being belonging to a Dargah; the
                         Mujavars had the requisite authority to negotiate with
                         the plaintiff for the purpose of entering into an
_,.k                     agreement to sell which met the approval of the Wakf      B
                         Board. It is only after the agreement of sale dated
                         2.8.1982 was executed, the Mujavars and the Wakf
                         Board took side with the appellant society; and the
                         Mujavars started negotiating with appellant.
                                                                                   c
                  (2)    The Government of Andhra Pradesh having no
                         jurisdiction to pass any order under the Wakf Act
                         could not have passed the order dated 4.5.1983 as
                         contained in G.O. 773 and, thus, the same was per
                         se illegal.
  >
                                                                                   D
                  (3)     The purported notification dated 25.6.1983 having
                          been issued without any advertisement and without
                          inviting any objection therefor but despite such
                          illegalities, a sale deed was executed on 2.8.1982
                          by the Mujavars in favour of the appellant society and   E
                        . only in that view of the matter when the same having
                          come to the notice of the Government; GO No.343
                          dated 25.10.1986 was issued in terms whereof not
                          only the notification dated 26.5.1984 was found to
                          be bad in law but also the order of exemption from       F
  ->                      the operation of the Urban Land Ceiling Act the order
                          granting sanction was cancelled; the purported deed
                          of sale in favour of the appellant is bad in law.
                  (4)    OS No.200 of 1983 was filed only when attempts
                         were made by the appellant to dispossess the plaintiff G
                         but after issuance of the notification dated 26.5.1983,
>•                       the plaintiff had no other option but to file a suit for
        _;
                         specific performance of contract as also a writ
                         petition questioning the validity thereof and, thus, the
                         same was maintainable.                                   H
    786       SUPREME COURT REPORTS                  [2008] 7 S.C.R.


A       28. The property is a Wakf property. Its control and
  management in terms of the provisions of the Wakf Act, 1954
  (the Act) vested in the Wakf Board. The administration of the
  property, indisputably, was required to be made in terms of the
  provisions thereof, in view of the fact that the Act was enacted
B to provide for the better administration and supervision of the
  wakf.
        The term 'Mutwalli' is defined in Section 3(f) of the Act as
    under:

c       "3. Definitions:- In this Act, unless the context orhtewise
    requires-
          (f) 'mutawalli' means any person appointed either verbally
          or under any deed or instrument by which a wakf has been
          created or by a competent authority to be the mutawalli of
D         a wakf and includes any person who is a mutawalli or a         ~.

          wakf by virtue of any custom or who is a naib-mutawalli,
          khadim, mujawar, sajjadanashin, amin or other person
          appointed by a mutawalli to perform the duties of a
          mutawalli and, save as otherwise provided in this Act, any
E         person or Committee or Cotporation for the time being
          managing or administering any wakf or wakf property;
          Provided that no member of a Committee or Corporation
          shall be deemed to be mutawalli unless such member is
          an office bearer of such Committee or Corporation."
F
                                                                       ~-4,,
        29. However, Mujavars also have been brought within the
  purview of the said definition of Section 3 of Act 69 of 1984. A
  Mutawalli, however, must be appointed to perform the duties as
  prescribed which includes, as would appear from the said
  definition, a person or a Committee appointed for the time being
G
  managing or administering any wakf or wakf property.
       Whether the office of Mujavars, as per the said definition,
  stood on a different footing from the office of Mutawalli and
                                                                       .....
                                                                               .'
  Sajjadnashin and merely a person whose main duty was to take
H care of the shrine could act as a Mutawalli, is the question.
           MOHAMMEDIA COOP. BUILDING SOC. LTD. v. L.S.                   787
          COOP. BUILDING SOC. LTD. & ORS. [S.B. SINHA, J.]

                The Legislature, however, is entitled to expand the             A
          definition. Mujavars or a person or the Committee was included
          in the definition of Mutawalli only by reason of Act 69 of 1984.
          Mujavars, by reason of the said provisions, therefore, could not
          have, on the terms of their appointment, been held to be entitled
          to enter into an agreement for sale in favour of a third party.       B

                 Section 36 of the Act provides for the duties of Mutawalli,
          which are as under:

               "36. Duties of mutwallis :-It shall be the duty of
               mutawalli-                                                       c
               (a) to carry out the directions made by-

                     (i) the Board; or
                     (ii) the Wakf Commissioner :
                                                                                D
               In accordance with the provisions of this Act or of any rule
               or order made thereunder' shall be substituted;
               (b) To furnish such returns and supply such information or
               particulars as may from time to time be required by the
               Board or the Wakf Commissioner, as the case may be, in           E
               accordance with the provisions of this Act or of any rule or
               orders made thereunder.
               (c) to allow inspection of wakf properties, accounts or
               records or deeds and documents relating thereto;
                                                                                F
               (d) to discharge all public dues; and
               (e) to do any other act which he is lawfully required to do
               by or under this Act."
                30. Section 36A which was inserted by Act 34 of 1964 G
          provided for prior sanction of the Board before a wakf property
;   .
    _J.
          is transferred.
                 By Act 69 of 1984 such alienations are to be void. When
          an a·pplication for grant of sanction to transfer the Wakf property
          is filed by a Mutawalli, it is required to publish the particulars    H
    788        SUPREME COURT REPORTS                     [2008] 7 S C.R.
                                                                             ~

A   relating to transaction in the official Gazette and invite objections
    and suggestions in regard thereto and on receipt of such
    objections and suggestions, as also upon consideration thereof
    only, sanction could be accorded upon formation of the opinion
    that such transactions fulfill the criteria as laid down in clauses
B   (i) to (iii) of sub-section (2) of Section 36 of the Wakf Act.

          It is only when a sanction is granted, the sale is to be held
    by public auction. Such public auction shall also be subject to
    confirmation by the Board.

c         We are, however, not oblivious of the fact that the Board
    for reasons to be recorded in writing may permit sale otherwise
    than by public auction if it is of the opinion that it is necessary so
    to do in the interest of the wakf.
       A Mutawalli may have personal interest in the property. His
D power of transfer of the Wakf property would depend upon the
  terms of appointment. Once, however, the intervention of the
  Board becomes necessary in terms of the provisions of the Act,
  no sale transaction can take place unless the statutory
  requirements are complied with.
E      There appears to be something more than which meets
  the eye in the matter of grant of sanction for the agreement for
  sale dated 2.8.1982. The agreement for sale is titled 'Sale Deed
  cum Handed Over Possession Agreement'. We will assume
  that the said title to the transaction was thought of as purported
F possession was to be handed over in favour of the plaintiff                ,.
  society. It, however, appears that the name of Mujavars and, in
  particular, the name of Mujavar Gulam Ali Akbar is not the same
  as described in the cause title of the plaint. The number of
  Mujavars who were parties to the agreement and number of
G mujavars-defendants are different.

          31. The witnesses examined on behalf of the Mujavars,
                                                                             ~
                                                                                 ''
    Gulam Ali Akbar categorically denied and disputed that the
    agreement of sale was entered into after obtaining permission
    of the Wakf Board or possession of the major portion of the
H
                 MOHAMMEDIA COOP. BUILDING SOC. LTD. v. LS.                    789
                COOP. BUILDING SOC. LTD. & ORS. [S.B. SINHA, J.]

                property was handed over to the plaintiff society. 'Mujavars'         A
                appeared to have received the entire consideration in cash.
                Why in a transaction which was governed by a statute, such a
                huge amount was handed over in cash gives rise to a suspicion.
                There are documents on record to show that all the members of
       __.i..   the plaintiff society deposited a huge amount by cash only on a       B
                single date, namely 2.8.1982. The stamp paper for agreement
                for sale was purchased from Vyyuru on 2.12.1981 in favour of
                the President of the Plaintiff society.

                      The agreement refers to an application filed by the
                Committee before the Board dated 2.5.1981 and the rate                c
                offered by the plaintiff having been found to be the highest,
                statutory formalities were stated to have been gone through and
                the Wakf Board purported to have accorded permission to sell
-i              the properties described in the schedule appended thereto, in
           >    favour of the plaintiff-society.                                      D
                     32. The State of Andhra Pradesh, admittedly, framed Rules
                in exercise of its power conferred upon it under Section 67 of
                the Act.

 ,                   Rule 12 provides for the conditions and restrictions subject     E
                to which the Board may transfer a wakf property. Sub-rule (1)
                provides for an application by the Mutawalli before the Board in
                terms of Section 36A o the Act stating the particulars as
                specified therein.
           ~          Clause (6) of sub-rule (1) of Rule 12 of the Rules provides     F
                that "if the proposal is for sale or lease, the probable price or
                the rental as the case may be, that is expected" should be
                disclosed. Sub-rule (2) of Rule 12 provides for publication of
                the proposed transaction in theAndhra Pradesh Gazette as also
                the District Gazette in which the property is situated.               G

J'                    The notice in terms of sub-rule (2) of Rule 12 was to contain
            J
                sufficient details of the transaction and furthermore a reasonable
                time not being less than 30 days is to be specified from the
                date of publication of notice within which objections, claims or
       /                                                                              H
 _..
    790       SUPREME COURT REPORTS                   [2008] 7 S. C.R.
                                                                               .....
A suggestions may be sent. Only upon receipt of such suggestions
  and, objections, an order sanctioning an exchange, sale or
  mortgage or lease for a term exceeding three years, in addition
  should be communicated to the person(s) concerned. The same
                                                                                              "...:-,,
  is required to be published in the manner laid down in sub-rule
B (2) meaning thereby in the Andhra Pradesh Gazette as also the                ~
  District Gazette.
          33. It is beyond any doubt or dispute that the purported
    sanction has not been published in theAndhra Pradesh Gazette
    or the District Gazette. The purported order of sanction is in the
c   form of a letter purported to have been issued by the then
    Chairman of the Wakf Board. Ex facie, the said letter does not
    satisfy the statutory requirements.
                                                                                            ''"'
        34. Mr. Andhayarujina, however, submitted that publication                          I.II
  of the order of sanction in the Gazette is not mandatory but only
D                                                                              ~
  directory. We are unable to agree. By reason of the provisions
  of Section 36A of the Act, a prior sanction is imperative for
  effecting a sale transaction. Furthermore, Rule 12 specifies the
  manner in which such sanction is to be granted. Keeping in view
  the nature and purport for which the said provisions have been
E made, clearly goes to show that the Rules are imperative in                           J=
  character.
                                                                                            'I'"
        35. A mutwalli is a manager or trustee of the property.
  Mujavars were not even that. Mujavars, prior to the amendment
F of the Act, were not even authorized to enter into the agreement         ""-'
  for sale. That was not the purpose for which they were appointed.
  They were appointed as the Dargah in question was not being
  properly looked after and the then surviving Mutawallis failed
  and/or neglected to perform their statutory duties.
G       The functions of the Mutwalli and/or Mujavars in the light of
  the provisions of the Wakf Act and the Rules framed thereunder
                                                                               • "II._
  must be viewed in the context of the statute and on the basis of       ...
  the common concept. Mutwallis have no ownership right or
  estate in the Wakf property unless the deed of wakf says so.
H [See Bibi Saddiqa Fatima v. Saiyed Mohammad Mahmood
                                                                                       ;.
                 MOHAMMEDIA COOP. BUILDING SOC. LTD. v. LS.                     791
                COOP. BUILDING SOC. LTD. & ORS. [S.B. SINHA, J.]
         --',                                                             '
                Hasan [(1978) 3 SCC 299] and Nawab Zain Yar Jung (since A
                deceased) & Ors. v. Director of Endowments & Anr. [AIR 1963
                SC 985].
                     Furthermore, whert a _procedure is laid down for
                performance of a statutory function, the same must be done in
                the manner laid down therein. Sub-rule (3) of Rule 12 lays down        B
                that minimum 30 days time should be given for receipt of
                objection.
                      36. The learned trial judge as also the High Court, thus,
                committed a serious error in holding that as within a period of        c
                30 days, objections had not been received the notification issued
                under sub-rule (2) of Rule 12 b(JGame final. Furthermore, the
                then Chairman of the Wakf Board, Sheikh Sayed Hussain
                examined himself as DW-6. He, in no uncertain terms, stated
                that he was not the author of the letter dated 30.6.1982 (Exhibit
                                                                                  Di
                A-49).
                      The issue required serious considerations at the hands of
                the courts below keeping in view the fact that the suit filed by the
                plaintiffs was one for specific performance of contract. In any
                event, as the said purported letter dated 30.6.1982 was neither        E
                published in the Gazette nor was issued upon receipt of
                objections and offers from the other societies, the same could
                not have been treated to be a final order as envisaged under
                sub-rule (4) Rule 12 of the Rules. Furthermore, there are some
                intrinsic evidences to suggest that the said purported letter dated    F
     ..,...._   30.6.1982 was not in existence when the agreement for sale
                dated 2.8.1982 was entered into.
                      In ordinary course when the said letter had been issued,
                there was absolutely no reason as to why the mention of the
                same would not be made in the agreement of sale dated G
                2.8.1982. Even at an interlocutory stage of the proceeding
                before the learned trial judge, the Chairman, Wakf Board
.II! f
         ~      affirmed an affidavit to that effect, which was marked as Exhibit
                B-6. No sufficient explanation has been offered by the first
                respondent as to why the stamf-1 papers were purchased on ii


                                                   '   -
    792        SUPREME COURT REPORTS                      [2008] 7 S.C.R.


A 2.12.1981 when the agreement for sale was not even under
  contemplation.
          37. The High Court, furthermore, committed a serious error
    in premising its judgment on the basis of statement of DW 4,
    which read thus :
B
          ".... It is true to suggest that after obtai:iing permission
          from fl!e WakJ Board, we entered aareernerit with plaintiff
          under Ex.A31 1:0 se:1 ;i-,"" vroperty. it contains our
          signatures ... "
c       We have been taken through the deposition of Gulam Ali
    Akbar, DW-4. His statement before the trial court reads as
    under:
          "It is not true to suggest that after obtaining the permission
          from the Wakf Board, we entered into an agreement with
D
          the plaintiff under ExhibitA.31 to sell the property. It contains
          our signatures."
        38. It is possible, as contended by the learned counsel,
  that the words 'it contained our signatures' were in continuation
E of the sum1et>tion. The entire paragraph deals with suggestions
  only and, thus, it might not have been correct for the High Court
  to opine that there was an admission on the part of DW-4 that
  the agreement contained his and other Mujavars' signatures.
        39. It is also of some significance to note that the plaintiff
F society filed a writ petition before the Andhra Pradesh High Court
  for issuance of a writ of or in the nature of mandamus directing            "'--
  the Wakf Board not to accord any sanction to the Dargah Jamat-
  e-Mujavar of the Dargah-e-Shareef of Hazrath Galib Saheed
  Dargah for sale of the land in favour of the respondent.
G
        First respondent was, thus, aware of the provisions of the
  Act and the Rules and effect of non-compliance thereof. It would,
  therefore, not be correct in the aforementioned situation to opine
  that the said purported letter dated 30.6.1982 meet the
H requirements of law.
                                                                   ..   \




       MOHAMMEDIA COOP. BUILDING SOC. LTD. v. L.S.                      793
      COOP. BUILDING SOC. LTD. & ORS. [S.B. SINHA, J.]

          40. Section 17 of the Specific Relief Act, 1963 reads as            A
      under:
           "17. Contract to sell or let property by one who has
           no title, not specifically enforceable.-(1) A contract to
           sell or let any immovable property cannot be specifically
           enforced in favour of a vendor or lessor-                          8

           (a)   who, knowing not to have any title to the property,
                 has contracted to sell or let the property;
           (b)   who, though he entered into the contract believing
                 that he ha.cl a good title to the property, cannot at the    C
                 time fixed by the parties or by the court for the
                 completion of the sale or letting, give the purchaser
                 or lessee a title free from reasonable doubt.
           (2) The provisions of sub-section (1) shall also apply as          D
           far as may be, to contracts for the sale or hire of movable
           property."
           41. If Mujavars have no authority to sell the property, the
      agreement of sale could not have been directed to be
      specifically performed. In any event, as no permission had been E
      granted by the Wakf Board, the Courts below had commi~<ta .
      serious error in passing the impugned judgment ·' ·· · · .-

             42. We may, at this stage, also notice the reliefs prayed
      for in the plaint :
                                                                          F
           "a)   for specific performance of the suit contract of sale
                 dated 2.8.1982 against the defendant 1 to 9 and 13
                 directing them all or these when the Court finds
                 necessary and proper to execute and register sale
                 deed or deeds in favour of the plaintiff or its nominees G
                 at their expense for the plaint schedule property in
> I
                 whole or in parts as they choose, or in the alternative,
                 if the defendant 1 to 9 and 13 refuse to do so, for a
                 direction that the Court or any officer of the Court as
                 directed by the Court do so executed and register H
      794        SUPREME COURT REPORTS                     [2008] 7 S.C.R.


 A               the sale deed or sale deeds.
            b)   In the alternative of the pl lint schedule property, if tho
                 plaintiff is found not to be in possession Added as
                 per order in IA 6980/91 dated 24.6.1992.
  B         c)   For a permanent injunction contesting the defendants
                 1 to 10 and 13 interfering with the plaint schedule
                 property and plaintiff possession thereof."
         43. However, the learned trial Judge in its judgment
   directed the defendant Nos. 10 to 12 to execute the deed of
 C sale.

            There is a serious doubt as to whether the agreement
      dated 2.8.1982 as also the purported order dated 30.6.1986
      or the agreement were the genuine documents. In that view of
      the matter, the suit for specific performance of contract should
  0
      not have been decreed.
         In the suit, GOMs dated 26.5.1982 and 4.5.1983 were not
   under challenge. They might have been brought under animated
   suspension by GO Ms No.343 dated 25.10.1986 but prior
 E thereto, the suit had already been filed.
         Furthermore, it is neither in doubt nor in dispute that rightly
   or wrongly allotments have been made in favour of a large
   number of allottees. Some of the allottees may be the Mujavars
   themselves or their nominees but it is stated that at least eight
 F deeds of sale were executed prior to the institution of the Civil
   Suit, namely, 24.4.1984. All deeds of sale, therefore, were not
   hit by the doctrine of lis pendens. Even otherwise while
   exercising a discretionary jurisdiction as envisaged under
   Section 20 of the Specific Relief Act, the same fact should have
 G been taken into consideration.
              Grant of a decree for specific performance of contract is a
        discretionary relief. There cannot be any doubt whatsoever that
•'.. 't the discretion has to be exercised judiciously and not arbitrarily.
    H But for the said purpose, the conduct of the plaintiff plays an
                 MOHAMMEDIA COOP. BUILDING SOC. LTD. v. L.S.                  795
                CQOP. BUILDING SOC. LTD. & ORS. [S.B. SINHA, J.]

          ~
                important role. The Courts ordinarily would not grant any relief A
                in favour of the person who approaches the court with a pair of
                dirty hands.
                      It was also not a matter of total insignificance that the
                plaintiff society offered a bid of Rs.1,26,000/-. It was proved by
                Exhibit B-1 dated 23.10.1982. The said bid by the plaintiff, in      B
                absence of any finding that the same were forged and fabricated
                documents, could not have been ignored particularly when the
                difference between the rate o~ered by the plaintiff and that of
                the appellant was substantial.
                                                                                     c
                     Keeping in view the peculiar facts and circumstances of
~               the case, we are of the opinion that the impugned judgment
                cannot be sustained. They are set aside accordingly.
                      44. We, however, would be failing in our duties if we do
                not make any observations in regard to the manner in which the D
                Government and the Wakf Board as also the Mujavars acted.
         -°l"   The Government of Andhra Pradesh had issued GOMs No.343
                as also the memo dated 25.10.1986. On what basis and under
                what provisions of law, it interfer?d with the functioning of the
                Wakf Board is not known. The manner in which the purported E
                transactions were entered into by and between the Mujavars
~•
                and the plaintiff society, depict a sordid state of affairs.
                        More reprehensive is the conduct of the State as, despite
                issuance of GOMs No.343 and memo dated 25.10.1986, no
                action has yet been taken. The State's jurisdiction in the matter F
                is supervisory in nature. The AP Wakf Board is a statutory body.
         ~      It is the duty of the State to oversee its function's. The property
                belonging to a wakf cannot be permitted to be withered away at
                the instance of the office bearers of the Board or those in charge
                of the wakf. They being the trustees should act like trustees. G
                Why for 22 years, no enquiry was conducted and why no action
                had been taken pursuant to the said GO Ms dated 25.10.1986
     ~
                is a matter of serious concern to all concerned including the
         ,;     general public. Arguments had been advanced before us that
                the said notification was illegal. We do not and cannot go into H
    796        SUPREME COURT REPORTS                   [2008] 7 S.C.R.


A the said question. Our jurisdiction in this behalf is limited but the
  very fact that not only the trial Court but also the Division Bench
  of the High Court had adverse comments to offer as regards
  the Government Andhra Pradesh, A.P. Wakf Board as also
  Dargah are not matters which should be allowed to be given a
B decent burial. The Government should have taken the purport
  of its orders and memos issued by it to their logical conclusion.
  They failed to do so. We, therefore, are of the opiniorrthat the
  Government of Andhra Pradesh would be well advised to cause
  an enquiry to be made into the entire affairs of the Andhra
C Pradesh Wakf Board and others concerned vis-a-vis the
  transactions carried out in the matter, albeit after giving an
  opportunity of hearing to the parties. We expect that the
  Government of Andhra Pradesh would initiate appropriate
  proceedings and take such action or actions against all
  concerned including its own officers as also those of the Board
0
  and Dargah as also the allottees in the event they are found
  guilty.
       45. In view of the findings aforementioned. it is not
  necessary to pass any separate orders on the IAs for
E impleadment filed by the allottees.
           46 Appeals are, thus, allowed with no order as to costs.
    R.P.                                            Appeals allowed


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