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Supreme Court of India

NAHAR SINGHversusHARNAK SINGH AND ORS.

Citation
1996 INSC 1245
Decided
29 October 1996
Disposal
Dismissed

Holding

No decree for specific performance can be granted where the immovable property is not identifiable; the appeal is dismissed.

Summary

The appellant entered into an agreement of sale for immovable land that was described only in vague terms, lacking exact area, boundaries, and khasra numbers. The trial court granted specific performance without examining the identifiability of the property. On appeal, the lower appellate court held that the agreement was unidentifiable and deliberately undervalued to evade stamp duty, rendering it contrary to public policy and unenforceable. The High Court affirmed this finding, and the appellant sought special leave before the Supreme Court. The Supreme Court held that a decree for specific performance cannot be granted where the subject immovable property is not identifiable and declined to interfere with the lower courts' findings, dismissing the appeal.

Issues considered

  • Can specific performance be ordered when the subject immovable property is not specifically identifiable?
  • Is an agreement of sale that is deliberately undervalued to save stamp duty void as being opposed to public policy?
  • May the Supreme Court interfere with the findings of the lower appellate court under Article 136 in such a case?

Legislation cited

Subjects

specific performanceagreement of saleimmovable propertyidentifiabilitypublic policystamp duty evasioncivil procedureArticle 136

Judgment

                                NAHAR SINGH                                      A
                                        v.
                         HARNAK SINGH AND ORS.

                              OCTOBER 29, 1996

               [K. RAMASWAMY AND G.B. PATTANAIK, JJ.]                            B

          Specific Relief Act, 1963 :

          Immovable property-Agreement ofsale-Specific performance of-
    Trial Court without applying its mind regarding identifiability ofproperty
    granted decree in respect of same-However, first appellate court on          C
    examination of material on record came to positive conclusion that said
    agreement neither contained exact area of land to be sold nor boundaries,
    length, breadth, place from where it was to be measured and khasra numbers
    thereof-First Appellate Court also found said agreement was entered into
    to save stamp duty and registration fee and, therefore, opposed to public
                                                                                 D
-   policy and reliefofspecific performance could not be claimed-High Court
    dismissed second appeal-Held: Supreme Court's interference with findings
    of First Appellate Court as confirmed by High Court not called for-
    Constitution of India, ·Art. J36.

         Code of Civil Procedure, J908 :
                                                                                 E
         Immovable Property-Decree for recovery of-Held: Unless property
    was identifiable no decree could be granted in respect of same.

          The appellant entered into an agreement of sale of immovahle
    property with the respondent whereby the respondent agreed to sell
    his land for a sale consideration and agreed to execute the sale deed, F
    Part of the consideration was paid as earnest money and remaining
    amount was to be paid before the Sub Registrar at the time of
    registration of sale deed. As the respondent did not execute the sale
    deed the appellant tiled a suit for specific performance of the agreement
    of sale. The trial court decreed the suit. The Lower Appellate Court G
    held that the said agreement of sale was not enforceable and no specific
    performance of the said agreement could be ordered as the property
    in respect of which the agreement had been entered into was vague
    and unidentifiable. The Lower Appellate Court further found that
    the said agreement having been deliberately undervalued to save the
    stamp duty and registration fee, was void on the ground of public H
                                         13 1
    132                    SUPREME COURT REPORTS [1996] SUPP. 8 S.C.R.


A policy. The second appeal was dismissed by the High Court. Being
    aggrieved the appellant preferred the present appeal.                       L

          On behalf of the appellant it was contended that the Courts
    below not having found the agreement to be invalid, committed error
    in denying specific performance and, therefore, this Court should
B   interfere with the judgment and decree of the Lower Appellate Court
    as confirmed by the High Court in Second appeal.

       On behalf of the respondent it was contended that no court
  would pass a decree which ul',imately became unenforceable and,
C therefore, there was no infirmity with the judgment of the Lower
  Appellate Court as confirmed by the High Court

          Dismissing the appeal, this Court

          HELD : I. I. The Trial Court while decreeing the suit for specific
D performance never applied its mind to the identifiability of the property
    in question and on the basis of a finding that the parties had entered
    into an agreement and the respondent failed to perform his part,
    granted relief sought for in the suit. The Lower Appellate Court,
    however, examined the materials on record and came to the positive
E   conclusion that the agreement of sale neither contains the exact area
    of the land to be sold to the appellant, nor the boundaries thereof. The
    Lower Appellate Court further found that no length or breadth of the
    land have been given and it does not pin point the place from where
    it was to be measured and no khasra nos. had been given in the
    agreement. The Lower Appellate Court also found that the parties
F   entered into an agreement to save stamp duty and registration fee and
    the said agreement is thus opposed to the public policy and relief of
     specific performance cannot be claimed. (135-A-C]

          J.2. It is not for this Court to interfere with the decision of the
G Lower Appellate Court which has been confirmed by the High Court
    in Second Appeal in exercising power under Article 136 of the
    Constitution. It is well settled that unless the property in question for
    which the relief has been sought for is identifiable, no decree can be
    granted in respect of the same. (135-DI

H         CIVIL APPELLATE JURISDICTION: Civil Appeal No. 13388 of
               NAHAR SINGH v. HARNAK SINGH [PATTANAIK, J.]               133


    1996.                                                                      A
         From the Judgment and Order dated 9.5.95 of the Punjab and Haryana
    High Court in R.S.A. No. 220 of 1995.

            L.K. Gupta, A. Gupta and Dinesh Kumar Garg for the Appellant.
                                                                               B
            Harbans Lal and Ashok Kumar Mahajan for the Respondents.

            The Judgment of the Court was delivered by

            PATTANAIK. J. Delay condoned.
                                                                               c
            Leave granted.

           This Appeal by Special Leave is directed against the judgment dated
    May 9, 1995, of the High Court or Punjab and Haryana in Regular Second
    Appeal No. 220 of 1995. The appellant filed the suit for specific D
    performance of the agreement of sale dated 28.11.1984, alleging therein
    that the respondent had agreed to sell his land measuring 4 Bighas 15
    Biswas@ Rs. 7,500 per bigha and agreed to execute the sale deed by 15th
    June. 1985. Part of money was paid as earnest money and remaining amount
    of Rs. 23,000 was to be paid before the Sub Registrar at the time of
    registration of the sale deed. It was further alleged that Rs. 2.50 paise E
    were paid as writing charges of pronote and pronote was executed for Rs.
    11.050 but no amount was paid in cash to the appellant by the respondent
    as recited in the pronote. The appellant further uged that he was and is still
    ready and willing to perform his part of the contract but the respondent
    committed breach and did not execute the sale deed. And therefore, a suit F
    was filed for the relief of specific performance, as already stated. The
    respondent resisted the said suit by denying the allegations made in the
    plaint. It was further pleaded that the appellant had borrowed a sum of Rs.
    I l ,050 from the respondent and executed a pronote and therefore, he had
    filed a suit for recovery of the amount alongwith interest which had been

.   registered as suit no. 463 of l 987. He accordingly prayed for dismissal of G
    suit for specific performance. In the suit filed by Harnak Singh for
    realisation of the sum of Rs. 11,050 togetherwith the interest thereon,
    Nahar Singh took the plea that he had never taken any money as alleged
    and never executed any pronote. Both these suits were tried together and
    disposed of by a common judgment dated 31.1.l 990. The suit filed by
    Harnak Singh for recovery of money was dismissed (Civil Suit No. 463 H
    134                     SUPREME COURT REPORTS [1996] SUPP. 8 S.C.R.


A of 1987), the suit filed for specific performance by Nahar Singh was
    decreed (Civil Suit No.181 of 1988) Two appeals were preferred by Harnak
    Singh and the learned Additional District Judge, Sangrur by his judgment
    dated 13th September, 1994 came to hold that the agreement dated
    28.11.1984 (Exhibit D l) is not enforceable and no specific performance
    of the said agreement can be ordered as the property in respect of which
B   the agreement had been entered into is vague and unidentifiable. He further
    found that the said agreement Exhibit DI having been deliberately
    undervalued to save the stamp duty and registration fee, is void on the
    ground of public policy.

          So far as the suit filed by Harnak Singh for recovery of money is
C   concerned, the Lower Appellate Court affirmed the findings of the Trial
    Judge and confirmed the dismissal of the suit for recovery of the money
    of the basis of the alleged pronote. Thus the Lower Appellate Court
    ultimately dismissed both the suits. Regular Second Appeal having been
    carried to the High Court the High Court agreed with the conclusion of
    the Lower Appellate Court with regard to the vagueness of the property in
D   respect of which the agreement had been entered into and therefore,
    dismissed the Second Appeal, and thus the present Appeal by Special Leave.

         The learned counsel fm the appellant vehmently argued that the
  parties having been entered into an agreement whereunder the respondent
  agreed to execute the sale deed in respect of the property in question and
E the Courts below not having found the agreement to be invalid, committed
  error in denying the relief of specific performance and, therefore, this
  Court should interfere with the judgment and decree of the Lower Appellate
  Court as confirmed by the High Court in Second Appeal, so far as it
  relates to the suit for specific performance. The learned counsel for the
F respondents, on the other hand contended, that the findings of the Lower
  Appellate Court that the agreement in question was vague and the property
  for which the agreement had been entered into cannot be identifiable remain
  unassailable and as such the lower Appellate Court was wholly justified in
  dismissing the said suit. According to the learned counsel for the respondents
   no court would pass a decree which ultimately become unenforceable and,
G therefore, there is no infirmity with the judgment of the Lower Appellate
   Court which has been confirmed by the High Court in the Second Appeal.
   In view of the rival submissions at the Bar the only question that arises for
                                                                                   .
   consideration is whether the Lower Appellate Court and the High Court
   were right in refusing the grant of specific performance on the finding
   that the property for which the agreement is said to have been entered into
H is vague and unidentifiable. It is seen that the trial Judge while decreeing
              NAHARSJNGHv. HARNAKSINGH[PATTANAIK,J.]                           135


    the suit for specific performance never applied his mind to the indentifibility   A
;   of the property in question and on the basis of a finding that the parties
    had entered into an agreement and the respondents failed to perform its
    part, granted the relief sought for in the suit. The Lower Appellate Court,
    however, examined the materials on record and came to the positive
    conclusion that the agreement Exhibit DI neither contains the exact area
    of the land to be sold to Nahar Singh, nor the boundaries thereof. He             B
    further found that no length or breadth of the land has been given and it
    does not pin point the place from where it was to be measured and though
    Nahar Singh had claimed right from Khasra numbers 435 and 436 but the
    said Khasra nos. had not been given into he agreement Exhibit DI. The
    Lower Appellate Court also found that the parties entered into an agreement
    to save stamp duty and registration fee and the said agreement is thus            C
    opposed to the public policy and relief of specific performance cannot be
    claimed.

          In view of the aforesaid findings of the Lower Appellate Court which
    could not be assailed before us by the learned counsel for the appellant, it
    is not for this Court to interfere with the decision of the Lower Appellate       D
    Court which has been confirmed by the High Court in Second Appeal in
    exercising power under Article 136 of the Constitution. It is well settled
    that unless the property in question for which the relief has been sought
    for is identifiable, no decree can be granted in respect of the same. The
    learned counsel in the course of his arguments, however, not been able to
    dislodge the findings arrived at by the Lower Appellate Court merely              E
    urged that the agreement having been found to have been entered into
    between the parties the Court should issue the direction for enforcement
    of the same. We are unable to agree with this argument of the learned
    counsel for the appellant.

          In the premises, as aforesaid, we are of the considered opinion that
                                                                                      F
    the case does not warrant interference under Article 136 of the Constitution
    and is accordingly dismissed. But in the circumstances, there will be no
    order as to costs.

    v.s.s.                                                     Appeal dismissed.      G


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