NAHAR SINGHversusHARNAK SINGH AND ORS.
- Citation
- 1996 INSC 1245
- Decided
- 29 October 1996
- Disposal
- Dismissed
- Bench
- K RAMASWAMY
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
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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