High CourtDivision BenchAppeal dismissed.

JAGDISH CHANDER (DEAD) BY L. RS. v. BRIJ MOHAN & ORS.

Case / Petition Number:Civil Appeal No. 1946 of 1970
Neutral Citation:1978 (2) SCR 807

Case Details & Bench

Court
High Court
Hon'ble Judges
  • S. Murtaza Fazal Ali
  • P. N. Shinghal
Judgment Date
1978-02-06
Court Decision / Holding
Appeal dismissed.
Final Disposition
Appeal dismissed.

Parties to the Case

Appellants / Petitioners

  • Jagdish Chander

Respondents

  • Brij Mohan and others

Legal Representation & Advocates

Counsels for Petitioners

  • • S. C. Manchanda
  • • S. T. Aneja

Counsels for Respondents

  • • M. S. Gupta
  • • I. S. Sawhney

Case Synopsis & Summary

Jagdish Chander v. Brij Mohan and others concerns a suit for specific performance tied to a repurchase right in a land transaction. Jagdish Chander purchased lands from Ata Ilahi Khan in 1968, who had agreed to reconvey the land on payment within five years. In 1958, Ata Ilahi Khan transferred his right of repurchase to Bir Narain, and in 1962 he again sold the repurchase right to Brij Mohan and Chandrapal Singh (plaintiffs). The plaintiffs moved for specific performance to enforce the vendor’s repurchase option against Jagdish Chander. The trial court dismissed; the District Judge allowed the suit and decreed in plaintiffs’ favor; the Allahabad High Court affirmed. The defendant appealed to the Supreme Court by special leave. The core issues were whether Bir Narain’s prior transfer could defeat the repurchase right and whether Section 154 of the UP Zamindari Abolition and Land Reforms Act barred enforcement based on landholdings. The Supreme Court held that it could not scrutinize the trial court’s factual findings in a special-leave appeal and overruled the first contention that Bir Narain’s title invalidated the repurchase right. It also held that, on the facts, Section 154 did not arise. Consequently, the appeal was dismissed and the lower decree for specific performance stood, preserving the plaintiffs’ relief.

Provisions of Law Cited

Transfer of Property Act, 1882, ss. 6, 1955(2) read with ss. 15 and 17 of the Specific Relief ActU.P. Zamindari Abolition and Land Reforms Act, 1950, s. 154Constitution of India, Article 136

Legal Doctrines & Maxims

  • Non-liquet

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contended that the vendor Ata Ilahi Khan’s transfer of his right of repurchase to Bir Narain in 1958 left no enforceable right of repurchase in 1962 for the plaintiffs through subsequent transfers. Relying on the earlier transfer, he argued Bir Narain’s title was void and the suit for specific performance could not be sustained. He further urged that, since the transferees did not hold land beyond the statutory ceiling, Section 154 of the UP Zamindari Abolition and Land Reforms Act did not permit enforcement. He also pressed that the High Court’s factual findings should not be re-examined in a special-leave appeal under Article 136.

Contentions of Respondents

The respondents argued that the District Judge’s findings regarding the validity (or non-validity) of Bir Narain’s transfer and the enforceability of the repurchase right should stand; they relied on the written instrument of repurchase and subsequent conveyances to claim specific performance. They asserted that Section 154 did not bar enforcement on the facts since the relevant landholding thresholds were not satisfied, and the court should exercise discretion to grant specific performance consistent with the contract.

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Extracted Judgment Text

Exact text extracted from official judgment records.

, . •• J B ### c D E F ,. 805 JAGDISH CHANDER (DEAD) BY L. RS. _v._ BRIJ MOHAN & ORS. _February_ 6, 1978 [S. MURTAZA FAZAL ALI AND P. N. SHINGHAL, JJ.] _Transfer_ _of_ _Prosperty_ _Act,_ _(Act_ 4 _of_ 1882) _ss._ 6, 1955 (2) _read with ss._ 15 _a11d_ 17 _of_ _tl1e Specific Relief_ _Act-Contract_ _of_ _agreement_ _to repurchase_ _the_ _lands, assig11ability-Whetlier specific performance can lie._ _U.P. Zamindari Abolitio11 and_ _La11d_ _Reforms,_ _Act_ 1950, _s._ _154-Restric-_ _tions_ _on_ _the transfer_ _by_ _a_ _Bhumidari-Powers_ _of_ _the Court_ _to_ _exercise_ _its_ _dis-_ _cretion_ _in_ _passing the decree for specific performance._ One Ata-llahi Khan executed a sale deed in favour of the appe1lant, Shri Jagdish Chander on 12-7-1968 and the !!litter took possession of the suit lands. Oa the same da~ by an agreement, Jagdish Chander agreed to reconvey the suit lands specifically to Ata-Illahi Khan or bis heirs, if the amount of consideratioo was repa.id to him within a period of five years. On 18-12-195?, Ata-flahi Khan transferred his right to repurchase through a sale deed m favour of one Bir Narain and others. Thereafter, Ata-.Ilahi again transferred his right ttJ repurchase through another sa.le deed dated 21-7-1962 in favour of the plaintiffs-respondents. :rhe sui• for specific performance filed by the respondents on the basis of' the sale deed' da.ted 21-7-1962 failed. But the first appellate Court reversed the judgment of the trial Court and decreed the suit The H igh Court affirmed the said appellate judgment. Dismissing the appeal by special leave, the Court. _HEW_ : 1. Supreme Court cannot go behind the findings of fact in appeal by special leave under Art. 136. [807 D-E] In the instant case, the right to repurchase did not vest in Bir Narain and others as per the sale deed daM:d 18-12-1958 in their favour but with the plaintiffs. [807 E] 2. Before s. 154 of the U.P. Zamindari Abolition and Land Reforms Act 1950 can apply, it must be found as a fact that the person to whom the property is transferred must have held an aggregate of 12t acres or 30 acres as the case may be at the relevant period. [807 G-H] ln the ·instant case the plaintiffs did not have lands exceeding 12! acres s<? as to fall within the mischief of s. 154 of the Act. [807 H, 808 A-BJ [The Court applied "non-liquet" as to whether ~he Courts below should have exercised their discretion to passing a decree for specific performance] CivrL APPELLATE JURISDICTION : Civil Appeal No. 1946 of 1970. Appeal by Special Leave from .the Judgment and Order dated G 15-5-1969 of the Allahabad High Court in Second Appeal No. 2653 ·Of 1967. _S._ C. _Manchanda_ and _S._ _T._ _Aneja_ for the Appe11ants. _M. S. Gupta_ for Respondents Nos. 1 and 2. _I. S. Sawhney_ for Respondent No. 3. TI1e Judgment of the Court was delivered by 13-119 SCI/78 H ~06 SUPREME COURT REPORTS [1978] 2 S.C.R. A FAZAL ALI, J. This is a defendant's appeal by special leave and is directed against the judgment dated 15th May, 1969 of the Allahabad High Court upholding the decree passed by the District Judge in favour of the plaintiff for specific performance of a contract of sale : ..... # - . ....... B ### c ##### n E F H Mr. Manchanda, learned counsel, appearing for the appellant submitted two points before us. In the first place, he urged that in view -of a prior sale deed executed by Ata Ilahi Khan in favour of Bir Narain and others dated 18th December, 1958, the vendor had no right to execute a sale of the right of repurchase on 21st July, 1962 in favour of the plaintiffs, because the vendor had parted with his title in favour of Bir Narain and if he had sold anything to the plaintiffs it was merely a bag of wind. So far as this point is concerned, the District Judge reversed the finding arrived at by the trial Court and came to a finding The facts of the case lie within a very narrow compass and may be briefly stated thus. The defendant J agdish Chander purchased the lands in dispute for a consideration of Rs. 6000/- by a sale deed dated 12th July, 1958 including the Bhumidhari land fFom Ata Ilahi Khan who was the proprietor of the said lands. The sale deed in favour of the defendant Jagdish Chander contained a stipulation that the vendor would be entitled to repurchase the property for the consideration mentioned in the sale deed within five years from the date of the execution of the sale deed. On 18th December, 1958 Ata Ilahi Khan sold his right of repurchase of the land under the sale deed above mentioned to Bir Narain, Mangal Singh and Mukanda Singh. Thereafter, a few years later on 21st May, 1962 Ata Ilabi Khan again sold his right of repurchase in respect of the aforesaid property to Brij Mohan and Chandrapal Singh, plaintiffs No. 1 & 2. It would thus be seen that while selling the property to the defendant Jagdish Chander Ata Ilahi Khan had clearly incorporated an agreement to reseµ. the land within five years on payment of the consideration of the sale deed itseH. Armed with the sale deed executed by _Am_ Ilahi Khan in favour of the plaintiffs, the respondents filed the present suit for specific performance of the contract of sale contained in the sale deed executed by Ata Jlahi Khan in favour of the defendant Jagdish Chander. The plaintiffs sought to enforce that part of the contract which contained the right of the vendor to repurchase the property from Jagdish Chander within five years. The suit was tried by the Second Additional Civil Judge, Muzaffarnagar who dismissed the suit holding that the plaintiff's sale deed was not legally enforceable. The plaintiffs then filed an appeal to the Court of the District Judge. Muzaffarnagar against the judgment of the Additional Civil Judge. The District Judge disagreed with the view taken by the trial Court.and decreed the plaintiffs' suit holding that the agreement relied upon by the plaintiffs was capable of b~ing enforced The defendant Jagdish Chander unsuccessfully preferred an appeal to . ## /--###### • the High Court which was dismissed and the decree of the District Judge was upheld by the High Court. Thereafter, the plaintiffs. came upto this Court and after being granted special leave the present appeal has been placed before us for hearing. .JAGDISH CHANDER _v._ BRIJ MOHAN _(Fazal_ _Ali,_ _J.)_ 8 0 7 of fact that the sale deed in favour of Bir .Narain was a sham transac- A tion and did not pass any title to the vendees Bir Narain and others. The District Judge further held that Bir Narain himself appeared as a witness in the suit and clearly deposed that he had surrendered his interest and had no title at all. In this connection, the District Judge #### observed as follows : "When once, it has been found that Bir Narain and B others had no valid transfer made in their favour because of the want of a title to convey in their vandor, it is too much to say that they would be possessing the right to take back the land in the consequence of repurchase ........... . Further, the three vendees, Bir Narain, Mukanda Singh and Manga!- Singh, were the attesting witnesses of the sale deed #### which specifically stated that whatever rights they possessed c under the sale deed dated 20th December, 1958 had been ###### relinquished or surrendered ... ....... then Bir Narain (P.W. 5) has declared on sworn testimony that he and the other vendees had acquired any right under the sale deed Ex.A-20 it is .difficult to accept the respondent's contention that the right to repurchase vested in Bir Narain and others. In that view the finding of the learned D Additional Civil Judge is in correct". This finding of fact has been affirmed by the High Court and it is not possible for us to go behind these findings of fact in this appeal by special leave. For these reasons, therefore, the first contention raised by the learned counsel for the appellant must be overruled. E F G **H** l Another point of law which has been argned by counsel for the appellant was that as Ala Ilahi Khan or the plaintiffs were possessed of the Bhumidhari land which exceeded the limit of 12t acres, the sale was invalid under the provisions of section 154 of the U.P. Zamindari Abolition and Land Reforms Act, 1950 (hereinafter referred to as the Act). Section 154 of the Act as it stood when the transaction was entered ra,n thus : "154. Restrictions on the transfer by a bhumidhar: (1) Save as provided in sub-sections (2) and (3). no bhumidhar shall have rights to transfer by sale or gift, any land other than tea gardens to any person other than an institution established for a charitable purpose, where such person shall, as a result of the sale or gift, become entitled to land which together with land, if any, held by himself or together with his family, will in the aggregate, exceed 12} acres in Uttar Pradesh". It is manifest that before the section can apply it must be found as a fact that th_e person to whom the property is transferred must have held an aggregate of 12t acres of land in U. P. which was increased to · 30 acres at the relevant period. Tn the instant case, the District Judge has returned another . finding of fact that the defendant was not able to show by producing the khatauni or any other document that the plaintiffs No. 1 and 2 who were the transferees had land A B 808 SUPREME COURT REPORTS [1978] 2 S.C.R. exceeding 12! acres. In tllis connection, the District Judge found as follows: "On the point of fact as well, the plea is not snpported by evidence. The defendant did not produce the Khatauni to prove that the plaintiffs No. 1 and 2 would, in the result of the sale deed become entitled to land exceeding 12! acres". Thus, on the finding of fact recorded by the District Judge and as affirmed by the High Court, it was established that the transferees, namely, the plaintiffs did not have lands exceeding 12! acres so as to fall within the mischief of section 154 of the Act. In this view of the matter the second contention raised by counsel for the appellant also ##### c fails and it is not necessary for us to examine further the consequences of violation of the provisions of section 154 of the Act. Mr. Manchanda submitted that in view of the statutory prohibition contained in section 154 of the Act, the court would not exercise its discretion for enforcing the contract which is prohibited by law. In view, however, of the finding of fact referred to above that the total bhumidhari land possessed by the plaintiffs did not exceed 12! acres, or 30 acres, as the case D · may be, the question of application of section 154 of the Act does not arise, and, therefore, it is not necessary.for us at all to go into the question as whether or not the conrt sqould have exercised its discretion in passing a decree for specific performance. The result is that the contentions raised by Mr. Manchanda fail and the appeal is dismissed, bnt in the circumstances without any order as to costs. S.R. _Appeal dismissed._