Bombay High Court High Court

Smt.Tulsabai W vs 3) Mh.L.J. 521. Learned Advocate on 11 August, 2010

Bombay High Court
Smt.Tulsabai W vs 3) Mh.L.J. 521. Learned Advocate on 11 August, 2010
Bench: A.P. Bhangale
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                               IN THE HIGH COURT OF JUDICATURE AT BOMBAY




                                                                                                                   
                                     BENCH AT NAGPUR, NAGPUR.

                                      SECOND APPEAL NO.    440 /2008




                                                                                     
    Smt.Tulsabai  wd/o  Ramkrishna  Avatade
    Aged about 51 years,  occu: Cultivator




                                                                                    
    R/o Khadaki (Bu), Tah.Maregaon
    Dist. Yavatmal.
    ( Ori. Defendant No.10                                                    ...               ...APPELLANT




                                                                    
                      v e r s u s        
    1.                Smt. Rajani  wd/o Rajkumar Punyani
                                        
                      Aged 56 years, occu: service
                      R/o Station Road, Yavatmal
                      Dist. Yavatmal C/o Office of 
                      District Superintendent of Police, Yavatmal
                      (Ori.Plaintiff)
       


    2.                Gopichand  s/o Rajkumar Punyani
    



                      Aged   about 36 years,  occu: Business
                      R/o Shivaji Nagar Yavatmal
                      Dist. Yavatmal
                      (Ori.Defendant No.2).               ..                                     ...RESPONDENTS





    ............................................................................................................................
                        Mr. K.S. Narwade,  Advocate for appellant
                        Mr. A. M. Deshmukh,   Advocate  for Respondents
    ------------------------------------------------------------------------------------------------------------





                                                            CORAM:   A.P.BHANGALE, J.
                                                            DATED :   11th  August, 2010

     JUDGMENT :   

This Second Appeal was admitted on 24th September, 2009 on

the following substantial question of law :-

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“Whether the counter-claim for specific performance of

contract could be said to be barred by limitation?”

2. This Appeal is at the instance of original defendant no.1

challenging the judgment and order dated 17th July, 2008 passed by

learned District Judge-1 at Pandharakwada in Regular Civil Appeal

No.77/2003 which was dismissed. The said appeal stems from

judgment and decree passed on 3rd September, 2001 by learned Joint

Civil Judge, Senior Division, Yavatmal in Special Civil Suit No.

95/1991.

3. The plaintiff had instituted the suit for possession, damages

and costs of the suit on the ground that the plaintiff is the owner of the

land bearing Gat No. 53 ( Old S.No. 34) admeasuring 4H 31R situated

at village Khadaki, Taluqa: Maregaon, Dist. Yavatmal. The suit land

was originally allotted in favour of one Shri Rajkumar Punyani, husband

of the plaintiff some in 1967-68, by the Government. After death of

Rajkumar Punyani, the plaintiff and her son (ori. Defendant no.2)

became owner of the suit property and were cultivating as Class II

occupants. The suit land could not be alienated or sold without prior

permission of the Government. In 1995 first defendant’s brother was

assigned the work of summer season (unhalwai) on payment of charges;

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but he took disadvantage and cultivated the suit land and inducted

name of first defendant, who took forcible possession pleading that she

has purchased under an agreement to sell and cultivated the land on

that pretext. First defendant contended that there was an oral agreement

to sell the suit land and price of suit was agreed at Rs. 49,000/-;

whereas Rs. 36,000/- was paid by way of an earnest money and

possession of land was handed over to her, while she agreed to pay Rs.

13,000/- at the time of sale deed pursuant to agreement to sell dated

25.5.1992. Later on, it was agreed on 29.4.1994 to obtain permission

of the Collector so as to execute the sale deed as plaintiff’s husband

was Class II occupant. The permission sought was, however, rejected.

4. The trial Court after dissecting the evidence led before it,

found that the plaintiff and second defendant agreed to sell the suit field

to first defendant and that she had paid earnest money in the sum of Rs.

36,000/- to the plaintiff and her son ( defendant no.2). The trial Court

disbelieved the case of the first defendant that she was put in

possession of the suit land pursuant to an agreement to sell. The trial

Court also negatived the case of the first defendant for specific

performance and alternate case for refund of Rs. 36,000/- and decreed

suit of the plaintiff for possession of suit land and also directed inquiry

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into mesne profits. The trial Court rejected the counter-claim of first

defendant.

5. The Appeal under section 96 of the Civil Procedure Code filed

by first defendant being Regular Civil Appeal No. 77/2003 was also

dismissed as lower Appellate Court recorded concurrent findings of

facts.

6. I have heard submissions at the Bar from rival Advocates.

7. Mr. K S Narwade, learned Advocate for appellant ( Ori. first

defendant ) submitted that the Second Appeal can be heard on the

basis of substantial question of law stated in the memorandum of

appeal although the Court may have failed to formulate it, once the

Court is satisfied that the case involved substantial question of law. He

relied upon single Judge Bench ruling reported in Bapu Khanu

Dhangar & others vs. Gundu Santu Dhangar { Through LRs} : 2001

(3) Mh.L.J. 521. Learned Advocate, further, argued that the counter-

claim by the first defendant ought to have been allowed for specific

performance of the agreement as the first defendant was put in

possession of the suit property pursuant to an agreement to sell and it

was for the vendor to obtain prior permission of the Collector to transfer

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the suit land to the first defendant. He further made reference to

following rulings :-

                 (i)           Nathulal vs. Phoolchand:




                                                             
                               AIR 1970 SC 546
                 (ii)         Rojasara Ramjibhai Dahyabhai  vs. Jani 
                              Narottamdas {Through LRs }: AIR 1986  SC 1912;




                                                  
                 (iii)        M.A. Jabbar  & another vs. Life Insurance 

Corporation Housing Building Employees Society:

2000 AIHC 2761 (AP).

Learned Advocate Shri Narwade, argued that in a contract if

specific date for performance is fixed, Art. 113 of the Limitation Act

1963, (hereinafter referred to as the “Act of 1963”) would be attracted

and not Art. 54 of the Act of 1963.

8. Per contra, Mr Deshmukh, learned Advocate for the

respondents opposed with vim and vigour the submissions on behalf

of the appellant on the ground the alleged agreement to sell was entered

into on 25.5.1992 on the pretext that the plaintiff had agreed to sell

suit land to first defendant. The counter -claim filed on 18.10.1999 in

the suit to claim specific performance of the agreement was hopelessly

barred by Art. 113 of the Act of 1963 as sale deed was to be executed

in the year 1993 and possession was to be given earlier. The

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possession was never given by the plaintiff in 1991 and therefore, for

the first defendant, there was no question of claiming benefit of the

doctrine of possession given in part performance of the agreement to

sell. Learned Advocate for the respondents contended that in the facts

and circumstances of the present case, the rulings relied upon by

learned Advocate for the appellants are not at all attracted, for the

simple reason that the counter-claim was barred under Art. 113 of the

Act of 1963.

9. It appears, in the facts and circumstances of the present

present case, that there was no permission from the Collector to enable

Class II occupant – allottee from the Government land to transfer the

land, therefore, no sale deed could have been executed. Under Art.

113 of the Act of 1963 residuary article clearly provides for period of

limitation of the years from the time when the right to sue accrued.

In the present case, the Collector of Yavatmal had refused to grant

permission on 30.1.1999. Predecessor-in-title of the plaintiff was late

Rajkumar Tekchand Punyani, who was allotted the suit land in 1967-

68 for cultivating it as Class II occupant. The alleged agreement to sell

was entered into between the plaintiff and the first defendant on

25.5.1992 for earnest money of Rs. 36,000/- and the balance of Rs.

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13,000/- was payable by 7.4.1993. Under these circumstances, the

counter-claim was rightly rejected in view of Art. 113 of the Act of 1963

as barred by limitation prescribed.

10. Both the Courts below have recorded concurrent findings

in respect of bar of limitation. Counter-claim is treated as separate suit

and is deemed to have been instituted on the date on which it is made

in the Court. In Dudh Nath Pandey {Through LRs} vs. Suresh

Chandra {Through LRs}: AIR 1986 SC 1509, it is held that finding

on limitation is finding of fact and cannot be interfered with in

Second Appeal by the High Court in exercise of powers under section

100 of the Code of Civil Procedure.

11. In the facts and circumstances of the present case, on merits,

the trial Court has found upon evidence led, that the plaintiff and second

defendant had agreed to sell the suit land to the first defendant and

accepted earnest money in the sum of Rs. 36,000/- from the first

defendant. In view of this finding recorded by the trial Court, although

the agreement to sell became void on account of subsequent refusal

of permission from the Collector, Yavatmal, the agreement turned out to

be void or impossible of performance, but the plaintiffs and original

defendant no.2, in view of the Section 65 of the India Contract Act,

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are liable to restore back the advantage received from the appellant

or to make compensation for it to the first defendant (appellant) from

whom they had received it. An useful reference may be made to ruling

in Chandan Mulji Nishar vs. Union of India : 2008(1) Mh.L.J. 703,

to find support to the above proposition. As a result of this discussion,

this Court must conclude that the counter-claim was barred by

limitation and no interference is required with concurrent findings of

facts recorded by the Courts below. The Appeal has to be dismissed on

this count. The plaintiff and original defendant no.2 are, however, in

view of Section 65 of the Indian Contract Act, are liable to refund the

amount received in the sum of Rs. 36,000 /- as earnest money to the

appellant ( first defendant ), along with interest at the rate of 6 % per

annum, from the date of counter-claim till realisation thereof. As the

parties are required to be restored back to their position as prior to the

suit agreement, there shall be modification to this extent in decree

passed by the trial Court. The Appeal is partly allowed accordingly. No

order as to costs.

JUDGE

sahare

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