{"id":33015,"date":"1995-04-17T00:00:00","date_gmt":"1995-04-16T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/s-v-r-mudaliar-dead-by-lrs-vs-mrs-rajabu-f-buhari-dead-by-on-17-april-1995"},"modified":"2018-06-30T05:57:50","modified_gmt":"2018-06-30T00:27:50","slug":"s-v-r-mudaliar-dead-by-lrs-vs-mrs-rajabu-f-buhari-dead-by-on-17-april-1995","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/s-v-r-mudaliar-dead-by-lrs-vs-mrs-rajabu-f-buhari-dead-by-on-17-april-1995","title":{"rendered":"S.V.R. Mudaliar (Dead) By Lrs. &amp; &#8230; vs Mrs. Rajabu F. Buhari (Dead) By &#8230; on 17 April, 1995"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">S.V.R. Mudaliar (Dead) By Lrs. &amp; &#8230; vs Mrs. Rajabu F. Buhari (Dead) By &#8230; on 17 April, 1995<\/div>\n<div class=\"doc_citations\">Equivalent citations: 1995 AIR 1607, \t\t  1995 SCC  (4)\t 15<\/div>\n<div class=\"doc_author\">Author: H B.L.<\/div>\n<div class=\"doc_bench\">Bench: Hansaria B.L. (J)<\/div>\n<pre>           PETITIONER:\nS.V.R. MUDALIAR (DEAD) BY LRS. &amp; ORS.\n\n\tVs.\n\nRESPONDENT:\nMRS. RAJABU F. BUHARI (DEAD) BY LRS. &amp; ORS.\n\nDATE OF JUDGMENT17\/04\/1995\n\nBENCH:\nHANSARIA B.L. (J)\nBENCH:\nHANSARIA B.L. (J)\nRAMASWAMY, K.\nMANOHAR SUJATA V. (J)\n\nCITATION:\n 1995 AIR 1607\t\t  1995 SCC  (4)\t 15\n JT 1995 (3)   614\t  1995 SCALE  (2)720\n\n\nACT:\n\n\n\nHEADNOTE:\n\n\n\nJUDGMENT:\n<\/pre>\n<p>HANSARIA, J.\n<\/p>\n<p>1.  This litigation is about three and half decades  old  by<br \/>\nnow   inasmuch\tthe  suit  for\tspecific   performance\t for<br \/>\nreconveyance<br \/>\n<span class=\"hidden_text\">618<\/span><br \/>\nof the property sold by the plaintiff was filed in 1962.  It<br \/>\nwas decreed by the trial court (a single Judge of the Madras<br \/>\nHigh Court) on 10.11.65. The letters Patent Bench,  however,<br \/>\non appeal being preferred, set aside the decree on  10.5.72.<br \/>\nHence this appeal by special leave by the plaintiff.  As the<br \/>\nplaintiff  died\t in  1990, his\tlegal  representatives\thave<br \/>\npursued\t the appeal.  It may also be stated that during\t the<br \/>\npendency of this appeal the appellants assigned their  right<br \/>\nto  two\t outsiders sometime in September,  1988.   We  would<br \/>\nhave,  therefore, to see, in case we were to agree with\t the<br \/>\nplaintiff  regarding  there  having  been  a  contract\t for<br \/>\nreconveyance,  which is the real bone of contention  between<br \/>\nthe parties, whether in view of the aforesaid assignment,  a<br \/>\ndecree\tfor specific relief is still called for, keeping  in<br \/>\nview the fact that such a relief is discretionary.\n<\/p>\n<p>2.   We\t may  note  relevant  facts.   These  are  that\t the<br \/>\noriginal  plaintiff, SV Ramakrishna Mudaliar, was a  man  of<br \/>\nmeans at one point of time, to run into rough weather, which<br \/>\nrequired mortgage of some of his properties.  It is to repay<br \/>\nthe  mortgage  debt  that  the plaintiff  sold\ttwo  of\t his<br \/>\nproperties  ostensibly to Mrs. Rajabu Fathima  Buhari  (Mrs.<br \/>\nBuhari)\t described in Schedules &#8216;A&#8217; and &#8216;B&#8217; of\tthe  plaint.<br \/>\nThe sale deeds in respect of these properties were  executed<br \/>\non  26.3.59  (Ex.P  2)\tand  31.3.59  (Ex.P.3);\t both  were,<br \/>\nhowever,  registered on 31.3.1959. The plaintiff&#8217;s  case  is<br \/>\nthat  before  these  properties had been sold  there  was  a<br \/>\n&#8216;gentleman&#8217;s  understanding&#8217;  between him  and\tMr.  Buhari,<br \/>\nhusband of Mrs Buhari, on 24.3.59 that in case the  purchase<br \/>\namounts\t as  per  the sale deeds were  repaid  within  three<br \/>\nyears, the properties would be reconveyed, when in  addition<br \/>\nto sale price, 10% thereof shall be paid as solatium of\t the<br \/>\nactual\t amount\t  spent\t on  improvement,  if\tany.\tThis<br \/>\nunderstanding  was  put in writing  subsequently  under\t the<br \/>\ntitle  &#8220;Record\tof  fact&#8221;, which was  exhibited\t during\t the<br \/>\ncourse\tof the trial as Ex.P1. Plaintiff&#8217;s another case\t was<br \/>\nthat though the sale deeds were in the name of Mrs.  Buhari,<br \/>\nthe  real purchaser was Mr. Buhari.  To put it\tdifferently,<br \/>\nMrs.  Buhari  was  only\t an  ostensible\t owner.\t  The  third<br \/>\nimportant  facet of the plaintiff&#8217;s case was that Ex.P1\t had<br \/>\nbeen signed by one Kamal as an agent of the couple, who were<br \/>\nimpleaded  as defendants in the suit.  As, however,  of\t the<br \/>\ntwo properties sold, only one, styled as &#8216;Serles Garden&#8217; was<br \/>\nreconveyed  in May, 1960, the suit was filed for  seeking  a<br \/>\ndecree\t for  the  reconveyance\t of  the  second   property,<br \/>\ndescribed in Schedule &#8216;A&#8217; to the plaint.\n<\/p>\n<p>3.   As\t already  noted the trial court\t decreed  the  suit,<br \/>\nwhich  decree came to be reversed in appeal by\tthe  Letters<br \/>\nPatent Bench.  The following questions are to be answered to<br \/>\ndispose of the appeal:-\n<\/p>\n<p>(1)Whether   Ex.P1  is\ta  genuine  document.\tThis   needs<br \/>\ndetermination  because the Letters Patent Bench has  allowed<br \/>\nthe appeal of the defendants principally on the ground\tthat<br \/>\nthis document is a result of fabrication.\n<\/p>\n<p>(2)If  the aforesaid document be genuine, whether Kamal\t who<br \/>\nis  said  to have signed the same was an agent\tof  the\t de-<br \/>\nfendants.\n<\/p>\n<p>(3)Whether  the understanding given by Mr. Buhari, could  be<br \/>\nenforced  against  Mrs.\t Buhari.  This\twould  also  require<br \/>\ndetermination of the question whether Mrs. Buhari was a name<br \/>\nlender.\n<\/p>\n<p><span class=\"hidden_text\">619<\/span><\/p>\n<p>(4)In  case  the factual basis of the  plaintiff&#8217;s  case  be<br \/>\ncorrect,  the legal question to be decided would be  whether<br \/>\nin   the   facts  and  circumstances  of  the\tcase,\tmore<br \/>\nparticularly the assignment of the right by the\t successors-<br \/>\nin-interest  of\t the plaintiff in favour of  third  persons,<br \/>\ngranting  of  the relief of specific performance  is  called<br \/>\nfor,  which  the statute has left to the discretion  of\t the<br \/>\nCourt.\n<\/p>\n<p>GENUINENESS OF EX.P1\n<\/p>\n<p>4.   The  Letters  Patent Bench of the High  Court  regarded<br \/>\nEx.P1 not as a genuine document mainly because Exs.P.2 and 3<br \/>\ndo  not contain a stipulation regarding the reconveyance  of<br \/>\nthe  properties sold by the plaintiff.\tNot only this,\teven<br \/>\nEx.P.  15,  by\twhich Selers Garden  was  resold,  does\t not<br \/>\nmention\t about\tthe same having been done  pursuant  to\t any<br \/>\ncontract  of  reconveyance.  This apart, as  in\t support  of<br \/>\nproof  of Ex.  P. 1, the plaintiff had examined, apart\tfrom<br \/>\nhimself,  his agent Narayana lyer, the appellate  court\t did<br \/>\nnot  fell satisfied about there being credible\tevidence  in<br \/>\nthis regard.  It may be mentioned that when the trial began,<br \/>\nanother signatory to P.1, Shri VS Rangachari, who had played<br \/>\nprominent part throughout, having died was not available for<br \/>\nexamination.   The  only  other\t signatory  to\tEx.P.  1  is<br \/>\naforesaid  Kamal,  who could not be examined  by  the  trial<br \/>\nJudge even as a Court witness.\n<\/p>\n<p>5.   Shri  Vaidyanathan, learned counsel  representing\tMrs.<br \/>\nBuhari, has, apart from mentioning about silence of Exs.P.2,<br \/>\n3  and 15 relating to any agreement of\treconveyance,  urged<br \/>\nthat the evidence adduced in the case by the plaintiff would<br \/>\nitself\tshow that P. 1 had not seen the light of the day  on<br \/>\n24.3.59.  The  basic submission in this regard is  that\t his<br \/>\ndocument  was described by PW 1 Narayana in his evidence  as<br \/>\n&#8216;letter&#8217;.   We\tdo  not think if we  should  go\t by  labels,<br \/>\nbecause\t even if it was a letter which came  into  existence<br \/>\nthat shows that something in writing had been put on record;<br \/>\nand  it\t may  because of this that P.  1  was  described  as<br \/>\n&#8216;record of fact&#8217; and it being on a letterhead of the  plain-<br \/>\ntiff, might have loosely described as &#8220;letter&#8221; of PW 1.\n<\/p>\n<p>6.   As to why in Exs.P.2,3 and 15 no mention was made about<br \/>\nP.1, has been sufficiently explained by PW2 (the  plaintiff)<br \/>\nin  his evidence, whose purport is that Shri Rangachari\t who<br \/>\nhad  played a vital role in the entire episode, had  advised<br \/>\naccordingly.  The evidence clearly shows that Rangachari was<br \/>\na  legal advisor both to the plaintiff and Mr.\tBuhari.\t  On<br \/>\nPW2 being specifically asked as to why Exs.P2 and P3 did not<br \/>\ncontain the recital about reconveyance, his answer was:\n<\/p>\n<blockquote><p>\t      &#8221; I wanted it to be included in the sale deed.<br \/>\n\t      Rangachari told that the gentleman&#8217;s agreement<br \/>\n\t      is  binding  on  Mr. Buhari  to  reconvey\t the<br \/>\n\t      property\tand so need not be included  in\t the<br \/>\n\t      sale deed&#8221;.\n<\/p><\/blockquote>\n<p>7.   Shri  Salve, appearing for Mr. Buhari, puts his  weight<br \/>\n(and  he  has  enough  of it) to  the  submissions  of\tShri<br \/>\nVaidyanathan and asks why is it that P. 1 was not signed  by<br \/>\nBuhari;\t and  why is it that the plaintiff himself  did\t not<br \/>\nsign the same?\tThe queries do not stop here as, the fulcrum<br \/>\nsenior\tlawyer\tasks why was the sale not in the  nature  of<br \/>\nconditional sale?  When first two questions were put to\t the<br \/>\nplaintiff  his short, simple and unsophisticated answer\t was<br \/>\nthat the confidence-inspiring advocate Rangachari had stated<br \/>\nthat  signing by the two agents in the presence of  the\t two<br \/>\nprincipals would meet the requirement of law.  And it  does,<br \/>\nas  acts done by agents within the permitted field  do\tbind<br \/>\nthe  principals.   The first two questions  raised  by\tShri<br \/>\nSalve may be answered also by pointing out that we have seen<br \/>\nlesser\tmortals\t signing  big  inter-country  agreements  in<br \/>\npresence  of  higher-ups.   The\t third\tposer  is  no  doubt<br \/>\npertinent,  but\t as there are many ways of getting  a  thing<br \/>\ndone,  all  concerned  might have thought  that\t instead  of<br \/>\nmaking\tthe sales conditional, for reasons not quite  known,<br \/>\nthe  situation demanded that the arrangement of\t  the\ttype<br \/>\ngone into was better suited.  All   important  question\t  is<br \/>\nwhether\t parties were ad idem; if so, how did  they  express<br \/>\ntheir  meeting\tof  mind  is not  material.   And  on  their<br \/>\nagreeing as recorded in P. 1, we are in no doubt.\n<\/p>\n<p>8.   The  case\tof  the plaintiff in  this  regard  receives<br \/>\nsupport\t from P.28 which is a letter from the  plaintiff  to<br \/>\nMr.  Buhari, dated 1st Feb. 1961, which mentions  about\t the<br \/>\nunderstanding in question.  Though the Division Bench of the<br \/>\nHigh  Court  has  held\tthat  Ex.P.28  is  also\t  fabricated<br \/>\ndocument, we find ourselves unable to agree with it on\tthis<br \/>\npoint.\t There\tis some force in the case of  the  plaintiff<br \/>\nthat  the defendants challenged about the  understanding  in<br \/>\nquestion after the death of Rangachari.\n<\/p>\n<p>9.   According to us, therefore, it would not\t  be correct<br \/>\nto doubt the existence of P.  1\t because  of  non-mentioning<br \/>\nabout any stipulation to reconvey in Exs.  P2 and 3 and\t for<br \/>\nthat matter for Ex.P. 15 having not mentioned about it-\t nor<br \/>\ndo the questions raised by Shri Salve take away the ring  of<br \/>\n,truth,\t the  plaintiff&#8217;s case has in this regard.   So,  we<br \/>\nhold that P. 1 is a genuine document, as opined by the trial<br \/>\nJudge.\n<\/p>\n<p>WHETHER KAMAL WAS AN AGENT OF THE DEFENDANTS\n<\/p>\n<p>10.We  come to the role played by Kamal.  According  to\t the<br \/>\nplaintiff  full\t name of Kamal who had signed Ex.P1  is\t MH.<br \/>\nKamal,\tson of MS Mohammed Hasan, who at the  relevant\ttime<br \/>\nwas residing at Nos.5\/ and 58, 3rd Main Road, Gandhi  Nagar.<br \/>\nAs  per\t the  second defendant, who alone  appeared  in\t the<br \/>\nwitness\t box, there were many Kamals in his  employment\t and<br \/>\nthe signature appearing in P. 1 is not MH Kamal, who at some<br \/>\npoint of time was in employment of the defendants.\n<\/p>\n<p>11.The trial Judge has dealt with this aspect in detail\t and<br \/>\nto find out the truth as to whether ME Kamal has signed\t PI,<br \/>\nhe  even  wanted to examine this Kamal as a  court  witness;<br \/>\nbut, according to him, Kamal was kept out by the defendants,<br \/>\nbecause\t of  which  some adverse inference  has\t been  drawn<br \/>\nagainst them by him.\n<\/p>\n<p>12.Mr.\t Parasaran,  appearing\tfor  the  appellants,  fully<br \/>\nsupports the finding of the trial Judge in this regard\tand,<br \/>\naccording  to  him, law permits an adverse inference  to  be<br \/>\ndrawn,\twhere  a  party\t in  possession\t of  best   evidence<br \/>\nwithholds the same, even if the onus of proving the fact  in<br \/>\nquestion were not to be on him.\t To support him on the legal<br \/>\nsubmission, the learned counsel has relied on a\t three-Judge<br \/>\nBench decision of this Court in Gopalakrishnaji v.  Mohammed<br \/>\nHazi Latiff, AIR 1968 SC 1413.\t   In  that case this  Court<br \/>\nwhile stating as    above observed that a party cannot\trely<br \/>\non abstract doctrine of onus.\n<\/p>\n<p>13.  According\tto the learned counsel for the\trespondents,<br \/>\nthe case of the defendants on this score finds support\tfrom<br \/>\nnone<br \/>\n<span class=\"hidden_text\">621<\/span><br \/>\nother  than aforesaid Kamal, if what has been stated by\t him<br \/>\nin  his affidavit filed before this Court is borne in  mind.<br \/>\nThat affidavit is a part of IA No.2, in which the prayer  Is<br \/>\nto  direct  examination\t of MH Kamal as\t a  witness  in\t the<br \/>\nappeal.\t  Shri Salve has drawn our attention to the  account<br \/>\nof  salary  and\t batta paid to Kamal, as  mentioned  in\t the<br \/>\nenclosure to the affidavit, according to which, for the year<br \/>\n31.3.63 batta paid was Rs. 124 and salary was Rs. 525.\t The<br \/>\nlearned\t counsel brings to our notice that in earlier  years<br \/>\nthe  batta had ranged about four times more and\t the  salary<br \/>\nmore  than that, which would go to show that  after  31.3.62<br \/>\nKamal  was  in the service not upto 31.3.63, but for  a\t few<br \/>\nmonths\tafter  31.3.62, as in the case\tof  the\t defendants.<br \/>\nThere seems to be some force in this contention.\n<\/p>\n<p>14.  We,  therefore, do not propose to decide this  fact  by<br \/>\ndrawing\t any adverse inference against the  respondent-\t but<br \/>\nwould do so on the basis of evidence led by the plaintiff As<br \/>\nalready stated, this evidence has received better  treatment<br \/>\nat  the hand of trial Judge, who, while holding\t that  Kamal<br \/>\nhad  acted as an agent of the defendants, referred  to\tmany<br \/>\ncircumstances  also.   Shri  Parasaran\thas  submitted\tthat<br \/>\nthough\tthe  appellate court is within its right to  take  a<br \/>\ndifferent  view on a question of fact, that should  be\tdone<br \/>\nafter  adverting to the reasons given by the trial Judge  in<br \/>\narriving  at the finding in question.  Indeed, according  to<br \/>\nShri Parasaran an appellate court should interfere with\t the<br \/>\nJudgment under appeal not because it is not right, but\twhen<br \/>\nit is shown to be wrong, as observed by three-Judge Bench of<br \/>\nthis Court in <a href=\"\/doc\/232986\/\">Dollar Co. v. Collector of Madras,<\/a> 1975  Supp.<br \/>\nSCR  403.   As to this observation, the contention  of\tShri<br \/>\nVaidyanathan  is that what was stated therein was  meant  to<br \/>\napply  when this Court examines a matter under Article\t136.<br \/>\nWe do not, however, think if this meaning can be ascribed to<br \/>\nwhat was observed.\n<\/p>\n<p>15.There  is  no need to pursue the legal principle,  as  we<br \/>\nhave no doubt in our mind that before reversing a finding of<br \/>\nfact,  the appellate court has to bear in mind\tthe  reasons<br \/>\nascribed  by  the  trial court.\t This  view  of\t ours  finds<br \/>\nsupport\t from what was stated by the Privy Council  in\tRani<br \/>\nHemant\tKumari\tv. Maharaja Jagadhindra Nath,  10  CWN\t630,<br \/>\nwherein, while regarding the appellate judgment of the\tHigh<br \/>\nCourt  of Judicature at Fort William as &#8220;careful and  able&#8221;,<br \/>\nit  was stated that it did not &#8220;come to close quarters\twith<br \/>\nthe judgment which it reviews, and indeed never discusses or<br \/>\neven alludes to the reasoning of the Subordinate Judge.&#8221;\n<\/p>\n<p>16.Shri\t Salve has taken pains to satisfy us that it is\t not<br \/>\nquite correct to submit that the Division Bench did not take<br \/>\nnote  of circumstantial evidence noted by the  trial  Judge.<br \/>\nTo satisfy us in this regard, our attention has been invited<br \/>\nto what was stated by the Bench at page 291 of Vol. 11.\t  As<br \/>\nperusal\t of this part of the appellate judgment\t shows\tthat<br \/>\ntwo   circumstances  mentioned\tby  the\t trial\tJudge\twere<br \/>\ntraverssed,  but  all were not.\t This apart,  first  circum-<br \/>\nstance\twas  not  regarded  as\tconnecting  Kamal  with\t the<br \/>\ndefendants  mainly  because the Bench was not  satisfied  if<br \/>\nKamal who had taken part in the documents marked as Ex.\t P9,<br \/>\n10,  64 and 65, and the Kamal referred in PI are  the  same.<br \/>\nWe  do not, however, think that this view is  sound  because<br \/>\nthough\tthe  defendants\t might\thave  had  many\t Kamals\t  as<br \/>\nemployees but they had only one employee, named MH.  Kamal,<br \/>\n<span class=\"hidden_text\">622<\/span><br \/>\nson  of Mohammad Hasan, and it is this Kamal who had  signed<br \/>\nEx.P. 1. As to the second circumstance relatable to issuance<br \/>\nof  Ex.P.28, we have already observed that we do  not  agree<br \/>\nwith the view of the Division Bench qua this.<br \/>\nWHETHER MRS.  BUHARI WAS A BENAMIDAR OF MR.  BUHARI\n<\/p>\n<p>17.The\ttrial Judge has answered this question in favour  of<br \/>\nthe  plaintiff-, the Division Bench has observed that it  is<br \/>\nnot  necessary to advert to this aspect of the case  of\t the<br \/>\nplaintiff.   We also propose to traverse the path  taken  by<br \/>\nthe  appellate court and resist from giving our\t finding  on<br \/>\nthis  aspect of the case.  We have taken this stand  because<br \/>\nwe  are satisfied about the genuineness of Ex.P. 1; so\talso<br \/>\nabout Kamal who had signed the same as being an agent of the<br \/>\ndefendants,  because of which the understanding recorded  in<br \/>\nEx.P.  1  has to be regarded as binding on  the\t defendants.<br \/>\nFor  the sake of completeness, we may also observe that\t the<br \/>\nunderstanding  having had consent of Mr. Buhari,  and  there<br \/>\nbeing evidence a-galore about Mr. Buhari acting as an  agent<br \/>\nof  Mrs.  Buhari,  there  is  nothing  to  doubt  that\t the<br \/>\nunderstanding  given  by Mr. Buhari has to  be\tregarded  as<br \/>\nbindIng\t on  Mrs. Buhari.  The leading role  played  by\t Mr.<br \/>\nBuhari\tin the entire episode is writ large and there is  no<br \/>\nescape\tfrom the conclusion that the consent of\t Mr.  Buhari<br \/>\nhas to be regarded as a consent given by Mrs. Buhari.\n<\/p>\n<p>18.We,\t therefore,  conclude  that  there  did\t  exist\t  an<br \/>\nunderstanding to reconvey two properties as recorded in\t the<br \/>\ndocument  executed  on\t24.3.59.  This\tconclusion  of\tours<br \/>\nreceives support from reconveyance of &#8216;Serles Garden&#8217; within<br \/>\nthe  period of 3 years as stipulated in Ex.P.1 and that\t too<br \/>\nat  the\t added solatium of 10%.\t Ibis property\thaving\tbeen<br \/>\nsold at Rs.85,000, 10% of the same comes of Rs. 8,500\/-\t and<br \/>\nEx.P.  1  5 evidences the sale at Rs. 95,000\/-Though  it  is<br \/>\ncorrect\t that  Rs.85,000\/-  and 10% of\tthat  comes  to\t Rs.<br \/>\n93,500\/-,  it may as well be at this figure was\t rounded  to<br \/>\nRs.95,000\/  In this context Shri Vaidyanathan&#8217;s\t submission,<br \/>\nhowever, is that &#8216;Serles Garden&#8217; was sold back, not pursuant<br \/>\nto the agreement to reconvey, but because Mrs. Buhari  could<br \/>\nnot  get a lessee despite advertisement having been  put  in<br \/>\n&#8216;The Hindu&#8217; and &#8216;The Mail&#8217;, as evidenced by Exs.  D 1 to D4.<br \/>\nThough\tthis  contention  has some  cutting  edge,  we\twere<br \/>\ninclined  to  think,  on the totality  of  facts,  that\t the<br \/>\ntransfer  of  Serles  Garden back to the  plaintiff  was  in<br \/>\ndischarge of the legal obligation contained in P. 1, as both<br \/>\nthe  period during which it was transferred and for the\t sum<br \/>\nit was so done, fit in well with the terms embodied in P. 1.<br \/>\nIS A CASE FOR SPECIFIC PERFORMANCE MADE OUT IN LAW?\n<\/p>\n<p>19.Being  satisfied that the parties had agreed as  recorded<br \/>\nin  Ex.P  1,  the question to be  examined  is\twhether\t the<br \/>\nagreement  of the type at hand, described as  &#8221;\t gentlemen&#8217;s<br \/>\nunderstanding&#8221; in Ex.P.1, permitted the plaintiff to seek  a<br \/>\ndecree\tfor  specific  performance.   According\t to  learned<br \/>\ncounsel\t for the respondents, the agreement has\t created  no<br \/>\nlegal  obligation and as such is not agreement, even if\t en-<br \/>\nforceable, can be so done only against the executable of the<br \/>\noriginal contract.  The final submission is that the  remedy<br \/>\nof  specific performance being discretionary, the  same\t may<br \/>\nnot  be\t granted at this length of time; more so,  when\t the<br \/>\nappellants have<br \/>\n<span class=\"hidden_text\">623<\/span><br \/>\nassigned their interest to some outsiders.\n<\/p>\n<p>20.  So\t far as the first submission is concerned, we  agree<br \/>\nthat  it  is a valid and enforceable contract which  is\t the<br \/>\nbasis for the jurisdiction to order specific performance, as<br \/>\npointed out in <a href=\"\/doc\/1643796\/\">Mayawanti v. Kaushalya Devi,<\/a> 1990 (3) SCC  1.<br \/>\nThe  point  for determination is whether  the  agreement  as<br \/>\nrecorded in Ex.P1 is enforceable.  It has been contended  on<br \/>\nbehalf\tthe respondents that while agreeing as\tembodied  in<br \/>\nthe  document  the parties had no intention  to\t create\t any<br \/>\nlegal  interest,  because of which the agreement  cannot  be<br \/>\nenforced.   Strong reliance has been placed, in\t support  of<br \/>\nthis  submission, on the decision of House of Lords in\tRose<br \/>\nand  Frank  Co.\t v.J.R. Crompton &amp;  Bros.   Ltd.,  1924\t All<br \/>\nE.L.R.(Reprint)\t 245.  In that case, after noting  what\t had<br \/>\nbeen agreed upon, the House of Lords came to the  conclusion<br \/>\nthat  the parties had not intended that the document  should<br \/>\nbe legally enforceable.\n<\/p>\n<p>21.  As\t the aforesaid decision was arrived at on the  basis<br \/>\nof what was contained in the document, it would be pertinent<br \/>\nto note the clause in question, which read as below:\n<\/p>\n<blockquote><p>\t      &#8220;This arrangement is not entered into, nor  is<br \/>\n\t      this memorandum written, as a formal or  legal<br \/>\n\t      agreement,  and shall not be subject to  legal<br \/>\n\t      jurisdiction  in the law courts either of\t the<br \/>\n\t      United  States  or England, but it is  only  a<br \/>\n\t      definite expression and record of the  purpose<br \/>\n\t      and intention of the three parties  concerned,<br \/>\n\t      to   which   they\t  each\t honourably   pledge<br \/>\n\t      themselves with the fullest confidence   based<br \/>\n\t      on  past\tbusiness with each  other   that  it<br \/>\n\t      would be carried through by each of the  three<br \/>\n\t      parties  with mutual loyalty and friendly\t co-<br \/>\n\t      operation.  &#8221;\n<\/p><\/blockquote>\n<p>22.  The  decision  being on the facts of  the\tcase  cannot<br \/>\napply to facts here which a different; and we do think\tthat<br \/>\nwhat  agreed upon in the present case is much different,  as<br \/>\nwould appear from Ex.P 1 which reads as below:\n<\/p>\n<blockquote><p>\t\t      &#8220;Record of fact<br \/>\n\t      This  is\tto  record  the\t gentleman&#8217;s  under-<br \/>\n\t      standing\tbetween\t Mr.  S.V.R.  and  Mr.\tA.M.<br \/>\n\t      Buhari that Mr. Buhari will see to it that  in<br \/>\n\t      case  the\t purchase amounts as  per  the\tsale<br \/>\n\t      deeds  in\t favour\t of Mrs.  A.M.B.  Buhari  is<br \/>\n\t      repaid  within  3 years from  this  date,\t the<br \/>\n\t      properties  will be reconveyed to Mrs.  S.V.R.<br \/>\n\t      who will also have to pay in addition to\tsale<br \/>\n\t      price  10 per cent thereof as solatium of\t the<br \/>\n\t      actual amount spent on improvement if any.&#8221;\n<\/p><\/blockquote>\n<p>23.  The aforesaid shows that though what has been  recorded<br \/>\nwas  described as &#8220;gentlemen&#8217;s understanding&#8221;, according  to<br \/>\nus,  the understanding was such which was meant to be  acted<br \/>\nupon.  We have taken this view because terms and  conditions<br \/>\nof reconveyance have been clearly mentioned and document was<br \/>\nexecuted  by the agents of both the sides.  It\twas,  there-<br \/>\nfore, intended to create legal obligation.  In this context,<br \/>\nShri Parasaran has brought to our notice a decision of\tthis<br \/>\nCourt  rendered\t in <a href=\"\/doc\/1163917\/\">Commissioner of Wealth  Tax,  Bhopal  v.<br \/>\nAbdul  Hussain Mulla Mohammad Ali,<\/a> (dead) by LRs., 1988\t (3)<br \/>\nSCC  562,  in which after referring to the decision  of\t the<br \/>\nHouse  of  Lords  in  the  aforesaid  case  and\t some  other<br \/>\ndecisions,  as\twell  as  what\thas  been  stated  in  legal<br \/>\ntreatise,  it was observed in para 24 that  the\t proposition<br \/>\nthat  in addition to the existence of an agreement  and\t the<br \/>\npresence of consideration, there is also a third element  in<br \/>\nthe form of intention of parties to create legal<br \/>\n<span class=\"hidden_text\">624<\/span><br \/>\nrelations,  is one which has not passed\t unchallenged.\t The<br \/>\nBench  observed\t that  it  is not  possible  to\t accept\t the<br \/>\nargument that an agreement will not, by itself, yield  legal<br \/>\nobligations  unless  it\t is  one  which\t can  reasonably  be<br \/>\nregarded  as  having  been  made  between  the\tparties\t  in<br \/>\ncontemplation  of  legal consequences.\tFrom  the  averments<br \/>\nmade  in Ex.P 1 and the legal position being what  has\tbeen<br \/>\nnoted  in  this case, we are satisfied that  an\t enforceable<br \/>\ncontract  had come into existence on the  parties  executing<br \/>\nEx.Pl. According to us, they were ad idem and the  plaintiff<br \/>\nwas  within his rights to seek specific performance  of\t the<br \/>\nsame.\n<\/p>\n<p>24.  On\t the second legal question raised, we may not  spend<br \/>\nmuch time because the prop of this submission being what was<br \/>\nheld  by this Court in <a href=\"\/doc\/1888807\/\">Annapoorani Ammal v. G.\tThangapalam,<\/a><br \/>\n1989  (3) SCC 287, whose facts were entirely different,\t the<br \/>\nratio  of  that\t decision cannot be called  in\taid  by\t the<br \/>\nrespondents.   In that case the mother of the appellant\t who<br \/>\nhad allegedly executed the &#8216;yadast&#8217; was not the owner of the<br \/>\nproperty because of which it was held that the suit  against<br \/>\nthe appellant filed for reconveyance of the property on\t the<br \/>\nbasis of &#8216;yadast&#8217; could not have been decreed.\tIn our\tcase<br \/>\nEx.P  1\t had  been  executed by Kamal as  an  agent  of\t the<br \/>\ndefendants and what had been agreed upon by him has to\tbind<br \/>\nthe principals.\n<\/p>\n<p>25.  We now come to the main legal submission, which is that<br \/>\nthe  relief of specific performance being discretionary,  we<br \/>\nmay  not  grant the same for two reasons in  the  main:\t (1)<br \/>\nlapse  of  about 33 years after filing of  the\tsuit  during<br \/>\nwhich  period price of the property has gone up\t enormously;<br \/>\nand   (2)  the\tplaintiff&#8217;s  legal  representatives   having<br \/>\nassigned  their right of repurchase. the assignees  are\t the<br \/>\nreal person interested in getting back the property, and  we<br \/>\nmay  not allow the same, as what they had purchased was\t not<br \/>\nthe property as such, but litigation, which could be said to<br \/>\nbe akin to champerty.\n<\/p>\n<p>26.Shri\t Parasaran  contends  that the\trelief\tof  specific<br \/>\nperformance  is said to be discretionary only in  the  sense<br \/>\nthat  the court may not act arbitrarily and  nothing  beyond<br \/>\nthis,\tand   while  exercising\t the   discretion   judicial<br \/>\nconscience and judicial statesmanship alone are the  guiding<br \/>\nfacts.\tThat this is the legal position is sought to be sus-<br \/>\ntained by referring to sub-section (1) of section 20 of\t the<br \/>\nSpecific Relief Act, 1963, in which, it has been stated that<br \/>\nthe  jurisdiction  to  decree the  specific  performance  is<br \/>\ndiscretionary,\tbut the discretion is not arbitrary;  it  is<br \/>\nsound  and  reasonable\tand  is to  be\tguided\tby  judicial<br \/>\nprinciples.   As to when the court may not exercise  discre-<br \/>\ntion  to grant the decree for specific performance has\tbeen<br \/>\nmentioned in sub-section (2); whereas subsection (3)  states<br \/>\nas to when the court may properly exercise its discretion to<br \/>\ndecree specific performance.  No doubt what has been  stated<br \/>\nin  these  two\tsub-sections  is  not  exhaustive,  but\t  is<br \/>\nillustrative, yet the intention of the legislature has\tbeen<br \/>\nwell  reflected, both as regards the granting of the  relief<br \/>\nand  nongranting of the same.  Clause(c) of  subsection\t (2)<br \/>\nstates\tthat if granting of specific performance would\tmake<br \/>\nit  &#8220;inequitable&#8221;, the court may not grant the relief It  is<br \/>\nthis  part of the statutory provision which is sought to  be<br \/>\nrelied\tby  the\t learned  counsel  for\tthe  respondents  by<br \/>\ncontending  that it would be inequitable to  grant  specific<br \/>\nperformance for the aforesaid two reasons.\n<\/p>\n<p><span class=\"hidden_text\">625<\/span><\/p>\n<p>27.In  so far as the delay in the disposal of the  case\t and<br \/>\nthe rise in prices during interregnum, Shri Parasaran  urges<br \/>\nthat the delay not having been occasioned by any act of\t the<br \/>\nplaintiff,  he\tmay  not be punished for  the  same  on\t the<br \/>\nprinciple of &#8216; actus curiae neminem gravabit&#8221;  an act of the<br \/>\ncourt  shall  prejudice\t no man.  As  regards  the  rise  in<br \/>\nprices,, the submission is that it should not weigh with the<br \/>\ncourt in refusing the relief if otherwise due, as opined  in<br \/>\nS.  V.\tSankaralinga Nagar v. P.I.S. Ratnaswami\t Nadar,\t AIR<br \/>\n1992  Madras 389, which decision was cited with approval  in<br \/>\nMr. Abdul Hakeem Khan v. Abdul Menon Khadri, AIR 1972 Andhra<br \/>\nPradesh 178.  We are in agreement with this view because  of<br \/>\nthe  normal trend of price in prices of\t properties  situate<br \/>\nespecially  in\tmetropolitan  city like\t Madras,  where\t the<br \/>\nproperty  in  question is situate.  If\tmerely\tbecause\t the<br \/>\nprices have risen during the pendency of litigation, we were<br \/>\nto deny the relief of specific performance if otherwise due,<br \/>\nthis relief could hardly be granted in any case, because  by<br \/>\nthe  time the litigation comes to an end  sufficiently\tlong<br \/>\nperiod\tis  likely  to elapse in most of  the  cases.\tThis<br \/>\nfactor,\t therefore,  should not normally weigh\tagainst\t the<br \/>\nsuitor in exercise of discretion by a court in a case of the<br \/>\npresent nature.\n<\/p>\n<p>28.The final onslaught is on the ground that the  plaintiffs<br \/>\nsuccessors-in-interest\thaving assigned the right  to  third<br \/>\nparties in the meantime, we may not grant the relief because<br \/>\nthe  assignees have, as already noted, purchased  litigation<br \/>\nand  so the transaction could be described  as\tchampertous.<br \/>\nShri  Parasaran,  however,  contends  that  all\t assignments<br \/>\npendente  lite cannot be regarded as champertous;  the\tsame<br \/>\nwould  depend on the facts of each case.  It is\t also  urged<br \/>\nthat  an  assignee  has\t the  right  to\t pray  for  specific<br \/>\nperformance  because  he is one who has to  be\tregarded  as<br \/>\n&#8220;representative-in-interest&#8221;, of which mention has been made<br \/>\nin  clause  (b) of section 15 of the aforesaid\tAct  dealing<br \/>\nwith the persons who may obtain specific performance.\t&#8216;Mat<br \/>\nan  assignee  would be such a person was  accepted  by\tthis<br \/>\nCourt in <a href=\"\/doc\/594344\/\">T.M. Balakrishna Mudaliar v. M. Satyanarayana\tRao,<\/a><br \/>\n1993 (2) SCC 740.\n<\/p>\n<p>29.We are of the view that if in a case the act of the third<br \/>\nparty  could be regarded akin to champertous, the relief  of<br \/>\nspecific  performance  may  be refused;\t indeed,  should  be<br \/>\nrefused.   In  the present case, however, we find  that\t the<br \/>\nassignees  themselves applied to this Court  for  impleading<br \/>\nthem   as  appellants  and  put\t on  record  the  deeds\t  of<br \/>\nassignment,  a\tperusal\t of which shows that  the  need\t for<br \/>\nassignment  was It for pressing reasons.  There has been  no<br \/>\nhide an seek with the court and the legal representatives of<br \/>\nthe original plaintiff having received a sum of about Rs. 13<br \/>\nlacs pursuant to the contract of assignments entered between<br \/>\nSeptember to November &#8216;1988, we do not think if we would  be<br \/>\njustified in refusing the relief of specific performance, if<br \/>\nthe conduct of the respondents is also borne in mind,  about<br \/>\nwhich  one  could say that the same is tainted\tinasmuch  as<br \/>\nthey  departed from truth to bolster their case and went  to<br \/>\nthe  extent  of not complying with the desire of  the  trial<br \/>\njudge  in allowing aforesaid Kamal to be examined even as  a<br \/>\ncourt witness.\tSuch parties who pay foul with equity cannot<br \/>\nbe allowed to use the shield of equity to protect them.\n<\/p>\n<p>30.The result of the foregoing discussions is that we  allow<br \/>\nthe appeal, set aside<br \/>\n<span class=\"hidden_text\">626<\/span><br \/>\nthe  impugned  judgment\t of the\t Letters  Patent  Bench\t and<br \/>\nrestore\t that  of the trial Judge and decree  the  suit\t for<br \/>\nspecific performance.  The respondents or their\t successors-<br \/>\nin-  interest  would  reconvey\tthe  property  mentioned  in<br \/>\nSchedule  &#8216;A&#8217;  of  the plaint within a period  of  1  month,<br \/>\nfailing which it would be open to the trial Judge to execute<br \/>\nthe required document(s).  In the facts and circumstances of<br \/>\nthe  case,  the\t parties are left to bear  their  own  costs<br \/>\nthroughout.\n<\/p>\n<p>[A.  Nos.], 2 &amp; 5 of 1994\n<\/p>\n<p>31.I.A.\t Nos. 1 and 2 are dismissed.  I.A. No.5 is  allowed;<br \/>\nthe cause title may be amended accordingly.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India S.V.R. Mudaliar (Dead) By Lrs. &amp; &#8230; vs Mrs. Rajabu F. Buhari (Dead) By &#8230; on 17 April, 1995 Equivalent citations: 1995 AIR 1607, 1995 SCC (4) 15 Author: H B.L. Bench: Hansaria B.L. (J) PETITIONER: S.V.R. MUDALIAR (DEAD) BY LRS. &amp; ORS. Vs. RESPONDENT: MRS. RAJABU F. BUHARI (DEAD) BY [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-33015","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>S.V.R. Mudaliar (Dead) By Lrs. &amp; ... vs Mrs. Rajabu F. 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