{"id":6514,"date":"1997-02-20T00:00:00","date_gmt":"1997-02-19T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/shri-shivji-vs-shri-raghunath-dead-by-l-rs-on-20-february-1997"},"modified":"2016-09-10T01:52:25","modified_gmt":"2016-09-09T20:22:25","slug":"shri-shivji-vs-shri-raghunath-dead-by-l-rs-on-20-february-1997","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/shri-shivji-vs-shri-raghunath-dead-by-l-rs-on-20-february-1997","title":{"rendered":"Shri Shivji vs Shri Raghunath (Dead) By L.Rs. &amp; &#8230; on 20 February, 1997"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Shri Shivji vs Shri Raghunath (Dead) By L.Rs. &amp; &#8230; on 20 February, 1997<\/div>\n<div class=\"doc_bench\">Bench: K. Ramaswamy, S. Saghir Ahmad<\/div>\n<pre>           PETITIONER:\nSHRI SHIVJI\n\n\tVs.\n\nRESPONDENT:\nSHRI RAGHUNATH (DEAD) BY L.RS. &amp; ORS.\n\nDATE OF JUDGMENT:\t20\/02\/1997\n\nBENCH:\nK. RAMASWAMY, S. SAGHIR AHMAD\n\n\n\n\nACT:\n\n\n\nHEADNOTE:\n\n\n\nJUDGMENT:\n<\/pre>\n<p>O R D E R<br \/>\n     This appeal  by special  leave arises from the judgment<br \/>\nof the\tsingle judge  of the  High Court  of M.P., passed on<br \/>\nAugust 28, 1985 dismissing the second appeal.\n<\/p>\n<p>     The appellant  is\ta  subsequent  purchaser  from\tSmt.<br \/>\nReshambai, wife\t of Ramaji Gujar. The admitted facts ar that<br \/>\nthe deceased respondent and Reshambai had purchased jointly,<br \/>\nan extent  of 9\t acres 2  decimals of  land under  sale deed<br \/>\ndated August 26, 1966. There was a contemporaneous agreement<br \/>\nof Sale\t executed by  Reshambai in  favour of  the appellant<br \/>\nagreeing to  convey her share in the property under the sale<br \/>\ndeed in\t terms of  the agreement to the respondent. Pursuant<br \/>\nto the\tsale, it  is not  in  dispute,\tthere  was  an\toral<br \/>\narrangement under which the parties came to be in respective<br \/>\npossession of  the land\t comprised in  the sale\t deed.\tWhen<br \/>\nReshambai attempted  to sell  the  land\t to  the  appellant,<br \/>\nnotice was  issued by  the respondent  on January  20,\t1969<br \/>\ncalling upon  her to  execute the  sale deed in terms of the<br \/>\nagreement of  sale. In her reply dated January 24, 1969, she<br \/>\ndenied having  agreed to sell the land to him and refused to<br \/>\nexecute the  sale. reshambai  also denied  her liability  to<br \/>\nexecute the  sale deed. As a consequence, the respondent had<br \/>\nfiled the  suit for  specific performance. the defence taken<br \/>\nin the\tsuit was that the agreement of sale was a fraudulent<br \/>\ndocument brought  into existence  to defeat  sale deed.\t The<br \/>\nother defence  taken was  that\tthe  document  was  void  by<br \/>\noperation of  rule against  perpetuity.\t Further  contention<br \/>\nraised was  that since\tthe agreement  put an embargo on her<br \/>\nright to  alienate the\tproperty, it was void. All the court<br \/>\nbelow have  negatived her  right and  decreed the suit. Thus<br \/>\nthis appeal by special leave.\n<\/p>\n<p>     The question  is; whether\tthe document. viz. agreement<br \/>\nto sell\t was executed  by playing  fraud on  her? Finding of<br \/>\nfact recorded  by all  the  courts  is\ti  the\taffirmative.<br \/>\nTherefore, it  need not be considered by this Court. Further<br \/>\nthe defence that the suit also puts perpetual restriction on<br \/>\nher right of alienation and is, therefore, void, also has no<br \/>\nforce for  the reason  that once Reshambai was found to have<br \/>\nexecuted the agreement for sale and the same was found to be<br \/>\na valid\t deed, the  covenant became  a contract\t between the<br \/>\nparties. As  a consequence,  it is  not a prohibition on her<br \/>\nright  to  alienate  the  property  to\tanybody\t except\t the<br \/>\nrespondent. On\tthe other  hand, it is a fetter on her right<br \/>\nto deal\t with her  share in  the property  and\ta  liability<br \/>\nburdened with  the land.  When the  respondent purchased the<br \/>\nproperty, being\t a subsequent purchaser, he purchased in wit<br \/>\nnotice of  the said agreement for sale. So her could not get<br \/>\nany valid  title unless\t it is proved that the agreement was<br \/>\nunenforceable. So  the agreement  is  valid  and  binds\t the<br \/>\nappellant and Reshambai.\n<\/p>\n<p>     The only  other question is: whether it is violative of<br \/>\nrule against  perpetuity. This\tcontroversy is no longer res<br \/>\nintegra. This  Court in\t <a href=\"\/doc\/1950151\/\">Rambaran v.  Ram Mohit<\/a>\t reported in<br \/>\n[(1967) 1 SCR 293] has considered the effect of Sections 14,<br \/>\n40 and 54 of the Transfer  of Property Act and held thus:\n<\/p>\n<blockquote><p>\t  &#8220;Reading s.  14 along\t with s.<br \/>\n     54 of  the Transfer of Property Act<br \/>\n     its manifest  that a  mere contract<br \/>\n     for sale of immovable property does<br \/>\n     not  create  any  interest\t in  the<br \/>\n     immovable property and it therefore<br \/>\n     follows that the rule of perpetuity<br \/>\n     cannot be\tapplied to a covenant of<br \/>\n     pre-emption even though there is no<br \/>\n     lime limit\t within which the option<br \/>\n     has to  be exercised.  It\tis  true<br \/>\n     that the  second paragraph of S. 40<br \/>\n     of the  transfer  of  Property  Act<br \/>\n     make a  substantial departure  from<br \/>\n     the English  law, for an obligation<br \/>\n     under a  contract which  creates no<br \/>\n     interest in land but which concerns<br \/>\n     land is made enforceable against an<br \/>\n     assignee of the land who takes from<br \/>\n     the promisor either gratutiously or<br \/>\n     takes for\tvalue but with notice. A<br \/>\n     contract of  this nature  does  not<br \/>\n     stand on the same footing as a mere<br \/>\n     personal contract,\t for it\t can  be<br \/>\n     enforced against  an assignee  with<br \/>\n     notice. There is a superficial kind<br \/>\n     of resemblance between the personal<br \/>\n     obligation created\t by the contract<br \/>\n     of sale  described under  s. 40  of<br \/>\n     the Act  which  arise  out\t of  the<br \/>\n     contract, and  annexed to the owner<br \/>\n     ship of immovable property, but not<br \/>\n     amounting to an interest therein or<br \/>\n     easement thereon  and the equitable<br \/>\n     interest of  the person  purchasing<br \/>\n     under the English Law, in that both<br \/>\n     these  rights   are  liable  to  be<br \/>\n     defeated by  a purchaser  for value<br \/>\n     without  notice.  But  the\t analogy<br \/>\n     cannot be\tcarried further\t and the<br \/>\n     rule   against   perpetuity   which<br \/>\n     applies  to  equitable  estates  in<br \/>\n     English Law  cannot be applied to a<br \/>\n     covenant  of   pre-emption\t because<br \/>\n     s.40 of  the statute  does not make<br \/>\n     the  covenant  enforceable\t against<br \/>\n     the assignee on the footing that it<br \/>\n     creates a interest in the land.<br \/>\n\t  We  are   accordingly\t of  the<br \/>\n     opinion that  the covenant for pre-<\/p><\/blockquote>\n<blockquote><p>     emption  in   this\t case  does  not<br \/>\n     offend\tthe\trule\t against<br \/>\n     perpetuities    and    cannot    be<br \/>\n     considered to be void in law.&#8221;<\/p><\/blockquote>\n<p>     In the light of the above law, when a contract has been<br \/>\nexecuted in which no interest in presaenti has been created,<br \/>\nthe rule  of perpetuity has no application. As a result, the<br \/>\nagreement is  i the nature of a pre-emptive right created in<br \/>\nfavour of  the co-owner. Therefore, it is enforceable as and<br \/>\nwhen an attempt is made by the co-owner to alienate the land<br \/>\nto third  parties. Therefore, rule against perpetuity has no<br \/>\napplication t the facts in this case.\n<\/p>\n<p>     The  appeal   is  accordingly  dismissed.\tBut  in\t the<br \/>\ncircumstances without costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Shri Shivji vs Shri Raghunath (Dead) By L.Rs. &amp; &#8230; on 20 February, 1997 Bench: K. Ramaswamy, S. Saghir Ahmad PETITIONER: SHRI SHIVJI Vs. RESPONDENT: SHRI RAGHUNATH (DEAD) BY L.RS. &amp; ORS. DATE OF JUDGMENT: 20\/02\/1997 BENCH: K. RAMASWAMY, S. SAGHIR AHMAD ACT: HEADNOTE: JUDGMENT: O R D E R This [&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-6514","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>Shri Shivji vs Shri Raghunath (Dead) By L.Rs. &amp; ... on 20 February, 1997 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/shri-shivji-vs-shri-raghunath-dead-by-l-rs-on-20-february-1997\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Shri Shivji vs Shri Raghunath (Dead) By L.Rs. &amp; 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