Citation : 2024 Latest Caselaw 5576 Guj
Judgement Date : 26 June, 2024
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SECOND APPEAL NO. 496 of 2023
With
CIVIL APPLICATION (FOR STAY) NO. 1 of 2023
In R/SECOND APPEAL NO. 496 of 2023
FOR APPROVAL AND SIGNATURE:
HONOURABLE MR. JUSTICE J. C. DOSHI
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1 Whether Reporters of Local Papers may be allowed No
to see the judgment ?
2 To be referred to the Reporter or not ? No
3 Whether their Lordships wish to see the fair copy No
of the judgment ?
4 Whether this case involves a substantial question No
of law as to the interpretation of the Constitution
of India or any order made thereunder ?
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DASHRATHSINH GAMBHIRSINH SARVAIYA
Versus
BHUPATBHAI MAVJIBHAI BARAIYA & ORS.
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Appearance:
MR RUTVIJ S OZA(5594) for the Appellant(s) No. 1
for the Respondent(s) No. 1,10,2,3,4,5,6,7,8,9
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CORAM:HONOURABLE MR. JUSTICE J. C. DOSHI
Date : 26/06/2024
ORAL JUDGMENT
1. This Second appeal filed under section 100 of CPC challenges concurrent findings of judgment and decree, whereby,
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learned Principal Senior Civil Judge, Talaja in Regular Civil Suit No.49 of 2015 dismissed the suit of the plaintiff by judgment dated 01.02.2021. Unsuccessful challenge has been made by way of First Appeal being Regular Civil Appeal No.5 of 2021 before the learned Additional District Judge, Bhavnagar at Talaja and learned Appellate Court dismissed the Appeal vide judgment dated 31.08.2023.
2. For convenience, the parties are referred as per status in the suit.
3. Facts of the Second Appeal are as under :-
3.1. According to the plaintiff, he is resident of Village Nava Sangana, Ta : Talaja, Dist : Bhavnagar whereas; the defendants are the resident of Unchadi Village, Ta :
Talaja, Dist : Bhavnagar and the defendants are having agricultural (Khedvan) land bearing revenue survey no. 215 paiki 7 admeasuring 012647 HecAreSqm means Acre 03 - 05 Gunthas (hereafter "suit property") and that the defendants have entered into an agreement to sell the suit property to the plaintiff by fixing the price of Rs.31,000/ per Vigha and thereby, the defendants have accepted Rs. 25,000/ from the plaintiff as an earnest money and executed written agreement to sell (Banakhat) in favour of the plaintiff to this effect. Further, as per the terms of the agreement to sell, the plaintiff had been instructed by the defendants that the registered sell deed would be executed in favour of him by accepting the remaining amount. Inspite of repeated request made by the plaintiff to execute the registered
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sell deed, he was ignored by the defendants therefore, the plaintiff had issued a legal notice on dtd :26.04.2011 to the defendants through his ld.advocate for performance their part of agreement to sell, which was duly served event hough, the defendants neither care about it nor executed registered sell deed in favour of the plaintiff. On being afraid that the defendants would sell the suit property to third party, a public notice dtd : 23.05.2011 was published in the daily newspaper "Saurashtra Samachar"
through ld. advocate of the plaintiff. Even the defendants have not acted as per the terms of the agreement to sell and did not keep their promise, the suit has been filed by the plaintiff asking the reliefs for specific performance and permanent injunction towards the suit properties. Learned Trial Court after hearing the parties and appreciating the evidence on record, dismiss the suit. The plaintiff preferred Regular Civil Appeal before the Appellate Court and same was also dismissed. Hence, present Second Appeal.
4. Heard learned advocate Mr.Oza for the appellant -original plaintiff.
5. In appeal memo, following substantial question of law has been framed by the appellant :-
"[a] Whether entire/whole agreement to sale executed at Exh.20 by one of the owner respondent No.1 herein would be per se illegal and void in absence of express authority by other co-owners ?
[b] Whether agreement to sale vide Exh.20 executed by respondent No.1 would be void or voidable considering the
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subject land as joint property and considering the provisions of Indian Contract Act, 1872 ?
[c] Whether the suit filed by the appellant would fail though the respondents herein have not appeared and contested the suit ?
[d] Whether the degree of proof remains the same in ex- parte proceeding and in by-parte proceeding ?
[e] Whether suit filed by the appellant herein would fail on account of no notice to the respondents though they are aware about the transaction and though there is public notice issued in daily news paper ?
[f] Whether the appellant can be non-suited on the ground of non-joinder of necessary party when they are joined through their administrator ?
[g] Whether the suit of the plaintiff appellant herein would fail on ground of non-joinder of necessary parties when otherwise they are on record through principal respondent No.1?
[h] Whether the suit filed by the appellant could be decreed qua share of respondent No.1 as he is also the owner and he has executed the agreement to sale vide Exh.20 or it would fail in its entirety ?
[i]Whether the judgment and decree of the Courts bei we vitiated by non-consideration of various vital evidence on record?
[j]Whether the judgment & decree passed by the lower appellate Court is vitiated by not framing and deciding appropriate point for determination as required under the provisions of Order 41 Rule 31 of the Code Procedure ?"
6. After referring substantial question of law stated in para 5 of the appeal memo, learned advocate for the appellant would
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submit that learned Courts below committed serious error in rejecting the suit as well as appeal though agreement to sale was proved. He would submit that the plaintiff has produced agreement to sale at Exh.20. Learned Trial Court has taken and considered the same as evidence and contents thereof are also proved, which clearly indicates that the plaintiff has proved his case before the learned Trial Court but on technical consideration, learned Trial Court rejected the suit which is erroneously upheld by the learned Appellate Court. He would further submit that though defendant no.1 has executed agreement to sale in capacity of administrator of other respondents - defendants, before filing of the suit for specific performance, public notice was issued by the appellant - plaintiff inviting objections from other respondents but none of them came forward to object that respondent no.1 has no capacity or authority to execute agreement to sale on their behalf as well as for himself. Therefore, learned Trial Court has committed serious error in disbelieving the case of the plaintiff. Learned Appellate Court continued illegality by rejecting the appeal.
6.1. Upon above submissions, it is submitted to admit this appeal on above substantial question of law.
7. Having heard learned advocate Mr.Oza for the appellant, let note undisputed facts on record. The alleged agreement to sale upon which suit for specific performance was moved has been executed by Bhupatbhai Baraiya in favour of the plaintiff in his personal capacity as well as in capacity of administrator of rest of the respondents. It is unregistered document. In the suit,
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none remain present to contest.
8. Learned Trial Court framed issues at Exh.12(A), which reads as under :-
"1. Whether the plaintiff proves that the defendants executed an agreement to sell of the suit property in favour of the plaintiff on 19.02.2010 for the total consideration of Rs. 2,42,20000 and the sum of Rs. 25,000/ as an earnest money had accepted by the defendants for the same ?
2. Whether the plaintiff proves that he was and is ready and willing to perform his part of agreement ?
3. Whether the plaintiff proves that the defendants have refused/failed to perform their part of the agreement to sell ?
4. Whether the present suit is barred by any law ?
5. Whether the plaintiff is entitled to get the relief as prayed for?
6. What order and decree ?"
9. The plaintiff was permitted to led evidence to buttress and to prove issues. Learned Trial Court after hearing plaintiff, taking aid of section 101 of the Evidence Act believed that plaintiff has failed to prove any of the issues in his favour. Therefore, answered all the issues in negative and dismissed the suit. Reasoning given by the learned Trial Court is discernable in para 9.3 to 11, which reads as under :-
"9.3 Herein the case, the main disputed document is agreement to sell which is scripted on a stamp paper, which is executed in favour of the plaintiff namely Dashrathsinh Gambhirsinh Sarvaiya and it is executed by Bhupatbhai Mavjibhai Baraiya in the capacity of administrator of defendants namely (1) Kalubhai Mavjibhai, (2) Babubhai Mavjibhai (3)Hiraben Mavjibhai, (4) Ambaben Mavjibhai (5)Madhuben Mavjibhai, (6)
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Naniben Mavjibhai, (7)Lilaben Mavjibhai, (8) Dipaben Mavjibhai, (9)Viruben Mavjibhai and (10) Galalben Mavjibhai and it is Notarized and herein produced at Exh-
20. Now, considering the said agreement to sell, it is duly signed by Baraiya Bhupatbhai Mavjibhai only and no any other from the defendants have signed this document. According to the plaintiff, this document is executed by the power of attorney holder (administrator) but at this juncture, a question arose in the present suit that whether the executor namely Bhupatbhai Mavjibhai Baraiya had received any of the power from the defendants to execute such agreement to sell? On perusal entire records of the present case, no any single document is provided by either party that at what capacity the said administrator had executed this document. No any power of attorney is produce in the name of the Bhupatbhai Mavjibhai. Therefore the said agreement to sell is doubtful. Even at the filing of the present suit, the plaintiff himself has also ignored for joining the main parties as the defendants and only the executor is joined as the main party (as administrator capacity) and the notice is also issued only to the executor. Hence, no any single chance is given to the original party or original land owners to defend their side. Hence, entire proceedings of the suit is improbable and the present suit seems to be filed as under collusion both the parties. Therefore, herein the case, the plaintiff is failed to prove the legality of the disputed agreement to sell and the entire dispute is arose only from the said agreement to sell. Therefore, it can be said that the plaintiff is failed to prove his case.
10. Therefore, considering the aforesaid discussion, it can be held that the disputed agreement to sell was illegally executed by the executor without any power or without any ownership therefore at this juncture considering the Doctrine of " Caviet Emptor " (The buyer should be vigilant at the time of purchasing) it can be say that the plaintiff was not vigilant at the purchasing the disputed property. Therefore, the plaintiff is not entitled to get any benefit of such transactions as the Equity favours the vigilant and not the indolent.
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11. Now, on perusal the entire records of the case, no any single document is produced to show that whether the amount for the agreement to sell was paid or not. Herein the case, the plaintiff has failed to prove that the earnest money of Rs. 25,000/ was accepted or not by the defendants. Moreover, when the plaintiff is failed the said agreement to sell there is no question of it's performance hence, there is no question for willingness too.
Now, considering the ratio laid down by Hon'ble The Gujarat High Court in the case of "State Of Gujarat vs Mali Ranchhod Kheta And Ors. on 11 November, 1995 citations: (1996) 2 GLR 501" as;
" In order to establish title or right over the immovable property, the burden of proof initially lies on the person claiming ownership/right of that property. Section 101 of the Evidence Act provides that whoever desires any Court to give judgment as to any legal right or liability dependent on the existence of the facts which he asserts, must prove that the facts are in existence. When a person is bound to prove the existence of any fact, it is said that the burden of proof lies on that person."
The plaintiff has produced the following authorities which are as under :
1. 1987(1) G.L.H. (U.J.) 22 Kaushik Rajendra Thakore V/s. Allied Land Corpn
2. 1996 (1) G.L.H. 224 Nitinkumar Laxmidas @ Lakhubhai V/s.
Smt. Savitaben Pranshanker
I have gone through the ratio laid down in the aforesaid judgments and I agree with the ratio laid down by the Apex Court in the aforesaid judgments but the facts of the present suit is different then the facts of the aforesaid judgment and hence, the ratio laid down in the said judgments are not squarely applicable to the present suit.
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Therefore, considering the aforesaid discussions the issues no1 to 3 are answered in negative."
10. The centric issue which harboured learned Trial Court to dismiss the suit is that the plaintiff failed to prove that Bhupatbhai - defendant no.1 is power of attorney holder of rest of the defendants. In which way defendant no.1 became administrator of the rest of the defendants is not clear. No power of attorney is produced. No other evidence in this regard is produced. The defendants are major. This was main issue which clinched learned Trial Court and since the plaintiff failed to answer this issue and remove burden, suit was dismissed.
11. After following provision of Order 41 Rule 31 of CPC and framing necessary point for determination, first appellate Court has again address this issue. Relevant para 3 to 5 are as under :-
"3. I have carefully gone through the oral as well as documentary evidence adduced by the plaintiff. On perusal of the same, it becomes clear that, the plaintiff has filed suit for specific performance of agreement to sale executed by and between him and the defendant Shri Bhupatbhai. It is an admitted fact that, the agreement to sale Ex. 20 is not a registered document and it is also an admitted fact that, the said agreement to sale does not bear signatures of all co-owners of the suit property, whose names are mentioned in the revenue records of the suit property vide exh. 25, 26. It is also an admitted facts that, the plaintiff has not produced any document to show that, the defendant Shri Bhupatbhai was, at the relevant point of time, acting as an authorized administrator of the suit property for and on behalf of other co-owners. True it is that, the defendant Shri Bhupatbhai, has not challenged
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the execution of the agreement to sale. Thus, considering the provisions of section 49 of The Registration Act and the settled legal proposition in respect to the admissibility of an unregistered agreement to sale, it transpires that, though the unregistered agreement to sale can be looked into for limited purpose i.e. for collateral purpose in a suit for specific performance of contract, and considering the same for collateral purpose, this court is of the view that, it can be said that, the agreement to sale was executed between Shri Bhupatbhai and the plaintiff. However, as there is no evidence with respect to the fact that, the defendant Shri Bhupatbhai was authorized to act as an administrator of the suit property for an on behalf of all the other co owner, the same cannot be received in evidence against other co owner or can not be enforced against them unless they are party to the agreement or have given their consent for the same. Further, the agreement to sale can be received into evidence for the purpose of receipt of the amount of Rs. 25,000/- which was given to Shri Bhupatbhai. However, the same can not be said to be proof of receipt of amount for the other co owners.
4. At this stage, it is also imperative to note that, the plaintiff has not prayed for return of his earnest money and therefore, the ld. Trial Court has also not considered this aspect in its judgment. The said aspect is neither referred nor any submission was made before this court and therefore, the same cannot be considered by this court.
5. I have carefully gone through the pleadings of the plaintiff in the plaint and oral as well as documentary evidence submitted by him. On carefully going through the same, it transpires that, the agreement to sale vide exh. 20 was executed by Shri Bhupatbhai alone. Though it is the case of the plaintiff that, it was executed by Shri Bhupatbhai as an administrator of the suit property for and on behalf of other co owners. However, there is no such document on record, supporting the say of the fact that, Shri Bhupatbhai was acting as an administrator of the suit property. It further transpires that, the plaintiff has mentioned name of other co owners in the cause title but no such notices were issued as well as served upon
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them. It also transpires that, the plaintiff had paid Rs. 25,000/-, whereas, as per the terms and conditions of agreement to sale, Rs. 35,000/- was fixed price for per Vigha land. Thus, the total amount paid by the plaintiff to the defendant Shri Bhupatbhai, is around 10% of the total value of the agreed price of the suit property. It is also emerging from the record that, during the course of trial as well as present appeal, the plaintiff has not deposited or shown that, he has deposited remaining amount in the court. It is also imperative to note that, the agreement to sale was executed in the year 2011 and in the present year i.e. 2023, the price of the suit property has been increasing day by day and price is escalated. It is also imperative to note that, the plaintiff has issued notice vide exh. 21 to the defendant Shri Bhupatbhai only, but, no attempts were made by the plaintiff to issue and serve notice to the other co owners. Thus, even for a moment assuming legality, validity and enforceability of agreement to sale then also it cannot be enforced against co owners, who are neither signatories to the agreement to sale nor given their consent to execute agreement to sale. Further, the plaintiff has failed to produce any evidence, supporting the fact that, the agreement to sale was legally executed by Shri Bhupatbhai for and on behalf of other co owners, who are interested parties in the suit property
12. Learned advocate for the appellant in Second Appeal could not remove the cloud which was raised by the learned Trial Court and upheld by learned appellate Court that in what capacity respondent no.1 could execute agreement to sale for rest of the respondents. This centric issue has been properly decided by the learned Trial Court. There is nothing in this Second Appeal. No substantial question of law arise in this Second Appeal.
13. At this stage, I may refer to judgment of the Hon'ble Apex Court in the case of Chandrabhan (Deceased) Through Lrs.
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Versus Saraswati [2022 (13) Scale 777]. The Hon'ble Apex Court in para 33 has summarized principles relating to Second Appeal under section 100 of CPC as under :-
"33. The principles relating to Section 100 of the CPC relevant for this case may be summarised thus:
(i) An inference of fact from the recitals or contents of a document is a question of fact. But the legal effect of the terms of a document is a question of law. Construction of a document involving the application of any principle of law, is also a question of law. Therefore, when there is misconstruction of a document or wrong application of a principle of law in construing a document, it gives rise to a question of law.
(ii) The High Court should be satisfied that the case involves a substantial question of law, and not a mere question of law. A question of law having a material bearing on the decision of the case (that is, a question, answer to which affects the rights of parties to the suit) will be a substantial question of law, if it is not covered by any specific provisions of law or settled legal principle emerging from binding precedents and involves a debatable legal issue. A substantial question of law will also arise in a contrary situation, where the legal position is clear, either on account of express provisions of law or binding precedents, but the court below has decided the matter, either ignoring or acting contrary to such legal principle. In the second type of cases, the substantial question of law arises not because the law is still debatable, but because the decision rendered on a material question, violates the settled position of law.
(iii) The general rule is that the High Court will not interfere with findings of facts arrived at by the courts below. But it is not an absolute rule. Some of the well-
recognised exceptions are where (i) the courts below have ignored material evidence or acted on no evidence; (ii) the courts have drawn wrong inferences from proved facts by applying the law erroneously; or (iii) the courts have wrongly cast the burden of proof. When we refer to "decision based on no evidence", it not only refers to cases where there is a total dearth of evidence, but also refers to
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any case, where the evidence, taken as a whole, is not reasonably capable of supporting the finding."
14. Learned advocate Mr.Oza for the appellant submitted that plaintiff has issued public notice and no one has raised question or disputed the aspect. This issue has not been dealt with by the learned Trial and therefore, serious error has been committed. I am afraid to hold fathom in this contention. There is no requirement of issuing public notice calling up objections and if someone has not objected the same, it would not remedise agreement to sale which is already faulty and does not attain any legality in the eyes of law. Section 6 and 7 of the Transfer of Property Act does not recognize such kind of agreement to sale and permit administrator to transfer or execute agreement to sale on behalf of other major / co-shares / co-parcners without their consent or with without their power of attorney. Even Contract Act does recognize execution of such contract. As Exh.20 - agreement to sale inhibits inherent legal defects, it cannot be specifically performed.
15. This Second Appeal is nothing but one more toss on gamble to get relief which otherwise was not available since beginning of the suit.
16. For the foregoing reasons, the Second Appeal is dismissed. No costs. Civil Application, if any, is also dismissed. Record and Proceedings, if any, be sent back.
(J. C. DOSHI,J) SATISH
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