JANAK DULARI DEVI & ANR. versus KAPILDEO RAI & ANR.
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A B [2011) 6 S.C.R. 96 JANAK DULARI DEVI & ANR. v. KAPILDEO RAI & ANR. (Civil Appeal No. 4422 of 2002) APRIL 15, 2011 [R.V. RAVEENDRAN AND MARKANDEY KATJU, JJ.] Transfer of Property Act, 1882 - ss. 8 and 54 - Sale of immovable property - Passing of title - Suit for specific C performance by purchaser seeking decree for a direction to vendor to deliver the registration receipt in regard to sale deed by receiving the balance consideration - Vendor alleging that the purchaser did not pay any part of the consideration and as such he cancelled the sale deed and o sold the property to the subsequent purchaser - Trial court decreed the suit in favour of the purchaser holding that the purchaser had proved payment of part sale price to vendor and on execution of sale deed by the seller, title passed to the purchaser - First appellate court as also the High Court E dismissed the suit - On appeal, held: Intention of the parties was that title would not pass until the consideration was not paid - As the consideration was not paid, the sale in favour of the purchaser did not come into effect and the title remained with the vendor and the sale deed was a dead letter F - Thus, the subsequent sale in favour of the subsequent purchaser was valid - Vendor retained the power of repudiating the sale for non-payment of the sale price within a reasonable time and after lawful repudiation, the purchaser was not entitled to claim performance. G Property laws - Practice of exchanging equivalents- 'ta khubzul badlain' - Prevalent in the State of Bihar- Explained. It was the appellant's case that second respondent- ยท owner of the property executed a sale deed in respect of H 96 JANAK DULARI DEVI & ANR. v. KAPILDEO RAI & 97 ANR. the suit property in the appellant's favour for a A consideration of Rs.22,000/-; that the appellants paid Rs.17,000/- to the second respondent, at the time of execution and registration of sale deed; and that the second respondent retained the registration receipt of the sale deed, agreeing to deliver it to the appellants against B payment of the balance sale consideration. Subsequently, the second respondent avoided receiving the balance of Rs.5000/- and failed to deliver the registration receipt as also denied the receipt of Rs.17,000/-. The appellants filed a suit for specific c performance against the second respondent. They sought a decree for a direction to the second respondent to deliver the registration receipt relating to the sale deed by receiving the balance sale consideration of Rs.5000/- . The second respondent contended that as the 0 appellants failed to pay the sale consideration, he cancelled the said sale deed and sold the property to the first respondent for a consideration of Rs.19,000/- and also delivered possession of the property. Thereafter, the first respondent was impleaded as the second defendant E in the suit. The trial court decreed the suit holding that the appellants had proved the payment of part sale price of Rs.17000/- to second respondent; that on the execution of the sale deed by the second respondent, title passed to the appellants and the appellants were entitled to declaration of title and recovery of possession. F The first respondent filed an appeal. The first appellate court allowed the same holding that the appellants had failed to prove payment of Rs.17,000/- and that as a result thereof, the second respondent was justified in cancelling the sale deed and selling the property to the G first respondent. The appellants then filed a second appeal and the same was dismissed. Therefore, the appellants flied the instant appeal. Dismissing the appeal, the Court H 98 SUPREME COURT REPORTS [2011) 6 S.C.R. A HELD: 1.1 The first appellate court after analyzing the evidence held that the evidence was contrary to the pleadings that a sum of Rs.17 ,0001ยท was paid to the defendant at the residence of the first plaintiff, that thereafter, they went to the Sub-Registrar's office and got B the sale deed written by the scribe-PW5, and that thereafter, the second respondent executed the sale deed and got it registered; and therefore, liable to be rejected. When what Is pleaded is not proved, or what Is stated in the evidence is contrary to the pleadings, the c dictum that no amount of evidence, contrary to the pleadings, howsoever cogent, can be relied on, would apply. The first appellate court al
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