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PEMMADA PRABHAKAR & ORS. versus YOUNGMENS VYSYA ASSOCIATION & ORS.

Citation: [2014] 7 S.C.R. 1064 · Decided: 20-08-2014 · Supreme Court of India · Bench: DIPAK MISRA · Disposal: Case Partly allowed

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Judgment (excerpt)

A 
B 
[2014] 7 S.C.R. 1064 
PEMMADA PRABHAKAR & ORS. 
v. 
YOUNGMEN'S VYSYA ASSOCIATION & ORS. 
(Civil Appeal No. 7835 of 2014) 
AUGUST 20, 2014 
[DIPAK MISRA AND V. GOPALA GOWDA, JJ.] 
Specific Relief.Act, 1963- ss. 17, 20(2) - Contract to sell 
or let property by one who has no title - Enforceability of -
C Suit for specific performance of the agreement of sale -
Entitlement for decree - When agreement of sale entered 
between the plaintiffs-vendee and defendant nos. 1 and 2-
vendor and vendor did not have absolute title to the property, 
there was absence of execution of the agreement of sale by 
o the other defendants/co-sharers, and there was breach of 
terms and conditions of the contract on the part of the plaintiffs 
in not paying the sale consideration amount within the 
stipulated period - Held: In view of s. 17, the agreement of 
sale entered between the plaintiffs and some of the co-sharers 
E who do not have the absolute title to the suit schedule property 
is not enforceable in law - On facts, suit schedule property 
was self acquired property of 'P' who died intestate, surviving 
by his wife, three sons and three daughters upon whom the 
property devolved in view of s. 8 of the Hindu Succession Act 
F being class I legal heirs in the suit schedule property -
Agreement of sale was executed only by defendant Nos. 1 
and 2 - 3rd son,ยท mother and three sisters who got equal 
shares in the property did not execute the agreement of sale 
- Thus, agreement of sale executed by defendant Nos. 1 and 
2 who had no absolute right to property cannot confer any right 
G whatsoever upon the plaintiffs for grant of decree of specific 
performance of agreement of sale in their favour -
Said 
agreement is not enforceable in law in view of s. 17 - As 
assured by the defendant Nos. 1 and 2 that they would get 
H 
1064 
PEMMADA PRABHAKAR v. YOUNGMEN'S VYSYA 1065 
ASSOCIATION 
the signatures of the 3rd brother at the time of execution of A 
the agreement, signatures were not obtained, thus, the 
agreement was not executed by all the co-sharers of the 
property- Furthermore, the plaintiffs did not approach the trial 
court with clean hands - Plaintiffs did not pay the sale 
consideration amount as agreed to be paid within the period 
B 
stipulated -
Thus, the order passed by the trial coยตrt 
dismissing the suit for specific performance of agreement of 
sale restored with modification that the defendants would pay 
a sum of Rs. 6, 00, 0001- to the plaintiffs as lump-sum 
compensation within the stipulated time - Order passed by c 
the High Court and first appellate court set aside - Hindu 
Succession Act, 1956. 
'PVR'-owner of the suit property, died intestate. He 
survived by his wife and his six children, three sons and 
three daughters-defendant Nos. 1 to 6. The respondents-
D 
plaintiffs filed suit for the specific performance of 
agreement of sale against the defendants-appellants. The 
plaintiffs alleged that the defendant Nos.1 and 2 executed 
the agreement of sale in favour of plaintiff No.1 agreeing 
to sell the suit schedule property at certain rate. The 
E 
defendant Nos.1 and 2 received advance amount and the 
remaining amount was to be paid to the defendants within 
10 days from the day of vacating the tenants from the suit 
schedule property. The defendant Nos.1 and 2 agreed 
that they would obtain the signatures of their 3rd brother-
F 
the defendant No.3 as also the sisters who got married 
long ago. The Senior Civil Judge holding that the 
agreement of sale was not valid as the defendant Nos.3 
to 6 and their mother did not give consent to sell the suit 
schedule property to the plaintiffs, dismissed the suit for G 
specific performance of sale as also directed the 
defendants to refund the advance amount received by 
them. On appeal, the first appellate court held that the 
sale agreement is valid and binding between the parties; 
and directed the defendant Nos.1, 2, 4 and 5 to execute 
H 
1066 
SUPREME COURT REPORTS 
[2014) 7 S.C.R. 
A the registered sale deed in favour of the plaintiff's 
Association in respect of their 1/6th share. The 
defendants filed Second Appeal. Hence the instant 
appeal. 
8 
The questions which arose for consideration in the 
instant appeals were whether the plaintiffs were entitled 
for the dec'ree for specific performance of the agreement 
of sale when agreement of sale entered between the 
plaintiffs and defendant Nos. 1 and 2 who did not have 
C absolute title to the property; w

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