ROJASARA RAMJIBHAI DAHYABHAI versus JANI NAROTTAMDAS LALLUBHAI (DEAD) BY LRS. & ANR.
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- V• JANI NAROTIAtlillS UIUJBHAI (DEAD) BY UIS. & AHR. APRIL 10, 1986 [A.P. SEN AND B.C. RAY, JJ,] 447 ·I> A. Suit for specific performance - Agreement to sell contains an implied covenant on the part of the vendor to do all things necessary to give effect to the Agreement, including the obtaining of the permission for the transfer of property - Vendor who has become the statutory occupant and )' owner of the land and who has obtained necessary permission subsequently as such occupant ref uses to execute the sale-deed ~1' on the plea that the agreement to sell entered into by him was interdependent on his earlier Agreement to purchase the lands from the Girasdar and contingent on his obtaining the permission and since he failed, the Agreement to sell is incapable of performance - Contract Act, 1872, sections 31 & 32 - Whether the Court can order specific performance of transfer - Specific Relief Act, 1877, section 13 - Doctrine of 1'- "feeding the estoppel", applicability. A B c D B. Limitation Act, 1963, Article 113, applicability of - E Computation of period of time from what date, explained. i The appellant-defendant who was the owner of two plots ~ of land admeasuring 491 and 1599 square yards situate in ' village Dudheraj recorded as Girasdari agricultural land entered into an agreement in writing (Ex.26), on October 19, F '\ 1949, with the Girasdar, Rana Mohabat Singh to purchase the said lands at Rs.2.50 per square yard and paid an earnest money of Rs.1,001. The agreement stipulated that the vendor was to apply for permission from the Collector to convert the agricultural land into village site for non-agricultural use and that the sale deed was to be executed after obtaining the G requisite permission• On November 14, 1949 the appellant i entered into another agreement to sell some property to the respondents Jani Narottamdas Lallubhai and Thakur Dhirajlal Dhaneshvar at Rs. 3. 75 per square yard agreeing to contend that the appellant was to get the land converted into village aite at his own expense and thereafter executed the sale-deed. H A B c D E F G H 448 SUPREME COURT REPORTS [1986] 2 s.c.R. In 1950-51 Rana Mohabat Singh applied to the Collector -'· for grant of permission to convert the land into village site but since his application was rejected he refunded the earnest money to the appellant. However, after coming into force of the Saurashtra Land Reforms Act, 1951, with effect from September 1, 1951, the right and title of Rana Mohabat Singh as the ex-Girasdar were extinguished and the appellant was recognised to be an occupant thereof under the provisions of the Bombay Land Revenue Code, 1898. On 13 August, 1957, the ~ appellant made an application to the revenue authorities for the grant of occupancy certificate, which was granted on 6.2.58 by the Mamlatdar, The occupancy certificate was to come into effect from August 1, 1958. On two applications of the appellant dated June 23, 1958 and September 10, 1959 '( revenue authorities granted permission for converting the -f.- lands under his possession into village site, that is, for non-agricultural use. On 5 October, 1959 the respondents called upon the appellant to execute a conveyance of the property in accordance with the agreement of sale between the parties dated 14. ll.1949 and on the appellant's failure to comply, they filed a suit for specific performance. The Trial Court upheld the pleas of the appellant, namely, (i) the suit was barred by l '..J.tation; and (ii) the agreement between the ~ parties was a contingent contract depending upon the contingency referred to in the agreement (Ex.26) dated 19 October, 1949 and since that contract became incapable of execution by virtue of Rana Mohabat Singh failing to obtain a permission of the Collector the agreement dated 14 November, 1949, and non-suited the respondents. On appeal the High Court ~ reversed the decree and held that the second agreement between the parties had not been cancelled by 1111tual consent and that J the suit was within time and that the time started, running r only from 10th September, 1959, as the date on which requisite permission was obtained from the Collector for the use of the land as a village site. Diamissing the appeal, on certificate, the Court, llELD: 1.1 The agreement embodied in the suit Banakhat r (Ex.25) dated November 14, 1949 was not a contingent
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