LexSHYAM KUMAR INANI versus VINOD AGRAWAL & ORS.
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[2024] 11 S.C.R. 2375 : 2024 INSC 865 Shyam Kumar Inani v. Vinod Agrawal & Ors. (Civil Appeal No. 2845 of 2015) 12 November 2024 [Vikram Nath* and Prashant Kumar Mishra, JJ.] Issue for Consideration Whether the Appellants are entitled to specific performance of an Agreement to Sell dated 30.08.1990. Whether the Agreement to Sell dated 30.08.1990 executed by one Sushila Devi was valid and enforceable; whether such execution could be proved by a General Power of Attorney holder; whether the plea of pardanashin status, illiteracy and old age affected the validity of the sale; whether the suit was barred by limitation under Article 54 of the Limitation Act; whether plaintiffs were in possession and whether consideration had been paid; whether plaintiffs were always ready and willing to perform their part of the contract; whether the subsequent sale deeds executed during pendency of suit were protected under Section 52 of the Transfer of Property Act and whether they violated the doctrine of lis pendens; and whether the High Court rightly reversed concurrent findings of the Trial Court. Headnotes† Sale of Immovable Property – Specific Performance – Validity of Agreement to Sell, Proof, Possession, Limitation, and Appellate Interference – The appellant-plaintiffs sought specific performance based on an Agreement to Sell with full consideration paid and possession of 23.98 acres of disputed agricultural land obtained from Sushila Devi, who passed away in 1992 – The Trial Court decreed the suit, validating the agreement, but the High Court reversed the decision, raising concerns over under-valuation, vagueness of the agreement, absence of direct testimony by all plaintiffs, lack of boundary specifications, bar of limitation, and pardanashin status of the executant – The High Court also questioned the credibility of the Power of Attorney holder's testimony: *Author 2376 [2024] 11 S.C.R. Supreme Court Reports Held: Supreme Court restored the Trial Court's decree, concluding that the Agreement to Sell was valid and enforceable under the Contract Act and Specific Relief Act – It held that procedural and substantive requirements were satisfied, with no conclusive proof of fraud – The Court emphasized that the burden of proving fraud lies on the defendant – The absence of boundary descriptions was not fatal to enforceability where the property was clearly identifiable and plaintiffs were in possession – It was further held that not every plaintiff must depose if a Power of Attorney holder with firsthand knowledge proves execution. [Paras 1, 2, 37] Inference of fraud must be clearly established – The defendants alleged that the Agreement to Sell was procured through fraudulent means, citing undervaluation, vague boundaries, and Sushila Devi's alleged incapacity: Held: The Supreme Court emphasized that fraud must be strictly pleaded and proved – The burden to proof lies squarely on the party alleging it – Defendants failed to produce any direct or circumstantial evidence showing deception, coercion, or concealment by the plaintiffs – Allegation of fraud was unsubstantiated – No material produced to prove fraud or misrepresentation – The Supreme Court noted that the Trial Court correctly found the transaction to be genuine and voluntary, and the High Court erred in accepting a speculative charge of fraud. [Para 35.1] Specific Relief – Validity – Proof of Execution by Power of Attorney Holder – The Power of Attorney holder, M.K. Maheshwari, had personal involvement in the transaction, which was corroborated by an attesting witness and handwriting expert – The High Court made misplaced adverse inference from non-examination of other plaintiffs: Held: Valid execution established – The Court relied on Man Kaur v. Hartar Singh Sangha, (2010) 10 SCC 512 to affirm that a Power of Attorney holder with personal knowledge may validly depose – The Court distinguished the decision in Vidyadhar Vishnupant Ratnaparkhi v. Manikrao Babarao Deshmukh, (1999) 3 SCC 573, to argue adverse inference for non-examination of plaintiffs, on facts as the Power of Attorney holder had firsthand knowledge and testified credibly – The Supreme Court distinguished Janki Vashdeo v. IndusInd Bank, (2005) 2 SCC 217 and Rajesh [2024] 11 S.C.R. 2377 Shyam Kumar Inani v. Vinod Agrawal & Ors. Kumar v. Anand Kumar, (2024) SCC OnLine SC 981, cited to challenge validity of POA evidence, on the ground that POA h
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