Judgment:
(With
Civil Appeal No. 419 of 2001) - C.A. No. 418 of 2001
Dr. Arijit Pasayat, J.-
Leave granted.
This appeal is
directed against the judgment of the Madras High Court. Letters Patent
Appeal was filed questioning correctness of the order passed by a
learned Single Judge in A.S.No. 796/1987 dated 2.11.1999. The order was
passed on a preliminary objection raised by the respondents in the
appeal.
Background facts
in a nutshell are as follows:
O.S.No.247 of 1981 on the file of the Sub Court, Madurai was filed by
Veerappan, the first respondent for specific performance of an agreement
for sale dated 23.1.1978. Respondents 2 to 9 were impleaded in the suit
as owners of the property and it was alleged that the owners had entered
into an agreement with him and as the agreement was not complied with,
the suit was filed. After the decree was passed by the trial Court, the
defendants through their power of attorney sold large extent of
properties including the subject matter of the suit in favour of certain
other persons who are the present appellants. In the mean time,
defendants 1 to 5 filed appeal in A.S. No. 796 of 1987 before the High
Court against the Judgment and decree in O.S. No. 247 of 1981 and the
appellants herein being subsequent purchasers filed C.M.P. 3707 of 1989
to implead themselves as appellants 6 to 9 in the appeal on the ground
that original appellants 1 to 5, the erstwhile owners, were trying to
collude with the first respondent. Appellants 1 to 5 filed C.M.P. No.
4388 of 1990 to withdraw their power of attorney in favour of one
Chakrapani and Sethuraman. A learned Single Judge of the High Court
dismissed C.M.P. No. 3707 of 1989 filed by the appellants herein seeking
impleadment and allowed C.M.P. No. 4388 of 1990 by order dated
28.6.1990. The appellants filed L.P.A. No. 113 of 1990 against the order
of dismissal of C.M.P. No 3707 of 1989 and also sought for leave to file
an appeal against the order allowing C.M.P. No. 4388 of 1990. Both the
L.P.A. and C.M.P. No.9570 of 1990 seeking leave to appeal were disposed
of by a common order dated 28.3.1990. L.P.A. 113 of 1990 was allowed and
with the result the appellants were impleaded as appellants 6 to 9 in
the appeal and A.S. No.796 of 1987 was also directed to be disposed on
merits.
The High Court
after analyzing the rival submissions came to hold as follows:
"Therefore, we are inclined to hold that having regard to the facts and
circumstances of the case, there is no bar for the appellants to raise
any issue on the merits of the appeal for consideration in the appeal
except the defence of readiness and willingness as provided under
Section 16 (c) of the Specific Relief Act, 1963.
In the result, the
appeal is ordered accordingly. No costs. Consequently, connected C.M.P.
is dismissed."
(underlined for emphasis)
Learned counsel for
the appellants submitted that the plea relating to readiness and
willingness can be raised in a suit for specific performance of
contract. Strong reliance is placed on a decision of this Court in
Ram Awadh (dead) by Lrs. And ors. v. Achhaibar Dubey and Anr. (2000
(2) SCC 428). Learned counsel for the appellants, therefore, has
submitted that the High Court was not justified in its view.
Learned counsel for
the respondents on the other hand supported the judgment of the High
Court.
Questioning the plea
of readiness and willingness is a concept relatable to an agreement.
After conveyance the question of readiness and willingness is really not
relevant. Therefore, the provision of the Specific Relief Act, 1963 (in
short the 'Act') is not applicable. It is to be noted that the decision
in Ram Awadh's case (supra) relates to a case where there was only an
agreement. After the conveyance, the only question to be adjudicated is
whether the purchaser was a bona fide purchaser for value without
notice. In the present case the only issue that can be adjudicated is
whether the appellants were bona fide purchasers for value without
notice. The question whether the appellants were ready and willing is
really of no consequence. In Ram Awadh's case (supra) the question of
the effect of a completed sale was not there. Therefore, that decision
cannot have any application so far as the present case is concerned.
Once there is a conveyance the concept would be different and the
primary relief could be only cancellation.
Learned counsel for
the appellants submitted that since the purchasers step into the shoes
of the vendor, the question of readiness and willingness can be pressed
into service. This plea is clearly without substance because the
purchasers had to prove that they are bona fide purchasers for value
without notice. The readiness and willingness aspect will not give any
relief to them. That being the position, the appeal is sans merit and is
dismissed. There will be no order as to costs.
C.A. No. 419 of 2001
In view of the
dismissal of C.A.No.418 of 2001, no order needs to be passed in this
appeal.
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