1961 (9) TMI 83 - HC - Indian Laws

Summary

Issues:
1. Validity of the assignment of the right to reconveyance.
2. Interpretation of the language in the agreement of resale.
3. Application of Madras Act 1 of 1955, specifically Section 7(1).
4. Enforceability of the right to reconveyance despite the vendor being a lessee and owing arrears.

Analysis:

1. The plaintiff appealed in a suit for specific performance, where the trial court decreed in favor of the plaintiff. The defendant had executed an agreement to reconvey the property to the original owner or his heirs. The plaintiff obtained an assignment of this right and demanded reconveyance, which the defendant refused. The first appellate court held the assignment invalid, but the High Court found it enforceable based on legal principles and precedent.

2. The first appellate court's decision was primarily based on the language of the agreement, which seemingly restricted the right to reconveyance to the original owner and his heirs. However, the High Court analyzed the clause and found no exclusivity implied, allowing for the assignment of the right. The court dismissed the argument of fraud and misapplication of Madras Act 1 of 1955, stating that the plaintiff's assignment was valid and enforceable.

3. The High Court criticized the first appellate court's erroneous conclusions and clarified that the right to assign the right to reconveyance was inherent in the agreement. The court emphasized that the assignment could not be resisted by the defendant based on the language of the agreement or the vendor's status as a lessee with arrears.

4. The High Court overturned the first appellate court's decision, restoring the trial court's decree in favor of the plaintiff. The court highlighted that the vendor's absence as a party did not hinder the plaintiff's right to enforce the reconveyance. The judgment emphasized the enforceability of the assignment and rejected the arguments regarding fraud and the application of Madras Act 1 of 1955.

5. Consequently, the High Court allowed the appeal, setting aside the decision of the first appellate court. The costs were to remain as awarded by the trial court, with each party bearing their own costs. The judgment concluded by stating that no leave was required for further appeal.

6. The appeal was allowed, and the decision of the first appellate court was overturned, restoring the trial court's decree in favor of the plaintiff.