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2002 (9) TMI 885 - HC - Indian Laws

Issues:
1. Validity of the agreement dated 30-11-1981 registered on 18-1-1982.
2. Implication of specific performance of contract on the cancellation of the sale deed.

Issue 1: Validity of the agreement dated 30-11-1981 registered on 18-1-1982:

The case involved a dispute where the plaintiffs entered into an agreement with the defendant for the sale of plots. The plaintiffs alleged that they had paid a sum of money as advance for the sale, while the defendant denied the existence of such an agreement. The defendant claimed to have entered into an agreement with another party for the same plots. The key contention revolved around the registration date of the agreement, with the defendant arguing that the agreement should be effective from the date of execution, not registration, citing Section 47 of the Registration Act, 1908. The court referred to legal precedents, such as the case of Gurbax Singh v. Kartar Singh, to establish that the time of execution determines priority over registration time. Ultimately, the court answered the legal questions in the negative, indicating that the agreement dated 30-11-1981 registered on 18-1-1982 was valid and enforceable.

Issue 2: Implication of specific performance of contract on the cancellation of the sale deed:

The defendant had executed a sale deed in favor of a third party, which the plaintiffs contended was void due to their prior agreement with the defendant. The defendant argued that the plaintiffs were aware of the agreement with the third party and that the agreement with the plaintiffs was fraudulent. The court considered the evidence and found that the lower appellate court's findings were based on the record and did not warrant interference. Citing the case of Kondiba Dagadu Kadam v. Savitribai Sopan Gujar, the court emphasized that if the first appellate court exercises discretion judiciously, its decision should not be interfered with in a second appeal. Consequently, the court dismissed the appeal, maintaining the judgment and decree of the lower appellate court.

In conclusion, the High Court upheld the validity of the agreement dated 30-11-1981 registered on 18-1-1982 and dismissed the appeal regarding the specific performance of the contract and the cancellation of the sale deed. The judgment highlighted the importance of legal precedents and the discretion of lower appellate courts in such matters.

 

 

 

 

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