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TMI Blog1998 (12) TMI 479X X X X Extracts X X X X X X X X Extracts X X X X ..... Ravindra Bana for the Respondent. JUDGMENT Thomas, J. - The petitioner, who virtually purchased a litigation, has now reached the Supreme Court seeking special leave to appeal against a judgment by which the High Court of Punjab and Haryana has dismissed a second appeal. The suit was filed by York Printers and during its pendency, the present petitioner bought the rights which the original plaintiff had in the subject-matter of the suit for a consideration of Rs. 40,000. The petitioner got himself impleaded as additional plaintiff and from then on it was the petitioner who fought the litigation, as the original plaintiff has vacated from the scene. 2. York Printers filed the suit on the following facts. On 28-7-1977 a plot of land admeasuring approximately 450 sq. metres has been allotted to York Printers ('the allottee') as per a letter of allotment issued by Haryana State Industrial Development Corpn. Ltd. ('the Corporation'). The said plot is situated within the industrial complex at Dundahera in Gurgaon District, Haryana. The price for such allotment was tentatively fixed as Rs. 13,455 and the allottee was put in possession thereof. On completion of remittance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court. The Learned Single Judge, who heard the appeal, agreed with the contention of the petitioner that section 52 is not a bar against transferring property pendente lite. However, learned Judge has observed the following: "The question in this case is not in regard to validity of the sale of plot to second plaintiff by the allottee, but the question is whether second plaintiff has any locus standi to question the order of resumption which had been passed against the allottee. In my view, second plaintiff has no locus standi to question the validity of order resuming the plot. There have been no privity of contract between second plaintiff and HSIDC. Contract was between allottee and HSIDC and the same was subject to fulfilment of certain terms and conditions by the allottee. Since the allottee failed to abide by the terms and conditions of allotment, plot was rightly resumed by HSIDC. On resumption of plot, it became the absolute property of HSIDC and allottee had been left with no right, title or interest in the property which he could transfer to second plaintiff." 8. The High Court further noted that the plot which could fetch only bid amount of Rs. 10,000 pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted to have been executed between the parties. If that agreement was not in accordance with proforma, it is for the petitioner to show that there was some other agreement which is different from it. However, the petitioner has not even chosen to adduce any evidence in that line. Hence, we have no difficulty to believe that the agreement was executed in the said proforma. Clause 7 of the aforesaid agreement reads thus: "That the allottee shall start on the said site construction of the building for setting up the aforesaid industry within a period of 6 months and complete the construction thereof within two years from the date of issue of the allotment letter, the plans of which shall be in accordance with the rules made and with the directions given from time to time by the Town and Country Planning and Urban Estates Department in respect and approved by the director, Town and Country Planning Department or any other office duly authorised by him in this behalf. Further the allottee shall complete the erection and installation of machinery and commence production within a period of 3 years from the date of allotment of plot railing which the plot be liable to be resumed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rces in land, buildings, machines, etc., and functioning of our unit shall depend on supplies of power and water. Will you please help us in the setting up of the plant. We have met your Shri R.K. Kaushik and Mr. B.S. Ojha highlighting the problems of water and power. He assured us for prompt action. Please advise us what to do and what are you going to do for us. Please acknowledge the receipt considering the fact that we have already obtained the conveyance deed of the said plot." 15. It is, therefore, clear from the said reply that allottee did not dispute that it has not taken any steps towards implementation of the proposed industrial unit. So, the petitioner who is only a transferee of the allottee cannot claim any other right which even the allottee did not have. 16. However, the allottee has contended before the trial court that clause 7 of the agreement is unenforceable in view of section 11. But that contention was repelled, according to us, rightly, because the deed of conveyance had not created any absolute interest in favour of the allottee in respect of the plot conveyed. For a transferee to deal with interest in the property transferred 'as if there were no s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the plot. The real question is whether the assignee has a legal right to claim performance of any part from the allottor. Answer of the said question depends upon the terms of allotment. Assignment, by act of parties, may cause assignment of rights or\of liabilities under a contract. As a rule, a party to a contract cannot transfer his liabilities under the contract without consent of the other party. This rule applies both at the common law and in equity ( vide para 337 of Halsburys Laws of England, 4th edn., part 9). Where a contract involves mutual rights and obligations, an assignee of a right cannot enforce that right without fulfilling the co-relative obligations. The aforesaid principle has been recognised by a Constitution Bench of this Court in Khardah Co. Ltd. v. Raymon Co. India (P.) Ltd. AIR 1962 SC 1810. T.L. Venkatarama Aiyar, J who spoke for the Bench has observed thus: "The law on the subject is well-settled and might be stated in simple terms. An assignment of a contract might result by transfer either of the rights or/of the obligations thereunder. But there is a well-recognised distinction between these two classes of assignments. As a rule, obliga ..... X X X X Extracts X X X X X X X X Extracts X X X X
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