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citation codes
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  • A4 sale deed.7. S. 8 of the Hindu Minority and Guardianship Act
  • HINDU MINORITY AND GUARDIANSHIP ACT
  • S. 8 of the Hindu Minority and Guardianship Act, 1956
  • provisions of S. 12(2) of the Specific Relief Act
  • S. 8 of the Hindu Minority and Guardianship Act
  • S. 12(1) of the Specific Relief Act, 1963
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
Judges
Acts
  • A4 sale deed.7. S. 8 of the Hindu Minority and Guardianship Act
  • HINDU MINORITY AND GUARDIANSHIP ACT
  • S. 8 of the Hindu Minority and Guardianship Act, 1956
  • provisions of S. 12(2) of the Specific Relief Act
  • S. 8 of the Hindu Minority and Guardianship Act
  • S. 12(1) of the Specific Relief Act, 1963
Smart Summary

Factual and Procedural Background

The plaintiff (1st respondent) filed a suit for specific performance of a contract for sale against defendants 1 to 6 (appellants 1 to 4 correspondingly) and others, relating to the sale of a property. The trial court decreed the suit directing defendants 1 and 2, on their own behalf and on behalf of minors defendants 3 to 6, to execute the sale deed on receipt of the balance sale consideration. Defendants 1 and 2 were also restrained from executing any sale deed in favor of the 7th defendant or others. The plaintiff sought specific performance of an agreement dated 5-3-1979 for sale of the property for Rs. 14,500. The plaintiff alleged readiness and willingness to perform the contract and that defendants 1 and 2 intended to alienate the property to a third party (7th defendant). Defendants 1 and 2 contested the genuineness of the agreement, and the guardian for minors (defendants 3 to 6) challenged the maintainability of the suit against minors and validity of the agreement affecting minors' property. The trial court granted decree for specific performance, which is now under appeal with respect to the minors' portion of the property.

Legal Issues Presented

  1. Whether specific performance of the sale agreement can be enforced against minor defendants without prior permission of the Court under Section 8 of the Hindu Minority and Guardianship Act, 1956.
  2. Whether the agreement for sale executed by the natural guardian (1st defendant) on behalf of minors is valid without court sanction.
  3. Whether specific performance can be granted in part for the property belonging to defendants 1 and 2, excluding the minors' share, under Section 12 of the Specific Relief Act, 1963.

Arguments of the Parties

Appellants' Arguments (Defendants 3 to 6)

  • Specific performance of the agreement is not possible against minors.
  • The agreement is vitiated due to non-compliance with mandatory provisions of the Hindu Minority and Guardianship Act relating to alienation of minors' property.
  • No evidence was produced to show that alienation of minors' property was for their benefit.
  • The sale was not sanctioned by the District Court as required.
  • The natural guardian (1st defendant) was not competent to execute the agreement affecting minors' property.

Respondent's (Plaintiff's) Position

  • The plaintiff asserted readiness and willingness to perform the contract and tendered balance consideration.
  • Claimed entitlement to specific performance based on the agreement executed by defendants 1 and 2 on behalf of minors.
  • Contended that defendants 1 and 2 admitted the agreement but raised issues regarding possession and alienation.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Rutherford v. Acton Admas, AIR 1915 PC 113 Specific performance can be decreed for substantial part of contract with compensation for small deficiencies, provided no misrepresentation or disentitlement. The Court applied this principle to hold that specific performance can be granted for the portion of the property defendants 1 and 2 can convey, while excluding minors' share.

Court's Reasoning and Analysis

The Court examined the provisions of Section 8 of the Hindu Minority and Guardianship Act, 1956, which restricts a natural guardian from alienating minors' property without court permission and only for the minor's evident advantage or necessity. The Court found no pleading or evidence that the guardian (1st defendant) obtained such permission or that the transaction was for the minors' manifest advantage. Consequently, the agreement affecting minors' property is voidable and can be avoided by the minors.

Regarding the property belonging to defendants 1 and 2, the Court referred to Section 12 of the Specific Relief Act, 1963, which permits specific performance of the part of a contract that can be performed when the unperformed part is a small proportion of the whole and admits of compensation. Since the minors' share constituted a small portion (18 out of 94 cents), specific performance was granted for the remainder of the property. The Court calculated the balance sale consideration accordingly and directed defendants 1 and 2 to execute the sale deed for their share upon receipt of the balance amount.

The Court confirmed the injunction restraining defendants 1 and 2 from alienating the property in favor of the 7th defendant or others.

Holding and Implications

The appeal is allowed in part and the decree of specific performance is modified.

The Court held that specific performance cannot be granted for the portion of the property belonging to minors as the sale agreement was executed without court permission and not for the minors' manifest advantage. However, specific performance is granted for the property belonging to defendants 1 and 2, excluding the minors' share. Defendants 1 and 2 are directed to execute the sale deed for their portion on receipt of the balance sale consideration. The plaintiff may enforce the decree through the Court if defendants fail to comply. The injunction preventing defendants 1 and 2 from alienating the property to the 7th defendant is confirmed. No costs were awarded. This decision affects only the parties and does not establish any new precedent beyond the application of existing statutory provisions and case law.

    Santhos Kumar And Others v. Varghese George And Others

    Pillay, J.:— Appellants 1 to 4 are defendants 3 to 6 in O.S 84 of 1979 of the Additional Sub Court, Alleppey, 5th appellant is the 1st defendant in the suit. The 1st respondent (plaintiff) filed the suit for specific performance of a contract for sale. The suit has been decreed by the trial Court and defendants 1 and 2 on their own behalf and on behalf of minor defendants 3 to 6 are directed to execute the sale deed in respect of the plaint property infavour of the plaintiff on receiving the balance sale consideration recited in Ext. A3 within three months. Plaintiff is allowed to execute the decree in case defendants do not comply with the direction of the court. Defendants 1 and 2 were also restrained by injunction from executing the sale deed in respect of the property in favour of the 7th defendant or in favour of any other person.

    2. The ranking of the parties as it stood before the trial Court is followed in this judgment.

    3. Plaintiff filed the suit for specific performance of Ext. A3 agreement dated 5-3-1979 ex ecuted by defendants 1 and 2 on their behalf and representing minor defendants 3 to 6 in favour of the plaintiff for sale of the plaint schedule property for a consideration of Rs. 14,500/-. It is the case of the plaintiff that he issued a notice through his lawyer expressing his willingness to purchase the property tendering the balance consideration and requesting defendants 1 and 2 to appear before the Sub-Registry Office, Vennikulam at 10 a.m on 26-3-1979 to execute the sale deed in accordance with the agreement and that the 1st defendant replied the notice admitting the execution of the agreement, but contending that the property is in the possession of a stranger under an oral lease. Plaintiff stated that he has been and is still ready and willing to perform his part of the agreement. It is also alleged in the plaint that defendants 1 and 2 had made preparations to alienate the property to the 7th defendant.

    4. Second defendant remained ex parte. First defendant filed written statement questioning the genuineness of the agreement and refuting the allegation that he received Rs. 2500/- as stated in the plaint. For defendants 3 to 6 the Court guardian filed written statement contending that the suit is not maintainable against the minor defendants, that the agreement relied on by the plaintiff is not genuine and that it cannot affect the minors' right in their property. It is also contended that the 1st defendant was not competent to execute such an agreement and the agreement was highly detrimental to the interest of the minors.

    5. Learned counsel for defendants 3 to 6 submitted that specific performance of the agreement is not possible against the minor defendants, that the agreement is vitiated for non-compliance of the mandatory provisions of the Hindu Minority and Guardianship Act relating to the alienation of minors' property, that there is nothing to show that the proposed alienation of the minors' property was to their benefit and that the Court failed to consider whether the sale of the minors' property was with the due sanction of the District Court.

    6. In Ext. A3 agreement there is no mention at all that any portion of the property belongs to the minors and the sale is intended for their benefit. Ext. A4 sale deed whereby defendants got title to the property specifically shows that 18 cents of land was purchased in the name of the minors. But the plaint proceeds on the basis that the property belonged to defendants 1 to 6 jointly. One of the cardinal contentions of defendants 3 to 6 is that the guardian (1st defendant) has not obtained sanction from the court under S. 8 of the Hindu Minority and Guardianship Act, 1956 to alienate the property belonging to minors. In Ext. A3 defendants 1 and 2 cleverly avoided to state the right and title of the minors over a portion of the property which they obtained as per Ext. A4 sale deed.

    7. S. 8 of the Hindu Minority and Guardianship Act enumerates the powers of a natural guardian. S. 8(1) reads:

    “The natural guardian of a Hindu minor has power, subject to the provisions of this section, to do all acts which are necessary or reasonable and proper for the benefit of the minor or for the realisation, protection or benefit of the minor's estate, but the guardian can in no case bind the minor by a personal covenant”.

    S. 8(2) of the Act prohibits the natural guardian from mortgaging, charging or transferring the minor's property without permission of the Court. S. 8(3) stipulates that any disposal of immovable property by a natural guardian, in contravention of sub-sec. (1) or sub-sec. (2), is voidable at the instance of the minor or any person claiming under him. S. 8(4) mandates the court not to grant permission to the natural guardian to do any of the acts mentioned in sub-s. (2) except in case of necessity or for an evident advantage to the minor. Thus it is manfestly clear that under S. 8 of the Act property of the minor can be alienated, mortgaged or leased or gifted only for his evident advantage or necessity and the court's permission is a condition precedent. Any transaction by a natural guardian of the immovable property of the minors without permission of the court will not have any legal force and would not be binding on the minors.

    8. In the case in hand there is no pleading or evidence at all that the 1st defendant as natural guardian entered into the agreement to alienate the property belonging to the minors with permission obtained from the Court under S. 8 of the Act. As there is no evidence that the agreement was entered into by the 1st defendant for the manifest advantage of the minors and with the permission of the Court their right will not be adversely affected. Defendants 3 to 6 are perfectly entitled to avoid the agreement entered into by the 1st defendant in favour of the plaintiff without permission of the Court. Even if it is held that the transaction was beneficial to the minors and to their manifest advantage, still it cannot improve the position, as the Court's prior permission was not obtained. As permission of the Court was not taken by the guardian for the sale of the property the minor defendants can very well avoid the agreement.

    9. It has next to be considered whether the plaintiff can obtain decree for specific performance of the agreement so far as the property belonging to defendants 1 and 2 is concerned. S. 12(1) of the Specific Relief Act, 1963 postulates that except in cases falling in sub-sees. (2) to (4), the Court shall not direct specific performance of a part of contract so far as they can be performed, and for compensation so far as it is not possible to perform them. Sub-sec. (2) deals with the case, when the part which must be left unperformed be are only a small proportion to the whole in value, and admits of compensation in money. In such a situation the court may direct the specific performance of so much of the contract as can be performed and award compensation in money for the deficiency. In the case in hand defendants 1 and 2 are in a position to convey substantially what the plaintiff has contracted to get. Out of the total extent of 94 cents, the extent of property belonging to the minors is only 18 cents. With respect to the property belonging to defendants 1 and 2 they cannot raise any controversy so far as the plaint claim is concerned. As defendants 1 and 2 are in a position to convey substantially what the plaintiff as a purchaser had contracted to get, the court can definitely decree the suit for specific performance as against their property. As it is found that defendants 1 and 2 have no title with regard to 18 cents of property belonging to the minor defendants and as they did not obtain sanction of the Court as provided under S. 8 of the Hindu Minority and Guardianship Act specific performance cannot be granted with regard to that item of property. In such a case the Court has to see whether the part of the contract which cannot be performed bears only a small proportion to the whole in value. Where it is found that the promisor had no title in regard to one item out of several, he had agreed to convey, the court has to see whether the part of the contract which cannot be performed bears only a small proportion to the whole in value and admits of compensation in money, or that such part does not bear only a small proportion to the whole in value or does not admit of compensation in money. In a case where the part of the contract which cannot be performed is the conveyance of an item which is only a small portion of the whole in value and admits of compensation in money, the provisions of S. 12(2) of the Specific Relief Act became applicable. In Rutherford v. Acton Admas, AIR 1915 PC 113 it is stated as follows:

    “If a vendor sues and is in a position to convey substantially what the purchaser has contracted to get, the court will decree specific performance with compensation for any small and immaterial deficiency, provided that the vendor has not, by misrepresentation or otherwise, disentitled himself to his remedy”.

    Defendants 1 and 2 cannot perform the whole of the agreement and they can perform only that part of the agreement which relates to their own property. As the property belonging to the minor defendants is only a small proportion to the whole of the agreement, it has to be held that specific performance of so much of the contract as can be performed can be granted in favour of the plaintiff.

    10. In view of the formidable legal position specific performance cannot be granted so far as the property belonging to the minor defendants is concerned. For 94 cents of land the total consideration was Rs. 14,500/- and Rs. 2,500/- was paid as advance. This would work out Rs. 155/- per cent. For 18 cents of property the consideration amounts to Rs. 2790/-. The consideration for the property of defendants 1 and 2 works out to Rs. 11,710/-. Out of the said amount Rs. 2500/- has already been paid as per Ext. A3 agreement. Plaintiff has therefore to pay Rs. 9,210/- to defendants 1 and 2 as balance sale consideration. With regard to the property belonging to the minors (18 cents) we find that the plaintiff is not entitled to get a decree for specific performance of the agreement as it was obtained without permission from the Court and as the sale was not for the manifest advantage of the minors.

    11. Judgment and decree of the court below are hereby modified and defendants 1 and 2 are directed to execute the sale deed in respect of the plaint property minus the property belonging to the minors on receipt of the balance consideration of Rs. 9,210/- within three months from the date of the judgment. In case they do not execute the sale deed, the plaintiff may apply for execution of the decree to have the sale deed executed through Court on depositing in court the balance sale consideration and the cost for registering the sale deed. Upon execution of the sale deed through court, the plaintiff will be entitled to take delivery of the plaint schedule property less 18 cents belonging to minors from the possession of defendants 1 and 2. The trial Court's injunction restraining defendants 1 and 2 from executing the sale deed in favour of the 7th defendant is hereby confirmed.

    The appeal is allowed with regard to the property of the minors, defendants 3 to 6. In all other respects the judgment and decree of the trial Court are confirmed, we make no order as to costs.

    Order accordingly.

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    Comments

    Santhos Kumar And Others v. Varghese George And Others
    (Apr 10, 1987)