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Mst. Gangabai v. Mst. Sonabai
Structured Summary of the Court's Opinion
Factual and Procedural Background
The plaintiff sued for specific performance of an agreement dated 18 January 1914 for the sale of a curtain property in Sheikh Memon Street. The agreement was between the plaintiff, Gangabai, and the defendant, Sonabai, who acted as administratrix of her deceased father's estate. The plaintiff also sought rectification of the agreement to insert words making clear that Sonabai contracted in her capacity as administratrix, although the plaintiff's counsel, before the case opened, sought leave to raise an additional issue that the judge understood to imply abandonment of the rectification prayer.
The written agreement (Exhibit E) was executed after negotiations involving a broker, Chhotalal, and an arbiter, Mathuradas, who was asked to fix a price. The parties signed the agreement in blank and left the price to be filled in after Mathuradas' decision. When a lower-than-expected figure was announced by Mathuradas, Sonabai repudiated the transaction. The plaintiff sought specific performance; the defendant pleaded she had been duped or misled and raised counterclaims including enhanced rent.
After hearing evidence and argument, the Court made findings of fact and law and delivered a decree refusing specific performance and rectification, directed the refund of the earnest-money with interest and fixed rent and possession terms; ultimately the suit and the counter-claim were dismissed.
Legal Issues Presented
- Whether an agreement or conveyance by a person who is an administratrix (or executor) and who purports to convey the whole property without words of limitation must be taken to convey the highest estate she is capable of conveying (i.e., her capacity as administratrix), and whether rectification is therefore necessary to show that capacity.
- Whether the facts established in this case bring it within the exception to that general rule — namely, whether both parties knew and intended that the vendor only sold her personal beneficial interest rather than the whole estate.
- Whether, applying Section 22 of the Specific Relief Act principles (misrepresentation, mistake, or inducement), the court should exercise its equitable discretion to refuse specific performance because enforcing the agreement would inflict greater injury on the defendant than benefit the plaintiff.
Arguments of the Parties
Plaintiff (Gangabai) — principal contentions
- The sale agreement of 18 January 1914 was entered into with Sonabai and purported to convey the entire property; the plaintiff treated the agreement as binding for the whole property.
- Mathuradas was the agreed arbiter to fix a price between Rs. 30,000 and Rs. 35,000 and the plaintiff expected to accept whatever figure he fixed within that range.
- The plaintiff relied on the broker Chhotalal and on the arbitration process but otherwise did not appear to contest Mathuradas' good faith; the plaintiff proceeded to ask for specific performance when the defendant repudiated.
Defendant (Sonabai) — principal contentions
- The defendant alleged she was duped into signing the agreement, principally by misrepresentations or treachery involving Mathuradas and/or the broker Chhotalal.
- She contended that, as administratrix who may have only a limited beneficial interest, she did not intend to sell more than her own interest and that she was mistaken or misled about the terms submitted to Mathuradas.
- The defendant disputed having consented to the particular figure ultimately fixed and asserted she lacked independent professional advice and was induced to sign the agreement in circumstances that justify the Court refusing specific performance under the equitable principles reflected in Section 22 of the Specific Relief Act.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Bijraj Nopani v. Pura Sundary Dassee | Referred to in relation to the principle concerning the capacity of a person holding multiple estates to convey the highest estate when no words of limitation are used. | The Court cited this case as one of the authorities on the general principle that a person who has both a larger and a smaller estate and purports to convey the whole without limitation will be taken to convey the larger estate; the case was relied on as supporting that legal principle. |
| In re Venn & Furze's Contract (Stirling, J.) | Expresses clearly the general principle that where a person has two estates (one larger, one smaller) and purports to convey the entire property without words of limitation, the person is taken to be conveying the highest estate they possess. | The Court stated it independently arrived at the same principle and found Stirling, J.'s judgment to give very clear expression to it; the Court applied this principle to conclude rectification was unnecessary if the administratrix had in fact contracted in that capacity. |
Court's Reasoning and Analysis
The Court proceeded in two principal stages: first, by stating and applying a rule of law about capacity and conveyance; second, by applying equitable discretion under the Specific Relief Act to decide whether to order specific performance on the facts.
(1) Legal principle on capacity and rectification:
- The Court accepted a general legal principle (supported by the cited cases) that where a person has two estates (a larger and a smaller) and purports to convey the whole without words of limitation, the person must be taken to be conveying the highest estate they possess (for example, an executor or administratrix dealing with estate property conveys in that representative capacity unless the contrary appears).
- On that basis the Court held that if the 18 January 1914 agreement was really the agreement of Sonabai in her capacity as administratrix, there was no need to rectify the agreement to insert words designating her as administratrix; the act would be treated as an act in that capacity whether or not the paper so described her.
(2) Factual inquiry and exception to the general principle:
- The Court examined whether the facts brought the case within the exception where both parties must have been aware that the vendor intended to restrict the sale to a personal, lesser interest. The Court found no sufficient facts to establish that both parties so intended.
- The agreement was drawn between Sonabai alone and the plaintiff; Cooverbai (the sister and co-owner) was present but not a party to the signed document, which suggested Sonabai was acting with full powers of administratrix rather than selling merely a personal half-interest.
- The circumstances surrounding the arbitration by Mathuradas, the drafting and signing in blank, the content of Sonabai's letters of authority (which did not restrict Mathuradas to fix a figure between Rs. 30,000 and Rs. 35,000), and the conduct of the broker Chhotalal were analyzed in detail.
- The Court accepted much of the evidence of Mathuradas as substantially true, distrusted Chhotalal's credibility, and found that Sonabai likely believed Mathuradas would secure a much higher price (she thought the property worth Rs. 1,000 per square yard) and therefore signed in blank in the hope of a surprise high figure.
(3) Equitable discretion under Section 22 (Specific Relief Act) and the decision whether to enforce:
- The defendant's plea that she had been duped and induced to sign was the kind of plea cognizable under Section 22, making it a question of fact whether she entered into the agreement under mistake or misrepresentation.
- The Court emphasized that specific performance is an equitable remedy and the Court must consider whether enforcement would cause more injury to the defendant than benefit to the plaintiff.
- Balancing the equities, the Court found: the plaintiff would gain little or no benefit because she had agreed to pay more than the property was worth; the defendant (an administratrix who in truth had only a half interest with her sister) was reluctant to dispose of the property at the price stated and there was no urgent necessity to sell to pay debts.
- Given these considerations and the factual findings (including the mistaken belief of Sonabai, Chhotalal's doubtful credibility, and the plaintiff's lack of evident need to enforce), the Court exercised its discretion to refuse specific performance.
(4) Relief and incidental orders:
- The Court refused both the main prayer for specific performance and the supplementary prayer for rectification because rectification was unnecessary if Sonabai had contracted in her capacity as administratrix, and because equitable relief of specific performance was, on balance, inappropriate.
- The Court addressed the counterclaim and ordered equitable adjustments: refund of earnest-money with interest, payment of rent at a specified rate until vacant possession, dismissal of other reliefs in the counterclaim, and directions on costs and possession.
Holding and Implications
Core Ruling: The Court refused the prayers for specific performance and for rectification and dismissed the plaintiff's suit and the defendant's counter-claim.
Consequences and immediate effects on the parties:
- The plaintiff's suit for specific performance and supplementary prayer for rectification were refused; the suit was dismissed.
- The counter-claim was also dismissed.
- The Court ordered that the earnest-money paid by the plaintiff be refunded with interest at 6% per annum up to the date on which the defendant offered to return it.
- The plaintiff was directed to pay rent at the rate of Rs. 190 per month for the period she remained in occupation until she gave vacant possession.
- The plaintiff was ordered to deliver up possession by 1 February 1915.
- As to costs, the Court found that the plaintiff should not be made to bear the defendant's costs of the litigation and ultimately ordered that, in all other respects, each party should bear her own costs.
The opinion applies existing legal principle(s) regarding the capacity of a vendor who is an executor/administratrix and the equitable discretion to refuse specific performance under circumstances of mistake or inducement; it does not purport to set out a novel precedent beyond applying those principles to the facts before the Court.
1. The plaintiff in this suit seeks specific performance of an agreement to sell a curtain property in Sheikh Memon Street, alleged to have been entered into on the 18th of January 1914, between the said plaintiff and the defendant, Sonabai, administratrix of the estate of her deceased father. The plaintiff also asks for the rectification of the agreement, if necessary, by the insertion of words not therein to be found at present, making it clear that the contract was entered into by Sonabai as administratrix. Before the case was opened, the learned Counsel for the plaintiff asked leave to raise an additional issue which implies, as 1 understand it, the abandonment of this supplementary prayer for rectification. No evidence has been led in the course of this trial to prove any mutual mistake in the actual wording of the agreement, Exhibit E; but in its final form the plaintiff's case amounts to this, that inasmuch as Sonabai was the administratrix and purported to convey the whole of the property in suit without any qualification or words of limitation, she must be presumed in law to have agreed to convey the highest estate she was capable of conveying, and that too without the need of any designatory words such as administratrix. I have been referred to certain cases upon this subject, and notably the case of Bijraj Nopani v. Pura Sundary Dassee (1) and the very informing case of In re Venn & Furze's Contract (2). Even since the trial commenced, I have bestowed my best attention upon this interesting point, and although it was only in Counsel's concluding arguments that the case of In re Venn & Furze's Contract was brought to my notice, I had independently arrived at the principle to which, I think, Stirling, J's judgment in that case gives very clear expression. It appears to me, as a general principle, that where a person has two estates, one larger and the other smaller, and purports to convey the entire property without any words of limitation, he must always be taken to be conveying the highest estate he has: that is to say, if an executor having a one-third personal beneficial interest in the estate purports to convey the whole of it without qualification or limitation, he must be taken to be conveying is his character as executor, and not in that of one having a beneficial interest only in a fraction of the whole estate purported to be conveyed. Upon this general principle, which I believe to be universally valid and applicable, exceptions may be grafted with reference to the particular facts of particular cases. Thus where, upon the facts found, the Court is satisfied that both the parties must have been aware that the intention of the vendor was to restrict what was being sold to his personal lesser interest and where the Court also finds that was the intention of the vendor, then, no doubt, the conveyance would only be effectual to that extent. But that is really no exception at all to the general rule I have stated. It appears to me to make not the slightest difference whether, in such circumstances, the vendor is expressly designated as executor or administrator if, in fact and to the knowledge of the purchaser, he be an executor or administrator and purports to convey without limitation the whole estate. Nor do I think any distinction can be maintained in principle between actual conveyances and agreements to convey for the purposes of applying this general rule. If I am right so far, it is obvious that there is no case for rectification here because there is no need for it. If the agreement of the 18th of January 1914 was really the agreement of the administratrix, then, in my opinion, it would be as much an act of Sonabai in that capacity whether or not she be described on the paper as administratrix. So far upon the question of pure law.
2. Next arises the question whether the facts proved in this case would bring it within the class of exceptions I have indicated, that is to say, whether there is anything in the form of the document or the relations of the parties or their conduct in this agreement, which would warrant the Court in holding that it was the intention of Sonabai to agree to convey no more than any beneficial interest she herself might have in the property agreed to be conveyed, and that intention was known to and accepted by the plaintiff, Gangabai. Except for the constant association of Gooverbai, the defendant, Sonabai's sister, with Sonabai in all the stages of this transaction, I fail to discover any such facts. The agreement itself purports to be drawn as between Sonabai alone of the one part, and the plaintiff, Gangabai of the other; and Sonabai, who was admittedly well-known to Gangabai to be administratrix of her late father's estate, agreed to sell not her own interest, whatever that might be in the suit property, but the entire property. Bearing in mind that Cooverbai was herself present when the agreement was entered into and signed by the plaintiff and the defendant, and that no attempt was made on either side to obtain her signature or have the agreement drawn in the joint names of herself and Sonabai, it appears to me beyond reason to contend that in this matter Sonabai was not putting herself forward as competent to deal with the property, not as one having merely a limited interest therein, but with all the powers of administratrix. I think too that Cooverbai must have been present with the object of confirming the act of Sonabai as administratrix, while keeping an eye, perhaps, on her own interest. But I can hardly believe that if it had really been the intention of Sonabai merely to sell her own right, title and interest in the property, or to sell that along with the right, title and interest of Cooverbai, the Attorney, under whose control the whole proceeding was conducted, would have allowed the agreement to be executed in its present form. Still less do I think that if that had been the intention and the plaintiff had been aware of it, she would have consented to the agreement binding her to pay so high a price as Rs. 33,750 for an unascertained share of a property which, at the highest, would hardly be worth more than Rs. 43,000.
3. It remains, then, to be considered whether, approaching the case in this light, the agreement of the 18th of January 1914 is one which ought to be specifically enforced. The defendant's contention is that she was duped into signing the agreement by the treachery probably of Mathuradas and that had she been aware of the figure he intended to fix, she would never have consented to sell the property. In effect, this amounts to such a plea as might very properly be entertained under Section 22 of the Specific Relief Act, and it then would be merely a question of fact whether or not the defendant has satisfied the Court that she had not entered into the agreement with the full knowledge of the facts or under a mistaken impression, or had in any other way through misrepresentation been induced to part with the property on terms which, with feller knowledge, she would not have accepted. In such cases it is not necessary that the facts should go the length of establishing actual fraud. What the Court is to look to is, whether in the exercise of its discretion the agreement is one which ought to be specifically enforced particularly having regard to this, whether enforcing it would not inflict more injury upon the defendant than confer benefit on the plaintiff. In every suit for specific performance, Courts of Equity have a free discretion limited only by those general principles which require all Courts of Justice to act in accordance with sound judicial principles and not upon mere caprice and sentiment.
4. Now, this case has occupied some time and a considerable amount of evidence has been led before the Court on both sides with the object, first, of proving that the transaction throughout was perfectly straightforward and that no imposition of any sort was practised upon the defendant; next, of proving that she acted upon a supposed assurance given by Mathuradas that he would never value this particular property at less than Rs. 1,000 per square yard. It is indubitably certain, I think, that the defendant, a Parsi woman, had not received any professional advice at all in the matter, probably beoause she did not ask for any. But after having listened to the evidence, while it was being given, with the closest attention, after having heard it criticised by learned Counsel on both sides, and having again reconsidered it from first to last, I feel very little doubt in my own mind as to the real truth of the matter. In the first place, I do not throw any doubt upon the evidence of Mathuradas. He is a gentleman of wealth and position and I am sure that his evidence here was substantially true in every particular. This indeed has not been seriously questioned by learned Counsel for the defendant. The defendant's case is in effect that Chhotalal, the broker, was at the bottom of the whole arrangement, and that it was through his misrepresentations to the defendant, Sonabai, on the one hand, and Mathuradas on the other, that the defendant was duped into making this very unfavourable agreement. The undoubted facts which I collect from the evidence, in my opinion, are that the broker was negotiating the sale of this property on behalf of the defendant, Sonabai. The first bidder appears to have been Haribhai, formerly a servant in the shop of the plaintiff, Gangabai, and afterwards a rival trader in the same line. Haribai is a witness of very poor class, upon whose word I can place but little reliance. It is very clear, however, from his evidence taken along with that of others that he was very anxious to establish himself in the place of his former mistress, Gangabai, and if he did not actually offer to buy the premises now in suit, be did admittedly taka them upon a much enhanced rent actuated no doubt, as I have said, by his desire to establish himself in place of Gangabai. It is the allegation of Chhotalal that Haribhai further offered to buy the premises for a sum varying between Rs. 28,000 and Rs. 30,000. Thereupon, Maganlal, the maternal uncle of the plaintiff, who is a very young woman, appears to have been apprised by Chhotalal of what was going on and in the interest of his niece, offered to raise any bid that Haridas might make by Rs. 2,000 or Rs. 3,000. Thereon, there appear to have followed negotiations conducted by the broker, Chhotalal, between Sonabai and the plaintiff, Gangabai; and I believe the truth to be here, as stated by the plaintiff's witnesses, that while Gangabai would offer no more than Rs. 30,000, Sonabai refused to sell for anything leas than Rs. 35,000. In estimating the probabilities of what followed, it is necessary to remember that Sonabai had mortgaged this property to one Canjid Sanderji for a sum of Rs. 18,500 in all; and it appears that Mathuradas, who is a member of the Well-known firm of Vassarje and Co., was acting after the death of Cauji Sanderji on behalf of his estate. Sonabai admits that Canji Sunderji had always treated her with the utmost kindness and consideration and stood to her, as she put it, almost in the relation of her father. Further, she had much confidence in Mathuradas, and after Canji Sanderji died, she says she used to turn to him for advice in all her business dealings. Those being the close relations existing between Sonabai and Mathuradas, it is, in my opinion, extremely probable that Sonabai should have mentioned, as she swears she did, to Mathuradas in one of her conversations about her affairs that she believed that the property in suit was worth Rs. 1,000 per square yard, and that Mathuradas may have said in general terms. “Well, if you can get that for it, by all means sell it.” I do not believe that it is true, as now alleged by the defendant, that Mathuradas, acting in the interests of Gangabai, brought pressure to bear upon Sonabai to sell this property by threatening her with the foreclosure of Canji Sanderji's mortgage. But I do believe that it is quite possible that Sonabai, as a result of some such conversation, as I have just related, got it into her head that Mathuradas had accepted her valuation and confirmed her belief that her property was worth the very high figure of Rs. 1,000 per square yard. With that idea in her mind, gradually converted possibly into an enlarged belief that Mathuradas had actually assured her that he would find a purchaser, if necessary, for her at that figure or a higher one, it was extremely natural that, on this difference arising between Sonabai and Gangabai as to the value of the property, Sonabai should have been only too willing to leave the price to be fixed by Mathuradas. Gangabai had equal reasons to repose confidence in this gentleman so that sbe would have been, as indeed aha proved to be, quite ready to accept his valuation. At the same time after the dispute had actually arisen between Sonabai and Gangabai, the evidence does not satisfy me that Sonabai had any further personal communications with Mathuradaa on this subject. I come now to that part of the case which relates to the written submissions to Mathuradas. That these were procured by Chhotalal, there can be no doubt whatever. The plaintiff's version, as supported by her principal witnesses, is that the only point in difference between her and Sonabai was, whether the price to be paid for the property should be Rs. 30,000 or Rs. 35,000. Chhotalal, thereupon, said to Sonabai: “If you go on haggling like this, the bargain will never be completed, be the best thing you can do is to leave the figure to be settled by some one in whom you have confidence.” To this Sonabai gladly agreed, doubtless having in her mind the belief I have mentioned that if she could obtain the arbitration of Mathuradas, he would fix the price at least Rs. 43,000. But the plaintiff's story is that nothing of that kind was really left to the arbitration of Mathuradas. All that he was asked to decide was some figure between Rs. 30,000 and Rs. 35,000, which might seem to him to be fair; and this undoubtedly was what was conveyed to Mathuradas orally by Chhotalal. But it may well be doubted whether anything of the kind was conveyed by Chhotalal to the defendant, Sonabai. At this point it is well to bear in mind what the knowledge of the principal parties was at this stage, if I am so far right. Gangabai and Chhotalal knew perfectly well what the actual submission about to be made to Mathuradas was. Sonabai did not. Mathuradas himself was duly informed that he would be requested to fix some figure between Rs. 30,000 and Rs. 35,000. He says that he understood that to be the limit of his authority, and that too without any respect to the actual value of the property. He says that, so far as he understood the submission to himself, he would have fixed the figure between Rs. 30,000 and Rs. 35,000, whether the property had been worth a lakh or whether it had been worth Rs. 10,000 At this point, then, Mathuradas, after having been informed by Chhotalal of what the plaintiff and the defendant desired of him, refused to act without a written authorisation from both of them. Accordingly, Chhotalal drafted the terms of submission for Sonabai, which, with unimportant alterations, she copied at the dictation of her sister, Cooverbai, and posted on the 12th of January to Mathuradas. Apparently, that letter was not delivered as quickly as was expected, and Chhotalal, who was exoeedingly anxious to get this authorisation from Sonabai, came to her and informed her that Mathuradas had not received her letter. She, accordingly, re-wrote it on the 14th and took it to the Office of Messrs Vasanji & Co., where the handed it to Chhotalal, who, in turn, gave it to Mathuradas. The other letter, posted on the 12th, likewise came to his band with little delay. On the 15th, a similar letter of authority was obtained from Gangabai. Now, it is to be noted that Sonabai's letters, which, for the purposes of this discussion, are alone important, are couched in general terms and contain no reference at all to restricting Mathuradas to some figure between Rs. 30,000 and Rs. 35,000. It is quite clear that, if I am right in believing that Sonabai hoped that Mathuradas would fix the figure not lower than at the rate of Rs. 1,000 a square yard, her letter of authorisation would have taken precisely the form which, in fact, it has done. On the other hand, if Chhotalal had verbally informed Mathuradas that his arbitration was only invited subject to this restriction, it is equally clear that he would not have inserted it in the draft he gave to Sonabai, if Sonabai was really, as she alleges, being kept in the dark upon this most material point. Now, observe what follows. Prior to the meeting of the 18th of January 1914, Chhotalal had been very busy apparently drafting the agreement to sell this property. He had taken this agreement to the firm of Bhaishankar, Kanga, Girdharlal & Co., some four days before it was actually executed, and submitted it to Girdharlal for his correction and approval. Girdharlal says that in this matter he was acting, if for anybody, for Chhotalal. At least he is driven to say that he made these corrections for Cbbotalal's sake. However, that may be, I think very little turns upon the actual form of the agreement. There is nothing the least objectionable in it, and the defendant herself admits, as does her sister, Cooverbai, that had the price come up to their expectations, they would have cheerfully accepted it and would have put the sale through. I merely mention these preparations by Chhotalal as showing his personal interest and activity in the conduct of the whole proceedings. The draft thus corrected, or rather fair copies of it, were given to Maganlal, and Maganlal in turn gave one of them to his attorney, Chandulal. Chandulal struck out one clause; but I think it is proved that out of deference to the wishes of Sonabai that clause was allowed to stand in the final agreement, Exhibit E. The only point then is that, if this be true, it contradicts part at least of Sonabai's evidence in which she stoutly denies that she knew anything at all of any draft agreement before the was called upon to sign the agreement, Exhibit E, at the house of Girdharlal on the 18th of January. Having got all these agreements, however, in due order, it appears that by the 15th of January, as I have said, Mathuradas had obtained written authorisations from the plaintiff and defendant to fix a price, as we now know, between Rs. 30,000 and Rs. 35,000. There only remained to appoint the time and place for the parties to meet and complete the transaction. This was accordingly done by Chhotalal, and 2 p.m of the 18th was finally settled and the place was to be Girdharlal's private residence. I attach very little importance to the small matter of the alteration of the time of the meeting, of which Sonabai was informed on the 17th. On the 18th, Sonabai and her sister, Cooverbai, went first to Chhotalal's house and with him to the appointed rendezvous, where the plaintiff and her uncle, Maganlal, were also present with Mathuradas, the whole proceedings being conducted by Girdharlal, the Attorney. Now, we come to a very singular circumstance, which, in my opinion, leaves little doubt as to the true state of Sonabai's mind and intention in this matter. For it is common ground that the plaintiff and the defendant signed the agreement, Exhibit E, in blank. They were asked by Girdharlal whether they would like to bare the figure first settled by Mathuradas duty filled in or whether they would prefer to sign the agreement and then leave the figure to be filled in. I have no doubt whatever that this is exactly what did occur and neither have I any doubt as to the reason why. As I have said, Gangabai, the plaintiff, knew quite well that Mathuradas would fix some figure between Rs. 30,000 and Rs. 35,000 and she was quite willing to accept whatever figure he thus gave. But Sonabai, cherishing a belief that Mathuradas would never allow the property to be sold for less than Rs. 1,000 per square yard, thought she would steal a march on Gangabai and spring a surprise upon her in the announcement by Mathuradas of some figure not less than Rs. 43,000. Sonabai must have known perfectly well that Gangabai, at the worst, contemplated paying no more than Rs. 35,000. Remembering, however, the terms of her letter of authorisation to Mathuradas and totally ignorant of what had been communicated to him by Chhotalal, she was in the reasonable expectation of securing a very much higher price than any in the contemplation hitherto of the intending purchaser, Gangabai. This appears to me to account for the readiness with which both the parties agreed to sign Exhibit E in blank: Gangabai because she was really indifferent and ready to accept whatever figure Mathuradas might fill in; Sonabai, because she fully expected that Mathuradas would fill in a figure which she knew very well Gangabai would never accept. That I take to be the explanation of what is otherwise inexplicable, that is to say, the manner in which this transaction was put through at Girdharlal's house. Bearing in mind the almost immediate resentment expressed by Sonabai, if she had really known that Mr. Mathuradas did not believe himself authorised to fix a higher figure than Rs. 35,000, it is difficult to understand why she was so indignant (as the swears she was) and why in so short a time she took steps to repudiate the transaction. Now, this does not put Sonabai's conduct in a very favourable light or entitle her to much consideration at the hands of a Court of Equity. Still there is nothing on her part actually dishonest, though I feel very little doubt that, in securing Mathuradas as final arbiter, she believed that she stole a march on Gangabai. After all, her submission contained no reference whatever to any figure, and as, according to evidence, it does not appear that she had ever seen Mathuradas since the negotiations began, there is no reason why she should have believed herself obliged to the him down in the manner suggested by Chhotalal. That I believe to be the true explanation of what passed at Girdharlal's house and faithfully to reflect the intention and the state of mind of Sonabai. It is true that the evidence shows that when the figure was announced (whether orally by Mathuradas, or, after it had been written by him on a piece of paper and handed over to Girdbarlal, by Girdbarlal, matters nothing), Sonabai did not protest. Neither did Cooverbai. According to these women, they were so Btaggered at the lowness of the figure and at what Sonabai conceived to be Mathuradas treachery to her, that they stared aghast. Chhotalal asked them to go downstairs and said he would explain everything to them. That ends the story of the actual making of agreement and after a full consideration of all that is contained in it, I entertain very little doubt that Sonabai was taken by surprise and had she known of the true nature of the submission which alone Mathuradas believed himself to have received from these two women, she would not have consented to his arbitration on those terms, much less would she have signed the agreement in blank, before the price had been announced. As I have said, in this matter she received no independent advice from her Attorneys or, as far as I can see, from anybody. She probably thought that she was conducting her own business very cleverly; and in so endeavouring to outwit the plaintiff, Gangabai, she might have hesitated about the advisability of taking any Attorney or any other adviser into her confidence. It, however, does not alter the fact that she probably was under a very serious mistake and delusion. That may have been entirely her own fault, but in the circumstances disclosed in her evidence (and so much of it I believe), it was not unnatural and it was not really in any sense dishonest. Looking to the other side of the question, I find nothing whatever blameworthy on the part of the plaintiff. She also is a young woman, who has not appeared in person in this case and presumably knows nothing at first hand of what went on. Chhotalal, the broker, is the only man who had the first hand communication with the three principal persons concerned, Sonabai, Gangabai and Mathuradas; and Chhotalal was a witness who certainly, did not impress me very favourably. He has a very lively and substantial interest in getting this transaction completed. If, therefore, the plaintiff were likely to suffer materially by the failure to complete this contract, it might be a very nice and difficult question for the Court to answer upon the ground of fairness to both the parties whether it should be specifically enforced or not. The evidence, however, here (and it is the plaintiff's own evidence) is all one way. I cannot See how she will be benefited by the specific performance of this contract. It is indeed incredible, except upon the supposition that her Attorneys have driven her into this suit, why she has taken this step at all. She has agreed to pay more than the property is worth. She could carry on her business just as well in any other premises. On the other hand, the defendant appears to me extremely reluctant to part with the property at the price stated in the agreement. She has really only a half interest therein, the other half belonging to her sister Cooverbai. There appears to be absolutely no need to sell the property for the payment of the deceased's debts. In the discharge of her duty as administratrix, the defendant would be under no urgent need of selling the property and I can only suppose that she consented to sell, and that her sister, Cooverbai, supported her in that decision, on the understanding that the sale would be an extremely profitable one for both of them.
5. In view of these considerations, it appears to me that this is a case in which the Court ought not to grant specific performance. I think that, in the circumstances, the proper decree would be that the prayer for specific performance, and the supplementary prayer for rectification, should both be refused, and the plaintiff's suit so far dismissed. But having regard to the state of the evidence and what I believe to be the underlying truth of the whole matter, I do not think that the plaintiff ought to be made to bear the defendant's cost of this litigation.
6. There remains the counterclaim, which again, is not entitled, I think, to very much sympathy at the hands of the Court. The moat that can be said in this behalf is that the plaintiff is bound to pay the rent for the time she has remained in occupation of the premises; but in view of the peculiar circumstances of the case, I do not think that she ought to pay the enhanced rent the defendant is seeking to obtain from her. In my opinion, what the general justice of the case requires is, that the earnest-money should be refunded to the plaintiff with interest at 6 per cent per annum up to the date on which the defendant offered to return it; next, that the plaintiff should pay to the defendant rent of the premises at the rata of Rs. 190 a month until she gives vacant possession; and that in all other respects the suit and the counter-claim should be dismissed, each party bearing her own costs.
7. The plaintiff should deliver up possession by the 1st of February 1915.
8. Suit and Counter-claim dismissed.
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