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Judgment Summary — Specific performance suit (Das, J. & Foster, J.)

Factual and Procedural Background

The plaintiff instituted a suit for specific performance of an agreement under which defendants Nos. 1 and 2 (and defendant No. 2 as guardian on behalf of defendants Nos. 3 and 4) had agreed to sell certain properties to the plaintiff. The agreement was alleged to have been made on 20 August 1916; the plaint was filed on 25 September 1916. On 24 October 1916 defendants Nos. 1 to 4 sold the properties to defendant No. 7, who was later added as a party on 26 August 1918.

The learned Subordinate Judge found that a valid pre-existing contract existed in favour of the plaintiff and that defendant No. 7 purchased with notice of that contract, but declined to decree specific performance because defendant No. 7, being a co-sharer, had a right of pre-emption. The Subordinate Judge dismissed the suit for specific performance but awarded the plaintiff a decree for Rs. 605 against defendants Nos. 1 to 4.

The plaintiff appealed. The reported opinion records the reasoning of Das, J. and Foster, J., and disposes of the appeal and the cross-appeal with modifications to the decree for money.

Legal Issues Presented

  1. Whether a guardian (or de facto guardian) can validly bind a minor by entering into a contract for the sale of the minor's immovable property so as to permit specific performance against the minor.
  2. Whether the Court can grant specific performance against a purchaser who claims under a party to an originally unenforceable contract (application and scope of Section 27(b) of the Specific Relief Act).
  3. Whether the contract in question is one and entire (indivisible) or divisible, and whether partial specific performance can be decreed (application of Sections 14–17 of the Specific Relief Act).
  4. Whether the plaintiff can obtain specific performance (or, alternatively, compensation) in the face of a subsequent purchaser (defendant No. 7) who is a co-sharer with a pre-emptive right.
  5. Whether the plaintiff is entitled to a monetary decree and, if so, the proper quantum and against which defendants.

Arguments of the Parties

Appellant's (Plaintiff's) Arguments

  • The plaintiff alleged there was a completed/valid contract (verbal on 20 August 1916; completed in writing on 1 September 1916) for sale of specified properties for Rs. 7,700 (including Salami Rs. 200) and sought specific performance.
  • Argument (as presented on appeal) that the contract (or part of it) might be divisible and that the Court could decree specific performance in respect of that divisible portion; counsel (Mr. Abani Bhusan Mukherji) argued that divisibility was primarily a question of fact and that the matter should be remanded for further evidence if necessary.
  • Through his learned Vakil, the plaintiff intimated willingness to accept conveyance of the shares of defendants Nos. 1 and 2 (i.e., to accept partial performance from what those defendants can convey).
  • An argument was advanced (referred to in the judgment) relying on Section 27(b) of the Specific Relief Act, that specific performance may be enforced against "any other person" claiming under a party to the contract, which was invoked to seek relief against defendant No. 7.

Respondents' (Defendants') Arguments

  • Defendants (including the minors by their written statement) pleaded that the contract was not enforceable as against the minors; the guardian (defendant No. 2) lacked power to bind the minors' immovable property without court permission.
  • The defendants (and the Subordinate Judge) relied on the contention that defendant No. 7 had a right of pre-emption which, even with notice, allowed her to defeat the plaintiff's claim to specific performance in respect of some estates.
  • It was argued in the Court below that the certificated guardian (appointed by the District Court) could not validly contract to sell the minors' immovable property without sanction of the District Judge; that point was decided against the defendants below but was pressed on appeal.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Imambandi v. Mutsaddi De facto guardian (or a guardian acting beyond authority) is not competent to dispose of the immovable property of infant children; a contract so made cannot be enforced as against the minors. Both judges relied on this case to hold that the guardian's sale/contract as to the minors' shares could not bind the minors and therefore specific performance against the minors was not permissible.
Mir Sarwarjan v. Fakhruloin (also cited as Mir Sarwanjan v. Fakhruddin) A manager or guardian of a minor cannot bind the minor's estate by a contract for the purchase of immovable property; lack of mutuality where contract cannot be enforced against the minor prevents enforcement against the other party. Das, J. treated this decision as decisive on the point that a contract entered into by/for a minor which cannot be enforced against the minor cannot be made the basis for specific performance against the other contracting parties for want of mutuality.
Lumley v. Ravenscraft Where a contract concerns jointly held property and one of the parties is an infant, specific performance is generally not available against the adult co-owner as to the entirety; joint interest rule and mutuality principle. Das, J. invoked this English authority to support the proposition that specific performance will not be granted against adult co-owners where the contract concerns the entirety and one co-owner is an infant.
Price v. Griffith; Thomas v. Dering These cases represent exceptions where misconduct or misrepresentation may enable specific relief against persons otherwise protected by the mutuality rule. Das, J. noted that no charge of misrepresentation or misconduct (within the meaning of these authorities) was made against defendants Nos. 1 and 2, so these exceptions did not apply.
Narain v. Aukhoy A contract by a certificated guardian without the previous permission of the Court is treated as a contract by a trustee in excess of powers and is incapable of being enforced specifically under the Specific Relief Act (Section 21 referenced in the judgment). Foster, J. cited this authority (and the statutory scheme) to support the conclusion that a certificated guardian who contracts without prior court permission cannot have that contract specifically enforced against the minors' estate.

Court's Reasoning and Analysis

The two judges (Das, J. and Foster, J.) approached the case along complementary lines; their reasoning can be summarized in the following steps drawn directly from the opinion:

  1. Guardian's authority and minors' protection:

    Both judges held that the alleged contract could not be enforced as against the minor defendants because the guardian's capacity to transfer or otherwise bind minors' immovable property is restricted. Das, J. relied on Imambandi v. Mutsaddi and Mir Sarwarjan to conclude that a de facto guardian who contracts to dispose of a minor's immovable property acts in breach of trust and that the Court will not sanction such a breach by decreeing specific performance against the minors. Foster, J. emphasized that defendant No. 2 was a certificated guardian under Act VIII of 1890 but, under Sections 29 and 30 of that Act, could not validly mortgage, charge or transfer immovable property of the minors without previous court permission; in the absence of such permission the contract was treated as ultra vires (citing Narain v. Aukhoy).

  2. Mutuality and enforceability:

    Das, J. drew upon the principle in Mir Sarwarjan that if a contract cannot be enforced against one contracting party (here, the minors), there is a want of mutuality and the other contracting party is generally precluded from enforcing it. The Court therefore held that the plaintiff could not obtain specific performance against defendants Nos. 1 and 2 where the contract could not be specifically enforced against the minors.

  3. Section 27(b) of the Specific Relief Act and claims against a transferee:

    Das, J. analyzed Section 27(b) and concluded that it applies only where the original contract is itself enforceable against the parties to it. The liability of a person claiming under a party to the contract arises from the antecedent enforceability of the contract against that party. Where the original contract is unenforceable (as against the minors), it could not be enforced against a subsequent transferee even if the transferee had notice. Accordingly, the plaintiff could not rely on Section 27(b) to compel defendant No. 7 to convey.

  4. Divisibility of the contract (Sections 14–17 Specific Relief Act):

    The Court examined whether the contract was divisible so as to permit specific performance in respect of the vendors' own shares. Das, J. found the contract to be one and entire: the plaint and Exhibit 5 portrayed a single contract with one consideration and no apportionment of price among the vendors. Because the contract was in substance indivisible, the general rule (Section 17) excluding enforcement of part only applied. Das, J. held that Section 15 did not apply because there was no default by defendants Nos. 1 and 2 and no representation that they were entitled to the whole interest; Section 16 was said to embody English law on divisibility but the contract was not divisible here. Foster, J. reached a similar conclusion as to indivisibility, observing that any partial decree would require partition to ascertain shares and so Section 16 did not apply; he considered that the case fell into the latter part of Section 15 but concluded that specific performance was not appropriate.

  5. Effect of defendant No. 7's status (pre-emption and purchaser for value) and remedy:

    The Subordinate Judge had found defendant No. 7 purchased with notice but claimed a right of pre-emption. Foster, J. emphasized that defendant No. 7 was a purchaser for value now in possession and, having been a co-sharer, had a superior right to purchase (pre-emption) as to some of the estates. Both judges agreed that, in the circumstances, specific performance ought not to be granted against the defendants in respect of the whole subject-matter. The appropriate remedy, particularly in Foster, J.'s view, was compensation in money rather than specific performance (citing Section 19 of the Specific Relief Act), confined to the amount actually paid (the Rs. 605 decree below), because the contract was exposed to the superior claims of the pre-emptor.

  6. Conclusion on relief:

    Having reasoned that specific performance could not be decreed against the minors and that the contract was indivisible, the Court dismissed the appeal as to specific performance. Both judges agreed that the plaintiff was entitled to a money decree. Das, J. directed modification of the decree to provide the plaintiff a monetary judgment for Rs. 605 with interest (9% p.a. from 11 September 1916 to 30 April 1920, and thereafter at 6% until realization) against defendant No. 1 and against defendants Nos. 3 and 4 as representatives-in-interest of the now-deceased defendant No. 2 to the extent of that defendant's assets; subject to that variation the cross-appeal was dismissed.

Holding and Implications

APPEAL DISMISSED; SPECIFIC PERFORMANCE REFUSED

Direct holding and disposition (as stated in the opinion):

  • The Court held that specific performance could not be decreed as against the minor defendants (Nos. 3 and 4) because the guardian (defendant No. 2) lacked the power to bind the minors' immovable property without prior court permission; contracts made in excess of guardian's powers will not be specifically enforced.
  • The Court held that the contract was one and entire (indivisible) and that the plaintiff could not be compelled to accept undivided shares instead of the entirety; consequently the Court would not, as a general rule, decree specific performance as to the shares of defendants Nos. 1 and 2 where the contract could not be enforced against the minors.
  • The plaintiff's suit for specific performance was therefore unsuccessful; however, the plaintiff was awarded a monetary decree (as varied by Das, J.) — Rs. 605 with interest (9% p.a. from 11 September 1916 to 30 April 1920; thereafter 6% p.a. until realization) and costs, as against defendant No. 1 and against defendants Nos. 3 and 4 as representatives-in-interest of defendant No. 2 to the extent of that defendant's assets. The cross-appeal was dismissed subject to this variation.

Implications: The judgment applies established principles regarding (i) the limited power of guardians to dispose of minors' immovable property without prior court sanction, (ii) the requirement of mutuality for specific performance, (iii) the limited application of Section 27(b) of the Specific Relief Act where the original contract is unenforceable, and (iv) the preference for compensatory relief where third-party rights (such as pre-emption of a co-sharer purchaser) impair specific enforcement. The opinion applies existing authorities and statutory provisions; it does not purport to announce a new legal principle beyond those applications.

    Abdul Haq v. Mohammad Yehia Khan

    Das, J.:— This appeal arises out of a suit instituted by the appellant for specific performance of an agreement by defendant No. 1 and by defendant No. 2 for self and as guardian of defendants Nos. 3 and 4 to sell certain properties to the plaintiff. The agreement is alleged to have taken place on the 20th August 1916 and the plaint was filed on the 25th September 1916. On the 24th October, 1916, the defendants Nos. 1 to 4 sold the properties to defendant No. 7, and defendant No. 7 was added as a party to the suit on the 26th August, 1918. The learned Subordinate Judge has found that there was a valid pre-existing contract to sell the properties to the plaintiff and that defendant No. 7 purchased the properties with notice of the prior contract in favour of the plaintiff; but being of opinion that defendant No. 7, as a cosharer in all the properties contracted to be sold to the plaintiff, had a right of pre-emption, has declined to give the plaintiff a decree for specific performance. The view of the learned Subordinate Judge is that though defendant No. 7 is not a purchaser without notice, she is still entitled to defeat the plaintiff's suit on the ground that she had a right of pre-emption in respect of the properties in dispute. In this view the learned Subordinate Judge dismissed the plaintiff's suit for specific performance but has given him a decree for Rs. 605, as against defendants Nos. 1 to 4.

    2. It is, in my opinion, unnecessary for us to express an opinion on the question which has been discussed at great length by the learned Subordinate Judge, for, in my view, this appeal must fail, first, on the ground that defendant No. 2 as the de facto guardian of defendants Nos. 3 and 4 had no power to convey to the plaintiff the shares of defendants Nos. 3 and 4 in the properties agreed to be sold; and, secondly, on the ground that it is quite impossible for the Court to give the plaintiff a decree for specific performance as against the minors and consequently as against the adult defendants. So far as the first point is concerned, the case of Imambandi v. Mutsaddi (1) is directly in point. It is quite true that was not a case of specific performance; but the principle is equally applicable to a case where the de facto guardian has entered into a contract with a third party for the sale of the minor's property. To direct the contract to be carried into effect as against the minors is to sanction a plain breach of trust on the part of the de facto guardian and this, I apprehend, this Court will not do. The second point is equally clear. The allegation if the plaintiff in regard to the contract is contained in the second paragraph of the plaint which is as follows:—

    “Defendant No. 1 and defendant No. 2 for self and as guardian of defendants Nos. 3 and 4 completed a contract for the sale of the above mentioned shares to the plaintiff on the 20th August 1916, at Bihar according to the stipulation given below; Rs. 7,500 was fixed as the consideration thereof and Rs. 200 as Salami, in all Rs. 7,700. To complete the transaction it was settled that defendants Nos. 5 and 6 should go to Siwan and do all that may be necessary for the execution of the deed of sale”.

    3. I will assume that the contract was a concluded one but the question still remains whether the Court will carry into effect a contract confessedly entered into by a guardian on behalf of the minors. The decision of the Judicial Committee in Mir Sarwarjan v. Fakhruloin (2) is, in my opinion, final and decisive. The quest on which their Lordships had to consider was whether a contract entered into on behalf of a minor by his manager or guardian and found to be ??? benefit, was enforceable by a ??? for specific performance at the ??? the minor through his ??? guardian; and, in dealing with ??? question their Lordships ??? follows:—

    “They are, however, of opinion ??? it is not within the competence ??? manager of a minor to bind the ??? or the minor's estate by a contract ??? the purchase of immoveable ??? and they are further of opinion ??? as the minor in the present case ??? not bound by the contract, the ??? no mutuality; and that mind ??? has now reached his majority ??? obtain specific performance ??? contract”.

    4. That was a case of contract ??? purchase; but, in my opinion, ??? distinction can be drawn between ??? contract for purchase and a ??? for sale. The decision of the ??? Committee rests on the ??? ground that it is quite impossible for the Court to decree specific performance against a minor. It was, however, argued that though the contract may be unenforceable against the minors, no difficulty arises in the present case as the defendants have conveyed the properties to defendant No. 7 and there is no rule which prevents the Court from directing defendant No. 7 to convey the properties to the plaintiff. The argument is founded on the terms of Section 27(b) of the Specific Relief Act which provides that;

    “Except as otherwise provided by the Chapter, specific performance of a contract may be enforced against any other person”.

    5. That is to say, against any person other than a party to the contract, “claiming under him” that is to say, claiming under a party to the contract.

    “by a title arising subsequently to the contract, except a transferee for value who has paid his money in good faith and without notice of the original contract”.

    6. In my opinion, it is quite impossible to entertain the argument. The operation of Section 27(b) of the Specific Relief Act is confined to cases where the contracts are in the first instance enforceable as against the parties to the contract. The liability of a person claiming under a party to the contract rests upon the antecedent liability of a party to the contract, and arises by reason of the fact that as such transferee he takes subject to the transferors pre-existing contractual obligation; and where there is no pre-existing contractual obligation, it seems to me that the case entirely fails as against the transferee it is quite clear that you cannot enforce a contract as against a transferee unless the transferee has notice of the original contract. Now notice of the original contract must mean notice of an existing obligation under the contract; and where the contract is itself unenforceable, it seems to me that it is impossible to maintain the view that the contract can be enforced as against a subsequent transferee. In my opinion, the plaintiff's suit must fail so far as defendants Nos. 3 and 4 are concerned.

    7. The next question is whether the plaintiff is entitled to a decree for specific performance against defendants Nos. 1 and 2 in regard to their shares in the properties agreed to be sold. Now as to this the rule is that the Court will not, as a general rule, compel specific performance of a contract unless it can execute the whole contract. It may, of course, be that the contract, though in form one and entire, is in substance divisible and where the contract is in substance divisible, there is nothing to prevent the Court from carrying into effect that portion of it, (in substance a separate contract), which is capable of being carried into effect. Mr. Abani Bhusan Mukherji strongly contends that the question whether the contract was indivisible or divisible is a question of fact; and that, as the question was not raised in the form in which it has been argued before us, we ought not to adjudicate on it, but that we ought to remand the case to the Court below for taking evidence. I do not think that Mr. Mukharji is entirely right in saying that the question was not raised by the defendants. The minor defendants in their written statement took the plea that the contract was not enforceable as against them; but I have no doubt whatever that the question was not argued in the Court below, in the form in which it has been argued before us. It seems to have been argued in the Court below that as there was a certificated guardian of the minors appointed by the District Court, the contract for sale without the sanction of the District Judge was unenforceable in law; and that question the learned Subordinate Judge has decided against the defendants. But the question was undoubtedly raised in the written statement of the minors; and the question as to whether a decree for specific performance can be passed against the minors is a question of law in regard to the other question, namely, whether the contract is one and entire or divisible, it is sufficient to say that the plaintiff's own case in the plaint and in the evidence is to the effect that the contract was one contract and not separate contracts. I have already referred to paragraph 2 of the plaint which is to the effect that there was one contract, one salami, and one consideration. It is the plaintiff's case that the contract between him and the defendants was embodied in a document dated the 1st of September 1916. This document makes it clear beyond all doubt that the contract was one and entire and that under the contract the defendants agreed to sell certain properties, of which they were owners, to the plaintiff for the sum of Rs. 7,700. Neither in the plaint nor in Ex. 5, the document of September 1916, is there any specification of the shares of the vendors, nor is it stated how much of the consideration was to go to defendant No. 1, how much to defendant No. 2 and how much to defendants Nos. 3 and 4. The evidence which has been read before us by Mr. Mukharji is conclusive on the question that the contract was one and entire. That being so it is quite unnecessary to remand the case for taking fresh evidence, for it is possible for us upon the allegation of the plaintiff himself to decide the question without having recourse to the doubtful propriety of sending the case back to the Court of first instance.

    8. I have said that where the contract is in substance divisible, there is nothing to prevent the Court from Carrying into effect that portion of it which in substance is a separate contract and which is capable of being carried into effect. But here again the rule is firmly established that a contract for sale of property in one lot will generally be considered indivisible, for the reason that there is obvious injustice in compelling the purchaser of the entirety to take undivided parts or shares of the estate. Now in the present case the plaintiff having purchased certain specific properties belonging to four persons could not be compelled to take the shares of two of them in those properties. Defendants Nos. 1 and 2 could not be heard to say.

    “It is true that we contracted to sell not our shares in the property, but certain properties belonging to us and two minors and that we are unable to convey the shares of the minors, but nonetheless you are bound to complete the sale so for as our shares are concerned.”

    9. The plaintiff would be entitled to say, if such a case was put forward by defendants Nos. 1 and 2,

    “I did not contract to purchase your shares but I contracted to purchase certain specific properties of which you together with the minor defendants are the owners”.

    10. Such a contention on the part of the plaintiff would, in my opinion, be unanswerable; and no Court will force upon the plaintiff shares of the property when he has contracted to purchase the entirety. It is quite true that is not the attitude of the plaintiff in the present case, and he, through his learned Vakil, has intimated his willingness to take a conveyance of the shares of defendants Nos. 1 and 2, but a contract to be specifically enforced by the Court must, as a general rule, be mutual, that is to say, such that it might, at the time it was entered into, have been enforced by either of the parties against the other of them. Want of mutuality in the contract in a well-recognized defence to a suit for specific performance, and was at the bottom of the decision of the Judicial Committee in the case of Mir Sarwanjan v. Fakhruddin . The rule is stated in these terms in a recognized work on the subject:—

    “When, therefore, whether from personal incapacity to contract, or the nature of the contract, or any other cause, the contract is incapable of being enforced against one; party, that party is, generally, incapable of enforcing it against the other, though its execution in the latter way might in itself be free from the difficulty attending its execution in the former”. (Fry on Specific Performance, page 219.)

    11. The contract was, in my opinion, incapable of being enforced against the plaintiff. That being so the plaintiff is incapable of enforcing it against defendants Nos. 1 and 2.

    12. The exact point was decided by the English Court in Lumley v. Ravenscraft (3). That was a case where the defendants, an infant and his sister, agreed by their agent to grant the plaintiff a lease of premises in which they were jointly interested. The plaintiff brought an action for specific performance of the agreement, and applied for injunction to restrain the defendants till after the trial of the action leasing the premises to another person. It was held that an injunction ought to be granted only where a case was made out for specific performance and that one of the defendants being an infant the plaintiff was not entitled to specific performance against both of them, nor against the sister as to her interest in the absence of any proof of misrepresentation or misconduct on her part. Lindley, L.J, in delivering the judgment said as follows:—

    “If Moor's principals were both of age, there would be a complete contract and no difficulty in the case, but unfortunately one of the principals is an infant, nineteen years of age, and the agreement is unquestionably an agreement for a lease by the two. It is an agreement by the two with the plaintiff for a lease to him of certain property of which, as it appears, a lease was being granted to the two. What is the law? Specific performance is out of the question. You cannot get specific performance against an infant, and upon the evidence before us no case is made out for specific performance against the other defendant either. This case is not within the exception as to misconduct stated in Price v. Griffith (4) and Thomas v. Dering (5) but comes within the general rule that where a person is jointly interested in an estate with another person and purports to deal with the entirety specific performance will not be granted against him as to his shares.”

    13. It is only necessary to mention that there is no charge of any misrepresentation or misconduct within the meaning of those terms in Price v. Griffith and Thomas v. Dering as against defendants Nos. 1 and 2 in this case.

    14. It was lastly argued that the question should be decided not on the English Law, but on the terms of Sections 15, 16 and 17 of the Specific Relief Act. It will be noticed that the general rule adopted in the Act is that, except in cases coming within certain exceptions the Court shall not direct the specific performance of a part of the contract. The general rule is laid down in S. 17 of the Act, the exceptions are enumerated in Sections 14, 15 and 16 of the Act. It is conceded that S. 14 has no application, but it is contended that the case comes, not within the prohibition of S. 17 but within the exceptions mentioned in Ss. 15 and 16 of the Act. In my opinion, S. 15 has no application whatever to this case. That section applies to a case where a party to a contract is unable to perform the whole of his part of the contract. In the case before us, provided the Court could carry into effect the contract as against the minor defendants, no question would arise as to the ability of defendants Nos. 1 and 2 to perform the whole of their part of it. Here defendants Nos. 1 and 2 agreed to convey their interests in the disputed properties to the plaintiff. They undoubtedly have an interest in the properties, and they made no representation whatever that they were entitled to the whole interest in the properties. Had they made such a representation, and the contract was concluded on the footing that they were entitled to the whole interest in the properties agreed to be sold, S. 15 would have applied and the plaintiff would be entitled to a decree directing defendants Nos. 1 and 2 to perform specifically so much of their part of the contract as they could perform, provided the plaintiff relinquished all claim to further performance, and all right to compensation, either for deficiency for the loss or damage sustained by him through the default of the defendants. But there is no default in the present case on the part of defendants Nos. 1 and 2, and the whole difficulty has arisen by reason of the fact that defendant No. 2 as the de facto guardian of defendants Nos. 3 and 4 (who are also interested in the properties agreed to be sold) agreed to convey the interest of the minor defendants in the properties to the plaintiff, and to such a case S. 15, in my opinion, is not applicable. I should mention that the case would have stood on a different footing had defendant No. 2 (who is the certificated guardian of defendants Nos. 3 and 4) had acted with the leave of the Court. In entering into the transaction she did not take the permission of the Court; and, so far as the transaction is concerned, she cannot be considered to have acted as the certificated guardian. In my opinion, S. 15 has no application whatever, S. 16, in my opinion, does no more than embody the rule of English Law, and the relevant enquiry under S. 16 is, is the contract one and entire, or is it a divisible contract? I have given my reasons for holding that the contract is not a divisible contract. That being so, the general rule must apply, and it is quite impossible to give the plaintiff a decree for specific performance as against defendants Nos. 1 and 2.

    15. I would dismiss this appeal with costs. So far as the cross-appeal is concerned, I am quite clear that the plaintiff is entitled to a decree for money as against defendants Nos. 1 and 2; but I am equally clear that he is not entitled to a decree as against the minors. Defendant No. 2 is now dead, and is represented in this appeal by defendants Nos. 3 and 4. The decree passed by the learned Subordinate Judge will be varied by providing that the plaintiff will have a money decree for Rs. 605 with interest at 9 per cent per annum from the 11th September 1916 up to the 30th April, 1920, with costs as against defendant No. 1 and defendants Nos. 3 and 4 as the representatives-in-interest of defendant No. 2 and to the extent of the assets of defendant No. 2 in their hands. As provided by the learned Subordinate Judge the decree will carry interest at 6 per cent, from the 30th April 1920 until realization. Subject to this variation, the cross-appeal fails and is dismissed.

    16. Foster, J.:— This is a suit for specific performance of a contract to sell to the plaintiff shares in six revenue estates, Tauzi Nos. 1012, 1016, 1046, 1288, 1157 and 1012 in Saran District., The plaint sets out that defendants Nos. 1 to 4, whose genealogy is given below, owned a share in each of these estates.

    17. On the 20th August, 1916, at Bihar they made a verbal contract, to sell and on the 1st September, 1916, they completed the contract at Siwant by receiving the earnest money and passing to the plaintiff a written receipt.

    18. Defendant No. 6 was an agent of defendant, No. 2 who was said to have made the contract on her behalf, and defendant No. 7 is a subsequent purchaser of the property by deeds of sale, dated the 24th October, 1916. The latter was made a party defendant before the hearing of the case, the only relief sought against her being a declaration of the invalidity of the sale deeds executed in her favour. The main relief, specific performance of contract, is claimed only against defendants Nos. 1 and 2. On the issues which were framed between the parties the learned Subordinate Judge has arrived at the following material conclusions. He finds the alleged contract with the plaintiff proved, the necessity for the contract, a decree threatening serious and permanent injury to the interests of the defendant's family, is not a matter in dispute. He finds that the subsequent sale to defendant No. 7 is genuine and valid, but that the contract to sell to her (defendant No. 7) was not prior to the contract upon which the plaintiff is suing; and moreover defendant No. 7 purchased with full knowledge of the existence of this contract with the plaintiff. At this point the judgment diverges into a discussion of the twelfth issue, and the judge finds that defendant No. 7 has a right of pre-emption which, debars the plaintiff from suing for specific performance in respect of three or four of the six estates: as to the rest of the estates the plaintiff's fortune was left to the decision of a subsequent suit, if the plaintiff should think fit to bring it. In the result no order was passed upon the claim for specific performance, but defendants Nos. 1 to 4 were made liable for suck money as had actually passed hands upon the contract. The plaintiff appeals.

    19. In my view of the arguments in appeal, they fall under five main propositions: (1) the contract is enforceable against the defendants Nos. 1 to 4(2) it is enforceable against the minor defendants Nos. 3 and 4(3) it is enforceable at least against defendants Nos. 1 and 2 for what they can convey, (4) at least Compensation in money can be obtained against each and all of these four defendants (5) the relief sought against defendant No. 7, a declaration that her purchase is invalid, should be granted.

    20. I proceed to consider these propositions. The contract itself has for the purposes of this appeal been taken to be genuine, the only question being as to its legal effect. To deal with that question, I shall, as briefly as possible, discuss the four propositions Nos. 2 to 5 set out above.

    21. The emergent necessity and the fact that the minors' mother contracted are argued as reasons for involving the minors in the consequences of the contract. (I may mention here that the defendants are Sunni Mohammedans). The mother if only de facto guardian and not the legal guardian is not competent to dispose of the immoveable property of her infant children: Imambandi v. Mutsaddi . In this case it is not denied that the mother defendant No. 2 was the legal guardian of the minor defendants, appointed by the District Judge of Patna, under Act VIII of 1890. Under S. 27 of that Act she could do all acts which are reasonable and proper for the realization, protection or benefit of the minors' property; but under Ss. 29 and 30 she could not validly mortgage, or charge or transfer any part of the immoveable property of the minors without the previous permission of the Court. The word “previous” is important, for it explains how a contract of sale made by a certificated guardian without the permission of the District Judge has been treated by the Court as “a contract made by a trustee in excess of his powers” and so incapable of being enforced specifically under Section 21 of the Specific Relief Act, Narain v. Aukhoy (6). In my opinion the suit for specific performance fails on this ground as against the minors.

    22. The next question is whether the suit is enforceable against defendants Nos. 1 and 2 for what they can convey. Had the defendant Yahia Khan brought a suit to enforce the contract written out by his son on his behalf and now relied on by the plaintiff (Exhibit 5) he would have had either to express his readiness and ability to perform his part of the contract or to admit that contract could not be performed in its entirety. The contract was for the sale of the shares of defendants Nos. 1 to 4 in the six revenue estates. Now even according to the plaint (paragraph 1) the defendants have concurrent ownership and possession of the properties, which include share in rents and shares in land held in direct possession. It is manifest that no part of the contract stands on a separate and independent footing from any other part, for whichever portion of the property be affected by the decree for specific performance, there will have to be a partition to ascertain that portion so I do not consider that Section 16 of the Specific Relief Act applies to this case. As to the application of Ss. 14 and 15 of that Act, I have found more difficulty. The learned Vakil for the appellants is ready to pay the whole price for such shares as defendant No. 1 (or defendants Nos. 1 and 2) are capable of transferring. I would not go so far as to say that partial performance in specie cannot be enforced, but in such cases as these the question is whether it can and should be enforced. The contract obviously lacks mutuality but, in my opinion, this case can be distinguished in its legal aspects from Mir Sarwanjan's case . In that case there was an absolute lack of mutuality. This case in fact falls into one of the exceptions to the doctrine of mutuality, an exception recognised in sections 14 to 16 of the Specific Relief Act. For a clear exposition of this matter I refer to Halsbury's Laws of England “Specific Performance” Part II, S. 5. In my opinion, this case is governed by the latter part of Section 15 of the Specific Relief Act.

    23. So I return to the question, what is the suitable remedy in the circumstances of this case 7. In my opinion, the relief to be granted should be restricted to compensation in money, the principle being that contracts should not be enforced to the detriment of the rights of third parties. The third party is Musammat Batul, defendant No. 7. She is a purchaser for value now in possession of the properties. At the time when the contract of this suit was made she was a co-sharer in every one of the six revenue estates, and the plaintiff was a stranger in respect of three, or perhaps four of them. Under the law of pre-emption, therefore, Mt. Batul had on the whole a superior right to purchase. With this view, I record my opinion that specific performance ought not to be granted; but the plaintiff should, in accordance with Section 19 of the Specific Relief Act, be awarded compensation for the breach of the contract. But as the contract would always have been exposed to the superior claims of Mt. Batul as pre-emptrix in respect of a considerable part of its subject-matter I would confine the damages to the amount decreed in the lower Court, namely, the money which actually changed hands. As Mt. Maqbulunnissa is dead, and as there is little or no evidence to show that any part of the money ever reached the minors, I agree with the order propounded by my learned brother.

    24. Appeal dismissed; Decree modified.

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    Abdul Haq v. Mohammad Yehia Khan
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