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Kedar Nath Samanta v. Manu Bibi And Anr.

Calcutta High Court
Aug 18, 1911
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Structured Summary of the Opinion — Appeal in a Suit for Specific Performance

Factual and Procedural Background

The suit sought specific performance of a contract for the sale of certain land and buildings for Rs. 2,500. The contract was executed on 19 February 1905 by the 1st and 2nd defendants. The 1st defendant was the widow of Madhab Ghose; the 2nd defendant was named as executor in a Will purportedly made by Madhab Ghose and had obtained Probate at the time of the contract (the Probate was subsequently revoked).

The plaintiff paid Rs. 12 for registration of the document and purportedly paid Rs. 20 to a Pleader to identify the 1st defendant (the Rs. 20 was returned). Before the agreement could be registered, on 3 April the 1st defendant executed a registered conveyance in favour of the 4th defendant (described as the servant and benamidar of the 3rd defendant).

The Subordinate Judge accepted the plaintiff's evidence that Rs. 1,551 had been paid and decreed that the 1st defendant should execute a conveyance in the plaintiff's favour on his depositing the balance of Rs. 949. Defendant No. 4 appealed; it was recognised that the 3rd defendant was the real contesting party and that the 4th defendant was a mere name. The appellant's counsel stated he did not contend lack of notice of the plaintiff's contract. The primary question before the appellate court was whether the contract ought to be specifically enforced.

Legal Issues Presented

  1. Whether the nature of the contract is such that it ought to be specifically enforced.
  2. Whether the contract, executed by both defendants and by the 1st defendant exercising powers under the Will, can be enforced against the 1st defendant as the widow of a Hindu intestate.
  3. Whether the plaintiff is disentitled to specific performance by reason of delay (acquiescence, waiver or alteration of position).
  4. Whether an alleged fraudulent interpolation (the words "or severally" inserted in the covenant) is fatal to the agreement.
  5. Whether the first defendant, being a pardanashin woman, is entitled to special protection that would prevent specific enforcement.

Arguments of the Parties

Appellant's Arguments

  • That because the contract was executed by both defendants and the 1st defendant acted under a power given by the Will, it cannot be enforced against her as the widow of a Hindu intestate.
  • The plaintiff's delay disentitles him to specific performance (suggesting waiver, abandonment or acquiescence).
  • A fraudulent interpolation (the words "or severally") was added to the agreement and is fatal to the contract.
  • It was suggested that the 1st defendant, being a pardanashin woman, deserved special protection (though this point was not pleaded earlier and was raised late in argument).
  • Note: the appellant's counsel did not contend that he had no notice of the plaintiff's contract.

Respondent's (Plaintiff's) Position

  • The plaintiff asserted performance of part of the contract and claimed payment of substantial part of the purchase-money (the Subordinate Judge accepted evidence of Rs. 1,551 paid).
  • The plaintiff incurred expenses for registration (Rs. 12) and paid a Pleader (Rs. 20) to identify the 1st defendant (the Rs. 20 was returned).
  • The plaintiff relied on the agreement's recitals and sought specific enforcement against the 1st defendant to the extent of her interest.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Horrocks v. Rigby, 9 Ch. D. 180; 47 L.J. Ch. 800; 38 L.T. 782; 26 W.R. 714 (quoted in Fry on Specific Performance) Supports the view that a contract executed by a widow may be enforced against her to the extent of her interest. The court relied on this authority (as cited in Fry) to hold that the contract, if fit for specific performance, could be enforced against the 1st defendant to the extent of her interest.
Section 15, Specific Relief Act, 1877 Statutory provision referenced in support of enforceability against the widow to the extent of her interest. The court referred to Section 15 as additional authority for enforcing the contract against the 1st defendant to the extent of her interest.
Kissen Gopal Sadaney v. Kali Frosonno Sett, 33 C. 633 Principle that delay is immaterial where there is no evidence of waiver, abandonment, acquiescence or of alteration of the defendant's position by the delay. The court followed this decision to conclude that the plaintiff's delay did not disentitle him to specific performance because the defendants' position was not altered by the delay.
Mokund Lal v. Chotay Lal, 10 C. 1061 Decision relied on by appellant regarding delay (specific content not elaborated in the opinion). The court observed that Mokund Lal v. Chotay Lal was not inconsistent with the court's conclusion that delay was immaterial in the present case.

Court's Reasoning and Analysis

The court analysed the principal and subsidiary points raised on appeal in a stepwise manner as follows.

  1. Enforceability against the 1st defendant (widow): The court rejected the appellant's contention that because the contract was executed by both defendants and the 1st defendant acted under a power in the Will, it could not be enforced against her as widow of a Hindu intestate. The court held that if the contract merited specific performance, it could be enforced against her to the extent of her interest, citing Horrocks v. Rigby (as quoted in Fry) and referring to Section 15 of the Specific Relief Act, 1877.
  2. Delay: The court examined whether the plaintiff's delay disentitled him to specific performance. Finding no conduct by the plaintiff indicative of waiver, abandonment or acquiescence, and that the defendants' position had not been altered by any delay, the court held the delay to be immaterial, following the decision in Kissen Gopal Sadaney v. Kali Frosonno Sett. The court further noted that the decision in Mokund Lal v. Chotay Lal relied on by the appellant was not inconsistent with this view.
  3. Alleged fraudulent interpolation: The alleged interpolation was the insertion of the words "or severally" in the covenant that the executants will "jointly or severally" execute a conveyance. Although these words did not appear in the draft, the witness Naresh Chander Mitra, a Pleader, swore they were inserted before execution. The Subordinate Judge found him a trustworthy witness; the appellate court accepted that finding and was not prepared to differ from the Subordinate Judge on this point.
  4. Payment of Rs. 1,500 (major part of purchase-money): The appellate court disagreed with the Subordinate Judge's acceptance that Rs. 1,500 had been paid out of the consideration. The court found the payment unsupported by Naresh Mitra's evidence and irreconcilable with the plaintiff's deposition in a subsequent criminal case. The court found it unlikely that the plaintiff would have advanced so large a sum prior to conveyance and concluded, on the whole evidence, that the money was never paid.
  5. Pardanashin protection and the fairness of the bargain: The suggestion that the first defendant, a pardanashin woman, deserved special protection was raised late and not pleaded. The court noted that the point was not in the pleadings, issues, grounds of appeal, nor addressed in the appellant's opening speech. The first defendant had not appealed and had been supported and financed by the plaintiff in prior litigation (support accepted to be given on the ground of her contract with the plaintiff). The court regarded it unjust to allow the appellant to raise that point belatedly for his own advantage.
  6. Merits — fairness and good faith: One member of the bench (delivering the principal judgment) expressed hesitation but agreed that the contract ought not to be specifically enforced. The reasons given included the apparent inadequacy of the consideration (Rs. 2,500 for 35 bighas with two houses in Howrah seemed an inadequate price) and the plaintiff's false plea that he had paid Rs. 1,500, which disentitled him to relief.
  7. Additional and detailed analysis by Teunon, J.: Teunon, J. emphasised that because the plaintiff conceded the first defendant was pardanashin, the plaintiff bore the onus of strict proof of good faith: showing the widow had competent and independent advice and that the bargain was fair and equitable. The facts were that the husband's properties were under attachment in two suits with claimed liabilities of about Rs. 8,000; the agreement's recitals acknowledged the widow's difficulties; the plaintiff had the assistance of a learned Pleader while the widow relied on a layman under the influence of defendant No. 2; the purchaser did not undertake to defend the pending suits (the burden remained on the widow); and evidence adduced suggested the land's value was substantially higher (defendant No. 4 swore it was worth Rs. 10,000 and a portion had been sold for Rs. 3,000). The plaintiff made no inquiries about market value. On these facts Teunon, J. concluded the plaintiff did not act in good faith, took undue advantage of the widow's difficulties and advanced a false allegation of payment. Accordingly, the contract should not be specifically enforced and the plaintiff was not entitled to refund of Rs. 51 which he had actually paid.

Holding and Implications

Holding: The appellate court allowed the appeal and ordered that the suit for specific performance be dismissed. The parties were directed to bear their own costs throughout. Teunon, J. expressly agreed that the plaintiff was not entitled to refund of the Rs. 51 actually paid.

Implications: The direct consequences are limited to the parties in this suit — the plaintiff's claim for specific performance was rejected and the decree of the Subordinate Judge was reversed. The court found (i) the plaintiff's asserted large payment had not been proved, (ii) the plaintiff had not acted with the requisite good faith toward a pardanashin widow who lacked independent advice, and (iii) the contractual price was likely inadequate relative to the property value on the evidence. The opinion does not assert the creation of any new legal precedent beyond applying cited authorities (Horrocks v. Rigby; Section 15, Specific Relief Act; Kissen Gopal Sadaney; Mokund Lal).

Order: Appeal allowed; suit dismissed; parties to bear their own costs. Plaintiff not entitled to refund of Rs. 51 (per Teunon, J.).

Show all summary ...

1. This appeal arises out of a suit for the specific performance of a contract to sell certain land and buildings for Rs. 2,500. The contract was executed on the 19th February 1905, by the 1st and 2nd defendants. The 1st defendant is the widow of one Madhab Ghose and the 2nd defendant was nampd as executor in a Will said to have been made by Madhab Ghose, of which at the time of the contract the 2nd defendant had obtained Probate. The Probate, however, was subsequently revoked. It is said that on the 1st April the plaintiff paid Rs. 12 to have the document registered and Rs. 20 to a Pleader to identify the 1st defendant. The Sum of Rs. 20, however, was returned and it was said that the document could not be registered on the 1st April hi want of time; and before it could be registered, the 1st defendant on the 3rd April executed a registered conveyance of the property in favour of the 4th defendant, who is the servant and is said to be the benamidar of the 3rd defendant. The Subordinate Judge has accepted the plaintiff's evidence of payment of Rs. 1,551 and has given a decree directing that the 1st defend-ant shall execute a conveyance in his favour on his depositing Rs. 949, the balance of the purchase-money. The defendant No. 4 appeals. It is perfectly clear, however, that the 3rd defendant is really the contesting defendant and appellant in this case and that the 4th defendant is a mere name. The learned Vakil for the appellant also informs us that he does not urge that he had no notice of the plaintiff's contract. The only point, therefore, that has to be decided is whether the nature of the contract is such that it ought to be specifically enforced.

2. The first point taken is that as this contract was executed by both defendants, and was executed by the 1st defendant as exercising the power given to her by the Will to assent to a conveyance by the executor, it cannot be enforced against her as the widow of a Hindu intestate. But it seems to us perfectly clear that this contention cannot prevail and that if the contract ought to be specifically performed, it can be enforced against her to ' the extent of her interest. There is no case exactly in point, but that of Horrocks v. Rigby 9 Ch. D. 180 : 47 L.J. Ch. 800 : 38 L.T. 782 : 26 W.R. 714 quoted in Fry on Specific Performance, certainly lends support to this view, and reference may also be made to Section 15 of the Specific Relief Act, 1877.

3. Next, it is argued that the plaintiff is disentitled to specific performance by reason of his delay. But it is quite evident that there has been nothing in his conduct that could possibly be regarded as evidence of waiver, abandonment or acquiescence and that the defendant's position has been in no way altered by the delay. That being so, we think that the delay is immaterial, following: Kissen Gopal Sadaney v. Kali Frosonno Sett 33 C.633 cited by earned Counsel for the respondent. The decision in Mokund Lal v. Chotay Lal 10 C.1061 on which reliance is placed for the appellant, is not, in our opinion, inconsistent with this view.

4. Next, it is urged that a certain alteration in the agreement was fraudulently interpolated and is fatal to the agreement. The alteration consists of the words 'or severally' in the covenant that the executants will jointly or severally execute a conveyance. The words have been added between the lines and do not appear in the draft of the agreement. The witness, Naresh Chander Mitra, a Pleader of the Alipur District Court, however, swears that these words were inserted before the execution of the document, and the learned Subordinate Judge evidently regards him as quite a trustworthy witness. This being so, we are not prepared to differ from the learned Subordinate Judge's view of the matter.

5. But with regard to the payment of the sum of Rs. 1,500 out of the consideration, we are not prepared to agree with the learned Subordinate Judge. This payment is not supported by the evidence of Naresh Mitra and it appears to us quite irreconcilable with the plaintiff's deposition in the criminal case, which followed after the execution of the defendant's kobala. It is not likely that the plaintiff would be willing to advance so large a sum before the execution of the conveyance and on the whole evidence, we feel no doubt that this money was never paid.

5. The only point that remains is whether the contract should be specifically enforced under the circumstances of the case. It was suggested at the close of the argument that the first defendant, being a pardanashin woman, was entitled to special protection. In my opinion, this point ought not to be allowed now.

6. It was never suggested in the pleadings, the issues or the grounds of appeal, nor was any argument upon it addressed to us in the course of the opening speech of the learned Vakil for the appellant. The first defendant has net appealed and the appellant's defence in the former suit was that she had plenty of well-wishers and advisers. Moreover, in the former suit the 1st defendant was financed and supported by the plaintiff. No doubt, this assistance was not disinterested, hut when the 1st defendant accepted his assistance in her suit knowing that that assistance was given on the ground of her contract with him, she is hardly entitled now to plead that that contract was not explained to her. Nor, indeed, is there any reason to suppose that she desires to raise any such plea. That being so, it seems to me unjust to allow the appellant to raise it at the eleventh hour for his own benefit.

7. At the same time, I am inclined, though with some hesitation, to agree with the view which is strongly held by my learned brother that the contract ought not to be specifically enforced. There can be no doubt that the 1st defendant was in the greatest straits when she made it and although the evidence of the value of the land seems to me too indefinite to justify a decided conclusion that the consideration was inadequate, yet it is difficult to believe that the sum of Rs. 2,500 is a fair price for 35 bighas of land with two houses in Howrah. And the false plea of the plaintiff that he had paid Rs. 1,500 disentitles him to any consideration. I agree, therefore, that the appeal should succeed and accordingly it will be decreed and the suit dismissed, the parties bearing their own costs throughout.

Teunon, J.

8. In so far as the first four points taken in this appeal are concerned, it is unnecessary for me to add anything to the judgment delivered by my learned brother.

9. On the remaining question whether, in the circumstances of the case, the contract should be specifically enforced, it is to be observed that the plaintiff admits and indeed comes into Court with the assertion that the defendant No. 1 is a pardanashin lady. That being so, even in the absence of any specific issue, on the general issue now under consideration, it was, in my opinion, incumbent upon the plaintiff to give strict proof of good faith and to show that in the transaction he seeks to enforce, the widow had competent and independent advice, and that the terms of the bargain are fair and equitable. Now the husband of defendant No. 1 had died in May 1904 and on the 19th of February 1905 when the agreement on which the plaintiff relies was executed, all the properties left by the husband were under attachment in two suits brought against the widow. The claims in these two suit's a. amounted to some Rs. 8,000. One, it appears, having been originally, disposed of ex parte has been revived and is still pending. The other was found to be false and vexatious and has been finally dismissed.

10. The agreement recites the difficulties in which the widow was placed, states that by reason of the suits no one can be found to purchase the properties or any portion thereof at a fair price, and that being thus helpless, she, in order to defray the expenses of the litigation and for the benefit of her husband's estate, agrees to sell the whole of it to the plaintiff for the sum of Rs. 2,500.

11. In such circumstances, it was, in my opinion, essential that any one dealing with this widow should satisfy himself and show that she had taken competent advice both as to the manner in which she should meet the suits and also as to the provident character of the arrangement she proposed to enter into. But the evidence shows that while the plaintiff had the advice and the assistance of a learned Pleader of the Alipur Bar, this illiterate or semi-illiterate pardanashin widow, then under the influence of defendant No. 2, was left to rely upon the advice of this layman who, it has been shown, was not a faithful or loyal guardian of her interests.

12. When we next proceed to inquire into the prudence of the arrangement she was making, we 2nd that, while professedly seeking to save the estate of her husband, she sells the whole of it, and even the burden of defending the pending suits is not undertaken by the purchaser but is thrown upon the widow.

13. The estate proposed to be sold consists of some 35 bighas mainly garden or orchard land situate in Sulkea, a suburb of Howrah, On two of the plots stand pucca buildings and some 20 bighas constitute lakheraj or rent-free holdings. Defendant No. 4 swears that the land is worth Rs. 10,000 and that a portion has been sold for Rs. 3,000. There is no rebutting evidence and it is significant that plaintiff whose own garden adjoins one of the plots finds himself compelled to say that he knows nothing of the value of land in Sulkea or of this land in particular. He made, he says, no inquiries about the price obtainable for these properties in the open market and has not even now ascertained their true value. This evidence coupled with the recitals in the agreement leaves no doubt that the consideration offered by the plaintiff is grossly inadequate.

14. I am thus satisfied that in the transaction which he seeks to enforce the plaintiff-respondent was not acting in good faith and took improper and undue advantage of the difficulties of the 1st defendant.

15. Moreover, he has come into Court with the false allegation that he has paid the bulk of the purchase-money.

16. For these reasons, I am of opinion that the contract set up by the plaintiff is not one which should be specifically enforced in his favour and further that he is not entitled to the refund of the Rs. 51 actually paid and I, therefore, agree in the order proposed by my learned brother.