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Ikram-Ullah Khan v. Moti Chand
Structured Summary of the Opinion (Karamat Husain, J. and Chamier, J.)
Factual and Procedural Background
On 2 May 1903 the defendants executed a sale deed conveying certain zamindari property (mauzas Khoient Daulsapur and Bharthipur) to the plaintiff for a sum (balance Rs. 77,500). The sale deed contained a stipulation that the executants "have relinquished our claim and interest in respect of all the sir and khudkasht lands" and that they would execute a deed of relinquishment and file an application surrendering the holding; a failure to do so would render them liable to pay damages at the rate of Rs. 16 per bigha.
Pursuant to that stipulation, the defendants executed a deed of relinquishment on 5 May 1903 stating they had relinquished their claim to 735 bighas 9 biswas 4 dhurs of sir and khudkasht lands and had removed possession and put the vendees in possession. The deed was not registered by the defendants; the plaintiffs caused it to be compulsorily registered against the male executants but not against the female executants.
According to the plaint, on 14 July 1903 the plaintiffs demanded relinquishment of the ex-proprietary holdings and possession; the defendants refused to deliver possession. Separate suits were brought between the parties on arrears of rent and rent determination (the opinion states those suits do not bar the present suit but does not give their details).
The plaintiffs sued on 3 July 1909 seeking Rs. 9,468-8-0 as damages for breach of the contract of relinquishment, with interest. The trial court (the court below) decreed the plaintiffs' claim, holding the agreement to relinquish lawful (relying on section 83 of the Agra Tenancy Act and the cases Gaya Singh v. Udit Singh and Lekhraj v. Parshadi) and treating the cause of action as arising on 14 July 1903 so that the suit was not time-barred under article 116 of Schedule II of the Limitation Act.
The defendants appealed. The defendants' counsel contended the sale and the relinquishment formed one transaction aimed at transferring ex-proprietary (sir) rights — an object which the appellants said was illegal — or, if regarded as separate, the agreement to relinquish ex-proprietary rights was still unlawful. A number of prior decisions were relied upon by both sides. The High Court (two-judge bench) heard the appeal and, for reasons explained below, allowed the appeal, set aside the decree of the court below and dismissed the plaintiffs' suit with costs.
Legal Issues Presented
- Whether the sale deed and the subsequent deed (or agreement) of relinquishment of ex-proprietary (sir and khudkasht) rights were lawful and enforceable, or whether they were void/unenforceable because they purported to divest the defendants of ex-proprietary rights that could not legally be transferred by sale or agreement.
- Whether the plaintiffs' suit for damages for breach of the alleged agreement to relinquish is barred by limitation (i.e., whether the cause of action arose and the suit was time-barred), as argued by the defendants and considered by the court below.
- Whether the sale and the relinquishment should be regarded as a single composite transaction (one of whose objects was transfer of ex-proprietary rights) or as two separate transactions, and the legal effect of either characterization on enforceability.
Arguments of the Parties
Appellants' (Defendants') Arguments
- The sale of the zamindari and the recorded "relinquishment" together form a single transaction with an object of transferring ex-proprietary (sir) rights, which is illegal and void.
- Even if the relinquishment is treated as a separate and independent agreement, prior rulings of this Court established that such agreements to divest ex-proprietary rights are unlawful and unenforceable.
- The defendants relied on several authorities to support the proposition that agreements or sales purporting to transfer prospective ex-proprietary rights are invalid (cases cited in the opinion include Indar Sen v. Naubat Singh; Baldeo v. Kundan; Bhikham Singh v. Har Prasad; Kashi Prasad v. Kedar Nath Sahu; Murlidhar v. Pem Raj; Dipan Rai v. Ram Khelawan; Khurshed Ali v. Wazir-un-nissa).
Respondents' (Plaintiffs') Arguments
- The rulings cited by the appellants do not directly address the precise point in this case: whether a sir holder can or cannot agree to relinquish his holding in favour of his zamindar.
- Under the provisions of section 83 of the Tenancy Act (referred to in the opinion), relinquishment of a sir land in favour of the zamindar is sanctioned by law, and therefore an agreement to relinquish is not unlawful.
- The respondents relied on decisions such as Gaya Singh v. Udit Singh and Bharath Singh v. Debi Dayal Singh to support the position that voluntary relinquishment of ex-proprietary tenancy is not legally prohibited (though the opinion notes limitations to how those cases apply to the precise question whether an agreement to relinquish is enforceable).
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court (as stated in the opinion) |
|---|---|---|
| Gaya Singh v. Udit Singh | The opinion states this case "lays down that there is nothing in law to prevent a tenant from voluntarily relinquishing his ex-proprietary tenancy in favour of his zamindar." The opinion also notes it does not decide whether a tenant can enter into an enforceable agreement to relinquish. | Relied upon by the court below (and by respondents) to support lawfulness of relinquishment; the High Court distinguished its precise scope and held it did not resolve the enforceability question in the present context. |
| Lekhraj v. Parshadi | Not specified in the provided opinion. | Identified as one of the authorities relied on by the court below for the proposition that relinquishment was lawful under the Tenancy Act. |
| Indar Sen v. Naubat Singh | Not specified in the provided opinion. | Cited by the appellants' counsel as authority supporting the proposition that transactions dealing with transfer or agreement to relinquish ex-proprietary rights are unlawful. |
| Baldeo v. Kundan | Not specified in the provided opinion. | Cited by the appellants' counsel in support of the proposition that agreements to divest ex-proprietary rights are void. |
| Bhikham Singh v. Har Prasad | Held that an attempted sale of prospective ex-proprietary rights was invalid; plaintiffs were not entitled to compensation for non-delivery of possession of sir lands. | Adopted by the High Court (Chamier, J.) as directly in point; used to conclude that the attempted sale/agreement to relinquish was unlawful and the plaintiffs' claim for damages was not maintainable. |
| Murlidhar v. Pem Raj | In a similar contract, where the sale deed provided for refund if vendors failed to give possession, the contract was held contrary to law and vendees could not recover the sum. | Approved the reasoning of Bhikham Singh v. Har Prasad and supported the view that contracts purporting to transfer prospective ex-proprietary rights are unlawful. |
| Kashi Prasad v. Kedar Nath Sahu | Held that an agreement (in partition) that a party holding sir land would relinquish ex-proprietary rights in favour of another could not be enforced. | Relied upon by the High Court to show that agreements to relinquish ex-proprietary rights are unenforceable. |
| Raghubans Sahai v. Brijnandan Lal | The opinion states it was held that an agreement to relinquish ex-proprietary rights in sir land could not be enforced. | Referenced by the judges as supporting the proposition that agreements to relinquish ex-proprietary rights are not enforceable. |
| Bharath Singh v. Debi Dayal Singh | The opinion describes that where a sale of zamindari property and a perpetual lease (or an actual relinquishment) were executed and a sum was paid as nazrana, that sum was in reality the price for ex-proprietary rights and could not be recovered by vendees who had not obtained possession. | Mentioned by both sides: respondents relied on it to support the lawfulness of relinquishment in some contexts; the High Court noted the case involved actual relinquishment and thus did not directly decide the enforceability of an agreement to relinquish. |
| Dipan Rai v. Ram Khelawan | Not specified in the provided opinion. | Cited by the appellants' counsel among authorities supporting the unlawfulness of agreements to transfer or sell prospective ex-proprietary rights. |
| Khurshed Ali v. Wazir-un-nissa | Held that an agreement (on compromise) to sell zamindari property and to relinquish ex-proprietary rights when they came into existence was an agreement to sell prospective ex-proprietary rights and was unlawful. | Used by the High Court as authority that agreements to sell or transfer prospective ex-proprietary rights are unlawful and unenforceable. |
Court's Reasoning and Analysis
The High Court's analysis (delivered by Karamat Husain, J., with Chamier, J. concurring) focused on whether the sale deed and the deed (or obligation) of relinquishment were lawful and enforceable.
Key steps in the Court's reasoning, as stated in the opinion:
- The Court considered two possible characterisations of the transaction: (a) a single transaction in which one object was to divest the defendants of their ex-proprietary rights so that those rights would vest in the plaintiffs; or (b) two separate transactions — a sale of the zamindari and an independent agreement to relinquish ex-proprietary rights.
- On either characterisation, the Court held that the authorities relied upon by the appellants established that transactions which attempted to transfer prospective ex-proprietary (sir) rights, or agreements to relinquish those rights in a manner that effectively divested the tenant of such rights, are unlawful and unenforceable.
- The Court examined prior decisions (explicitly citing Bhikham Singh v. Har Prasad, Murlidhar v. Pem Raj, Kashi Prasad v. Kedar Nath Sahu, Raghubans Sahai v. Brijnandan Lal, Bharath Singh v. Debi Dayal Singh, and Khurshed Ali v. Wazir-un-nissa) and concluded they support the proposition that attempted sales or agreements purporting to transfer or divest ex-proprietary rights are invalid and that relief for non-delivery of sir and khudkasht lands (such as damages) is not maintainable where the underlying transaction is contrary to law.
- Applying those authorities to the facts — an attempted sale of prospective ex-proprietary rights plus an agreement to execute a deed of relinquishment (with a stipulation for damages if the vendors failed to perform) — the Court concluded the transaction was unlawful and that the plaintiffs' claim for damages could not be sustained.
- Because the Court disposed of the appeal on the ground of illegality of the transaction, Karamat Husain, J. stated it was unnecessary to decide the separate question of limitation.
Holding and Implications
Holding:
APPEAL ALLOWED. The decree of the court below is set aside, and the plaintiffs' suit is dismissed with costs.
Implications (direct consequences stated in the opinion):
- The plaintiffs' claim for damages for alleged breach of the agreement to relinquish the sir and khudkasht lands was held not maintainable because the transaction (whether viewed as an attempted sale of prospective ex-proprietary rights or as an agreement to relinquish those rights when they arise) was unlawful and unenforceable under existing authority.
- Accordingly, the lower court's decree in favour of the plaintiffs was reversed and the plaintiffs' suit dismissed with costs.
- The opinion does not purport to establish a new legal principle beyond the application of existing authorities; the Court relied on prior decisions to reach its conclusion. The opinion does not discuss broader changes to the law beyond this application of precedent.
Note: This summary is compiled exclusively from the contents of the provided opinion. No facts or legal propositions have been added or inferred beyond what appears in the text.
Karamat Husain, J.:— The defendants, on the 2nd of May, 1903, executed a sale deed of certain zamindari property in favour of the plaintiff. The material portion of the sale deed is the following:—
“We, all the executants…………….absolutely sold in lieu of the remaining amount of Rs. 77,500, the whole of the mauzas Khorant Daulsapur, and Bharthpur, together with all the zamindari rights appertaining to them and mal and sair items…………..in short, all the rights appertaining to the zamindari property, together with sir and khudkasht lands and ex-proprietary tenanoy right, without the exception of any thing or right.
“We, the executants have relinquished our claim and interest in respect of all the sir and khudkasht lands. We shall execute a deed of relinquishment of claim in respect of the sir lands and shall file an application surrendering the holding. If we should make a delay in, or take any objection to the filing of an application surrendering the holding, or to the execution of the deed of relinquishment of claim in respect of the sir lands, or should we, the executants, our heirs, or representatives, or successors, keep in our possession any portion of the sir and khudkasht lands; then we and our heirs and representatives and successors shall pay damages in respect thereof at the rate of Rs. 16 per bigha.”
In pursuance of the stipulation set forth above, the defendants, on the 5th of May, 1903, executed a deed of relinquishment in favour of the plaintiffs which contained the following passages:—
“We, the executants, have absolutely sold the whole of the mauzas Khoient Daulsapur, and Bhartipur……………and have removed our possession and put the said vendees in possession of the whole of the property sold. We, the executants, have 735 bighas 9 biswas 4 dhurs of the sir and khudkasht lands in the said mauzas according to the detail given below. As we, the executants, have no longer any concern whatever with the property sold in the said villages, and as we, for want of concern, are unable to cultivate the sir lands and pay the rent, we have of our free will and accord relinquished our claim and right in respect of all the sir and khudhasht lands which, according to the detail given below, we, the executants, have in the villages sold and have removed our possession and put the vendees in possession of the same.”
The defendants did not, however, have the deed of relinquishment registered, and on the application of the plaintiffs it was registered compulsorily against the male executants of the said deed, but not against the female executants. On the 14th of July, 1903, according to the allegations in the plaint, a demand was made by the plaintiffs calling on the defendants to relinquish the ex-proprietary holdings and to put the plaintiffs in possession thereof. The defendants did not deliver possession of the sir to the plaintiffs. On the basis of the deed of relinquishment there were law suits between the parties for the arrears of rent of the sir and for the determination of the rent therefor. As those suits, in my opinion, do not bar the present suits, I need not give their details.
The suit out of which this appeal arose, was brought on the 3rd of July, 1909, for damages amounting to Rs. 9,468-8-0 for the breach of the contract of relinquishment, together with interest. The case for the plaintiffs is that the defendants in pursuance of a stipulation entered in the sale deed of 2nd May, 1903, executed a deed of relinquishment on the 5th of May 1903, which was compulsorily registered on the 13th of July, 1903. On the 14th of July, 1903, the plaintiffs asked the defendants to relinquish the sir and put the plaintiffs in possession of it. But they declined to do so, and hence the suit for damages for the breach of the contract to relinquish. The pleas in defence with which we have to deal in this case are, that the sale deed and the deed of relinquishment, so far as they entitle the plaintiffs to sue for damages, are illegal, and that the suit is barred by limitation. The court below decreed the claim. The agreement to relinquish in its opinion is a lawful agreement inasmuch as a sir holder is entitled under the law to relinquish his holding, whenever he pleases, according to the provisions of section 83 of the Agra Tenancy Act. In support of this view the court below relies upon Gaya Singh v. Udit Singh and Lekhraj v. Parshadi. The cause of action, according to the court below, arose on the 14th of July, 1903, when delivery of possession was refused to be made and a breach of the contract to relinquish was committed, and hence the suit under article 116 of the schedule II of the Limitation Act is not time-barred. The defendants appeal to this Court, and their learned vakil contends that the transaction of the sale of the zamindari and the so-called relinquishment of the sir land form one single transaction having for one of its; objects the transfer of the sir, which is illegal, and that if the transaction of relinquishment be supposed to be a separate and independent transaction, even then, according to the rulings of this Court, it would be unlawful. In support of the above proposition he relies on Indar Sen v. Naubat Singh, Baldeo v. Kundan, Bhikham Singh v. Har Prasad, Kashi Prasad v. Kedar Nath Sahu,, Murlidhar v. Pem Raj, Dipan Rai v. Ram Khelawan and Khurshed Ali v. Wazir-un-nissa. The learned advocate for the respondents in answer to the argument of the learned vakil for the appellant says that the rulings quoted by the learned vakil do not touch the point in question in the present case, which really is whether a sir holder can or cannot agree to relinquish his holding in favour of his zamindar; that, according to the provisions of section 83 of the Tenancy Act relinquishment of a sir land in favour of the zamindar is sanctioned by law, and that, as the relinquishment of a sir is a lawful act, an agreement to relinquish sir cannot in any way be unlawful. In support of what he says he relies on Gaya Singh v. Udit Singh and Bharath Singh v. Debi Dayal Singh(9). The case reported in I.L.R, 13 All., p. 396, simply lays down that there is nothing in law to prevent a tenant from voluntarily relinquishing his ex-proprietary tenancy in favour of his zamindar. But it does not touch the question whether a tenant can or cannot enter into an agreement to relinquish his ex-proprietary holding. In the case of Bharath Singh v. Debi Dayal Singh, there was an actual relinquishment of an ex-proprietary holding in favour of the zamindar, and therefore that case also has no bearing upon the point in the present case. The transaction entered into between the plaintiffs on the one hand and the defendants on the other, may either be regarded as a single transaction, one of the objects of which was that the defendants be divested of their ex-proprietary rights and that those rights should vest in the plaintiffs, or it may be regarded as consisting of two distinct and separate transactions, one, the sale of the zamindari property, and the other the agreement to relinquish the ex-proprietary rights. In either view the cases referred to by the learned vakil for the appellants are authorities for the proposition that the said transaction, so far as it deals with the relinquishment of the ex-proprietary rights, is void, inasmuch as the defendants, by means of a transfer or by means of an agreement to relinquish, had no power under the law to divest themselves of their ex-proprietary rights and the agreement to relinquish ex-proprietary rights is illegal.
For the above reasons I would allow the appeal and set aside the decree of the court below with costs. In this view of the case it is unnecesary for me to enter into the question of limitation.
Chamier, J.:— It appears to me that the case is covered by authority.
In Bhikham Singh v. Har Prasad, the defendants had sold certain zamindari property to the plaintiffs, expressly including therein any rights which might accrue to them as ex-proprietary tenants, and they purported to relinquish those rights in favour of the plaintiffs. It was held that the attempted sale of prospective ex-proprietary rights was invalid, and that the plaintiffs were not entitled to any compensation for non-delivery of possession of the sir lands. That decision was approved in Murlidhar v. Pem Raj, where a similar contract had been made and the sale deed expressly provided that if the vendors failed to deliver possession of the sir lands, they would refund Rs. 1,500. It was held that the contract being contrary to law, the vendees, who had failed to obtain possession, were not entitled to recover the sum of Rs. 1,500. In Kashi Prasad v. Kedar Nath Sahu, the parties to a private partition of zamindari lands agreed that if either party was at the time of partition holding sir land in a village which at the partition fell into the share of the other party, he would relinquish his ex-proprietary rights in favour of the party into whose share the village fell. It was held fiat the agreement could not be enforced. In Raghubans Sahai v. Brijnandan Lal it was held that an agreement to relinquish exproprietary rights in sir land could not be enforced. In Bharath Singh v. Debi Dayal Singh the facts were that a sale dead of zamindari property and a perpetual lease of the sir lands therein ware executed on the same day, and Rs. 1,105 were paid to the lessor vendor as nazrana on the lease. It was held that the sum ostensibly paid as nazrana was in reality the price paid for the ex-proprietary rights that arose on the sale and could not be recovered by the vendees, although they had not obtained possession of the sir land. In Khurshed Ali v. Wazir-un-nissa, on a compromise, the defendant agreed to sell certain zamindari property and to relinquish his ex-proprietary right in his sir in consideration of a sum to be fixed by an arbitrator. It was held that the transaction was an agreement to sell ex-proprietary rights when they came into existence and was unlawful. In the present case we have an attempted sale of prospective ex-proprietary rights in sir and khudkasht lands and an agreement to execute a deed of relinquishment in respect of those rights, with a provision that if the vendors fail to carry out their undertaking, they shall be liable for damages at the rate of Rs. 16 per bigha. On the above authorities it appears to me that, whether the transaction is regarded as an attempted sale of ex-proprietary rights or an agreement to relinquish those rights when they arise, it is unlawful, and therefore the claim to damages for failure to deliver possession of the sir and khudkasht lands is not maintainable. I agree that the appeal should be allowed and the suit dismissed.
By the Court:— Order of the Court is, that the appeal is allowed, the decree of the court below is set aside, and the plaintiffs' suit dismissed with costs.
Appeal allowed.
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