eCourtsIndia

Rajesh Kumar vs. Anand Kumar

Court:Supreme Court of India
Judge:Registrar (J) - Ii
Case Status:Dismissed
Order Date:17 May 2024
CNR:SCIN010398102016

AI Summary

A landmark Supreme Court judgment on specific performance of land sale agreements, establishing critical principles on Power of Attorney representation in civil suits and the necessity for plaintiffs to personally testify regarding readiness and willingness to perform contracts. The Court dismissed an appeal after nearly 24 years of litigation, emphasizing that time limits in agreements cannot be ignored merely because limitation period permits filing.

Ratio Decidendi:
In a suit for specific performance of an agreement to sell immovable property: (1) All co-owners of the property must execute the agreement or the Power of Attorney authorizing one co-owner to execute the agreement on behalf of all must be proved; (2) The plaintiff must personally appear in the witness box and testify regarding his readiness and willingness to perform the contract, as these are matters of personal knowledge and state of mind that cannot be proved through a Power of Attorney holder; (3) The court has discretionary jurisdiction to refuse specific performance even if the suit is filed within the limitation period, if there is unreasonable delay in filing the suit after becoming aware of the breach, and the time limits stipulated in the agreement should be considered as having legal significance; (4) A Power of Attorney holder cannot depose in place of the principal for acts done by the principal or for matters requiring personal knowledge of the principal.
Obiter Dicta:
The Court observed that the conduct of parties is material in civil disputes. The plaintiff issued a legal notice on May 30, 1997, objected to the mutation application on August 20, 1997, and referred to a Gram Panchayat meeting on December 6, 1997, yet did not file the suit until June 19, 2000 (nearly 3 years later). This long delay without explanation, combined with filing at the fag end of the limitation period, demonstrates conduct that does not entitle the plaintiff to the discretionary relief of specific performance. The Court also noted that the principle that time is not of the essence of the contract unless specifically provided does not mean that time limits in the agreement have no significance or value.

Case Identifiers

Primary Case No:7840/2023
Case Type:Civil Appeal
Case Sub-Type:Appeal Against High Court Judgment in Suit for Specific Performance of Land Sale Agreement
Secondary Case Numbers:5265/2017, 39810/2016, FA-340-2003, CS-38-A-2000
Order Date:2024-05-17
Filing Year:2016
Court:Supreme Court Of India
Bench:Division Bench
Judges:Hon'ble Pankaj Mithal, Hon'ble Prashant Kumar Mishra

Petitioner's Counsel

Dhruv Agrawal
Senior Advocate - Appeared
Nishit Agrawal
Advocate - Appeared
Yashish Chandra
Advocate - Appeared
Harsh Bansal
Advocate - Appeared
Kushagra Pandey
Advocate - Appeared
Kanishka Mittal
Advocate - Appeared

Respondent's Counsel

Gagan Gupta
Senior Advocate - Appeared
Rahul Gupta
Advocate on Record - Appeared
Vineet Chaudhary
Advocate - Appeared
Santosh Chaudhary
Advocate - Appeared
Hemang Chaudhary
Advocate - Appeared
Saurabh Gupta
Advocate - Appeared

Advocates on Record

Aura & Co.
Rahul Gupta

eCourtsIndia AITM

Brief Facts Summary

Rajesh Kumar (plaintiff/appellant) entered into an agreement to sell dated September 26, 1995 with Gajay Bahadur Bakshi (Defendant No. 1), who was allegedly the Power of Attorney holder of Defendants 2-11 (other co-owners), for purchase of 145.60 acres of land in village Khirsau, Tehsil Sihora, District Jabalpur, Madhya Pradesh at Rs. 3,000 per acre (total Rs. 4,41,000). Rajesh paid earnest money of Rs. 41,000 on the date of agreement, Rs. 20,000 on May 22, 1996, and Rs. 40,000 on June 30, 1996. The sale deed was to be executed within six months, but the deadline was extended twice to May 31, 1997. However, on May 14, 1997, Defendant No. 1 executed the sale deed in favor of Defendants 12-14 (Anand Kumar and others) without informing Rajesh. Rajesh sent a legal notice on May 30, 1997 and objected to the mutation application on August 20, 1997. The Gram Panchayat assured him on December 6, 1997 that Defendants 12-14 would execute a sale deed in his favor. Rajesh filed the suit on June 19, 2000 (the last date of limitation). The Trial Court decreed the suit, but the High Court allowed the appeal and dismissed the suit. Rajesh appealed to the Supreme Court.

Timeline of Events

1995-09-26

Agreement to sell executed between Rajesh Kumar and Gajay Bahadur Bakshi for purchase of 145.60 acres of land at Rs. 3,000 per acre (total Rs. 4,41,000)

1995-09-26

Earnest money of Rs. 41,000 paid by Rajesh Kumar on the date of agreement

1996-05-22

Additional amount of Rs. 20,000 paid by Rajesh Kumar with endorsement on backside of agreement

1996-06-30

Further amount of Rs. 40,000 paid by Rajesh Kumar with endorsement on backside of agreement

1996-12-26

Another agreement executed extending execution of sale deed till March 31, 1997

1996-12-26

Date further extended to May 31, 1997 vide entry in subsequent agreement

1997-03-27

Entry made extending agreement to sell

1997-04-23

Entry made mentioning that agreement to sell shall come to end on May 31, 1997

1997-05-14

Sale deed of suit land executed by Defendant No. 1 in favor of Defendants 12-14 (Anand Kumar and others) without knowledge of Rajesh Kumar

1997-05-30

Legal notice sent by Rajesh Kumar calling upon Defendants 1-11 to be present in Registrar's office at Sihora on May 31, 1997

1997-05-31

Rajesh Kumar informed by Sub-Registrar that suit land has been sold in favor of Defendants 12-14

1997-08-20

Rajesh Kumar objected to application dated August 20, 1997 moved by Defendants 12-14 for mutation of their names

1997-12-06

Gram Panchayat meeting assured Rajesh Kumar that Defendants 12-14 will execute sale deed in his favor

2000-06-19

Civil suit filed by Rajesh Kumar on the last date of limitation (May 30, 2000 was court vacation, suit filed on June 19, 2000)

2003-04

Trial Court decreed the suit in favor of Rajesh Kumar

2016-09-01

High Court of Madhya Pradesh allowed the appeal and set aside the Trial Court judgment, dismissing Rajesh Kumar's suit

2017-02-11

Special Leave Petition filed in Supreme Court (with delay of 43 days, later condoned)

2017-03-03

Supreme Court issued notice and granted leave to appeal

2024-03-14

Supreme Court heard arguments from both sides

2024-05-17

Supreme Court pronounced judgment dismissing the appeal

Key Factual Findings

The initial agreement dated September 26, 1995 was executed only by Defendant No. 1 (Gajay Bahadur Bakshi) and nowhere states that he executed it as Attorney holder of Defendants 2-11

Source: Current Court Finding

The agreement mentions that Gajay Bahadur Bakshi would be responsible for getting the sale deed executed by all co-owners at the time of registration, but neither the names of all co-owners nor their signatures appear in the agreement

Source: Current Court Finding

The so-called Power of Attorney through which Defendants 2-11 authorized Defendant 1 to execute the agreement was never produced or proved in the Trial Court

Source: Current Court Finding

The subsequent endorsements of receipt of additional amounts (Rs. 40,000) and the third agreement dated December 26, 1996 and extension endorsements dated March 27, 1997 and April 23, 1997 were also not signed by all co-parceners

Source: Current Court Finding

The plaintiff failed to appear in the witness box and instead his Power of Attorney holder (Parmod Khare) was examined as PW-1 on September 5, 2002, with the Power of Attorney executed on August 26, 2002

Source: Current Court Finding

The plaintiff sent a legal notice on May 30, 1997 and objected to the mutation application on August 20, 1997, yet did not file the suit until June 19, 2000 (nearly 3 years later)

Source: Current Court Finding

The suit was filed on June 19, 2000, which was the last date of the limitation period (May 30, 2000 was the actual last date, but the court was closed for summer vacation which ended on June 18, 2000)

Source: Recited from Trial Court Judgment

The respondents/defendants were in possession of the suit land as bona fide purchasers for value paid vide registered sale deed dated May 14, 1997

Source: Recited from Respondent Pleading

The respondents/defendants pleaded that they were not aware of any agreement to sell between the appellant and Defendants 1-11

Source: Recited from Respondent Pleading

Defendants 2A-2F filed separate written statement stating that their late father Raghvendra Kumar Bakshi never executed or agreed to execute the sale agreement

Source: Recited from Respondent Pleading

Primary Legal Issues

1.Whether an agreement to sell executed by a Power of Attorney holder on behalf of co-owners without their individual signatures is valid and enforceable
2.Whether a plaintiff in a suit for specific performance can rely on testimony of his Power of Attorney holder instead of appearing personally in the witness box
3.Whether a suit for specific performance filed at the fag end of the limitation period, after long delay, should be decreed despite being technically within the three-year limitation period
4.Whether time limits stipulated in an agreement to sell have legal significance even when time is not made the essence of the contract

Secondary Legal Issues

1.Whether all co-owners/coparceners of a property must be parties to and sign an agreement to sell the entire property
2.Whether a Power of Attorney holder can depose on behalf of the principal regarding matters requiring personal knowledge
3.Whether the conduct of parties and delay in filing suit should be considered in exercising discretionary jurisdiction for specific performance
4.Whether a bona fide purchaser for value with a registered sale deed has superior rights over a person claiming under an earlier unregistered agreement

Questions of Law

Can a Power of Attorney holder depose in place of the principal in a suit for specific performance? Answer: No, the principal must appear in the witness box to prove readiness and willingness.
Is an agreement to sell executed by only one co-owner on behalf of all co-owners valid? Answer: No, all co-owners must sign the agreement or the power of attorney must be proved.
Should a suit for specific performance be decreed merely because it is filed within the limitation period? Answer: No, the court has discretion to consider time limits in the agreement and delay in filing.
What is the legal significance of time limits in an agreement when time is not made the essence of the contract? Answer: Time limits have significance and cannot be ignored with impunity; they reflect the parties' intentions.

Statutes Applied

Specific Relief Act, 1963
Section 12
Section 12 requires a plaintiff in a suit for specific performance to prove that he has performed or is ready and willing to perform the essential terms of the contract. The Court held that a Power of Attorney holder cannot depose in place of the plaintiff regarding readiness and willingness, which are matters of personal knowledge and state of mind.
Code of Civil Procedure, 1908
Order 3, Rules 1 and 2
These rules empower a Power of Attorney holder to act on behalf of the principal. The Court interpreted 'acts' to mean acts done by the Power of Attorney holder in exercise of power granted, not deposing in place of the principal for acts done by the principal.
Limitation Act, 1963
General provisions on three-year limitation for suits for specific performance
While the suit was filed within the three-year limitation period, the Court held that this does not automatically entitle a plaintiff to specific performance, especially when filed after long delay and at the fag end of the limitation period.
Hindu Succession Act, 1956
General provisions on co-ownership and inheritance
The Court applied principles regarding co-owners and coparceners, holding that all co-owners must be parties to an agreement for sale of the entire property.

Petitioner's Arguments

The appellant (Rajesh Kumar) argued that: (1) The High Court committed serious error by setting aside the well-reasoned judgment of the Trial Court; (2) The agreement was validly executed by Defendant No. 1 as Power of Attorney holder of Defendants 2-11, which was duly proved; (3) The appellant paid earnest money and filed suit within time, so the First Appellate Court should not have set aside the Trial Court judgment; (4) The High Court was incorrect in holding that Defendants 2-11 had not signed the agreement merely because Defendant 1 was their Power of Attorney holder; (5) The High Court erred in holding that Power of Attorney holder cannot depose on behalf of plaintiff; (6) Non-appearance of appellant as witness would not have adverse impact in a suit of this nature; (7) Readiness and willingness can be proved by the Attorney holder.

Respondent's Arguments

The respondents (Anand Kumar and others) argued that: (1) The agreement dated September 26, 1995 is void ab initio because it was not executed by all owners of the suit land; (2) In a suit for specific performance, non-appearance of plaintiff as witness is fatal to his case because it is the plaintiff who must plead and prove readiness and willingness; (3) The High Court rightly set aside the Trial Court judgment which was based on perverse findings and incorrect application of settled legal principles; (4) The respondents were bona fide purchasers for value who purchased the land vide registered sale deed dated May 14, 1997; (5) The respondents were not aware of any agreement to sell between appellant and Defendants 1-11; (6) The suit is barred by limitation; (7) Time was the essence of the contract and sale deed was to be executed within six months; (8) The appellant did not have sufficient funds for payment of sale consideration.

Court's Reasoning

The Supreme Court upheld the High Court's judgment and dismissed the appeal on the following reasoning: (1) The initial agreement dated September 26, 1995 was executed only by Defendant No. 1 (Gajay Bahadur Bakshi), and the agreement itself nowhere states that he executed it as Attorney holder of Defendants 2-11. The agreement only mentions that Gajay Bahadur Bakshi would be responsible for getting the sale deed executed by all co-owners at the time of registration. Neither the names of all co-owners nor their signatures appear in the agreement. (2) The so-called Power of Attorney through which Defendants 2-11 authorized Defendant 1 to execute the agreement was never produced or proved in the Trial Court. In the absence of evidence, the High Court rightly held that the agreement was not signed by all co-owners. (3) Following the principle in Shanmughasundaram case, if all co-sharers have not executed the sale agreement, a suit for specific performance cannot be decreed. (4) The plaintiff failed to appear in the witness box. Instead, his Power of Attorney holder (Parmod Khare) was examined as PW-1. Following settled legal position in Janki Vashdeo Bhojwani, Man Kaur, and A.C. Narayanan cases, a Power of Attorney holder cannot depose in place of the principal in a suit for specific performance. The plaintiff must step into the witness box and prove readiness and willingness, which are matters of personal knowledge and state of mind. (5) The plaintiff filed the suit on June 19, 2000, which was the last date of the limitation period (calculated from May 31, 1997, the last extended date). Following K.S. Vidyanadam, Azhar Sultana, Saradamani Kandappan, and Atma Ram cases, the suit having been filed after long delay (nearly 3 years after the legal notice of May 30, 1997), the plaintiff is not entitled to specific performance. The time limits in the agreement have significance and cannot be ignored merely because the suit is filed within the three-year limitation period.

Statutory Interpretation Method:
Purposive Interpretation - The Court interpreted Section 12 of the Specific Relief Act purposively to require personal testimony of the plaintiff regarding readiness and willingnessLiteral Interpretation - The Court interpreted Order 3 Rules 1 and 2 CPC literally to restrict 'acts' to acts done by the Power of Attorney holder, not deposing in place of the principalHarmonious Construction - The Court harmonized the principles of limitation law with the discretionary jurisdiction of courts under the Specific Relief Act
Judicial Philosophy Indicators:
  • Emphasis on Natural Justice and Fair Procedure - The Court emphasized the importance of cross-examination and personal testimony
  • Strict Adherence to Procedural Requirements - The Court insisted on compliance with procedural rules regarding who can testify
  • Discretionary Jurisdiction - The Court emphasized that courts have discretion to refuse specific performance even within the limitation period
  • Protection of Settled Legal Principles - The Court consistently relied on and reinforced established precedents regarding Power of Attorney representation
Order Nature:Substantive
Disposition Status:Disposed
Disposition Outcome:Dismissed

Impugned Orders

High Court Of Madhya Pradesh, Principal Seat At Jabalpur
Case: FA-340-2003
Date: 2016-09-01

Specific Directions

  1. 1.Status quo existing as on date regarding nature and character of land shall be maintained by parties
  2. 2.Parties shall bear their own costs

Precedential Assessment

Binding (SC)

This is a Supreme Court judgment on civil matters relating to specific performance of land sale agreements. It clarifies and reinforces settled legal principles regarding Power of Attorney representation, requirements for specific performance, and the discretionary jurisdiction of courts. The judgment overrules the dissenting view in Humberto Luis case and provides comprehensive guidance on when Power of Attorney holders can and cannot depose. It is binding on all lower courts in India.

Tips for Legal Practice

1.In suits for specific performance of land sale agreements, ensure that all co-owners execute the agreement or that a valid Power of Attorney authorizing one co-owner to execute on behalf of all is properly proved with documentary evidence
2.Always advise clients in specific performance suits that they must personally appear in the witness box to testify regarding their readiness and willingness to perform the contract, as this cannot be delegated to a Power of Attorney holder
3.File suits for specific performance promptly after becoming aware of breach or refusal to perform, as courts will consider delay in filing as a factor in exercising their discretionary jurisdiction, even if the suit is technically within the limitation period
4.Understand that time limits stipulated in agreements have legal significance and courts will consider them even when time is not made the essence of the contract, so do not rely solely on the three-year limitation period

Legal Tags

Power of Attorney holder cannot depose on behalf of principal in specific performance suitAll co-owners must execute agreement to sell immovable property or power of attorney must be provedPlaintiff must personally testify regarding readiness and willingness to perform contractCourt has discretion to refuse specific performance despite suit being within limitation periodTime limits in agreement have legal significance even when time is not essence of contractLong delay in filing suit after becoming aware of breach disentitles plaintiff from specific performanceBona fide purchaser for value with registered sale deed has superior rights over earlier unregistered agreementConduct of parties is material consideration in discretionary relief of specific performanceSection 12 Specific Relief Act 1963 requires proof of readiness and willingness by plaintiff personallyOrder 3 Rules 1 and 2 CPC restrict Power of Attorney holder from deposing in place of principalCoparcenary property requires all coparceners to be parties to agreement for sale of entire propertyPresumption arises that case is not correct when party does not appear in witness boxLimitation period of three years does not automatically entitle plaintiff to specific performanceCourt should frown upon suits not filed immediately after breach or refusal to performDiscretionary jurisdiction of court under Sections 10 and 20 Specific Relief Act cannot be ignored
Shanmughasundaram & Ors. Vs. Diravia Nadar (dead) by Lrs. & Anr.
Shanmughasundaram & Ors. Vs. Diravia Nadar (dead) by Lrs. & Anr.
2005Supreme Court of IndiaNot specified
In the event all co-sharers of property have not executed the sale agreement, a suit for specific performance cannot be decreed. Co-owners can only agree for sale of their undivided share, not the entire property.
Relied Upon
Janki Vashdeo Bhojwani & Anr. vs. Indusind Bank Ltd. & Ors.
Janki Vashdeo Bhojwani & Anr. vs. Indusind Bank Ltd. & Ors.
2005Supreme Court of IndiaNot specified
A Power of Attorney holder cannot depose for the principal in respect of matters of which only the principal can have personal knowledge. If the principal does not appear in the witness box, a presumption arises that the case set up by him is not correct.
Relied Upon
Vidhyadhar v. Manikrao
Vidhyadhar v. Manikrao
1999Supreme Court of IndiaNot specified
Where a party to the suit does not appear in the witness box and state his own case on oath and does not offer himself to be cross-examined, a presumption arises that the case set up by him is not correct.
Relied Upon
Shambhu Dutt Shastri v. State of Rajasthan
Shambhu Dutt Shastri v. State of Rajasthan
1986Rajasthan High CourtNot specified
A general Power of Attorney holder can appear, plead and act on behalf of the party but cannot become a witness on behalf of the party. He can only appear in his own capacity.
Relied Upon
Ram Prasad v. Hari Narain
Ram Prasad v. Hari Narain
1998Rajasthan High CourtNot specified
The word 'acts' in Order 3 Rule 2 CPC does not include the act of Power of Attorney holder appearing as a witness on behalf of a party. Power of Attorney holder can appear only as a witness in personal capacity.
Relied Upon
Pradeep Mohanbay (Dr.) v. Minguel Carlos Dias
Pradeep Mohanbay (Dr.) v. Minguel Carlos Dias
2000Bombay High Court (Goa Bench)Not specified
A Power of Attorney can file a complaint under Section 138 but cannot depose on behalf of the complainant. He can only appear as a witness.
Relied Upon
Humberto Luis v. Floriano Armando Luis
Humberto Luis v. Floriano Armando Luis
2002Bombay High CourtNot specified
Dissenting view that Power of Attorney holder can depose on behalf of principal, interpreting 'act' in Order 3 Rule 2 CPC to include 'depose'.
Overruled
Man Kaur vs. Hartar Singh Sangha
Man Kaur vs. Hartar Singh Sangha
2010Supreme Court of IndiaNot specified
To succeed in specific performance, plaintiff must prove readiness and willingness. Plaintiff must step into witness box and give evidence, subject to cross-examination. Readiness and willingness refer to state of mind and conduct of purchaser.
Relied Upon
A.C. Narayanan vs. State of Maharashtra & Anr.
A.C. Narayanan vs. State of Maharashtra & Anr.
2014Supreme Court of IndiaNot specified
In criminal cases, a complaint under Section 138 NI Act by Power of Attorney holder is maintainable and such holder can depose as complainant. This is distinguished from civil suits for specific performance.
Distinguished
K.S. Vidyanadam vs. Vairavan
K.S. Vidyanadam vs. Vairavan
2009Supreme Court of IndiaNot specified
In case of agreement of sale relating to immovable property, time is not of the essence unless specifically provided. However, time limits in agreement have significance and cannot be ignored with impunity. Court has discretion under Sections 10 and 20 of Specific Relief Act.
Relied Upon
Chand Rani v. Kamal Rani
Chand Rani v. Kamal Rani
1993Supreme Court of India (Constitution Bench)Not specified
Time limits prescribed by parties in agreement have significance and value; they mean something and cannot be ignored.
Relied Upon
Azhar Sultana vs. B. Rajamani & Ors.
Azhar Sultana vs. B. Rajamani & Ors.
2009Supreme Court of IndiaNot specified
Court exercising discretionary jurisdiction is entitled to consider whether suit was filed within reasonable time. Conduct of parties assumes significance. No hard-and-fast law can be laid down.
Relied Upon
Saradamani Kandappan vs. S. Rajalakshmi & Ors.
Saradamani Kandappan vs. S. Rajalakshmi & Ors.
2011Supreme Court of IndiaNot specified
Every suit for specific performance need not be decreed merely because filed within limitation period by ignoring time limits in agreement. Courts frown upon suits not filed immediately after breach. Three-year limitation does not mean purchaser can wait one or two years.
Relied Upon
Atma Ram vs. Charanjit Singh
Atma Ram vs. Charanjit Singh
2020Supreme Court of IndiaNot specified
Conduct of plaintiff is very crucial in suit for specific performance. Long delay in filing suit without explanation, especially when legal notice was issued earlier, disentitles plaintiff from discretionary relief of specific performance.
Relied Upon

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Order Issued After Hearing

Purpose:

Fixed Date by Court

Before:

Hon'ble Hrishikesh Roy, Hon'ble Prashant Kumar Mishra

Stage:

FOR JUDGEMENT

Remarks:

Dismissed

Listed On:

17 May 2024

In:

Judge

Category:

UNKNOWN

Order Text

REPORTABLE

IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 7840 OF 2023

RAJESH KUMAR

.... APPELLANT

VERSUS

ANAND KUMAR & ORS.

...RESPONDENTS

<u>J U D G M E N T</u>

PRASHANT KUMAR MISHRA, J.

The appellant/plaintiff has called in question the judgment rendered by the High Court of Madhya Pradesh dated 01.09.2016 in First Appeal No. 340 of 2003 allowing the appeal preferred by the respondent nos. 1 to 3/defendant nos. 12 to 14 thereby setting aside the judgment and decree dated 04.2003 passed by the Trial Court in Civil Suit No. 38-A of 2000.

  1. The facts of the case briefly stated, are that the appellant/plaintiff entered into an agreement to sell with respondent no. 4 (acting as Power of Attorney holder of respondents/defendant nos. 2 to 11) for purchase of land admeasuring 145.60 acres bearing Khasra No. 214 to 233 (except Khasra No. 225) and Khasra Nos. 67/1 to 212 situated at village Khirsau, Tehsil Sihora, District Jabalpur, M.P for sale consideration at the rate of Rs. 3,000/- per acre, totalling Rs. 4,41,000/-. The appellant/plaintiff paid earnest money of Rs. 41,000/- on the date of agreement to sell and the balance amount was to be paid on the date of registration of the sale deed which was to be done within six months from the date of agreement.

2.1 On 22.05.1996, the appellant/plaintiff paid an additional amount of Rs. 20,000/- for which an endorsement was made on the backside of the agreement. Further amount of Rs. 40,000/- was paid on 30.06.1996 which too was endorsed on the backside of the agreement. On 26.12.1996, another agreement was executed between the appellant/plaintiff and the Power of Attorney Holder extending the execution of the

sale deed till 31.03.1997, remaining terms being the same. The date was further extended to 31.05.1997 vide entry made in the subsequent agreement dated 26.12.1996. Another entry was made on 23.04.1997 mentioning that the agreement to sell shall come to an end on 31.05.1997.

2.2 However, the respondent/defendant no. 1 being the Power of Attorney Holder of respondents/defendant nos. 2 to 11 executed the sale deed of the suit land on 14.05.1997 in favour of respondent nos. 1 to 3/defendant nos. 12 to 14 even though the said respondents were aware of the earlier sale agreement and its extensions. The sale deed dated 14.05.1997 was executed behind the back of the appellant/plaintiff which came to his notice subsequently on which a legal notice was sent on 30.05.1997 calling upon the respondents/defendant nos. 1 to 11 to be present in the Registrar's office at Sihora on 31.05.1997 to carry out the formalities for execution of the sale deed. Despite receipt of this notice, the respondents/defendant nos. 1 to 11 did not attend the Registrar Office. On 31.05.1997, the appellant/plaintiff was informed by the sub-

Registrar that the suit land has been sold in favour of respondent nos. 1 to 3/defendant nos. 12 to 14.

2.3 According to the appellant/plaintiff, he is in possession of the suit land, therefore, he objected to the application dated 20.08.1997 moved by the respondents/defendant nos. 12 to 14 for mutation of their names. The Gram Panchayat assured the appellant/plaintiff in its meeting dated 06.12.1997 that defendant nos. 12 to 14 will execute a sale deed in favour of the appellant/plaintiff, therefore, legal action was not initiated. The present suit was filed on 19.06.2000.

2.4 The respondents/defendants in joint written statement averred that the suit land is in possession of the respondent nos. 1 to 3/defendant nos. 12 to 14 being the bona fide purchasers for value paid vide registered sale deed dated 14.05.1997. It was pleaded that the respondents/defendants were not aware of any agreement to sell between the appellant/plaintiff and respondent nos. 1 to 11 and that the suit is barred by limitation. It was also pleaded that time was the essence of the contract and the sale deed was to be executed

within six months from the date of the agreement and that the appellant/plaintiff did not have sufficient funds with him for payment of the sale consideration and the advance amount of Rs. 40,000/- was also returned to the appellant/plaintiff through one Subhash Chandra Bansal. The respondents/defendant nos. 2A to 2F filed their separate joint written statement stating that their late father Raghvendra Kumar Bakshi has never executed or agreed to execute the sale agreement. Similar was the plea in the written statement filed by the respondent/defendant no. 5.

2.5 The Trial Court decreed the suit upon finding that the agreement to sell has been executed between the appellant/plaintiff and defendant no. 1 as a Power of Attorney Holder of defendant nos. 2 to 11. Non-examination of the appellant/plaintiff as a witness was held not having any adverse impact on plaintiff's case. The Trial Court also found that the time allowed for execution of sale deed was extended twice and he had also paid earnest money, therefore, the appellant/plaintiff was ready and willing to perform his part of the contract and the suit is not barred by limitation. Since the

extended time for registration of sale deed was till 31.05.1997 and the suit was to be filed on or before 30.05.2000. However, on the said date, the Court was closed for summer vacation which ended on 18.06.2000 and the suit was filed on 19.06.2000. Therefore, the suit was within limitation, having been filed on the last date of limitation.

2.6. In appeal preferred by the respondent nos. 1 to 3/defendant nos. 12 to 14, the High Court has passed the impugned judgment allowing the appeal to set aside the judgment and decree of the Trial Court consequently dismissing the appellant/plaintiff's suit. Hence this appeal.

  1. Mr. Dhruv Agrawal, learned senior counsel appearing for the appellant would submit that the High Court has committed serious error of law and fact by setting aside the well reasoned judgment and decree passed by the Trial Court. According to him, the execution of sale agreement by defendant no. 1 as a Power of Attorney Holder of Defendant Nos. 2 to 11 having been duly proved and the appellant/plaintiff having paid the earnest money and filing the suit within time, the First Appellate Court ought not to have set

aside the judgment of the Trial Court. It is further submitted that the High Court is not correct in holding that the defendant nos. 2 to 11 had not signed the agreement because defendant no. 1 was their Power of Attorney Holder. The High Court has also erred in holding that Power of Attorney Holder cannot depose in a civil suit on behalf of the plaintiff. According to him, non-appearance of the appellant/plaintiff as a witness would not have any adverse impact in a suit of this nature and that the readiness and willingness can be proved by the Attorney Holder.

  1. Per contra, Mr. Gagan Gupta, learned senior counsel for the respondents/defendants would submit that the agreement dated 26.09.1995 is void ab initio because it was not executed by all the owners of the suit land. It was then argued that in a suit for specific performance non-appearance of plaintiff as a witness is fatal to his case because it is he who has to plead and prove the readiness and willingness. He would submit that the High Court has rightly set aside the judgment and decree of the Trial Court which is based on perverse finding and incorrect application of settled legal principles.

  2. The High Court has non-suited the appellant/plaintiff on two counts. Firstly, that defendant no. 1 is not the sole owner of the property which was the coparcenary property and the other coparceners did not sign the initial agreement and secondly, that the appellant/plaintiff having failed to appear in the witness box, the testimony of his Power of Attorney Holder cannot be read as statement of the plaintiff in a civil suit of this nature.

  3. Admittedly, the initial agreement dated 26.09.1995 was executed by Defendant no. 1-Gajay Bahadur Bakshi. It is the case of the appellant/plaintiff that Gajay Bahadur Bakshi was the Power of Attorney Holder of Defendant nos. 2 to 11, the other co-owners/coparceners of the suit property. However, the agreement itself no where states that Gajay Bahadur Bakshi has executed the agreement as Attorney Holder of Defendant nos. 2 to 11. On the contrary, it is mentioned in the agreement that Gajay Bahadur Bakshi would be responsible for getting the sale deed executed and registered by all the coowners or co-khatedars at the time of registration. Neither the names of all the co-owners/coparceners/co-khatedars are

mentioned in the agreement, thus, the High Court is right in finding that all the co-owners have not signed the agreement. The subsequent endorsement of receipt of additional amount of Rs. 40,000/- is also not signed by all the co-parceners. The same is the condition with the 3rd agreement dated 26.12.1996 and the extension endorsement dated 27.03.1997 and 23.04.1997. Significantly, the so-called power of attorney pleaded in the plaint through which the defendant nos. 2 to 11 authorised defendant no. 1 to execute the agreement, have not been produced and proved in the Trial Court. Thus, neither in the agreement nor in course of trial the power of attorney is proved by tendering the same in evidence. Hence, in the absence of evidence, the High Court rightly held that the agreement is not signed by all the co-owners.

  1. In the matter of Shanmughasundaram & Ors. Vs. Diravia Nadar (dead) by Lrs. & Anr.1 , this Court has held that in the event all the co-sharers of the property have not executed the sale agreement, a suit for specific performance cannot be decreed. The following is held in paras 29,30 & 31:

<span id="page-8-0"></span><sup>1</sup> AIR 2005 SC 1836

"29. The facts in present case are distinguishable. Admittedly, the property has been jointly inherited by two brothers and three sisters. As heirs under the Hindu Succession Act, they inherited the property as co-owners. In the absence of partition between them, the two brothers together had undivided share in the property, and they could not have agreed for sale of the entire property. They were competent to execute agreement to the extent only of their undivided share in the property. In the event of sale of such undivided share, the vendee would be required to file a suit for partition to work out his right in the property. The left out three sisters as co-owners having undivided share in the whole property, the two brothers are incompetent to abide by the award.

  1. Learned counsel makes a reference to Section 12 of the Specific Relief Act, 1963 and submits that the arbitration agreement and consequent award should be allowed to be enforced to the extent of share of two brothers leaving the vendee to work out his right, if necessary, in case the sisters object to the sale, by a suit in accordance with Section 12 of the Specific Relief Act.

  2. Section 12 of the Specific Relief Act, in our considered opinion, would be of no assistance in the situation obtaining here. In the absence of sisters being parties to the agreement, the vendee can at best obtain undivided interest of two brothers in the property. Section 12 of the Specific Relief Act cannot be invoked by the vendee to obtain sale of undivided share of the two brothers with a right to force partition on the sisters who were not parties to the agreement of sale. Such a relief under Section 12 cannot be obtained by a vendee, on purchase of an undivided share of the property of some of the co-owners, against other co-owners who were not parties to the sale agreement."

  3. Undisputedly, in the present case, the plaintiff failed to appear in the witness box. Instead, his Power of Attorney Holder – Parmod Khare has got himself examined as PW-1. This witness was examined on 05.09.2002 and the power of attorney was executed on 26.08.2002. It is not a case where the suit itself was filed by a Power of Attorney Holder. He appeared subsequently only for recording his evidence as the Special Power of Attorney Holder of the plaintiff. The legal position as to when the deposition of a Power of Attorney Holder can be read in evidence has been dealt with by this Court in several decisions.

9. In Janki Vashdeo Bhojwani & Anr. vs. Indusind Bank

Ltd. & Ors.2 , it is held that a Power of Attorney Holder cannot depose for principal in respect of matters of which only principal can have personal knowledge and in respect of which the principal is liable to be cross-examined. It is also held that if the principal to the suit does not appear in the witness box, a

<span id="page-10-0"></span><sup>2</sup> (2005) 2 SCC 217

presumption would arise that the case set up by him is not correct. This Court has discussed the legal position in the following words in paras 13 to 22:

"13. Order 3 Rules 1 and 2 CPC empower the holder of power of attorney to "act" on behalf of the principal. In our view the word "acts" employed in Order 3 Rules 1 and 2 CPC confines only to in respect of "acts" done by the power-of-attorney holder in exercise of power granted by the instrument. The term "acts" would not include deposing in place and instead of the principal. In other words, if the power-of-attorney holder has rendered some "acts" in pursuance of power of attorney, he may depose for the principal in respect of such acts, but he cannot depose for the principal for the acts done by the principal and not by him. Similarly, he cannot depose for the principal in respect of the matter of which only the principal can have a personal knowledge and in respect of which the principal is entitled to be cross-examined.

  1. Having regard to the directions in the order of remand by which this Court placed the burden of proving on the appellants that they have a share in the property, it was obligatory on the part of the appellants to have entered the box and discharged the burden. Instead, they allowed Mr Bhojwani to represent them and the Tribunal erred in allowing the power-of-attorney holder to enter the box and depose instead of the appellants. Thus, the appellants have failed to establish that they have any independent source of income and they had contributed for the purchase of the property from their own independent income. We accordingly hold that the Tribunal has erred in holding that they have a share and are co-owners of the property in

question. The finding recorded by the Tribunal in this respect is set aside.

  1. Apart from what has been stated, this Court in the case of Vidhyadhar v. Manikrao [(1999) 3 SCC 573] observed at SCC pp. 583-84, para 17 that:

"17. Where a party to the suit does not appear in the witness box and states his own case on oath and does not offer himself to be cross-examined by the other side, a presumption would arise that the case set up by him is not correct…."

  1. In civil dispute the conduct of the parties is material. The appellants have not approached the Court with clean hands. From the conduct of the parties it is apparent that it was a ploy to salvage the property from sale in the execution of decree.

  2. On the question of power of attorney, the High Courts have divergent views. In the case of Shambhu Dutt Shastri v. State of Rajasthan [(1986) 2 WLN 713 (Raj)] it was held that a general power-of-attorney holder can appear, plead and act on behalf of the party but he cannot become a witness on behalf of the party. He can only appear in his own capacity. No one can delegate the power to appear in the witness box on behalf of himself. To appear in a witness box is altogether a different act. A general power-ofattorney holder cannot be allowed to appear as a witness on behalf of the plaintiff in the capacity of the plaintiff.

  3. The aforesaid judgment was quoted with approval in the case of Ram Prasad v. Hari Narain [AIR 1998 Raj 185 : (1998) 3 Cur CC 183] . It was held that the word "acts" used in Rule 2 of Order 3 CPC does not include the act of power-ofattorney holder to appear as a witness on behalf of a party. Power-of-attorney holder of a party can appear only as a witness in his personal capacity and whatever knowledge he has about the case he can state on oath but he cannot appear as a witness on behalf of the party in the capacity of that party. If the plaintiff is unable to appear in the court, a commission for recording his evidence may be issued under the relevant provisions of CPC.

  4. In the case of Pradeep Mohanbay (Dr.) v. Minguel Carlos Dias [(2000) 1 Bom LR 908] the Goa Bench of the Bombay High Court held that a power of attorney can file a complaint under Section 138 but cannot depose on behalf of the complainant. He can only appear as a witness.

  5. However, in the case of Humberto Luis v. Floriano Armando Luis [(2002) 2 Bom CR 754] on which reliance has been placed by the Tribunal in the present case, the High Court took a dissenting view and held that the provisions contained in Order 3 Rule 2 CPC cannot be construed to disentitle the power-of-attorney holder to depose on behalf of his principal. The High Court further held that the word "act" appearing in Order 3 Rule 2 CPC takes within its sweep "depose". We are unable to agree with this view taken by the Bombay High Court in Floriano Armando [(2002) 2 Bom CR 754] .

  6. We hold that the view taken by the Rajasthan High Court in the case of Shambhu Dutt Shastri [(1986) 2 WLN 713 (Raj)] followed and reiterated in the case of Ram Prasad [AIR 1998 Raj 185 : (1998) 3 Cur CC 183] is the correct view. The view taken in the case of Floriano Armando Luis [(2002) 2 Bom CR 754] cannot be said to have laid down a correct law and is accordingly overruled.

  7. In the view that we have taken, we hold that the appellants have failed to discharge the burden that they have contributed towards the purchase of property at 38, Koregaon Park, Pune from any independent source of income and failed to prove that they were co-owners of the property at 38, Koregaon Park, Pune. This being the core question, on this score alone, the appeal is liable to be dismissed."

10. Thereafter, in Man Kaur vs. Hartar Singh Sangha3 , this

Court referred to its earlier decisions including Janki Vashdeo

Bhojwani (supra) and concluded thus in paras 17 & 18:

"17. To succeed in a suit for specific performance, the plaintiff has to prove: (a) that a valid agreement of sale was entered into by the defendant in his favour and the terms thereof; (b) that the defendant committed breach of the contract; and (c) that he was always ready and willing to perform his part of the obligations in terms of the contract. If a plaintiff has to prove that he was always ready and willing to perform his part of the contract, that is, to perform his obligations in terms of the contract, necessarily he should step into the witness box and give evidence that he has all along been ready and willing to perform his part of the contract and subject himself to cross-examination on that issue. A plaintiff cannot obviously examine in his place, his attorney-holder who did not have personal knowledge either of the transaction or of his readiness and willingness. Readiness and willingness refer to the state of mind and conduct of the purchaser, as also his capacity and preparedness on the other. One without the other

<span id="page-14-0"></span><sup>3</sup> 2010 (10) SCC 512

is not sufficient. Therefore a third party who has no personal knowledge cannot give evidence about such readiness and willingness, even if he is an attorney-holder of the person concerned.

  1. We may now summarise for convenience, the position as to who should give evidence in regard to matters involving personal knowledge:

(a) An attorney-holder who has signed the plaint and instituted the suit, but has no personal knowledge of the transaction can only give formal evidence about the validity of the power of attorney and the filing of the suit.

(b) If the attorney-holder has done any act or handled any transactions, in pursuance of the power of attorney granted by the principal, he may be examined as a witness to prove those acts or transactions. If the attorney-holder alone has personal knowledge of such acts and transactions and not the principal, the attorney-holder shall be examined, if those acts and transactions have to be proved.

(c) The attorney-holder cannot depose or give evidence in place of his principal for the acts done by the principal or transactions or dealings of the principal, of which principal alone has personal knowledge.

(d) Where the principal at no point of time had personally handled or dealt with or participated in the transaction and has no personal knowledge of the transaction, and where the entire transaction has been handled by an attorney-holder, necessarily the attorney-holder alone can give evidence in regard to the transaction. This frequently happens in case of principals carrying on business through authorised managers/attorney-holders or persons residing abroad managing their affairs through their attorney-holders.

(e) Where the entire transaction has been conducted through a particular attorney-holder, the principal has to examine that attorney-holder to prove the transaction, and not a different or subsequent attorney-holder.

(f) Where different attorney-holders had dealt with the matter at different stages of the transaction, if evidence has to be led as to what transpired at those different stages, all the attorney-holders will have to be examined.

(g) Where the law requires or contemplated the plaintiff or other party to a proceeding, to establish or prove something with reference to his "state of mind" or "conduct", normally the person concerned alone has to give evidence and not an attorney-holder. A landlord who seeks eviction of his tenant, on the ground of his "bona fide" need and a purchaser seeking specific performance who has to show his "readiness and willingness" fall under this category. There is however a recognised exception to this requirement. Where all the affairs of a party are completely managed, transacted and looked after by an attorney (who may happen to be a close family member), it may be possible to accept the evidence of such attorney even with reference to bona fides or "readiness and willingness". Examples of such attorney-holders are a husband/wife exclusively managing the affairs of his/her spouse, a son/daughter exclusively managing the affairs of an old and infirm parent, a father/mother exclusively managing the affairs of a son/daughter living abroad."

  1. In a more recent judgment of this Court in the matter of A.C. Narayanan vs. State of Maharashtra & Anr.4 , this Court again considered the earlier judgments, particularly, Janki Vashdeo Bhojwani (supra) and having noticed that Janki Vashdeo Bhojwani relates to Power of Attorney Holder under CPC whereas in the matter of (A.C. Narayanan) the Court was concerned with a criminal case. It was observed that since criminal law can be set in motion by anyone, even by a stranger or legal heir, a complaint under Section 138 of the Negotiable Instruments Act, 1881 preferred by the Power of Attorney Holder is held maintainable and also that such Power of Attorney Holder can depose as complainant.

<span id="page-17-0"></span>12. Having noticed the three judgments of this Court in Janki Vashdeo Bhojwani (supra), Man Kaur (supra) & A.C. Narayanan (supra), we are of the view that in view of Section 12 of the Specific Relief Act, 1963, in a suit for specific performance wherein the plaintiff is required to aver and prove that he has performed or has always been ready and willing to perform the essential terms of the contract, a Power of Attorney Holder is not entitled to depose in place and instead of the 4 (2014) 11 SCC 790

plaintiff (principal). In other words, if the Power of Attorney Holder has rendered some 'acts' in pursuance of power of attorney, he may depose for the principal in respect of such acts, but he cannot depose for the principal for the act done by the principal and not by him. Similarly, he cannot depose for the principal in respect of the matter of which only the principal can have personal knowledge and in respect of which the principal is entitled to be cross-examined. If a plaintiff, in a suit for specific performance is required to prove that he was always ready and willing to perform his part of the contract, it is necessary for him to step into the witness box and depose the said fact and subject himself to cross-examination on that issue. A plaintiff cannot examine in his place, his attorney holder who did not have personal knowledge either of the transaction or of his readiness and willingness. The term 'readiness and willingness' refers to the state of mind and conduct of the purchaser, as also his capacity and preparedness, one without the other being not sufficient. Therefore, a third party having no personal knowledge about the transaction cannot give evidence about the readiness and willingness.

  1. In the light of above settled legal position, we are of the view that in the instant case, the plaintiff/appellant has failed to enter into the witness box and subject himself to cross-examination, he has not been able to prove the prerequisites of Section 12 of the Specific Relief Act,1963 and more so, when the original agreement contained a definite time for registration of sale deed which was later on extended but the suit was filed on the last date of limitation calculated on the basis of the last extended time.

  2. The effect of filing a suit for specific performance after long delay, may be at the fag end of period of limitation fell for consideration before this Court in K.S. Vidyanadam vs.

Vairavan5 wherein this Court held thus in para 10: (2009) 17 SCC 27

"10. It has been consistently held by the courts in India, following certain early English decisions, that in the case of agreement of sale relating to immovable property, time is not of the essence of the contract unless specifically provided to that effect. The period of limitation prescribed by the Limitation Act for filing a suit is three years. From these two circumstances, it does not follow that any and every suit for specific performance of the agreement (which does not provide specifically that time is of the essence of the contract) should be

<span id="page-19-0"></span><sup>5</sup> (1997) 3 SCC 1

decreed provided it is filed within the period of limitation notwithstanding the time-limits stipulated in the agreement for doing one or the other thing by one or the other party. That would amount to saying that the time-limits prescribed by the parties in the agreement have no significance or value and that they mean nothing. Would it be reasonable to say that because time is not made the essence of the contract, the time-limit(s) specified in the agreement have no relevance and can be ignored with impunity? It would also mean denying the discretion vested in the court by both Sections 10 and 20. As held by a Constitution Bench of this Court in Chand Rani v. Kamal Rani [(1993) 1 SCC 519]: (SCC p. 528, para 25)………………"

15. In Azhar Sultana vs. B. Rajamani & Ors.6 , this

Court held thus in para 28:

"28. ……….The court, keeping in view the fact that it exercises a discretionary jurisdiction, would be entitled to take into consideration as to whether the suit had been filed within a reasonable time. What would be a reasonable time would, however, depend upon the facts and circumstances of each case. No hard-and-fast law can be laid down therefor. The conduct of the parties in this behalf would also assume significance."

16. In Saradamani Kandappan vs. S. Rajalakshmi &

Ors.7 , this Court held that every suit for specific performance need not be decreed merely because it is filed within the period

of limitation by ignoring time limits stipulated in the agreement.

<span id="page-20-0"></span><sup>6</sup> (2009) 17 SCC 27

<span id="page-20-1"></span><sup>7</sup> (2011) 12 SCC 18

The courts will also frown upon suits which are not filed immediately after the breach/refusal. The fact that limitation is three years does not mean that a purchaser can wait for one or two years to file a suit and obtain specific performance.

17. In Atma Ram vs. Charanjit Singh8 , this Court has

observed in para 9 thus:

**"**9. ……..No explanation was forthcoming from the petitioner for the long delay of three years, in filing the suit (on 13-10-1999) after issuing a legal notice on 12-11-1996. The conduct of a plaintiff is very crucial in a suit for specific performance. A person who issues a legal notice on 12-11-1996 claiming readiness and willingness, but who institutes a suit only on 13-10-1999 and that too only with a prayer for a mandatory injunction carrying a fixed court fee relatable only to the said relief, will not be entitled to the discretionary relief of specific performance."

  1. In the case in hand, the plaintiff entered into an agreement with only one of the co-owners and thereafter sought extensions for execution of the sale deed but did not prefer any suit though he was aware of the sale deed dated 14.05.1997 executed in favour of defendant nos. 12 to 14 and sent a legal notice on 30.05.1997 and even objected to the

<span id="page-21-0"></span><sup>8</sup> (2020) 3 SCC 311

subsequent purchasers' application for mutation of their names in the revenue records on 20.08.1997 and refers to a meeting of the Gram Panchayat dated 06.12.1997, yet the suit was preferred, on 09.05.2000 on the last date of limitation. Thus, on the strength of observations made by this Court in K.S. Vidyanadam (supra), Azhar Sultana (supra), Saradamani Kandappan (supra) & Atma Ram (supra), the suit having been preferred after a long delay, the plaintiff is not entitled for specific performance on this ground also.

  1. For the foregoing, we uphold the judgment and decree dated 01.09.2016 passed in FA No. 340 of 2003 by the High Court. The appeal lacks substance and is hereby dismissed. The parties shall bear their own costs.

………………………………………J. (PANKAJ MITHAL)

.......……………………………….J. (PRASHANT KUMAR MISHRA)

NEW DELHI; MAY 17, 2024

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