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sohamsane · 1 year ago

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Indira Devi vs. Veena Gupta: Right of Repurchase is Assignable

Case: Indira Devi (Appellant) versus Veena Gupta & Ors. (Respondents)

Court: The Supreme Court of India.

Jurisdiction: Supreme Court of India Civil Appellate Jurisdiction

Civil Appeal No. 9833 of 2014

Judgement Date: July 4 2023.

Bench: Honorable Justice Abhay S. Oka & Honorable Justice Rajesh Bindal

Concepts this case deals with –

Major:

Assignability of Right of Repurchase.

Transfer of Right in Immovable Property through Gift Deed.

Conditional Sale Deed.

Minor:

Who shall perform the considerations?

Interdependent contingent considerations.

Property Involved –

Property ‘A’

Persons Involved –

Mr. Kishori Lal Sahu: Exclusive Owner of Property ‘A’.

Smt. Veena Gupta: Daughter in Law of Kishori Lal Sahu. (Respondent)

Mr. Kaleshwar Prasad Singh: Tenant on Property ‘A’.

Smt. Indira Devi: Daughter of Kaleshwar Prasad Singh. (Appellant)

Documents Involved –

Conditional Sale Deed b/w Kishori Lal Sahu & Indira Devi concerning Property ‘A’.

Gift Deed by donor Kishori Lal Sahu to donee Veena Gupta, gifting number of properties including right/interest in Property ‘A’.

Suits & Appeals –

Original Suit: Trial Court 1983 - Civil Suit was Filed in 1983 by Veena Gupta & Kishori Lal Singh (at the time not deceased) for Special Performance as well as non-payment of rent against Indira Devi. (Suit Dismissed)

First Appeal: Lower Appellate Court 2000; Veena Gupta appeals against the dismissal of the suit. (Appeal is Dismissed)

Second Appeal: High Court Patna (Bihar): Second Appeal No. 123 of 2000; Veena Gupta appeals against the dismissal by lower appellate court. (Appeal admitted and adjudged on)

Supreme Court: Civil Appeal No. 9833 of 2014; Indira Devi appeals against the order of High Court. (Appeal is dismissed)

Facts of the Case –

Kishori Lal Sahu is the owner of property ‘A’ and Kaleshwar Prasad Singh is a tenant on the said property.

On 5th August 1977 Kishori Lal Singh the Owner & His Son due to dire need of funds executed a conditional sale deed in favour of Indira Devi (Vendee) d/o Kaleshwar the tenant. The condition was that the Vendee would pay Rs. 5000 as consideration to the Vendor, and if this Rs. 5000 is not returned by the Vendor by July 1984, the Vendee will become the owner of the property, and if the money is paid back, the Vendee will have to execute a sale deed of the property in favour of the Vendor that is to return the property.

On 14th February 1983 Kishori Lal executed a registered gift deed whereby he gifted number of properties to Veena Gupta (Respondent No. 1) the Daughter in Law of Kishori Lal and Wife of Gopal Prasad. The number of properties gifted contained the property in question where it was mentioned that the said property was transferred to Indira Devi, which can be retrieved by fulfilling conditions, that is to pay Rs. 5000 by July 1984. The Gift Deed was executed in 1983.

The Vendors that is Kishori Lal was ready to pay Rs. 5000, but the Vendees didn't agree and a civil suit was filed in 1983 in a Trial Court.

Plea by Respondent (Plaintiff in that suit) in Trial Court 1983: Special Performance Decree requiring Indira Devi/Kaleshwar (Defendant there) to accept Rs. 5000 and return the property, and if there is no performance, a decree directing appellant to register the sale deed in favour of Veena Gupta (Kishori Lal 2nd Plaintiff) with possession.

Representations in the Supreme Court:

Appellants (Indira Devi):

Kishori Lal executed the conditional deed in favour of Indira. And thus the right of repurchasing the property lies with Kishori Lal as the said right is personal. Stating he had no right to assign the right to third party.

Gift Deed executed is not valid as it contains consideration to be paid for obtaining the said property.

Judgements in the following cases: Bhoju Mandal v. Debnath Bhagat, Kapilaben vs. Ashok Kumar Jayantilal Sheth; were cited for supporting the case.

Respondents (Veena Gupta):

In the Gift Deed it is specifically mentioned that how donee may obtain the property by performing the promise of the contract/deed. 'She will have all the rights which Kishori Lal had'.

When as per the contract the vendor (Kishori Lal, non-deceased at the time of original suit of 1983 / Veena Gupta) was to give Rs. 5000 for repurchase, the vendor was willing to give but the consideration was not accepted by Indira Devi, thus to complete their part of promise Vendor deposited Rs. 5000 with Court of Original Suit with its permission.

The condition precedent for the repurchase was thus completed, and Kishori Lal assigned the right to repurchase to Veena Gupta through Gift deed.

To counter that the right of repurchase was personal, following judgements were cited for support: T.M. Balakrishna Mudaliar vs. M. Satyanarayana Rao, Shyam Singh vs Daryao Singh. It was contested that the right was assignable and not personal. And even if the Court would deal with the issue sensitively, the party assigned to was not any third party rather it was a party from the family of Kishori Lal himself.

Law & Analysis

Following are the Issues to be answered by us on the basis of facts of the case, representations made, and previous judgements:

Is the Gift deed valid?

Is the right of repurchase assignable or personal?

1. Will first begin with the validity of Gift Deed:

Gift is defined under Section 122 of Transfer of Property Act, 1882 as: Gift is the transfer of certain existing moveable or immoveable property made voluntarily and *without consideration*, by one person, called the donor, to another, called the donee, and accepted by or on behalf of the donee.

Under the Transfer of Property Act Immovable Property is defined to mean anything except standing timber, growing crops or grass. Further interpretation of other definitions of other acts include Land, Things attached to earth and benefits , Benefits to arise from land. If further studied a Right if related to movable or immovable properties then a Right related to Immovable Property becomes a immovable property. Even if we consider it a movable property it can still be gifted through a gift deed.

Thus it is agreeable that in this case in the gift deed the Property 'Physical' in Question is not gifted, rather the right to repurchase to same is transferred. The consideration comes in question when dealing with the physical actual property in question. The donee didn't have to pay any consideration for the right which was transferred.

2. Is the right to repurchase personal or can be assigned?

To begin with, we must look into the contract itself that is its clauses, content and intention of the parties which may be based of the language of the contract or the circumstances preceding or at the time when the contract was executed.

- In our case on the basis of the part of the sale deed presented before the High Court the deed didn't specifically contain any clauses prohibiting the assignment of the right of repurchase.

- At first, although it is not strictly related to our case, but we must look at Section 40 of the Indian Contracts Act to ascertain whether a promise or performance is personal: 'If it appears from the nature of the case that it was the intention of the parties to any contract that any promise contained in it should be performed by the promisor himself, such promise must be performed by the promisor. In other cases, the promisor or his representatives may employ a competent person to perform it.' Thus if a promise is of a nature that only the promisor has the ability to perform or skills then it can be performed only by the promisor.

Assignability of Contractual Rights or Obligations:

Under Indian Law any type of contract can be assigned except those specifically prohibiting the same or which are of personal nature. In the case of Kapilaben v. Ashok Kumar Jayantilal Sheth the Supreme Court observed that when entire promise or perfomance of one party towards the other are transferred to third party, then the consent of the promisee is required but when assigning just the rights or obligations to another doesn't require consent except when it is not of personal nature or if it is not specifically prohibited.

To stress on this point we will look at some of the cases cited by the counsels of the present case:

1. T.M. Balakrishna Mudaliar vs. M. Satyanarayana Rao –

The Court refered to the judgement in the case of Sakalaguna Nayadu v. Chinna Munuswami Naykar where in the Privy Council held that if the contract of repurchase did not specifically say that such benefit was only for the parties contracting, then the contract can be assigned and would be enforceable by law.

2. Shyam Singh vs Daryao Singh –

The facts of the stated case were somewhat similar to those of the present case. Lower courts opined that if there is no clause in the sale deed permitting assignment, then prohibition of the same can be read into the contract. When the matter came to Supreme Court the issue at point was considered whether such a prohibition can be read into the document by implication. The court by citing Section 15(b) of the Specific Relief Act, 1963 held that in absence of words indicating prohibition in the contract, then such prohibition cannot be read into the terms of documents.

Section 15 (b) of Specific Relief Act, 1963 stipulates that specific performance of a contract may be obtained by the representative in interest or the principal thereto: Except if it is of personal nature.

The Court was fortified with the view stated in the above cases by the Justices.

3. Bhoju Mandal v. Debnath Bhagat –

The Court considered this case, but the case primarily was concerned with the question whether document was mortgage or sale deed with condition of repurchase.

4. Kapilaben v. Ashok Kumar Jayantilal Sheth –

In this case issue was transfer/assignment of contract was without the consent of the promisee. The Court referred to judgement in Khardah Co. Ltd v. Raymon & Co. wherein the Court held that there was a well-recognized distinction between two classes of assignments which are assignment of rights in a contract and assignment of obligations in a contract. While the total assignment of contract that is substituting a party by a new party with consent/agreement of both original parties is called novation, where on novation there is no link between the old party and the new/amended contract, in such a case as said consent is required.

But when considering assignment of just the rights under a contract consent of the promisee is not strictly required that is the rights are freely assignable unless the contract prohibits it.

The Court in the present case also referred to a commentary on The Indian Contract Act & Special Relief Act by authors Pollock and Mulla, wherein the authors opine that the benefits of contract can be assigned where it makes no difference to the person on whom the obligation lies to which of two person (original or asignee) he is to discharge it. That is where the identity of the party on which the obligation is to be discharged makes no difference to the promisee (one who has obligations), provided the original promisor has effected such assignment willingly, then such contract is prima facie assignable, except in case of personal consideration. Of course payment of money does not involve personal consideration/skills.

Thus, the Court in this present case held that the right was not personal rather freely assignable in absence of bar in contract.

Conclusion:

We can conclude simply that:

1. Non-assignability cannot be implied into contract if it doesn't specifically mention it.

2. Rights under a contract when not of a personal nature can be assigned freely without consent, except barred.

3. Gift of a interest in immovable property irrespective of consideration involved in further exercise of the right is valid as there is no apparent consideration for the right itself.

Thankyou for reading! Connect with me on LinkedIn Soham Sane.

#supreme court #case comment #Indian Contracts Act #Right to Repurchase Property #Transfer of Property Act #Landmark Judgement

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upadhyaylawblogger · 13 days ago

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How to Prepare for the Bihar Judiciary Exam: A Complete Guide for Aspiring Judicial Officers

The Bihar Judiciary Exam is one of the most prestigious exams for law graduates who aspire to become judicial officers in the state. Clearing this competitive exam requires thorough preparation, strong foundational knowledge of law, and effective study strategies. This article outlines a comprehensive approach to preparing for the Bihar Judiciary Exam, covering essential tips, study materials, time management strategies, and more.

Understanding the Bihar Judiciary Exam The Bihar Judiciary Exam, also known as the Bihar Public Service Commission (BPSC) Judicial Service Exam, is conducted to recruit Civil Judges in the state. The exam consists of three main stages:

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Indian Penal Code (IPC) Code of Civil Procedure (CPC) Code of Criminal Procedure (CrPC) Evidence Act Contract Act Property Law General Knowledge and Current Affairs General Hindi and English Top Tips to Prepare for Bihar Judiciary Exam

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Indian Penal Code (IPC): Ratanlal and Dhirajlal’s The Indian Penal Code Code of Civil Procedure (CPC): C.K. Takwani’s Civil Procedure Code of Criminal Procedure (CrPC): Ratanlal and Dhirajlal’s The Code of Criminal Procedure Evidence Act: Batuk Lal’s The Law of Evidence Contract Act: Avtar Singh’s Law of Contract General Knowledge: Lucent’s General Knowledge for basic knowledge and newspapers for current affairs.

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Focus on Bare Acts and Case Laws Thoroughly read and understand the Bare Acts, as they are the foundation of legal knowledge for the exam. Additionally, stay updated with recent Supreme Court and High Court judgments, especially those relevant to Bihar. Understanding landmark judgments and recent cases will give you an edge in the interview.

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seemabhatnagar · 4 months ago

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"Unyielding Persistence: Overcoming Time's Play in the Pursuit of Justice"

In the relentless pursuit of a dream, sometimes life throws curveballs that test our resolve and patience. For Rakshit Shivam Prakash, an aspiring UPSC candidate, the journey was marked by unforeseen challenges and unexpected turns. Just when he thought all hope was lost, a twist of fate and unwavering persistence brought him back into the race for justice.

Rakshit Shivam Prakash v. Union of India & Another

WP (Civil)890/2023

Before the Supreme Court of India

Hear by Hon'ble Mr. Justice P S Narasimha J & Hon'ble Mr. Justice Pankaj Mithal J

A Battle Against Time: The Pursuit of Justice

In the intricate journey of aspiring for a position in the Union Public Service Commission (UPSC), Rakshit Shivam Prakash found himself amidst unexpected challenges. The year was 2014, and the rigorous selection process for the Civil Services Examination was underway. Rakshit qualified through the Prelims, Mains, and even the Interview. He was called for a medical examination on April 29, 2015, conducted by the Central Standing Medical Board. However, fate had a different plan; he was declared ‘temporarily unfit’ due to a Body Mass Index (BMI) of 31.75, just above the prescribed standard of 30 BMI. A re-medical test was scheduled for July 14, 2015.

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But, as they say, the most amazing things happen when you least expect them. On January 19, 2016, a consolidated reserve list of 126 candidates was published to fill remaining posts. Astonishingly, Rakshit secured the 93rd rank in this list. Candidates ranked below him were allocated services, reigniting his hopes and transforming his disappointment into a legitimate claim.

Rakshit approached the Central Administrative Tribunal in Patna, seeking equal treatment as others in the reserve list. However, his application was dismissed based on a similar case of Mr. K. Rajashekhara Reddy, who also missed qualifying in the medical examination. Undeterred, Rakshit filed a Writ Petition before the High Court of Patna.

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Seema Bhatnagar

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amitypatna · 4 months ago

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Top Contender: Why Amity University Is One Of The Top Law Colleges In Bihar

Have you ever felt a burning desire to fight for what's right and to wield the power of the law to create positive change? If this is so, then a career in law might just be the thing you’re looking for. Law is a mix of mentally challenging and tactical segments that requires a thinking process alongside the bonus of being able to change the world for the better. Thus, choosing appropriate law school is crucial in achieving the mentioned benefits.

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bizfly · 5 months ago

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Best Judicial Classes in patna

Learning about procedural rules governing court proceedings, including rules of evidence, civil and criminal procedure, and appellate practice.

#Best Judicial Classes in patna

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aryasamajcourtmarriage1 · 5 months ago

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Arya Samaj Marriage In Patna

The Arya Samaj advocates for monotheism, equality, and rational thinking. Its teachings emphasize the importance of education, self-discipline, and community service. Arya Samaj plays a crucial role in promoting social reforms. It simplifies rituals and ceremonies, making them accessible and meaningful for modern individuals and families. Court marriage is a civil contract between two individuals, registered under the Special Marriage Act of 1954. It provides a legal framework for marriages that do not conform to religious customs.

#Arya Samaj Marriage In Patna

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historbuff · 11 months ago

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Administrative, Judiciary and Reforms of Lord Cornwallis :-

Major Reforms of Lord Cornwallis :-

1). He eliminated many jobs that were held only to please the executives or members of the control board.

2). He forced the management of the company to increase the wages of the workers.

3). The personal business of the employees of the company was banned.

4). It was during his reign that rules were made that no Indian could be given a post higher than Droga or Munshi and his salary could not exceed 500 pounds. This was a great blunder by Cornwallis and a stain on his name.

2). Judicial Reforms

1). Following Civil Courts :- Cornwallis established a series of civil courts. At the lowest level were the Munsif's courts, headed by Indian officials. They could hear cases up to Rs.50. Above these were the registrar's courts, which were under European judges. They had the right to hear cases up to Rs.200. Above these were the district courts. District Courts were under District Judges. These courts heard appeals against lower courts.

2). Provincial Courts :- Four Provincial Courts were established to hear appeals against the District Courts. They were established in Calcutta, Dhaka, Patna and Murshidabad. The judges of these courts were Englishmen and they heard appeals against suits up to 100 Rs. Apart from hearing the cases, their main task was also to observe the courts. Read more :-

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bestclatcoachinginpatna · 1 year ago

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Choose Clat Course With Best CLAT Coaching in Patna

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There is no single stream that is thought to be the best for CLAT. CLAT is open to students from various disciplines, including science, commerce, and the humanities and arts. Your course of study should correspond to your interests and job objectives. Candidates with a well-rounded education, good analytical and communication abilities, and a genuine interest in pursuing a career in law are often sought after by law schools. Clatians is famous for Best Clat Coaching in Patna.

Is CLAT worth doing?

If you have a true passion for law, are prepared for the academic obstacles, and see a clear career path in the legal area, CLAT may be worthwhile. Before deciding whether CLAT is the correct decision for you, you must carefully consider your interests, aspirations, and the commitment required for law school.

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