Tuesday, 28 May 2019

Whether suit for specific performance of contract is tenable on basis of unregistered agreement of re-conveyance?

 Here in the case, the Agreements of Re-conveyance stand on independent footing and there is no question of the said Agreements replacing or substituting the registered Sale-Deeds. The transaction of sale was complete on execution of the 'Sale-Deed', but, on the same date, the 'Agreement of Re-conveyance' was executed, stipulating for repurchase of the property on repayment of the entire consideration amount within the prescribed period. As held in this Judgment, the Suit for specific performance of an unregistered 'Agreement of Sale' is definitely maintainable. Therefore, the very foundation on the basis of which the 1st Appellate Court has held the transaction in the case to be of an out and out sale, only on the count that unregistered 'Agreement of Re-conveyance' cannot substitute the registered 'Sale-Deed, that foundation having no basis in the legal dictum, the said finding of the 1st Appellate Court has to be set aside.

IN THE HIGH COURT OF BOMBAY

Second Appeal No. 37 of 1993

Decided On: 08.06.2018

Parasharam Sakharam Dhumal Vs.  Shamrao Mahadeo Dhumal 


Hon'ble Judges/Coram:
Dr. Shalini Phansalkar Joshi, J.

Citation: 2019(3) MHLJ 71.
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