# FGP LTD v. SALEH HOOSEINI DOCTOR AND ANR. 997

- **Citation:** [2009] 14 S.C.R. 995
- **Court:** Supreme Court of India
- **Decided:** 2009-09-15
- **Case number:** Civil Appeal No. 6257 of 2009
- **Bench:** Markandey Kat Ju, Asok Kumar >- Ganguly
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/fgp-ltd-v-saleh-hooseini-doctor-and-anr-997-25100
- **Pages:** 28

## Headnote

?
Rent Control - Bombay Rent Act, 1947 - Suit by
respondents against appellant for possession of property on c
ground of reasonable and bonafide requirement - Decreed
by Small Causes Court - Order upheld in appeal af)d in
revision before High Court - Maintainability of the suit
l
challenged by appellant on basis of agreement to sell,
- _).-
application of s. 53-A and specific performance (in terms of D
the specific performance suit filed by it and pending in High
Court) - Held: Challenge not tenable - Claim by appellant
on question of specific performance of contract that he paid
sale consideration money in respect of property under an
agreement to sell contrary to material documents on record
IE
- Case based on specific performance not strong enough -
In any event, appellant was required to show that it either
~
performed or was willing to perform its part of the contract, but
..
admitted facts of the case are to the contrary - Doctrine of
part performance under s. 53-A cannot be invoked -
F
Argument of appellant on competence of respondents to file
the suit also misconceived - Respondents were substituted
as executors under the Will left behind by the original owner
- They were also co-owners of the suit property - Transfer of
Property Act, 1882 - s. 53-A - Doctrines - Doctrine of part G
~·y
performance.
Rent Control - Title of landlord - Challenged - Held:
Normally, a tenant's right to question the title of a landlord is
'
995
H
996
SUPREME COURT REPORTS (2009] 14 (ADDL.) S.C.R.
A very limited in view of rule of law codified in s. 116 of the
-1--
::_
Evidence Act - Evidence Act, 1872 - s.116.
Will - Executor unable to act - Held: In such case, any
other legatee having a beneficial interest may be admitted to
8 prove the Will and letter of administration can be granted to
him - Indian Succession Act, 1925 - ss.222 and 234.
Will -
Vesting of property - On executor - Effect of
probate - Held: Vesting does not take place as a result of
probate - Grant of probate does not give title to -the executor
C - It just makes his title certain - Indian Succession Act, 1925
- ss.211 and 213.
The property in question is located in a prime area
in Mumbai. In 2001, the respondents i.e legal
0 representatives of the erstwhile owner of the said
property filed suit against the appellant-company in the
Court of Small Causes under the Bombay Rent Act, 1947
for possession of the property on the ground of
reasonable and bonafide requirement. The suit was
E decreed by the Small Causes Court and the appellant
was directed to handover vacant and peaceful
possession of the property. The order was upheld by the
appellate authority and again by the High Court in
revision.
F
Before this Court, the maintainability of the said suit
was challenged by the appellant on various grounds.
It is the case of appellant-company that three
agreements were executed between it and the owner of
G the property in question; that the first one was entered
into on 14-7-1981 whereby the erstwhile owner agreed to
sell the property to the appellant for Rs.5 lacs and
received the entire sale consideration of Rs.5 lacs; that
the original owner executed a second agreement dated
H
FGP LTD. v. SALEH HOOSEINI DOCTOR AND ANR. 997
;:
J._
16-07-1981 and thereby let out the suit premises to the
A
appellant as a tenant and that another agreement dated
20-7-1981 was also executed between the original owner
and the appellant-company, whereby the original owner
again agreed to sell the appellant-company the suit
premises for the same price of Rs.5 lacs which the
B
original owner received on 14-07-1981. The further case
>..__
of the appellant was that as sale in terms of the
,.
agreement dated 14-7-1981 was not completed within
time, it gave a notice to the vendor to complete the sale
and as it was not completed, the appellant thereafter filed c
a suit for specific performance in 1991 which is still
pending in the High Court.
The appellant urged that by an agreement in writing,
-~
the origin

## Text

_Characters 0–39,623 of 53,038. This is a partial read: ask again with offset=39623 for what follows._

[2009] 14 S.C.R. 995
' -+
FGP LTD.
A
,....
v.
SALEH HOOSEINI DOCTOR AND ANR.
(Civil Appeal No. 6257 of 2009)
SEPTEMBER 15, 2009
B
[MARKANDEY KAT JU AND ASOK KUMAR
>-
GANGULY, JJ.]
?
Rent Control - Bombay Rent Act, 1947 - Suit by
respondents against appellant for possession of property on c
ground of reasonable and bonafide requirement - Decreed
by Small Causes Court - Order upheld in appeal af)d in
revision before High Court - Maintainability of the suit
l
challenged by appellant on basis of agreement to sell,
- _).-
application of s. 53-A and specific performance (in terms of D
the specific performance suit filed by it and pending in High
Court) - Held: Challenge not tenable - Claim by appellant
on question of specific performance of contract that he paid
sale consideration money in respect of property under an
agreement to sell contrary to material documents on record
IE
- Case based on specific performance not strong enough -
In any event, appellant was required to show that it either
~
performed or was willing to perform its part of the contract, but
..
admitted facts of the case are to the contrary - Doctrine of
part performance under s. 53-A cannot be invoked -
F
Argument of appellant on competence of respondents to file
the suit also misconceived - Respondents were substituted
as executors under the Will left behind by the original owner
- They were also co-owners of the suit property - Transfer of
Property Act, 1882 - s. 53-A - Doctrines - Doctrine of part G
~·y
performance.
Rent Control - Title of landlord - Challenged - Held:
Normally, a tenant's right to question the title of a landlord is
'
995
H
996
SUPREME COURT REPORTS (2009] 14 (ADDL.) S.C.R.
A very limited in view of rule of law codified in s. 116 of the
-1--
::_
Evidence Act - Evidence Act, 1872 - s.116.
Will - Executor unable to act - Held: In such case, any
other legatee having a beneficial interest may be admitted to
8 prove the Will and letter of administration can be granted to
him - Indian Succession Act, 1925 - ss.222 and 234.
Will -
Vesting of property - On executor - Effect of
probate - Held: Vesting does not take place as a result of
probate - Grant of probate does not give title to -the executor
C - It just makes his title certain - Indian Succession Act, 1925
- ss.211 and 213.
The property in question is located in a prime area
in Mumbai. In 2001, the respondents i.e legal
0 representatives of the erstwhile owner of the said
property filed suit against the appellant-company in the
Court of Small Causes under the Bombay Rent Act, 1947
for possession of the property on the ground of
reasonable and bonafide requirement. The suit was
E decreed by the Small Causes Court and the appellant
was directed to handover vacant and peaceful
possession of the property. The order was upheld by the
appellate authority and again by the High Court in
revision.
F
Before this Court, the maintainability of the said suit
was challenged by the appellant on various grounds.
It is the case of appellant-company that three
agreements were executed between it and the owner of
G the property in question; that the first one was entered
into on 14-7-1981 whereby the erstwhile owner agreed to
sell the property to the appellant for Rs.5 lacs and
received the entire sale consideration of Rs.5 lacs; that
the original owner executed a second agreement dated
H
FGP LTD. v. SALEH HOOSEINI DOCTOR AND ANR. 997
;:
J._
16-07-1981 and thereby let out the suit premises to the
A
appellant as a tenant and that another agreement dated
20-7-1981 was also executed between the original owner
and the appellant-company, whereby the original owner
again agreed to sell the appellant-company the suit
premises for the same price of Rs.5 lacs which the
B
original owner received on 14-07-1981. The further case
>..__
of the appellant was that as sale in terms of the
,.
agreement dated 14-7-1981 was not completed within
time, it gave a notice to the vendor to complete the sale
and as it was not completed, the appellant thereafter filed c
a suit for specific performance in 1991 which is still
pending in the High Court.
The appellant urged that by an agreement in writing,
-~
the original owner of the property had contracted to .
transfer for consideration the property in question in
D
favour of appellant-company and in part performance of
the said contract, the appellant-company had taken
possession of the property and was willing to perform its
part of the contract; that a suit for specific performa~ce
E
of the contract was pending between the parties in High
Court since 1991 and that Section 53-A of the Transfer of
;\
Property Act debarred the original owner or any other
I
~
person claiming under her from enforcing against the
appellant-company any right in respect of the property of
~
I
which the appellant-company had taken and continues
F
to remain in possession; that the handing over of
possession to the appellant-company by the tenancy
agreement dated 16.07.1981 was in part performance of
the agreement dated 14-7-1981. It was accordingly
--y
contended that the suit, which was filed to enforce the
G
ownership right against the appellant-company who had
paid the entire sale consideration, was not maintainable.
Dismissing the appeal, the Court
H
998
SUPREME COURT REPORTS [2009] 14 (ADDL.) S.C.R.
A
HELD: 1.1. The main thrust of the argument on the
-l.
~
question of specific performance of the ·contract is that
the appellant paid Rs.5 lacs as a sale consi,deration money
under the agreement to sell dated 14.07 .1981. But the
tenancy agreement dated 16.07 .1981 makes it clear that
B ·the said amount of Rs.5 lacs was given as a- security
deposit without any interest for carrying out the terms
and conditions of the tenancy agreement. In the Specific
_....(
Performance suit before the High Court, the said amount
"
of Rs.5 lacs has been specifically referred to as security -
c deposit. Also the said amount of Rs.5 lacs was deposited
by a cheque by Fiberglass Pilkington Limited (by which
name the appellant was previously known). The said
cheque was given to the original owner by a forwarding
letter dated 14.07 .1981 and in the said letter the said
D amount has been described as a deposit in compliance
--+---
of the ten;mcy 'agreement. Therefore, the claim of the
appellant that the said deposit of Rs.5 lacs was sale
consideration money for the suit premises is contradicted
by its averments in the suit and also from the material
E documents on record. [Paras 18, 19, 20 and 21] [1008-FH, 1009-A-C, F, G, 1010-B]
1.2. Apart from that, the agreement dated 20.07.1981,
;.
on which the appellant's suit for specific performance is
....
based, stipulates that the sale shall be completed within
F 3 months after 31.01.1983 or at the vendor's option on or
,...
\
after 31.01.1986. There is nothing on record to show that
the appellant ever called upon the owner to complete the
sale within 3 months from 31.01.1983. In fact the appellant
did not take any step for 10 long years and it only became
G active after the suit was filed by the owner for eviction of
the appellant in 1991. Also, neither in the eviction suit filed
-ragainst the appellant nor in the appeal filed by the
appellant against the adverse decision passed against it
in the eviction suit, the plea of specific performance was
H an issue or point for consideration. [Para 22] [1010-B-F]
FGP LTD. v. SALEH HOOSEINI DOCTOR AND ANR. 999
1.3. The remedy of specific performance is special
A
and extraordinary in character and is discretionary in
nature. From the facts of the case, it appears that the
appellant has not succeeded in making out a strong case
on specific performance so as to restrain the
respondents from proceeding with their suit for eviction. a
However, it is made clear that the observations made on
>----
the specific performance suit filed by the appellant are
)
tentative in nature and will not affect the merits of the
specific performance suit filed by the appellant and which
is pending in the High Court. [Paras 23 and 24] [1010-G- c
H; 1011-A-C]
2.1. The submission by the appellant on part
performance of the contract under Section 53-A of the -
Transfer of Property Act also cannot be accepted. Section
53-A of the Transfer of Property Act is based upon the
D
equitable doctrine of part performance in English Law.
The said Section has certain ingredients and, those are:-
( 1) a contract to transfer immovable property; (2) the
transfer should be for consideration; (3) the contract
must be in writing; (4) it should be signed by or on behalf E
of the transferor; (5) the terms of the contract can be
ascertained with reasonable certainty from the writing;
(6) the transferee takes possession of the whole or part
of the property or if already in possession continues in
possession; (7) such taking of or continuance in
F
possession should be in part performance of the
contract; (8) the transferee should do some act in
furtherance of the contract; and (9) he should have
performed, or be willing to perform, his part of the
contract. [Paras 25 and 26] (1011-C-H; 1012-A-C]
G
2.2. In the facts and circumstances of the present
case, no case for part performance of the contract has
been made out. In the plaint filed in the specific
performance suit, the case of the appellant is that it was
H
4,
1000 SUPREME COURT REPORTS [2009] 14 (ADDL.) S.C.R.
J..
/ ..__
A put in possession of the suit premises pursuant to the
'·
tenancy agreement dated 16.07 .1981 and not on the basis
of any other agreement. From a look at the tenancy
agreement, it is not found that the appellant was put in
possession under the same. In the said suit no evidence
j
B appears to have been led by the appellant to show how
it came to the possession of the suit premises. This
aspect of the case is quite vague. [Para 30] [1013-C-D]
,...('
f'
2.3. Apart from that according to the appellant it
c allegedly paid Rs.5 lacs as sale consideration for the suit
premises. However, in the plaint in the specific
performance suit, it has been clearly averred that the said
amount of Rs.5 lacs was kept in deposit with the original
owner of the premises by way of security deposit in terms
., .
D
of tenancy agreement dated 16.07.1981. In any event, the
+-
appellant is required to show that it either performed or
is willing to perform its part of the contract. But admitted
facts of the case are to the contrary. After the execution
...
of the alleged agreement for sale dated 20.07.1981, the
appellant was totally silent and it is only after more than
E 10 years thereafter i.e. on 19.08.1991, for the first time, it
asked the owner to complete the sale and that too after
the ejectment suit was filed in 1991 by the owner. Thus,
)._
in the facts and circumstances of this case, the doctrine
,.
of part performance under Section 53-A cannot be
F invoked. [Paras 31 and 32] [1031-E-H; 1032-A]
Sardar Govindrao Mahadik and another v. Devi Sahai
and others (1982) 1 sec 237, relied on.
Lady Thynne v. Earl of Glengall (2 HL Cases 131 ),
G referred to.
·r3.1. The argument advanced on behalf of the
appellant on competence of the respondents to file the
suit out of which the present proceeding arises is also
H
FGP LTD. v. SALEH HOOSEINI DOCTOR AND ANR. 1001
_,.
>--
misconceived. [Para 33] [1014-B]
A
3.2. From the recitals of the Will of the original owner,
it would appear that the testatrix (the original owner)
appointed her husband to be the executor of the Will and
failing him appointed her sons and daughter to be the B
executors/executrix of the Will jointly as well as severally
~
for all purposes. From the Will, it was clear that whenever
the husband was unable to act as executor for whatever
•
reason, the respondents are substituted as executors
under the Will. The aforesaid recitals in the Will are in c
consonance with Sections 222 and 234 of the Indian
Succession Act. From a conjoint reading of the two
Sections, it is clear that the said Act recognizes the
contingency that where the executor appointed by a Will
-·~
is unable to act, any other legatee having a beneficial 0
interest may be admitted to prove the Will and letter of
administration can be granted to him. [Paras 34, 36, 37'.
..(
and 38] [1014-8-C, F, G, 1015-D]
3.3. Apart from that, in this case, respondent No.2 is
a co-owner of the suit premises. A co-owner can always
E
maintain a suit for eviction. If the status of the
respondents as co-owners of the property transpires
~
clearly from the admitted facts of the case, they cannot
J
be denuded of the said status at the instance of some
...
objections by the tenants. Normally, a tenant's right to
F
question the title of a landlord is very limited in view of
rule of law which is codified in Section 116 of the Indian
Evidence Act. Apart from that it has been held in some
decisions of this Court that a co-owner of a property is
an owner of the property, till the property is partitioned. G
-)"
Since in the instant case, no partition has taken place, the
respondents' status as co-owners cannot be disputed by
the tenant and it is nobody's case that there is a clash of
interest between the respondent and other co-owners.
Therefore, the suit filed by them is maintainable. [Paras
H
1002 SUPREME COURT REPORTS [2009] 14 (ADDL.) S.C.R.
A 39, 43, 45, 46, 49 and 50] (1015-E, 1016-H, 1017-8-D, 1018B-D]
Sri Ram Pasricha v. Jagannath and Ors. (1976) 4 SCC
184; Mohinder Prasad Jain v. Manohar Lal Jain (2006) 2 SCC
8 724 and India Umbrella Mfg. Co. v. Bhagabandei Agarwal/a
(2004) 3 sec 178 relied on.
. J.,
-
,
Salmond on Jurisprudence, 13th edition, referred to
~
4. Section 211 of the Indian Succession Act, deals
c with the vesting of property. This vesting does not take
place as a result of probate. On the executor's accepting
his office, the property vests on him and executor derives
his title from the Will and becomes the representative of
the deceased even without obtaining probate. The grant
o of probate does not give title to the executor. It just
makes his title certain. Even if Will is not probated that
,does not prevent the vesting of the property of the
deceased
on
the
executor/administrator
and
consequently any right of action to represent the estate
E of the executor can be initiated even before the grant of
the probate. So the suit filed by the respondents as
executors is also maintainable. [Paras 55, 58 and 59]
(1019-E-F, 1020-0-F]
Commissioner, Jalandhar Division and Ors. v. Mohan
F Krishan Abrol and Anr. (2004) 7 sec 505, relied on.
G
Kulwanta Bewa v. Karam Chand Soni AIR 1938 Calcutta
714 and Meyappa Chetty vs. Supramanian Chetty (1916) 43
IA 113, referred to.
5. This Court does not find any justification for its
interference with the decision of the High Court rendered
in its revisional jurisdiction, considering the facts of this
case and also the fact that appellant is paying a meager
sum of Rs. 900/- and odd per month for occupying the
H said flat in a prime area in Mumbai. Appellant is not in
) .. .'
FGP LTD. v. SALEH HOOSEINI DOCTOR AND ANR. 1003
.,\_
occupation of the said flat and since 2000 has admittedly
A
allowed a total outsider to occupy the said flat. The flat
is lying vacant since May, 2005. As against all these facts,
it is found that the suit is for reasonable requirement and
this Court, should not exercise its discretionary
jurisdiction by interfering with the eviction proceeding
B
which culminated in the revisional order of the High
~
Court. [Paras 60 and 61] [1020-F-G, 1021-A-B]
t
Balvantrai Chimanlal Trivedi, Manager, Raipur Mafg. Co.
Ltd. Ahmedabad v. M.N. Nagrashna and Ors. AIR 1960 SC c
407, referred to.
Case Law Reference:
(1982) 1 sec 237
relied on
Para 27
. - -·t
2 HL Cases 131
referred to
Para 28
D
(1976) 4 sec 184
relied on
Para 47
c2006) 2 sec 724
relied on
Para 51
(2004) 3 sec 178
relied on
Para 51
E
AIR 1938 Calcutta 714
referred to
Para 56
~
(1916) 43 IA 113
referred to
Para 56
,
(2004) 1 sec 505
relied on
Para 59
"\
F
AIR 1960 SC 407
referred to
Para 62
CIVIL APPELLATE JURISDICTION : Civil Appeal No.
6257 of 2009.
-
~y
From the Judgment & Order dated 2.12.2008 of the High
G
--
Court of Judicature at Bombay in C.R.A. No. 614 of 2008.
Shanti Bhushan, M.S. Ganesh, R. Ayyam Perumal,
Seshachary for the Appellant.
H
1004 SUPREME COURT REPORTS [2009] 14 (ADDL.) S.C.R.
A
RF. Nariman, Sumit Goel, Arjun Garg, Somandari Gaud,
~-
M/s. Parekh & Co. for the Respondents.
The Judgment of the Court was delivered by
B
GANGULY, J. 1. Leave granted.
2. The order of the High Court in its revisional jurisdiction
is impugned before this Court by the appellant herein, a tenant
j
in respect of the premises being No.01, Unit Type 401 on the
•
4th Floor of the Building known as "Daisylea" situated at 17 A,
c Mount Pleasant Road, Mumbai-400006 (hereinafter "the suit
premises").
3. The appellant is a public limited company whose paid
up share capital is more than Rs.1 crore and is therefore not
D
entitled to any protection under the Maharashtra Rent Control
,_
Act, 1999. On 16.07.1981 the appellant entered into a tenancy
agreement with Late Mrs. Sheroo Hooseini Doctor, mother of
the respondents and the original owner of the suit premises.
The appellant contends that prior to 16.07.1981 the said owner
E
entered into another agreement with it and agreed to sell the
flat for a sum of Rs.5 lacs and in the said agreement it was
acknowledged that the payment of the entire sale consideration
of Rs.5 lacs had been received by the original owner. The
i
further case of the appellant is that as the sale in terms of the
.._:.
sale agreement dated 16.07.1981 was not completed within
F time, it gave a notice in 1991 to the vendor to complete the sale
I'
and as it was not completed, the appellant thereafter filed a suit
for specific performance on 10.10.1991 which is still pending
in the High Court.
......
G
4. However, the respondents filed a suit being R.A.E. Suit
No.127 /338 of 1991 against the appellant in the Court of Small
r
Causes under the Bombay Rent Act, 1947 for possession of
-_,,.....
the suit premises on the ground of reasonable and bona fide
requirement. After the amendment of the provisions of
H
Maharashtra Rent Control Act, 1999 the previous suit of 1991
FGP LTD. v. SALEH HOOSEINI DOCTOR AND ANR. 1005
[ASOK KUMAR GANGULY, J.]
....
-i
filed under the Bombay Rent Act, 1947 was withdrawn on
A
24.01.2003. Prior to that another suit was filed on 2.08.2001
by Saleh Hooseini Doctor and Niloofer Arun Sawhney, who are
son and daughter respectively of the original owner, in the Small
-.I..
Causes Court against the appellant and it was registered as
TE & R Suit No.427/450 of 2001.
B
i
5. On 12.08.2005 the said suit was allowed by the Small
Causes Court of Bombay, inter alia, holding that the suit is
•
maintainable as the plaintiffs represent the estate of the original
owner. The trial Court directed appellant to handover vacant and c
peaceful possession of the suit premises and ordered an
enquiry with respect of mesne profit. Against the said judgment
~
'
and order, the appellant filed an appeal which was dismissed
on 30.08.2008 by the Court of Small Causes Bombay being
~
Appeal No.731 of 2005.
D
6. Challenging the said order, the revision application was
filed before the High court which was also dismissed by the
High Court on 2.12.2008. As noted above impugning the High
Court judgment the present proceeding has been initiated
before this Court by the appellant.
E
7. Before the High Court it was conceded on behalf of the
~
appellant that it is a public limited company having paid up
.,
share capital of more than Rs.1 crore and, therefore, the suit
premises is exempted from the provisions of Maharashtra Rent
F
Control Act, 1999.
8. From the reading of the judgment of the High Court, it
-
appears that the only point urged before the High Court in
revision was that plaintiffs cannot file the suit, inter alia, on the
ground that the original owner Mrs. Sheroo Doctor and her G
. 't
husband Hooseini Doctor, even though belonged to Dawoodi
!
Muslim Community and married according to Muslim rites, they
got their marriage registered under the Special Marriage Act
on 11.01.1991. As a result of such registration, the marriage
shall, as from the date of such registration, be deemed to be a
H
1006 SUPREME COURT REPORTS [2009] 14 (ADDL.) S.C.R.
A marriage solemnized under the said Act and as a consequence
~ -
thereof under Section 21 of the said Act, the property of the
parties shall be regulated under the provisions of Indian
Succession Act, 1925. It was further urged that as a result of
the necessary corollary of the same, the provisions of subB section (2), Section 213 of the Indian Succession Act is not
applicable. Therefore, in the absence of any probate having
been obtained by the plaintiffs the suit is not maintainable.
J
9. It was further stated that under Section 216 of the Indian
f
c Succession Act it is provided once a probate or letters of
administration have been granted to a particular person, no
other person can sue or prosecute any suit or otherwise act as
representative of the deceased unless such probate or letters
,,
,.,
of administration have been recalled or revoked. Relying on this
D
legal position, the learned counsel for the appellant argued that
on 8.5.2002 the probate was granted by the Bombay High
~·
Court to the husband of the testatrix and her husband was the
sole executor. Since the probate has not been granted to other
executors the plaintiffs have no right to file a suit without
obtaining probate or letters of administration. Reliance was
E also placed on Section 232(c) and 234 of the Indian
Succession Act.
10. No other point was urged before the High Court.
)..
'(
F
11. However, before this Court it was submitted on behalf
of the appellant that three agreements were executed between
the appellant and 1he owner of the flat in July 1981. The first
one was entered into on 14.7.1981 whereby the erstwhile owner
of the flat agreed to sell the same to the appellant for a sum of
G
Rs.5 lacs and the said agreement also acknowledged that the
entire sale consideration of Rs.5 lacs have been received by
the erstwhile owner and in the said agreement it was stipulated
y--
that the appellant would be entitled to occupy the suit premises
as tenants of the vendor till the suit for specific performance
was decreed. It was also urged that in pursuance of the said
H agreement .dated 14.7.1981 the original owner executed
FGP LTD. v. SALEH HOOSEINI DOCTOR AND ANR.1007
[ASOK KUMAR GANGULY, J.]
-.
..}
another agreement dated 16.07.1981 and thereby let out the A
suit premises to the appellant as a tenant. Another agreement
dated 20.7.1981 was also executed on the stamp paper
between the original owner and the appellant-company,
whereby the original owner again agreed to sell the appellantcompany the suit premises for the same price of Rs.5 lacs
B
which the original owner received on 14.07.1981.
112. It is, therefore, urged that under these circumstances
~
it is wholly illegal for the Bombay Small Causes Court to decree
the suit in favour of the legal representatives of the original c
owner and the High Court, by not interfering in revision with
those orders, was in error.
13. The appellant also placed reliance on Section 53-A of
the Transfer of Property Act and urged that the original owner
_..,.
of the suit premises had admittedly contracted to transfer for
D
~
consideration by an agreement in writing the suit premises in
~
favour of the appellant-company and in part performance of the
said contract the appellant-company had taken possession of
the property and was willing to perform its part of the contract.
It was also urged that in fact a suit for specific performance of
E
the contract is pending between the parties in Bombay High
~
Court since 1991 and therefore, Section 53-A of the Transfer
of Property Act debars the original owner or any other person
claiming under her from enforcing against the appellantcompany any right in respect of the suit property of which the
F
appellant-company had taken and continues to remain in
possession. It was urged that the handing over of possession
to the appellant-company by the tenancy agreement dated
16.07.1981 was in part performance of the agreement dated
14.07.1981 and Section 53-A of the Transfer of Property Act
G
.,
is applicable. Therefore, the suit, which was filed to enforce the
ownership right against the appellant-company who had paid
the entire sale consideration, is not maintainable.
14. As noted above, neither the case arising out of the
agreement to sell and the application of Section 53-A nor the
H
1008 SUPREME COURT REPORTS [2009] 14 (ADDL.) S.C.R.
A case of specific performance was argued before the High
~ .:
Court. It appears that the same was also not argued before the
Small Causes Court either at the trial or at the appellate stage.
15. Therefore, we can refuse to consider those arguments.
B However, since arguments have been advanced, this Court is
considering the same. But we do not find much' substance in
those arguments for the following reasons.
j
16. Before this court the learned counsel for the appellant
4
placed reliance on Clause 7 of the alleged agreement to sell
c dated 14.7.1981.
17. But in the suit which was filed by the appellant before
the Bombay High Court for specific performance reliance was
not placed on the agreement dated 14.7.1981. Reliance
D instead was placed on the substituted agreement dated
.,,,._
20.07.1981. The plaint which was filed by the appellant before
the High Court was produced before this Court and in the plaint
reference was made to Clause 5 of the agreement dated
20.07.1981. The said Clause 5 is set out below:-
E
"5. The sale shall be completed within three months after
the 31st day of January 1982 or at the Vendors option on
or after 31st January, 1986 upon the Purchaser calling
}-
upon the Vendor to execute the conveyance in favour of
....
the Purchaser and upon the Vendor procuring the incomeF
tax clearance certificate under Section 230A of the
income-tax Act and all other permissions and consents
which may be required under law."
18. The main thrust of the argument on the question of
G specific performance of the contract is that the appellant has
paid Rs.5 lacs as a sale consideration money under the
yagreement to sell dated 14.07.1981. But Clause 5 of the
tenancy agreement dated 16.07.1981 makes it clear that the
said amount of Rs.5 lacs was given as a security deposit
H without any interest for carrying out the terms and conditions
FGP LTD. v. SALEH HOOSE I NI DOCTOR AND ANR. 1009
[ASOK KUMAR GANGULY, J.]
....
of the tenancy agreement. Clause 5 of the agreement dated
A
16.7.1981 is set out below:-
t
"5. The tenant to deposit with the Owner Rs.5,00,000/-
~
(Rupees Five Lakhs only) as security deposit without
interest for carrying out the terms and conditions of this
agreement. This deposit will be refunded to the Tenant on
B
-\
the Tenant vacating the said flat and the said open parking
space by giving vacant possession of the said flat and the
•
said open parking space to the Owner."
19. In paragraph 2 of the Specific Performance suit before c
the Bombay High Court the said amount of Rs.5 lacs has been
---I
specifically referred to as security deposit. Paragraph 2 of the
said plaint is set out hereinbelow:-
..,.
~
"By a Deed of Lease executed on 16th July, 1981, the
D
Defendant granted a monthly tenancy to the plaintiffs of the
said premises on the terms mentioned therein. The
-r'
plaintiffs kept a deposit with the Defendant of a sum of
Rs.5 lacs by way of security deposit as mentioned in the
said agreement. The plaintiffs crave leave to refer to and
E
rely upon the said agreement when produced. Pursuant to
the said agreement the plaintiffs were put in exclusive
~
possession of the said premises and the same have been
in possession of the plaintiffs since then."
20. It may also be mentioned herein that the said amount
F
of Rs.5 lacs was deposited by a cheque by Fiberglass
Pilkington Limited, previously the appellant was known in that
name. The said cheque was given to the original owner by a
forwarding letter dated 14.07.1981 and in the said letter the
said amount has been described as a deposit in compliance
G
"1
of the tenancy agreement. The relevant parts of the letter are:
"We refer to the agreement in respect of the above
premises and as agreed enclose herewith our cheque No.
990188 dated 14.7.81 for Rs.5,00,000/- on Chartered
H
1010 SUPREME COURT REPORTS [2009] 14 (ADDL.) S.C.R.
A
Bank in your favour, being deposit for compliance with the
....
terms of tenancy agreement between us.
Please acknowledge receipt."
B
21. Therefore, the claim of the appellant that the said
deposit of Rs.5 lacs was sale consideration money for the suit
premises is contradicted by its averments in the suit and also
from the material documents on record.
}-
22. Apart from that, Clause 5 of the agreement dated
i
c 20.07.1981, on which the appellant's suit for specific
performance is based, stipulates that the sale shall be
completed within 3 months after 31.01.1983 or at the vendor's
option on or after 31.01.1986. There is nothing on record to
show that the appellant ever called upon the owner to complete
D the sale within 3 months from 31.01.1983. In fact the appellant
~ --
did not take any step for 10 long years and it only became active
after the suit was filed by the owner for eviction of the appellant
in February 1991. The appellant for the first time wrote a letter
dated 19.08.1991 calling upon the owner to complete the sale
E in terms of agreement dated 20.07.1981. To this letter a reply
was sent by the owner on 26. 08.1981 refusing to execute the
contract in terms of the option of vendor under Clause 5 of the
agreement dated 20.07.1981. These facts are admitted in
"
paragraphs 5 to 7 of the plaint filed by the appellant in specific
F performance suit. It may be mentioned in this connection that
neither in the eviction suit filed against the appellant nor in the
...,.___
appeal filed by the appellant against the adverse decision
passed against it in the eviction suit, the plea of specific
performance was either an issue in the suit or a point for
G
consideration in the appeal.
23." It is well known that the remedy of specific performance
(""
is special and extraordinary in character and is discretionary
in nature. From the facts discussed above, it appears that the
appellant has not succeeded in making out a strong case on
H specific performance so as to restrain the respondents from
~ ...
FGP LTD. v. SALEH HOOSEINI DOCTOR AND ANR.1011
[ASOK KUMAR GANGULY, J.]
---;/ -4
proceeding with their suit for eviction.
A
24. We, however, make it clear that the observations made
by us on the specific performance suit filed by the appellant are
tentative in nature. Those observations have been made as
submissions have been made before this Court that during the B
pendency of the appellant's suit for specific performance, the
eviction suit should have been stayed. In order to deal with those
~
submissions we have made the observations as aforesaid. But
•
those are tentative and will not affect the merits of the specific
performance suit filed by the appellant and which is pending in c
the Bombay High Court.
25. The submission by the appellant's counsel on part
performance of the contract under Section 53-A of the Transfer
of Property Act also cannot be accepted. Section 53-A of the
- - ),
Transfer of Property Act is based upon the equitable doctrine D
I
of part performance in English Law. Initially Section 53-A was
\
not incorporated in the Transfer of Property Act but the same
,.
came by way of an amendment for the first time by the Transfer
of Property Amendment Act 1929 (Act of 1929). The
amendment had to be made in view of some divergence in E
judicial opinion on the application of the aforesaid equitable
doctrine by various Courts in India.
~
26. Section 53-A of the Transfer of Property Act has certain
ingredients and, in our judgment, those are:-
F
(1) a contract to transfer immovable property;
(2) the transfer should be for consideration;
~,
(3) the contract must be in writing;
G
" 1
(4) it should be signed by or on behalf of the transferor;
(5) the terms of the contract can be ascertained with
reasonable certainty from the writing;
H
1012 SUPREME COURT REPORTS [2009] 14 (ADDL.) S.C:R.
A
(6) the transferee takes possession of the whole or part
+-
of the property or if already in possession continues in
possession;
(7) such taking of or continuance in possession should be
B
in part performance of the contract;
(8) the transferee should do some act in furtherance of the
contract; and
f-
~
(9) he should have performed, or be willing to perform, his
c
part of the contract.
27. The rationale of the equitable doctrine of part
performance in English Law has been traced in Section 53-A
by this Court in the case of Sardar Govindrao Mahadik and
D
another vs. Devi Sahai and others - (1982) 1 sec 237.
..,i .....
~
28. In paragraph 13, page 249 of the report while tracing
the said equitable doctrine in the way it has been assimilated
in Section 53-A of the Transfer of Property Act, the learned
Judges held that the act or action relied upon as "evidencing
E
part performance" must be of such nature and character that
its existence would· establish the contract and its
implementation. The learned Judges further held that the crucial
>-
act or action must be of such a character as to be unequivocally
'
referable to the contract as having been performed in
'
F
performance of the contract. In support of the said conclusion,
(he learned Judges referred to an Old English decision
rendered in the case of Lady Thynne vs. Earl of Glengal/ (2
HL Cases 131). In referring to the said case, the learned
Judges quoted the observations therefrom and which are
'
G reproduced herein below:
r,.
" ... part performance to take the case out of the Statute of
Frauds, always supposes a completed agreement. There
,
can be no part performance where there is no completed
agreement in existence. It must be obligatory, and what is
H
done must be under the terms of the agreement and by
...
FGP LTD. v. SALEH HOOSEINI DOCTOR AND ANR.1013
[ASOK KUMAR GANGULY, J.]
force of the agreement..."
A
(Page 158 of the report)
29. Relying on the aforesaid principle, the learned Judges
in Sardar Govindrao Mahadik (supra) reiterated that the act
B
relied upon by the party invoking the said doctrine must be such
as by its own force to show the very existence of the same
-\
contract.
•
30. Applying the aforesaid tests, as we must, to the present
situation we find that no case for part performance of the c
contract has been made out. Here in the plaint filed in the
specific performance suit, the case of the appellant is that it
was put in possession of the suit premises pursuant to the
tenancy agreement dated 16.07.1981 and not on the basis of
->:
any other agreement. If we look at the tenancy agreement, we
D
will not find that the appellant was put in possession under the
same. In the said suit no evidence appears to have been led
by the appellant to show how it came to the possession of the
suit premises. This aspect of the case is quite vague.
31 . Apart from that according to the appellant it allegedly
E
paid Rs.5 lacs as sale consideration for the suit premises. As
already pointed out in para 2 of the plaint in the specific
performance suit, it has been clearly averred that the said
amount of Rs.5 lacs was kept in deposit with the original owner
of the premises by way of security deposit in terms of tenancy
F
agreement dated 16.07.1981.
32. In any event, the appellant is required to show that it
either performed or is willing to perform its part of the contract.
But admitted facts of the case are to the contrary. After the
G
~ 'i
execution of the alleged agreement for sale dated 20.07.1981,
the appellant was totally silent and it is only after more than 10
years thereafter i.e. on 19.08.1991, for the first time, it asked
the owner to complete the sale and that too after the ejectment
suit was filed in February 1991 by the owner. Thus, in the facts
H
1014 SUPREME COURT REPORTS (2009] 14 (ADDL.) S.C.R.
A and circumstances of this case, the doctrine of part
~
performance under Section 53-A cannot be invoked. Therefore,
there is no merit in the argument advanced on behalf of by the
ii
appellant on that score.
B
33. Argument advanced on behalf of the appellant on the
competence of the respondents to file the suit out of which the
present proceeding arises is also misconceived.
)-
34. If we look at the recitals in paragraphs 2 and 3 of the
•
Will of the original owner, it would appear that the testatrix
c appointed her husband Hooseini Salehbhoy Doctor to be the
executor of the Will and failing him appointed .her sons Saleh
Doctor and Parvez Doctor and daughter Niloofer Sawhney to
be the executors/executrix of the Will jointly as well as severally
for all purposes.
...
D
-;.( --
35. Paragraph 3 of the Will is very relevant and is set out
as below:
"I DECLARE that in the subsequent clauses of this my Will
E
the expression "my Executors/Trustees" (Whenever the
context permits shall mean and include the Executors/
Executrix and Trustee or Trustees of this my Will for the time
being whether original additional or substituted)."
~
(Emphasis supplied)
F
'- 36. It is clear that whenever Hooseini Salehbhoy Doctor
(husband) is unable to act as executor for whatever reason, the
respondents are substituted as executors under the Will.
37. The aforesaid recitals in the Will are in consonance
G with Sections 222 and 234 of the Indian Succession Act. For
better appreciation of this point, both the Sections are set out
,.,_ .,-
below:
"222. Probate only to appointed executor. - (1) Probate
H
shall be granted only to an executor appointed by the Will.
FGP LTD. v. SALEH HOOSEINI DOCTOR AND ANR. 1015
[ASOK KUMAR GANGULY, J.]
...
(2) The appointment may be expressed or by necessary
A
(
implication."
,..
"234. Grant of administration where no executor, nor
residuary legatee, nor representative of such legatee. -
--4
When there is no executor and no residuary legatee or
B
representative of a residuary legatee, or he declines or is
incapable to act, or cannot be found, the person or
-\
persons who would be entitled to the administration of the
~
estate of the deceased if he had died intestate, or any
other legatee having a beneficial interest, or a creditor, may c
be admitted to prove the Will, and letters of administration
may be granted to him or them accordingly."
· 38. From a conjoint reading of these two Sections, it is
..
clear that the said Act recognizes the contingency that where
- ).._
the executor appointed by a Will is unable to act, any other
D
legatee having a beneficial interest may be admitted to prove
...
the Will and letter of administration can be granted to him .
_,
39. Apart from that, in this case, the respondent No.2 -
Niloofar, one of the plaintiffs is a co-owner of the suit premises.
E
In paragraph 9 of the Will there is a specific reference to the
suit premises and also to the pending litigation in Small Causes
..
Court at Bombay as well as in the High Court. In paragraph 9
there is a specific recital that the suit premises is bequeathed
to Parvez H. Doctor. However, Pervez died on 28.11.1998 and,
F
thus, predeceased the testatrix who died on 30.1.1999. In such
a situation, the provisions of Section 105 of the Indian
Succession Act, 1925 is attracted.
40. Section 105 of the Indian Succession Act reads thus:
G
" -'\
"105. In what case legacy lapses.