01Facts
Kalu sought cancellation of a registered agreement to sell his abadi land to Sadanand, alleging that Sadanand’s family obtained his thumb impression while he was ill and under the influence of medicine.
Sadanand denied fraud and sought specific performance, pleading readiness to pay the balance consideration.
The trial court cancelled the agreement and dismissed the specific-performance suit; the first appellate court affirmed both decrees. In the consolidated second appeals, the High Court framed a substantial question concerning whether the courts below had wrongly disbelieved the defendants’ evidence and shifted the burden of proof to them
¶ 9–1802Issues
i.Whether the courts below correctly disbelieved the evidence supporting the registered agreement and placed the burden on Sadanand to prove that Kalu was in good health and of sound mind?
¶ 18ii.Whether Sadanand established the requirements for specific performance, including readiness and willingness, timeliness, and compliance with the agreement’s notice clause?
¶ 46–5003Law Applied
Under Sections 101 and 102 of the Indian Evidence Act, 1872, the party who asserts a fact bears the burden of proving it; the burden rests on the party who would fail if neither side adduced evidence.
¶ 23–24A registered document is presumed validly executed, and the party challenging it bears the initial burden of rebutting that presumption (Prem Singh v. Birbal; Rattan Singh v. Nirmal Gill).
¶ 28–29Where execution is specifically denied, Section 68 requires examination of at least one attesting witness; the second need not also be called.
¶ 30Sections 16 and 17 of the Contract Act require proof of incapacity, fraud, or a position of dominance and its use to obtain an unfair advantage before the burden shifts; allegations of fraud or undue influence must be pleaded with particulars under Order VI Rule 4 CPC.
¶ 25, 35–36Section 16(c) of the Specific Relief Act requires readiness and willingness, assessed from the plaint as a whole; Article 54 of the Limitation Act starts time, where no performance date is fixed, when refusal becomes known.
¶ 47, 49The Court also applied Section 31 of the Specific Relief Act to cancellation and the then-applicable Section 20 principles governing the discretion to grant specific performance.
¶ 37, 41, 51Provisions in the judgment · 21 · Linked ones open on LawLens
Code of Civil Procedure, 1908 Section 100
Indian Contract Act, 1872 10 provisions
Section 14Section 15Section 16Section 17Section 18Section 19Section 20Section 21Section 22Section 25Specific Relief Act, 1963 Section 16Section 20Section 31
Registration Act, 1908 Section 34Section 35Section 59Section 60Section 87
Limitation Act, 1963 Section 54
Transfer of Property Act, 1882 Section 54
04Reasoning
The defendants proved execution and registration through the attesting witness, scribe, Sub-Registrar, and the registration endorsement.
¶ 30–39, 42Kalu’s evidence of illness, without medical or other corroboration that his understanding was impaired, did not rebut the registered document’s presumption; nor did it establish fraud, undue influence, or incapacity.
¶ 30–39, 42The courts below had relied on conjecture about sedative medicine and treated collateral variations in testimony as material, while wrongly requiring Sadanand to prove the negative that Kalu was not incapacitated.
¶ 30–39, 42As to specific performance, the plaint sufficiently pleaded readiness and willingness; the agreement fixed no performance date, and the suit was filed soon after Kalu’s refusal.
¶ 47–51The notice clause did not cancel the agreement merely because notice was not given, particularly after Kalu had repudiated it.
¶ 47–51The agreement and registration endorsement supported payment of the advance, and no ground under the applicable Section 20 justified withholding specific performance.
¶ 47–5105Holding
The Court answered the substantial question in the negative, holding that the burden had been wrongly shifted to Sadanand and that Kalu failed to prove that the registered agreement was vitiated by fraud or undue influence.
¶ 42–43Both second appeals were allowed; the lower courts’ judgments and decrees were set aside, Kalu’s cancellation suit was dismissed, and Sadanand’s suit was decreed for specific performance.
¶ 52–55The appellants were directed to deposit the balance consideration within two months, after which Kalu’s legal representatives were to execute and register the sale deed; the parties were also directed to maintain status quo regarding possession pending execution.
¶ 52–55Original Court PDF
Sadanand And OthersvsKalu
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