1962 (8) TMI 79 - SC - Indian Laws

Supreme Court restores specific performance decree, emphasizing judicial restraint and valid agreement

ISHWARI PRASAD MISHRA Versus. MOHAMMAD ISA

The Supreme Court allowed the appeal, restoring the trial court's decree for specific performance and setting aside the High Court's judgment. The Court ... - Issues Involved:1. Genuineness and validity of the agreement of sale.2. Receipt of earnest money by the respondent.3. Proper valuation of the property.4. Credibility of the arbitration story set up by the respondent.5. Evaluation of evidence from witnesses and experts.6. Criticism of the trial court by the High Court.Issue-wise Detailed Analysis:1. Genuineness and Validity of the Agreement of Sale:The appellant sued for specific performance of an agreement of sale executed on May 18, 1950, for a house in Sitamarhi Bazar. The trial court found the agreement genuine, valid, and supported by consideration. The High Court reversed this finding, suggesting the agreement was forged and a result of a conspiracy. However, the Supreme Court, after examining the evidence, concluded that the agreement was genuine and valid.2. Receipt of Earnest Money by the Respondent:The appellant claimed to have paid Rs. 10,000 as earnest money out of a total consideration of Rs. 14,000. The trial court accepted this claim, supported by witness testimonies and the appellant's evidence. The High Court doubted this, citing improbability of the appellant having such a large amount in cash. The Supreme Court found no reason to disbelieve the appellant's claim, noting the respondent's acknowledgment of the receipt in the agreement.3. Proper Valuation of the Property:The respondent contended the property's value was Rs. 60,000, supported by witness Karim Bux. The trial court found this valuation unreliable, estimating the property's worth at Rs. 14,000. The High Court disagreed, valuing it at Rs. 30,000. The Supreme Court criticized the High Court's reliance on Karim Bux's testimony, finding it unsubstantiated and supporting the trial court's valuation.4. Credibility of the Arbitration Story Set Up by the Respondent:The respondent alleged the agreement was a fraudulent use of stamp papers meant for arbitration in a dispute with Ramzan Ali. The trial court rejected this theory, and the Supreme Court found significant inconsistencies and lack of evidence supporting the arbitration claim, concluding it was fabricated.5. Evaluation of Evidence from Witnesses and Experts:The trial court accepted the testimonies of several witnesses, including the scribe and attesting witnesses, supporting the appellant's case. The High Court dismissed these testimonies, suggesting a conspiracy. The Supreme Court found the witnesses credible, noting no reason for them to perjure themselves. The handwriting experts' opinions were also considered, with the Supreme Court finding the appellant's expert more convincing.6. Criticism of the Trial Court by the High Court:The High Court's judgment included severe criticisms of the trial court, suggesting bias and extraneous influences. The Supreme Court condemned this language, emphasizing judicial restraint and respect for differing judicial opinions. The Supreme Court found the trial court's conclusions justified and the High Court's criticisms unfounded.Conclusion:The Supreme Court allowed the appeal, restoring the trial court's decree for specific performance and setting aside the High Court's judgment. The Supreme Court emphasized the importance of judicial poise and balance, criticizing the High Court's intemperate language and unfounded accusations against the trial judge.