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Issues: (i) Whether the legal representatives of a deceased sole proprietor are liable to satisfy monetary directions arising from the development agreement from the estate of the deceased; and (ii) whether the legal representatives can be compelled to perform personal obligations under the development agreement, including construction-related and other non-monetary obligations.
Issue (i): Whether the legal representatives of a deceased sole proprietor are liable to satisfy monetary directions arising from the development agreement from the estate of the deceased.
Analysis: The liability of legal representatives to answer claims against a deceased person is confined to the estate inherited by them. A promise binds the representatives of a promisor on death unless a contrary intention appears, and the Code of Civil Procedure likewise limits execution against legal representatives to the property of the deceased that has come into their hands. A proprietary concern is not a separate legal entity, so monetary decrees against the proprietor can be worked out against the estate represented by the heirs.
Conclusion: The legal representatives are liable to satisfy the monetary directions only to the extent of the deceased's estate.
Issue (ii): Whether the legal representatives can be compelled to perform personal obligations under the development agreement, including construction-related and other non-monetary obligations.
Analysis: Obligations requiring the personal skill, expertise, or performance of the deceased promisor do not survive in the hands of legal representatives merely because they represent the estate. Section 306 of the Indian Succession Act preserves only such rights and liabilities as survive by law, while personal contractual duties and obligations dependent on the special qualifications of the promisor lapse on death. The development agreement in question imposed obligations that were personal to the deceased developer and could not be enforced against heirs who were not parties to the agreement and did not possess the requisite skill or capacity.
Conclusion: The legal representatives cannot be compelled to perform the deceased developer's personal obligations under the development agreement.
Final Conclusion: The appeals succeeded to the extent that the directions enforcing personal contractual obligations against the legal representatives were set aside, while the monetary liability recoverable from the deceased's estate was preserved.
Ratio Decidendi: Legal representatives of a deceased promisor are bound only to the extent of the deceased's estate for liabilities that survive in law, but personal contractual obligations requiring the promisor's own skill or performance do not devolve upon the heirs.