The Seller is legally obligated to execute a Proper Conveyance upon receiving Payment u/s 55 of the Transfer of Property Act, 1882, irrespective of explicit Contractual Stipulations --- Lahore High Court Upholds Specific Performance of Agreement
Islamabad 26-12-2024: In a significant ruling, the Lahore High Court restored a trial Court’s decree in favor of the plaintiff in Farida Khanum Vs. Abdul Qayyum Baig (deceased) through legal heirs, emphasizing that statutory obligations under the Transfer of Property Act, 1882, prevail even in the absence of specific stipulations in agreements for the sale of immovable property.
The case involved a Regular Second Appeal (RSA No. 694/2021) filed by Farida Khanum against an appellate Court judgment that overturned the trial Court’s decree for the specific performance of an agreement to sell dated 04.07.2008. The appellate Court ruled against the plaintiff, citing the absence of a clause for the execution of a registered sale deed.
The plaintiff had argued that the agreement was valid, evidenced by marginal witnesses and supporting documents, and that possession of the suit property further corroborated her claim. Conversely, the respondents contended that the agreement was forged and procedurally deficient, referencing a recent case law (Syed Abdur Rashid, 2023 YLR 309 Lahore).
The Court addressed the following substantial question of law:
- “Whether a decree can be passed in a suit for specific performance of a contract based on a written agreement to sell that does not contain a stipulation regarding registration of a sale deed in respect of the immovable property?”
The Lahore High Court, presided over by Mr. Justice Anwaar Hussain, set aside the appellate Court’s judgment, restoring the trial Court’s decree. The decision was based on a comprehensive analysis of legal principles and evidence, with the following key findings:
The seller is legally obligated to execute a proper conveyance upon receiving payment under section 55 of the Transfer of Property Act, 1882, irrespective of explicit contractual stipulations. The Court held that the transferor’s subsequent acquisition of title in 2010 validated the agreement made in 2008.
The presence of marginal witnesses and the notary public satisfied the evidentiary requirements under Articles 17 and 79 of the Qanun-e-Shahadat Order, 1984. The absence of the stamp vendor or the individual in whose favor the stamp paper was issued was deemed non-fatal.
The respondents’ contradictory stances regarding possession undermined their credibility, invoking the maxim Allegans Contraria Non Est Audiendus (one who alleges contradictory statements is not to be heard).
The ruling reinforces that statutory obligations under the Transfer of Property Act, 1882, are implied in agreements for the sale of immovable property unless expressly excluded. The decision also highlights the sufficiency of evidence in proving agreements and the importance of consistent defenses in civil disputes.
The Lahore High Court’s decision underscores the enforceability of agreements to sell immovable property based on statutory obligations, even in the absence of explicit contractual clauses for executing a registered sale deed. The case reaffirms the judiciary’s commitment to upholding substantive Justice over procedural technicalities.
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