JANAPADA SABHA SAGAR Vs. MUNICIPAL COUNCIL SAGAR

JUDGEMENT

(1.) BY this judgment the connected First Appeal No. 29 of 1972, between the same parties, is also disposed of. First Appeal No. 29 of 1972 arises out of Civil Suit No. 17-A of 1968, in which decree for specific performance of a contract of sale of the Veterinary Dispensary premises has been granted in favour of the respondents. First Appeal No 28 of 1972 arises out of a Civil Suit No. 18-A of 1968, in which the appellant's suit for possession and for Rs. 25042-91 paise for use and occupation with future mesne profits, has been dismissed by the trial Court. Both the suits were consolidated and were disposed of by a common judgment.

(2.) IN the year 1905, the State Government acquired 0. 64 acres of land belonging to Shri B. L. Rai, in Katra bazar, Sagar, for the construction of the veterinary Dispensary for the District Council. The Janapada Sabha claims that actually a sale-deed was executed by Shri B. L. Rai in favour of the District Council for this 0-64 acres of land, i. e. 160' North-South ond 176' East-West, for a consideration of Rs. 1650 on 28-3-1905. On this land the Veterinary Dispensary and quarters for the staff were erected by the District Council, which was running the dispensary. The Janapada Sabha is the successor of the district Council, Sagar. The State Government by its Memorandum dated 27-1-1954 directed that the Veterinary Dispensaries situated in the urban area should be taken over and maintained by the Municipal Committees concerned. The compensation payable by the Municipal Committee to the Janapada Sabha would be determined later on, for transfer of the property. Accordingly, the municipal Council, Sagar, took over management of the Veterinary Dispensary, which was being run by the Janapada Sabha as from 1-3-1954, but the value of the property remained to be determined. Therefore, the Collector, Sagar, tried to persuade the respective parties to come to an agreed price to be paid by the Municipal Council to the Janapada Sabha for transfer of this property to the Municipal Council. Meetings were held from time to time and finally on 18-11-1964 in the meeting called by the Collector and attended by the President, Vice-President and the Chief Municipal Officer, on behalf of the Municipal Council and by the Chairman and the Chief Executive Officer on behalf of the Janapada Sabha, it was unanimously decided that the Municipal Council will pay Rs. 56,000 to the Janapada Sabha in full and final settlement of their claim in respect of the costs of building and land, including the rent at the rate of Rs. 150 per month accrued so far. The question of payment of grant of rs. 1200 per year by the Janapada Sabha since 1954 was also settled on payment of the aforesaid amount. However, the Janapada Sabha, by its resolution dated 27-2-1965 asserted that in that meeting it was also decided that besides the payment of Rs. 56,000, the Municipal Council had agreed to waive its claim of Rs 258 18-23 paise on account of the share in stamp duty payable by the Janapada Sabha to the Municipal Council. The Collector by his letter dated 4-5-1965 informed the Janapada Sabha that the waiving of the claim towards stamp duty was a separate issue and should be decided separately. The Municipal Council in its turn had earlier claimed that from the amount of Rs. 56,000, agreed upon Rs. 13,200 has to be deducted towards the grant, which was payable by the Janapada Sabha to the Municipal Council for maintenance of the Veterinary Dispensary. Thereafter the Janapada Sabha, by its resolution dated 15-6-1965 decided that the Janapada Sabha was not in favour of selling the Veterinary Dispensary premises and it was also decided to get the said premises vacated by taking the necessary legal action. A notice dated 20 9-1965 was served by the Janapada Sabha on the Municipal Council for possession of the Veterinary Dispensary premises. This claim was refuted by the Municipal Council, which by a separate notice dated 8-12-1965 demanded specific performance of the contract of sale dated 18-11-1964 by the Janapada sabha for sale of the Veterinary Dispensary premises for Rs. 56,000. In its reply the Janapada Sabha disputed that there was any valid contract of sale. The Municipal Council then filed Civil Suit No. 17-A of 1968 for specific performance of the contract of sale dated 18-11-1964 and the Janapada Sabha filed Civil Suit No. 18-A of 1968 for possession and for Rs. 25042. 91 paise towards use and occupation of the premises and also claimed future mesne profits.

(3.) THE case of the Municipal Council in Civil Suit No. 17-A of 1968 is that in a joint meeting between the representatives of the Municipal Council and the Janapada Sabha held on 18-11-1964, a legal, valid and a binding con-, tract was entered into for sale of the Veterinary Dispensary premises for a consideration of Rs. 56,000. The costs of stamp duty and the registration charges were to be borne by the Municipal Council. The Municipal Council was and is always ready and willing to perform its part of the contract, but the janapada Sabha by notice dated 20-9-1965 has repudiated the contract, hence the suit has been filed for specific performance of the contract of sale. The defendant in his written statement denied that there was any such valid contract of sale between the Municipal Council and the Janapada Sabha. A contract of sale could only be as per section 66 of the C. P. and Berar Local government Act, 1948 (hereinafter referred to as the Act) and the rules framed thereunder. As such, the alleged contract of sale is not legally enforceable and is void. Besides, in the meeting held on 18-11-1964, the Chairman and the Chief Executive Officer of the Janapada Sabha were present at the direction of the Collector and these two officers were never authorised by the Janapada sabha to finalise the sale of the Veterinary Dispensary premises. It was denied that the price agreed was Rs. 56000. But on the other hand, it was asserted that in addition to the payment of Rs. 56,000, the Municipal Council had agreed to waive its claim for Rs. 25,818. 23 paise towards the share in stamp duty payable by the Janapada Sabha to the Municipal Council. The Janapada sabha by its resolution dated 27-2-1965 had resolved to sell the Veterinary Dispensary premises on this condition, but since this condition was not acceptable there was no completed contract.