GAYA PRASAD versus SURENDRA BAHADUR SINGH, (DEAD) BY L.RS. & ORS.

GAYA PRASAD versus SURENDRA BAHADUR SINGH, (DEAD) BY L.RS. & ORS.

The U.P. Encumbered Estates Act, 1934 does not prohibit agreement to sell, as it is not a transfer of property. Once proceedings under the Act are concluded and property is exempted under Section 24, mortgagee's rights are extinguished and specific performance can be decreed.

Source-derived case information.

Parties
Appellant: Gaya Prasad; Respondent: Surendra Bahadur Singh (Dead) by L.Rs. & Ors.
Jurisdiction
India
Judgment Date
05 March 1987
Procedural Posture
Civil Appeal / Judgment on Appeal From Allahabad High Court, Civil Second Appeal No. 49 of 1971
Outcome
Appeal allowed; decree for specific performance restored.
Legal Topics
Specific Performance, Agreement of Sale, Transfer of Property, Mortgage Extinguishment, U.p. Encumbered Estates Act
Property Law Contract Law Specific Performance Agreement of Sale Transfer of Property Mortgage Extinguishment U.p. Encumbered Estates Act

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Parties

Gaya Prasad

Appellant

Surendra Bahadur Singh (Dead) by L.Rs. & Ors.

Respondent

Procedural Posture

Civil Appeal / Judgment on Appeal From Allahabad High Court, Civil Second Appeal No. 49 of 1971

Legal Issues

  1. 1 Whether the restrictions under the U.P. Encumbered Estates Act, 1934 apply to an agreement to sell and bar specific performance.
  2. 2 Whether the mortgagee's rights are extinguished by decree and/or exemption under Section 24.
  3. 3 Whether a decree for specific performance can be passed after proceedings under the Act are concluded.

Ratio Decidendi

The U.P. Encumbered Estates Act, 1934 does not prohibit agreement to sell, as it is not a transfer of property. Once proceedings under the Act are concluded and property is exempted under Section 24, mortgagee's rights are extinguished and specific performance can be decreed.

Court Disposition

Appeal allowed; decree for specific performance restored.

Orders

  • Judgment and decree of High Court set aside.
  • Decree for specific performance as passed by trial court and appellate court restored.