MRS. CHANDNEE WIDYA VATI MADDEN versus DR. C. L. KATIAL & OTHERS

MRS. CHANDNEE WIDYA VATI MADDEN versus DR. C. L. KATIAL & OTHERS

When parties are bound under a contract for sale that requires permission from the Chief Commissioner, the vendor is under an implied obligation to apply for such permission. The contract is not void or inchoate merely because permission is pending; specific performance can be decreed, with provision for damages if permission is refused.

Parties
Appellant: Mrs. Chandnee Widya Vati Madden; Respondents: Dr. C. L. Katial & Others
Jurisdiction
India
Judgment Date
25 March 1963
Procedural Posture
Civil Appeal / Appeal From Judgment and Decree of Punjab High Court
Outcome
Appeal dismissed
Legal Topics
Specific Performance, Contract to Sell House Property, Implied Terms, Permission From Chief Commissioner
Property Law Contract Law Specific Performance Contract to Sell House Property Implied Terms Permission From Chief Commissioner

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Parties

Mrs. Chandnee Widya Vati Madden

Appellant

Dr. C. L. Katial & Others

Respondents

Procedural Posture

Civil Appeal / Appeal From Judgment and Decree of Punjab High Court

Legal Issues

  1. 1 Is the contract for sale contingent or impossible of performance, and therefore void?
  2. 2 Whether specific performance can be granted if permission from Chief Commissioner for sale has not been obtained?

Ratio Decidendi

When parties are bound under a contract for sale that requires permission from the Chief Commissioner, the vendor is under an implied obligation to apply for such permission. The contract is not void or inchoate merely because permission is pending; specific performance can be decreed, with provision for damages if permission is refused.

Court Disposition

Appeal dismissed

Orders

  • Defendant to make necessary application to Chief Commissioner (or competent authority) within one month.
  • Defendant to convey property to plaintiffs within one month of receipt of sanction.