Mst. NAZEER BEGUM vs Syed ABID HUSSAIN SHAH and others
This revision petition challenged the concurrent judgments of the lower courts, which had decreed a suit for specific performance of an agreement to sell land. The petitioner contended that the alleged agreement was unenforceable, arguing it was a unilateral document lacking the signatures of the parties, consideration, and proper proof. The core legal question was whether an agreement to sell land, which lacked consideration and the acceptance of the promisee, constituted a valid, enforceable contract under the law. The High Court examined the document, noting that it lacked both the essential element of acceptance by the respondent and the requisite consideration, as no earnest money was paid nor any promise to pay made. The Court held that for an agreement to be enforceable as a contract, it must contain a valid offer, acceptance, and consideration, and generally requires the signatures of both parties. Finding the document to be a mere unilateral writing rather than a binding contract, the Court set aside the lower courts' judgments and dismissed the suit for specific performance.
- Does an agreement to sell land that lacks consideration and acceptance by the promisee constitute an enforceable contract?
- Is a document signed only by the vendor, without the signature of the vendee, sufficient to create a binding contract for the sale of land?
- What are the essential ingredients required for an agreement to be enforceable as a contract under the Contract Act 1872?
- Section 2(e), Contract Act 1872
- Section 2(h), Contract Act 1872
' This revision petition is directed against the judgment of the learned Additional District Judge, Narowal dated 25-5-1998 confirming the decree dated 30-5-1993 passed by the learned Civil Judge First Class, Narowal.
2. The facts giving rise to this petition are that the plaintiff Syed Abid Hussain Shah (the predecessor-in-interest of the respondents) filed a suit against .The defendant/petitioner on 31-10- 1989 for specific performance of the agreement dated 20-1-1988 in respect of sale of land measuring 10 Kanals for a consideration of Rs,23,000. It was averred in the plaint that the defendant/petitioner agreed to sell 10 Kanals of land for a consideration of Rs,23,000 vide agreement to sell dated 20-1-1988. The sale-deed was to be executed and registered on 15th April after receiving the entire sale consideration but the defendant/petitioner backed out. The suit was resisted stating that the agreement dated 20-1-1988 is based upon fraud and that the said agreement was without consideration. Out of the pleadings of the parties following issues were framed:--
(1) Whether the defendant agreed to sell the suit-land in favour of the plaintiff and executed an agreement dated 20-1-1988? OPP
(2) Whether the plaintiff is entitled for a decree for specific performance of contract, if so, what terms and conditions? OPP
(3) Relief.
' The learned trial Court after recording the evidence of the parties decreed the suit of the plaintiff/respondents on 30-5-1993. The appeal of the petitioner was dismissed by the learned Additional District Judge, Narowal vide judgment dated 25-5-1998.
3. Learned counsel for the petitioner contended that the alleged agreement dated 20-1-1988 is not an agreement in the eye of law as it is not signed by the vendor. It was a unilateral act of the petitioner not enforceable at law. Only one marginal witness was produced, the sale transaction has not been proved on the record. Reliance was placed on Jatadhari Prasad and others v. Kishun Lal Daruka and others (AIR 1950 Patna 535) and Mst. Barkat Bibi and others v. Muhammad Rafique and others (1990 SCM R 28).
' Conversely the learned .Counsel for the respondents submitted that it was not necessary for the plaintiff/respondent to sign the agreement. A. Legal document came into existence which was enforceable at law. Reliance was placed on. Muhammad Sultan and 9 others v. Noor Muhammad (2000 YLR 3022), Arbab Ali and 4 others through Legal Heirs v. Noor Bakhsh and 4 others (2003 CLC 1670) and Sirbaland v. Allah Loke and others (1996 SCM R 575).
4. I have gone through the judgments of the Courts below, perused the record and considered the arguments of the learned counsel for the parties. `Iqrarnama' Ext.P.1 displays that Mst. ,Nazir Begum, petitioner agreed to sell her land measuring 10 Kanals to Syed Abid Hussain Shah (the predecessor-in-interest of the respondents) for a consideration of Rs,23,000. The agreement reveals that no earnest money or any other consideration was paid, nor the agreement was signed by: the respondent Syed Abid Hussain Shah.. There are three essentials of a contract; offer/proposal, its acceptance and consideration. The petitioner agreed to sell her land vide `Iqrarnama' dated 20-1-1988, Ext.P.1 but the same document reveals that the offer/proposal was not accepted by the respondent. The element of acceptance is lacking in the alleged agreement to sell. A contract comes into existence upon acceptance of the offer/proposal. Similarly the ingredient of consideration is also missing in the agreement. To have an agreement it is very essential that there should be consideration for the promise. No earnest money has been paid nor any promise to pay the consideration has been made. The said agreement Ext.P.1 appears to be unilateral writing of the petitioner. An agreement to be enforceable as contract under section 2(e) and (h) of the Contract Act, 1872 requires signatures of two parties. See Bayer Pakistan (Pvt.) Ltd.
And others v. Board of Revenue and others (2002 CLD 823). Even otherwise only marginal witness Muhammad Sharif, P.W.2 has been produced to prove the said agreement. The authorities relied upon by the learned counsel for the respondents do not help him.
5. For what has been stated above this petition is allowed, the judgments of the Courts below dated 30-5-1993 and 25-5-1998 are set aside, resultantly the suit of the respondents is dismissed.
No order as to costs.
Cited by 6 cases
- Sana Ullah Gondal vs Capital Development Authority and others 2024 IHC 248
- Messrs WALIA STEEL INDUSTRIES PLC vs Messrs SAGA SHIPPING AND TRADING 2019 PLD Sindh 22
- WALI MUHAMMAD vs MUHAMMAD RAMZAN and 3 others 2015 PLJ Karachi 150
- GHULAM YASIN vs MUHAMMAD NAWAZ and others 2014 MLD 1676
- MUHAMMAD NAWAZ Versus MUHAMMAD KHAN 2016 CLCN 62
- WALI MUHAMMAD Versus MOHAMMAD RAMZAN 2017 CLCN 183