MUHAMMAD WAQAR AZEEM vs Dr — 2024 CLC 1941 ISLAMABAD

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MUHAMMAD WAQAR AZEEM VS Dr. KARTAR LAL PIRWANI Ss. 12, 18 & 54---Suit for specific performance of agreements to sell, permanent injunction and compensation / damages---First purchaser Entering into agreement to sell with third party purchaser without acquiring rights from original owner---Scope and effect---Third party purchaser, entitlement of---Civil Court allowed/decreed the suit instituted by third party purchaser to the extent of relevant prayer in the said suit i.e. "the recovery of an amount as compensation along with mesne profit @ 15% per annum w.e.f agreed date of payment till final realization of the amount"---Appellants (two in number), who were defendants in suit being first purchasers (vendees), assailed the said judgment and decree---Validity---A third party purchaser has no right under the law to seek the specific performance of the agreement to sell between the original owner and the first purchaser---This is because he is not privy to the agreement to sell between the original owner and the first purchaser---A third party purchaser can also not enforce an agreement to sell against a party who does not have title in the immovable property with respect to which such an agreement is executed, but such a third party purchaser cannot be denied the right to be refunded the amount paid as earnest money where the seller is unable to transfer title in the property to him---It is only when the original owner transfers title in the immovable property to the first purchaser that the latter will be in a position to transfer title in the property to the third party purchaser---A transferee stepping in the shoes of a transferor who was not a lawful owner of the property would not get a better title---When a person has no title in an immovable property, he could not enter into an agreement for the transfer of such property---Thus, plaintiff/ respondent could not expect the Court to pass a decree for the specific performance of the second agreement in his favour---Civil Court was wise in turning down plaintiff's prayer for a decree for specific performance of the Second Agreement and allowing his prayer for compensation---Appeal, filed by the defendants, was dismissed with costs throughout.

MUHAMMAD WAQAR AZEEM vs Dr — 2024 CLC 1941 ISLAMABAD

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