MUHAMMAD WAQAR AZEEM vs Dr — 2024 CLC 1941 ISLAMABAD

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MUHAMMAD WAQAR AZEEM VS Dr. KARTAR LAL PIRWANI S. 43---Specific Relief act (I of 1877), 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---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---Held, that a person who has not acquired title in the immovable property cannot transfer the same to a third party purchaser by executing an agreement to sell with him---But the law does not prohibit a person who has entered into an agreement to purchase immovable property to enter into another agreement for the sale of such property to a third party purchaser---Where such a person does enter into an agreement to sell with a third party purchaser, the latter's right to seek the specific performance of the agreement to sell in his favour is postponed until proprietary rights in the immovable property are acquired by the person who executes the agreement to sell---Because S. 43 of the Transfer of Property act, 1882, provides that where a person fraudulently or erroneously represents that he is authorized to transfer certain immovable property and professes to transfer such property for consideration, such transfer shall, at the option of the transferee, operate on any interest which the transferor may acquire in such property at any time during which the contract of transfer subsists---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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