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Punjab and Haryana High Court
Reserved on: 21.05.2025 Decided on: 02.06.2025

A. Indian Contract Act, 1872 (9 of 1872), Section 2(d) – Consideration -- Past consideration is as good as present consideration --  Word ‘consideration’ has been defined in Section 2 (d) of the Indian Contract Act, 1872 which has a wider connotation and includes within its sweep not only the monetary consideration but even promises including promise to render future personal service.

(Para 13)

B. Transfer of Property Act, 1882 (4 of 1882), Section 54 – Indian Contract Act, 1872 (9 of 1872), Section 201, 202 – Benami Transactions (Prohibition) Act, 1988 (45 of 1988), Section 3, 4 -- Sale by Will/ Agreement to Sell/ General Power of attorney/ Affidavit -- PW-1/ S K deposed that her brother/ A.K. was only a Class IV employee and on her request and on her behalf he applied for the house in his name -- A.K/ Brother executed an agreement to sell, General Power of Attorney, registered Will and an affidavit – Hence, Benami Transactions (Prohibition) Act, 1988 could not be invoked -- After the death of A.K. on 14.08.1984, his widow and children never made any attempt to pay the instalments -- All instalments were paid by S.K. and her daughter -- All the documents of the property have been produced by the plaintiff -- Hence, it is proved that there was sale of the house in favour of Ms. S.K. by A.K -- Likewise, the General Power of Attorney will not cease to have effect because Ms.SK has interest in the property in view of agreement and Will -- Case falls under Section 202 and not 201 of the Indian Contract Act, 1872.

(Para 13, 18)

C. Specific Relief Act, 1963 (47 of 1963), Section 13 -- Agreement to sell of imperfect title – Effect of -- Section 13 of the Specific Relief Act, 1963 enables the purchaser to claim specific performance against person with no title or imperfect title -- Clause (a) of Section 13 (1) provides that if the vendor has subsequent to any contract acquired any interest in the property, the purchaser may compel him to make good the contract out of such interest -- If there was any defect in his ownership, the same stood rectified on payment of instalment.

(Para 14)

D. Indian Evidence Act, 1872 (1 of 1872), Section 68 -- Will – Proof of -- Suspicious circumstances -- Execution of the Will proved by examining both the attesting witnesses – Despite lengthy cross examination, the defendants failed to impeach their credibility – Will is not surrounded by suspicious circumstances because of various documents executed by A.K. including agreement to sell, General Power of Attorney, affidavit, apart from the Will.

(Para 15, 16)

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