PAWAN KUMAR DUTT AND ANOTHER v. SHAKUNTALA DEVI AND OTHERS [(2010) 15 SCC 601]

The Concept

Section 29 of the Indian Contract Act makes agreements, the meaning of which are not certain or not capable of being certain as void. For instance, if A agrees to sell B ‘some oil’ and the same is captured in an agreement, the agreement would be rendered void as there is no certainty as to the quantity of oil.

The case mentioned below deals with vague contracts. 

Facts

The Plaintiffs filed a case for specific performance, pertaining to a piece of land. It was alleged that the agreement gave a vague description of the land, hence, the decree for specific performance should not be passed.

Trial court did not pass a decree of specific performance on this ground, while on other counts the judgment was given in favour of the Plaintiff. The High court confirmed the decree of the trial court. Hence, the appeal before the Supreme Court. 

Issue

Whether the trial court was correct in refusing specific performance based on vague description of the property in the agreement?

Arguments by the Appellant

  1. The lower court and the High court made an error in holding that the description of the property in the agreement was vague. 
  2. The agreement clearly states that the property is 12 bighas and 1 biswa out of which 4 bighas and 2 biswas are to be sold.
  3. The property in question also includes a house built therein. 
  4. The  Appellant argued that the courts had incorrectly concluded that the suit property cannot be identified out of the total extent due to lack of boundaries. 
  5. Solemn contracts entered into by parties should not be rendered invalid on the basis of vagueness.

Arguments for the Respondent

If the terms of the contract are uncertain and void, the contract would be void and unenforceable under section 29. 

Judgment

The Hon’ble Supreme Court dismissed the Appeal and upheld the decision of Lower Courts based on following reasons:

  1. There is no clear identity of the land agreed to be sold. 
  2. The courts cannot be expected to pass a decree which they cannot enforce. 
  3. If the property cannot be identified, the relief of specific performance cannot be granted.

Reflective Question

If the appellant demarcates his land and enters into a fresh agreement to sell that piece of land, would the vagueness in the agreement be cured?