The legal issue in this case arose whether the saplings and plants that
existed at the time of the agreement which was for the transfer of the land, and
those plants later matured into full-grown trees, is to be included in the sale
of the land. The case of Suresh Chand vs Kundan deals with specific issue
i.e. whether the trees growing on a piece of land is part of the property being
transferred. The conflict arose when appellant argued that, under Sections 3 and
8 of the Transfer of Property Act, the trees being part of the immovable
property must be vested in the transferee, whereas the respondent’s contention
was that the trees were not part of the original agreement.
This decision has reaffirmed the already existing legal principles which was
held in previous judgments. At present this judgement acts as longstanding
precedent concerning the sale of immovable property, governed by both the
Transfer of Property Act and the General Clauses Act. The Supreme Court decided
in the favour of the appellant and it has marked a significant moment in
property law, as it gave clarity upon the extent to which land transfers will
include benefits arising from the land, such as trees etc
This decision has given clarity ensuring consistent interpretation for any such
future dispute arising on this context. This case is to be considered
significant because it emphasizes that unless explicitly stated otherwise in a
contract, anything which is attached to the land, including saplings that grow
into trees, forms part of the transferred property.
Facts
In the case Suresh Chand vs Kundan On April 8, 1969 Kundan and Mohar Singh being
co-owners of plot No. 645 in Amarpur village, they executed an agreement to sell
the said land to the appellant. However, when the vendors failed to execute the
sale deed, the appellant filed a suit for specific performance of the agreement
for the sale of land. Firstly, the suit was dismissed by the trial court, after
which an appeal was issued in appellant court and the suit for specific
performance was decreed further appeal was filed in high court by Kundan and
Mohar Singh.
Mohar Singh sold his half-share to the appellant, during the pendency of the
appeal. The appellant sought execution of the decree, after the dismissal of
second appeal, but Kundan contended that when the land was sold, the standing
trees were not part of the agreement. The executing court upheld his objection,
but on appeal, the Additional District Judge ruled in favour of the appellant,
stating that the trees were included in the sale under Section 8 of the Transfer
of Property Act.
After which Kundan filed a writ petition before the Allahabad High Court, which
was sent back for compromise, but ruled that, if there was absence of
compromise, the appellant would own the land while Kundan could retain the
trees. This ruling was challenged before the Supreme Court, where the appellant
contended that the trees, which were saplings at the time of the sale
constituted as part of the said land so it was vested in him.
Decision
In this case the Supreme Court gave the decision on the interpretation of
Sections 3 and 8 of the Transfer of Property, ‘the trees on the disputed land
were part of the immovable property and vested in the appellant, as it was
saplings at the time of the agreement.’ The Court further clarified that unless
specifically excluded, all rights which is attached to the land, including
growing trees, pass to the transferee with the transfer of land. The court
further referred to Section 3(26) of the General Clauses Act, which includes
benefits arising from land, such as trees, as part of immovable property.
The decision is based upon the interpretation of Section 8 of the Transfer of
Property Act, Unless a different intention is expressed or necessarily implied,
a transfer of property passes forthwith to the transferee all the interest which
the transferor is then capable of passing in the property and in the legal
incidents thereof. Such incidents include, where the property is land, the
easements annexed thereto, the rents and profits thereof accruing after the
transfer, and all things attached to the earth. Therefore, in the present case
the trees that had grown from the saplings formed part of the land which was
transferred to the appellant. The Court, also noted that trees can be
transferred separately from land if there is a specific agreement to that
effect. However, the trees remain part of the property transferred, in cases
where there is no such explicit exclusion.
Analysis
The decision of Supreme Court in the present case is a reaffirmation of existing
legal principles regarding the sale of immovable property and the benefits
attached to it. The court’s decision seems appropriate, considering the
long-established legal precedent that trees attached to the earth are part of
immovable property unless it expressly excluded.
The court's decision is relied on Sections 3 and 8 of the Transfer of Property
Act, along with Section 3(26) of the General Clauses Act, which together
strengthen the position by confirming that unless otherwise stated, trees form
part of the land transferred. The ruling is consistent with the principle that
the transfer of land includes the benefits arising from it, including future
growth like trees.
This decision will act as a precedent to future property disputes involving
long-term developments on land. The court very clearly in this case stated that
even growth occurring after a transfer agreement as in the present case trees
growing up from saplings on the land which was transferred will still be
considered part of the property unless explicitly excluded. This is based upon
the interpretation of section 8 of Transfer of Property Act.
This judgement has given more clarity for future property sale agreements, where
parties may be more careful to clarify whether the particular benefit arising
out of the land is to be included in the sale. Similarly, the court's
interpretation of Sections 3 and 8 of the Transfer of Property Act aligns with
previous rulings, ensuring that all interests in land, unless excluded, pass to
the transferee.
Conclusion
The decision in the case of Suresh Chand vs Kundan has aligned to the existing
legal principles along with proper interpretation of different sections relevant
and reinforced a long-standing precedent that trees attached to land form part
of immovable property. Since transfer of land includes benefits arising out of
the land until expressly stated thus giving a clarity that trees growing out on
the land being transferred is included in such transfer. The court’s reasoning
was sound, grounded in established statutes, and consistent with previous
rulings.
While the decision leaves little room for ambiguity, future cases may see more
detailed agreements to avoid disputes about natural growth on transferred land.
The case represents a strong reaffirmation of property law principles and will
likely help in resolving future disputes arising out in such transactions.
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