| Citation(s) |
|---|
| 1956 SLG 149 1956 SLD 149 1956 PLD 916 |
Lahore High Court
Regular First Appeal Case No. 49 of 1952 decided on 26th June 1956, from the order Ch. Aziz Ahmad, Senior Civil Judge, Layallpur dated the 7th April 1952
SHABIR AHMAD AND B. Z. KAIKAUS, JJ
Mian Muhammad Shafi for Appellant. M. A. Rahman and Abdul Qayyum for
Respondent
Regular First Appeal Case No. 49 of 1952 decided on 26th June 1956, from the order Ch. Aziz Ahmad, Senior Civil Judge, Layallpur dated the 7th April 1952
SHABIR AHMAD AND B. Z. KAIKAUS, JJ
Mian Muhammad Shafi for Appellant. M. A. Rahman and Abdul Qayyum for
Respondent
DR. FAZAL DIN
VS
MUNICIPAL COMMITTEE LAYALLPur
Law: Punjab Municipal (Executive Officer) Act, 1931
Section: 6
Law: Contract Act, 1872
Section: 65,70
Law: Transfer of Property Act, 1882
Section: 107
(a) Punjab Municipal (Executive Officer) Act, (II of 1931), S. 6---Contract without seal of Committee-Void. An agreement of lease of land by a Municipal Committee was reduced to writing but did not bear the seal of the Committee. Held, that the agreement was void not being binding on either party to the lease. It is only by a seal that a corporation acts when it enters into contracts in writing and if there be no seal the corporation has not acted at all and a contract has not come into existence. Corporation of the City of Lahore v. Messrs. Sheikh Ghulam Muhammad and seven others R F A No. 99 of 1951; Ahmedabad Municipality v. Sulemanji I L R 27 Bom. 618, Muhammad Rowther v. Tinnevelly Municipal Council A I R 1938 Mad. 746, Municipal Corporation Bombay v. Secretary of State A I R 1934 Bom. 277, Bhumbbo Metharam and another v. District Local Board, Hyderabad (Sind) A I R 1949 Sind 199, Municipal Committee Peshawar v. Haji Masiti A I R 1933 Pesh 16, Municipal Council Tiruvarur v. P. K. Kannuswami Pillai and another A I R 1930 Mad. 600, Abdul Hamid and another v. Municipal Committee Peshawar A I R 1935 Pesh. 124, Municipal Committee Lahore v. Miran Bakhsh I L R 13 Lah. 561 and Mayor of Ludlow v. Charlton 6 M & W 815. ref. (b) Contract-Voidable---Once affirmed cannot be avoided. A voidable contract is one which is enforceable at the -option of one party to the contract, but the party can exercise this option only once. If it elects to affirm the contract, it becomes enforceable henceforth at the option of both the parties. The true conception of a voidable contract is that it remains in abeyance till the party that has the option exercises it. It then becomes, if the party approves, a full-fledged contract. (c) Transfer of Property Act (IV of 1882), S. 107----Extends to Municipal Areas of Punjab. Section 107 of the Transfer of Property Act is in force in all the Municipal Areas of what used to be the Punjab. Under that section a lease of property reserving a yearly rent or for more than one year can be effected only by means of a registered instrument. (d) Contract Act (IX of 1872), Ss. 65 and 70-Restoration of benefit received under void contract-Quantum…
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