42. The sanction and grant orders passed by the State Government and Spl. D.C in respect of the lands in question were subject to the rights of the inamdars under Section 9 of the Inams Abolition Act to seek grant of occupancy rights by filing the application within the prescribed period under Section 10 of the Act. The words "subject to" used in the above orders shall be understood by us as mentioned in Blacks Law Dictionary and Chamber's 20th Century Dictionary, it means 'subservient'; therefore grant of the lands in favour of the Sangha/Association for the purpose of formation of residential layout and allot the sites in favour of its members was subject to the order that was to be passed by the Land Tribunal on the application of the inamdars under Section 9 of the Inams Abolition Act in respect of the very same lands. Since the Land Tribunal conferred occupancy rights in favour of the inamdars in respect of the lands in question by order dt. 23/6/1982, the sanction order and grant order have vanished and lost their significance. The condition imposed by the State Government and Spl.D.C in their orders while granting the lands in favour of the Sangha is legal and valid as held by the Apex Court in the cases reported in AIR 1961 SC 1182 (Balakrishna & Sons v. State of Madras) para 3, (Charanjit Lal Chowdhury v. Union of India and Ors.) and 1995 SCR 777 (The State of Bombay v. Bhanji Munji and Anr.) The State Government has exercised its power retained in the order of sanction by invoking its right as held in (Gujarat University and Anr. v. Shri Krishna) & (Mysore State E. Board v. Bangalore W.C. & S. Mills), (M.V. Shankar Bhat and Anr. v. Claude Pinto and Ors.), (South India Corporation (P) Ltd v. Secy. Board of Revenue, Trivandrum And Anr.) and passed the impugned order cancelling the grant and directing the Deputy Commissioner of the District for resumption and restoration of the lands to an extent of 182 sites which are vacant. The same is legal and valid.
But in the case of M. V.
Shankar Bhat (supra) because it was not only for the benefit of the
purchaser, waiver of one of the clauses of the contingent contract was not
allowed.
In fact, Apex Court under similar
17
circumstances in the case of M.V.SHANKAR BHAT &
ANR. vs. CLAUDE PINTO SINCE (DECEASED) BY LRS
& ORS. reported in (2003) 4 SCC 86 has held that an
agreement subject to ratification by others, who are not
parties to it, is not a concluded contract. It came to be
held:
23. Though no reference to the decisions cited is required for the
settled legal proposition, i.e., where an Offer is not unconditionally
accepted, no concluded contract can be said to have been arrived at,
but I find that the decisions reported in Dresser Rand S.A. vs. M/s.
Bindal Agro Chem Ltd. & Anr., AIR 2006 SC 871; M.V. Shankar Bhat
and another vs. Claude Pinto (D.) by LRs.
9. Therefore, as per the RBI Guidelines it was contended
that the banks could not have considered the Binding
Agreement as a concluded contract unless board approvals
had been obtained and, therefore, when the boards of both the
banks were not privy to the Binding Agreement it was not
liable to be disclosed, particularly, when the Binding
Agreement also contained confidentiality provisions to that
effect. The appellant further relied on the decision of the
11
Supreme Court in M. V. Shankar Bhat & Anr v Claude
Pinto since (Deceased) by LRs & Ors - (2003) 4 SCC 86
wherein it was held that "31. When an agreement is entered
into subject to ratification by others, a concluded contract is
not arrived at. Whenever ratification by some other persons,
who are not parties to the agreement is required, such a
clause must be held to be a condition precedent for coming
into force of a concluded contract."
58. The case of M.V. Shankar Bhat vs. Claude Pinto, (2003) 4
SCC 86, is also similarly of a conditional contract. The
agreement was "subject to ratification by the co-heirs to terms
hereinafter appearing". It was observed in paras 14 & 15 of the
judgment that the restrictive covenant would amount to a
conditional agreement. It has been observed in para 31 of the
judgment that when an agreement is entered into subject to
ratification by others, a concluded contract is not arrived at.
Such a clause is condition precedent for coming into force of a
concluded contract.
58. The case of M.V. Shankar Bhat vs. Claude Pinto, (2003) 4
SCC 86, is also similarly of a conditional contract. The
agreement was "subject to ratification by the co-heirs to terms
hereinafter appearing". It was observed in paras 14 & 15 of the
judgment that the restrictive covenant would amount to a
conditional agreement. It has been observed in para 31 of the
judgment that when an agreement is entered into subject to
ratification by others, a concluded contract is not arrived at.
Such a clause is condition precedent for coming into force of a
concluded contract.