A. Transfer of Property Act, 1882—Section 6—Transfer of a mere chance to succeed—Where the predecessor-in-interest of the plaintiffs had passed away prior to the execution of the agreement to sell, succession had already opened and vested—The plaintiffs, having acquired lawful ownership by succession, could not be treated as heirs apparent—Hence, Section 6, which prohibits transfer of a mere chance to succeed, was held inapplicable. (Para 5) B. Limitation Act, 1963—Article 54—Suit for specific performance of contract—In cases where an agreement to sell is contingent on a future event (such as sanction of mutation), the cause of action accrues only upon the happening of that event—Plaintiffs instituted the suit promptly upon learning of the mutation sanction—Since the contract ...
A. Agreement to Sell—Validity—Fraudulent Procurement—The agreement to sell was found to be fraudulently obtained, based on several indicators including unstamped nature, purchase of stamp papers by the plaintiff, discrepancies in signatures, absence of local witnesses, and plaintiff’s prior history of fraudulent behavior—These circumstances cumulatively suggest that the agreement was forged and not validly executed. (Paras 11, 12, 13, 18, 19, 33, 34, 35, 36) B. Specific Performance—Refusal—Specific performance was rightly denied as the plaintiff failed to prove consistent readiness and willingness to perform the contract—Additionally, the tainted and fraudulent character of the agreement justified denial of equitable relief. (Paras 19, 25, 26) C. Earnest Money—Forfeiture—Wh...
A. Specific Relief Act, 1963—Section 20—Discretionary Relief—Specific performance of contract relating to ancestral joint family property cannot be granted without consent of all co-sharers or proof of legal necessity—The appellate court erred in reversing the trial court’s findings without addressing these aspects or providing cogent reasons. The court must decline relief where the agreement stands cancelled or unenforceable. (Paras 27, 28, 29, 33, 34, 37) B. Civil Procedure Code, 1908—Section 100—Second Appeal—Reversal of the trial court’s factual findings by the first appellate court is unsustainable without proper discussion or reasoning—Appellate courts must record cogent reasons for disagreeing with the trial court. (Para 32) C. Transfer of Property Act, 1882—Se...
A. Arbitration and Conciliation Act, 1996—Sections 16, 34, 5, 37—Writ Petition against Arbitrator’s Jurisdictional Order—High Court’s interference limited to cases of patent lack of jurisdiction, glaring jurisdictional defects, absence of remedy, or bad faith—Emphasis on minimal judicial intervention to preserve arbitral process—Petition dismissed as impugned order did not demonstrate manifest lack of jurisdiction or perversity. (Paras 11–14, 16) B. Maharashtra Ownership of Flats Act, 1963 & Cooperative Societies Act, 1960—Arbitration Agreement—Society’s Binding by Arbitration Clause in Agreements for Sale—Society formed by flat purchasers is a corporate entity deriving rights from Agreements for Sale—Though not a third party, society is bound by arbitrat...
A. Transfer of Property Act, 1882—Sections 53A and 54—Agreement to Sell and General Power of Attorney—An Agreement to Sell does not create title, interest, or charge on immovable property—A valid title requires a registered sale deed as per Section 54—A plaintiff claiming benefit under Section 53A based on part performance cannot succeed in the absence of possession of the property. (Paras 12 to 17, 29 to 31) B. Indian Succession Act, 1925—Sections 63 and 68—Evidence Act, 1872—Section 68—Will—Essentials of a valid Will include attestation by two witnesses and proof of execution through the examination of at least one attesting witness—Mere registration of a Will does not validate it—Suspicious circumstances surrounding the Will require cogent explanation by the pro...
Civil Procedure Code, 1908—Order XLI Rule 27(1)—Additional Evidence—Mandatory consideration of pleadings—Appellate Court must assess pleadings before allowing additional evidence. In this appeal arising from a suit for specific performance, the Supreme Court held that before an appellate court allows additional evidence under Order XLI Rule 27(1) CPC, it must first examine whether the factual foundation for such evidence is laid in the pleadings—The High Court had reversed the trial court’s decree for specific performance by relying on additional documents filed by the defendant at the appellate stage without evaluating whether the defendant’s written statement supported such evidence—The Court emphasized that mere filing of documents, even if public in nature, is not enough unless the ...
A. Code of Civil Procedure, 1908—Order 41 Rule 27(1)—Additional Evidence in Appeal—Scope and Preconditions—Held, appellate court must consider whether the additional evidence sought to be adduced is supported by the pleadings of the party seeking to lead such evidence—In absence of foundational pleadings, permitting additional evidence would be impermissible—High Court erred in allowing application under Order XLI Rule 27 without examining whether the additional documents sought to be introduced by the defendant aligned with his pleadings—Matter remaAnded for fresh consideration. (Paras 5 to 9) B. Civil Procedure Code, 1908—Section 96—First Appeal—Reversal of Decree by Appellate Court Based on Additional Evidence—Appellate court reversed decree for specific per...
A. Specific Relief Act, 1963—Section 16(c)—Readiness and Willingness—Burden lies on plaintiff to demonstrate their preparedness and willingness to fulfill contractual obligations, even if the defendant has not specifically contested this aspect. (See Para 23) B. Civil Procedure Code, 1908—Section 96 & Order XLI Rule 1—Appeals—The appellate court holds the authority to overturn or modify decrees passed by the trial court. (Referenced in Paras 1, 8, 26) C. Transfer of Property Act, 1882—Doctrine of Lis Pendens—A sale deed executed while litigation is ongoing—Purchaser identified as a pendente lite buyer—(Discussed in Paras 10, 24) D. Evidence Act, 1872—Burden of Proof—Plaintiff must establish that the seller, being advanced in age, was of sound mind at the ...
A. Civil Procedure Code, 1908—Section 100—Second Appeal—Jurisdictional Scope—The High Court’s power in a second appeal is limited to deciding substantial questions of law; it is not entitled to reappraise or reassess factual evidence or disturb concurrent findings of fact by lower courts unless such findings are manifestly perverse or unsupported by evidence. (See Para 16) B. Specific Relief Act, 1963—Section 19(b)—Purchaser with Notice—A purchaser acquiring property through a sale deed executed after an existing agreement for sale cannot claim title if unable to demonstrate that the purchase was made in good faith and without notice of the prior agreement. (Refer Para 33) C. Specific Relief Act, 1963—Section 16(c)—Readiness and Willingness—Grant of specific performan...
A. Specific Relief Act, 1963—Sections 10 & 16(c)—Specific Performance of Contract—Prerequisites In a suit seeking specific performance of a sale agreement, the plaintiff must establish the existence of a lawful contract and demonstrate continuous readiness and willingness to perform their obligations—In the present case, the plaintiff failed to discharge this burden, as the alleged agreement (Ex.A-5) suffered from multiple discrepancies, lacked credibility, and was not proved as authentic—Mere testimony of an attesting witness (P.W.2), without corroborative and credible supporting evidence, was found inadequate. (Paras 17, 19, 32, 33, 35, 37) B—Indian Evidence Act, 1872—Sections 101–104—Burden of Proof—Proof of Execution Where execution of a document is denied by the opp...
(A) Karnataka Land Reforms Act, 1961, Section 61—Specific Performance—Non-Alienation Clause—Executory Sale Agreement—Not a Conveyance—In this second appeal, the appellant challenged concurrent findings rejecting his suit for specific performance of a sale agreement dated 29.04.2000 concerning land granted under the Inams Abolition Act with a 15-year non-alienation clause—Both lower courts upheld the execution of the sale agreement and receipt of full consideration, but denied relief citing violation of Section 61 of the Karnataka Land Reforms Act due to the non-alienation restriction. (B) Karnataka Land Reforms Act, 1961, Section 61—Specific Performance—Sale agreement—The High Court held that the sale agreement was executory in nature and expressly stipulated that the sale deed woul...
Andhra Pradesh Land Reforms (Ceiling on Agricultural Holdings) Act, 1973—Urban Land (Ceiling and Regulation) Act, 1976—Land Reforms and Title Disputes—Writ Relief Denied Due to Suspect Title and Lack of Proven Possession—In appeals arising from the Telangana High Court’s order reversing a learned Single Judge’s dismissal of a writ petition seeking protection against dispossession, the Supreme Court restored the Single Judge's order—The writ petitioners had relied on registered sale deeds derived from an unregistered 1982 agreement of sale by Bhavana Cooperative Society, whose claim to title was found defective—The Court held that unregistered sale agreements, including those later revalidated, do not confer title or possession—Prima facie, title was suspect and possession unproven&...
(A) Transfer of Property Act, 1882—Section 54 & Section 111(d)—Effect of Agreement to Sell—Specific Performance Decree on Tenancy—The respondent’s argument that the landlord-tenant relationship ceased due to the agreement of sale and decree of specific performance is incorrect—Under Section 54 of the Transfer of Property Act, 1882, a sale agreement does not transfer any interest in the property until the actual sale and registration occur—Even if the decree for specific performance was granted, it would not have resulted in a transfer of ownership without the fulfillment of conditions and proper registration. (Para 13) (B) Transfer of Property Act, 1882—Section 111(d)—Landlord—Tenant relationship—Since the respondent failed to meet the conditions of the decree, no tr...
Civil Procedure Code, 1908—Section 100—The Supreme Court allowed the appeal against the High Court's judgment in a suit for specific performance arising from an agreement to sell dated 06.03.2012—The appellant (defendant) had received ₹6 lakh out of the total ₹7 lakh sale consideration, with the balance payable at the time of execution of the sale deed—The agreement ambiguously specified the time for execution as either three or four months—However, the plaintiff failed to take any action or issue a notice within this period—Instead, the defendant issued a cancellation notice on 25.04.2013, and the plaintiff filed the suit nearly two years later—The trial court and first appellate court dismissed the suit, holding that time was the essence of the contract and the plaintiff had failed to pr...
Evidence Act, 1872—Sections 91—Civil Procedure Code, 1908—Section 100—The present Regular Second Appeal challenges the concurrent findings of the trial and appellate courts, which decreed the plaintiffs' suit for possession through specific performance of an agreement to sell dated 31.05.2005—The plaintiffs contended that the defendants, Surinder Kumar and Mohinder, had agreed to sell 24 kanal of land, receiving Rs. 2 lakh as earnest money, but failed to execute the sale deed despite repeated requests—The defendants denied the agreement's execution, claiming the land was ancestral and lacked legal necessity for sale—They also argued that since the vendors had died during the suit's pendency, specific performance was not justifiable—However, the courts found the agreement to sell ...
Registration Act, 1908—Sections 17—This case examines the admissibility of unregistered Agreements for Sale under the Registration Act, 1908—It is clarified that an Agreement for Sale of immovable property is not compulsorily registrable under Section 17 of the Act—Despite being unregistered, such an agreement can still be admitted as evidence in a specific performance suit under the proviso to Section 49, especially at the interim stage—The Court emphasized that dismissing an unregistered Agreement for Sale based solely on non-registration is erroneous—Additionally, even unregistered documents required to be registered (e.g., mortgage deeds) can be considered for collateral purposes, such as determining possession—The Court further clarified that an Agreement for Sale does not create an interest ...
Agreement to sell in favour of one person and sale deed in favour of another person, for same property. (A) Transfer of Property Act, 1882 Section 54—Agreement for Sale—Immovable Property—No Transfer of Title—Requirement of Registered Sale Deed—An agreement for the sale of immovable property does not create any interest in the property—Title to immovable property valued over Rs. 100 can only be transferred through a duly registered sale deed, in accordance with the Indian Registration Act, 1908—This judgment reaffirms that mere agreements do not confer ownership rights without proper registration, ensuring legal clarity and protection in property transactions. (Para 6) (B) Transfer of Property Act, 1882—Section 54—Agreement to sell in favour of one person and sale deed in favour ...
The appellant's suit for relief of specific performance of the Agreement to Sell has been dismissed by both the Trial Court and the First Appellate Court—However, the defendant's/respondent's eviction suit has succeeded both before the Trial Court and the High Court—The appellant has not claimed any alternative relief—The court deems it just to issue a direction to the respondent/defendant to repay a sum of Rs. 4,66,000/-, which was received with simple interest at 12% per annum from 01.01.1992 until the date of payment—The amount must be deposited in the execution petition filed by the respondent before the Trial Court within one month—The appellant must hand over the keys of the premises to the respondent/defendant—The appellant must not create third party rights or cause damage to the pre...
Civil Procedure Code, 1908 (CPC)—Order 39 Rule 1—An Agreement to Sell, the plaintiff paid part of the sale consideration and invested in property development—However, the defendant allegedly failed to obtain necessary approvals, leading to the cancellation of the agreement—The plaintiff sought specific performance or a refund with interest, arguing that the defendant breached the contract by continuing to accept payments after the plan was canceled—The defendant contended that the plaintiff failed to make full payments and that the contract was terminated due to the plaintiff's breach—The court found that the defendant did not fulfill his obligations, including obtaining necessary approvals, and continued to receive payments after the cancellation—The trial court's rejection of the pl...
The specific performance of an unregistered Agreement to Sell, the trial court granted a temporary injunction in favor of the plaintiffs, who claimed possession of the suit land and expenditure on its improvement—The appellants contended that the non-registration of the agreement under Section 17 of the Registration Act barred the suit and that the plaintiffs' delay in filing the suit precluded relief—However, the court found that the plaintiffs had demonstrated a prima facie case for specific performance, supported by their possession of the land and part performance under Section 53-A of the Transfer of Property Act—The trial court's decision to grant the injunction was based on the likelihood of irreparable harm to the plaintiffs if dispossession occurred—The appellants' objections regarding the non-...
Agreement to sell, upon cancellation. (A) Specific Relief Act, 1963, Section 39—Suit for specific relief to execute Sale deed—Appeal by Defendant/ Seller—On the ground that, Sale Agreement was already cancelled, prior to filing of Suit—The sellers vide letter dated 23rd February, 2006 cancelled the Agreement and returned the sum of Rs. 25 lakh claiming that the said period of 4 (four) months had expired and that the buyer had not shown interest to complete the deal—However, the buyer vide reply letter dated 24th February, 2006 refuted the contents of the letter and emphasized that the sellers were bound to have the property vacated and the sale deed had to be executed only after all the tenants had vacated the property—On a bare reading of the aforesaid clauses, not find that the latter clause destro...
Civil Procedure Code, 1908 (CPC)—Section 100—The plaintiffs agreed to purchase a portion of property in 1981, and a sale agreement was executed in 1985—Although the plaintiffs took possession, the sale deed was not executed—A dispute arose over the eastern boundary of the property, attributed to subsequent road construction—In 1997, the plaintiffs filed a suit for specific performance and permanent injunction, arguing the boundary discrepancy was due to external factors, while the defendants were willing to execute the deed—The defendants disputed the boundary and claimed the plaintiffs did not approach the court with "clean hands." The High Court held that specific performance could be granted despite minor boundary discrepancies if the essential terms were admitted, and there was no refusal ...
The petitioner, Mst. Shafiqa Bano, filed a petition under Article 227 of the Constitution of India challenging the order dated 30.09.2024 passed by the Additional District Judge, Budgam, allowing the respondent’s application for withdrawal of his application seeking appropriate orders in a civil suit for specific performance of contract—The petitioner contended that the trial court did not afford her the opportunity to respond to the withdrawal application, which contained significant admissions of facts—The Court opined that the petitioner was deprived of her right to respond, thus constituting an error in procedure—The Court set aside the impugned order and directed the trial court to allow the petitioner an opportunity to respond before deciding on the withdrawal application—The petition was allowed with d...
Recovery of Land by enforcing contract. Specific Relief Act, 1963, Section 5—Recovery of Land by enforcing contract—The six appellants are the plaintiffs in a suit for specific performance of a contract—The Trial Court decreed the suit—However, the High Court, on first appeal, allowed the appeal, set aside the order of the Trial Court and dismissed the suit—Aggrieved, the present appeals by the plaintiffs—Evidence lead by Appellants proved the allegations in plaint—Impugned judgement set aside. (Paras 1, 36,37) Result :- Appeal allowed. ...
The plaintiff filed an application under Order VI Rule 17 CPC to amend the plaint and seek specific performance of the Agreement to Sell dated 01.05.2003 between the plaintiff and defendant no.1—The plaintiff's grandfather, Mr. Baij Nath Mehra, entered into a Lease Agreement with the President of India for property in New Delhi—The property devolved upon defendant no. 1, Mr. Anu Mehra, via a Will dated 23.08.1993—The defendant no.1 sought to sell the property, and negotiations took place, resulting in an agreement to sell the property for Rs.3,05,00,000—The plaintiff made payments to the defendant, including a General Power of Attorney, Special Power of Attorney, Possession Letter, Affidavit, Indemnity Bond, and Will—The plaintiff also advanced Rs.21,96,000/- for non-judicial stamp p...
Civil Procedure Code, 1908—Section 100—Second Appeal—Co-Sharer Principle—Substantial Question of Law—The High Court dismissed an appeal where the appellant, Smt. Saroj, challenged the concurrent findings of the Trial and Appellate Courts that a shop purchased by her from Hari Singh was part of the property her husband had previously agreed to sell to the respondent, Sumer Singh—Both lower courts held that upon executing the sale deed in Sumer Singh's favor, he became a co-sharer in the property by virtue of the co-ownership rights held by Ram Kishan—The High Court reiterated that a purchaser from a co-sharer gains a co-sharing interest in the entire property when the estate remains undivided, as per established precedents like Ram Chander v. Bhim Singh—The Court found no substantial ques...
A consolidated appeal concerning three suits for specific performance of agreements to sell real estate, the court upheld the trial court's decree under Order VIII Rule 10 of the Civil Procedure Code (CPC)—The respondent alleged that the appellants failed to transfer possession of the properties after receiving full payment as per agreements dated November 23, 2022—Despite summons being duly served, the appellants did not file written statements for over six months, attributing their delay to previous counsel's misconduct without taking any action against them—The court emphasized the importance of timely responses to avoid frustrating plaintiffs and noted the lack of any defense from the appellants—It found that the trial court exercised its discretion judiciously, given that the appellants unlawfully with...
(A) Maharashtra Stamp Act, 1958, Sections 33, 34 & 37—Registration Act, 1908, Section 17—Impounding of documents for insufficient stamp duty paid—on the premise that the said documents include a clause that the physical possession of the properties mentioned therein, was transferred to the purchasers; however, they were not duly stamped; and hence, the documents require the payment of stamp duty of the conveyance—The suit was filed by the Appellant, seeking declaration and injunction—Possession was given at the stage of agreement to sell, which was deficiently stamped—Paying complete stamp duty while executing Sale deed cannot cure this defect—Orders passed of impounding and sending to Collector is upheld—Upon paying stamp duty and penalty, those documents can be relied as an Exhibit. (P...
Registration Act, 1949—Section 17(1)(A) and 49—Transfer of Property Act, 1882—Section 53A—C.P.C., 1908—Order 7 Rule 11(d)—Unregistered agreement to sell—Admissibility in evidence—The trial court rejected the plaint for non-registration of the mahadnama (agreement to sell)—Held, while registration is mandatory for certain documents, an unregistered sale deed can still be admitted as evidence in a suit for specific performance to prove an oral agreement—Such a deed may not transfer property but can serve as proof of the agreement between parties—Impugned judgment and award set aside—Appeal is allowed. विचारण न्यायालय द्वारा महादनामा (बिक्री-विलेख) के अनरजिस्टर्ड ...
An Agreement to Sell, the appellant entered into a settlement agreement with the respondent after initial disagreements—The settlement required the appellant to pay a balance amount by a specified date—The appellant's failure to make the payment on time led to the rescinding of both the settlement and the original agreement—Despite the appellant's subsequent attempts to make the payment and efforts to contact the respondent, the court found that the appellant’s delayed payment and forceful possession of the property were insufficient to justify the settlement agreement’s validity—The court dismissed the appellant's execution petition, ordered the rescission of both agreements, and directed the appellant to return possession of the property while the respondent was to refund a portion of the ...
Agreement to sell date is relevant—Specific Relief Act, 1963, Section 12—Specific performance of part of agreement—Civil Suit filed after expiry of Agreement date, but within limitation—Scope of—Plaintiff/appellant has failed to enter into the witness box and subject himself to cross-examination, he has not been able to prove the prerequisites of this Section and more so, when the original agreement contained a definite time for registration of sale deed which was later on extended but the suit was filed on the last date of limitation calculated on the basis of the last extended time—Courts will also frown upon suits which are not filed immediately after the breach/refusal—Fact that limitation is three years does not mean that a purchaser can wait for one or two years to file a suit and obtain spe...
Agreement to Sell—The case involves a dispute over specific performance of an Agreement for Sale dated 11 January 1988 concerning agricultural lands in Thane—The plaintiff paid part of the consideration and sought specific performance after the defendants terminated the agreement and sold parts of the land to third parties—The main issues revolve around whether the plaintiff's suit was barred by limitation, the validity of the termination notice, and the maintainability of the suit without challenging the termination. The appellants argued that the suit was barred by limitation as per Articles 54 and 58 of the Limitation Act, and that the plaintiff failed to challenge the termination notice dated 3 December 1990—The respondents contended that the termination of the agreement was illegal and that the plaintif...
Civil Procedure Code, 1908 (CPC)—Order 39 Rule 1—Injunction—Plaintiff filed a Suit for Cancellation and Permanent Injunction seeking to cancel an Agreement to Sell and Sale Deed for agricultural land in New Delhi—The plaintiff claims ownership of the land acquired through a public auction from HDFC Ltd—The defendants, who failed to pay the balance consideration, allegedly deceived the plaintiff into signing a Sale Deed without receiving full payment—The plaintiff terminated the agreement, leading to a dispute—The court issued summons and an ad-interim order to restrain the defendants from alienating the property—The plaintiff further sought the appointment of a Local Commissioner to assess the construction on the property—The court allowed the application, directing the commissioner to...
Indian Succession Act, 1925—Section 63—Evidence Act, 1872, Section 68—Agreement to Sell—Dispute over the ownership and possession of a house property—Registered Sale Dee—The High Court declared the plaintiff as the owner of a house property under a registered Sale Deed while nullifying a Will executed in favor of the second defendant—The High Court cast doubt on the genuineness of the Will based solely on its delayed production and the first defendant's signature on the Sale Deed—However, it failed to appreciate independent evidence supporting the Will's authenticity, including the deposition of witnesses who attested to its execution—As per Section 68 of the Evidence Act, 1872, and Section 63 of the Succession Act, 1925, the Will was deemed genuine once these requirements were...
Administration of Evacuee Property Act, 1950—Displaced Person (Compensation and Rehabilitation) Act, 1954—Section 25—Agreement to Sell—Suit for a declaration as the absolute owner of a property, the Trial Court decreed in favor of the appellants—However, the lower Appellate Court, after considering the issue in detail along with other material on record, reversed the judgment and decree of the Trial Court—The lower Appellate Court's findings on the tampering of records and the valuation of the property before sale were crucial in determining the actual area sold to the appellants—The High Court also supported the lower Appellate Court's finding that the valuation was conducted before the sale, not after—With no rebuttal to these findings, the mere identification of the property or it...
Specific Relief Act, 1963—Sections 28 and 28(1)—Agreement to sell—Suit for possession—Specific performance of agreement—Dispute over the execution of a specific performance decree related to the sale of property—The petitioners argue that the Decree Holder failed to deposit the balance sale consideration within the specified period, and they seek rescission of the agreement under Section 28(1) of the Specific Relief Act—The petitioners rely on legal precedents, including 'P. Shyamala v. Gundlur Masthan', to support their contention that a delayed application for extension of time is unjustifiable—The Decree Holder secured an extension for depositing the balance sale consideration, citing 'Ramakutty Gupta v. Avara' to assert the court's continued jurisdiction—The cou...
Limitation Act, 1963—Article 54—Second appeal—Possession of land—Agreement to sell—Execution and registration of sale deed—The appellants filed a second appeal against the dismissal of their appeal challenging the decree passed in favor of the plaintiff for recovery of earnest money—The dispute arose from an agreement to sell land, but the appellants concealed the crucial fact that the land was under the master plan, rendering the agreement unexecutable—The appellants, receiving the earnest money, later sought to enforce the agreement with a notice—The court observed that the agreement was frustrated by the appellants' conduct, preventing them from forfeiting the earnest money—Rejecting the limitation plea, the court held the suit justified—The appellants' appeal wa...
Specific Relief Act, 1963 - Section 20—Agreement to Sell—Specific performance decree—The Supreme Court had decreed specific performance of an Agreement to Sell dated 22.12.1970, remitting the determination of market value as of 03.12.2012 to the Single Judge—The impugned order set the value at Rs. 130 crores but introduced a mechanism involving a second valuation at Rs. 75 crores if the plaintiffs failed to pay Rs. 130 crores and the defendant couldn't sell—The appeals challenge this deviation, asserting it exceeds the remand's scope—The Court finds the order inconsistent with the Supreme Court's decree and remands the matter for a fresh determination of the suit property's value in accordance with the Supreme Court's directions—The Registrar is instructed to place the matter b...
(A) Arbitration and Conciliation Act 1996—Sections 21 and 34—Indian Contract Act, 1872—Sections 8 and 62—Agreement to Sell—Arbitral award—Dispute between Meera Goyal and Priti Saraf over an Agreement to Sell (ATS) for a property in New Delhi. Priti filed a petition challenging an arbitral award in favor of Meera—The award, dated May 8, 2020, granted Priti Rs. 38 crores with interest—The dispute arose from the ATS dated December 24, 2011, where Priti agreed to purchase a property from Meera for Rs. 63.28 crores—The agreement outlined Compulsory Requirements for Meera to fulfill by March 24, 2012, including settling bank dues and obtaining approvals—Priti claimed Meera failed to fulfill these requirements, while Meera argued she complied, albeit belatedly—The arbitrator found...
Agreement to Sell—Registered Sale-deed—Civil Suit—Successor-in-interest challenging a 1956 sale deed after 16 years—While the suit isn't time-barred due to a timely notice under Section 80 C.P.C., crucial facts are missing—The plaintiff fails to establish that the disputed property was recorded in the name of the deceased predecessor or legally transferred in a family partition—The absence of such documentation raises doubts about the plaintiff's claim—Additionally, the motive behind challenging the sale after a significant lapse of time is questionable, suggesting a potential attempt to extract more funds from the State, which acquired the property—The transaction with the State, being protected under Section 41 of the Transfer of Property Act, may further complicate the plaintiff&#...
Specific Relief Act, 1963—Section 36—Suit is for specific performance—Agreement for Sale—Records alleged payment—Temporary injunction—Prima facie—Regarding certain properties— They claimed to have paid the full consideration of INR 1,73,00,000 to the defendants—The trial court rejected their application for a temporary injunction based on the lack of evidence to support their payment claims—The plaintiffs then sought to amend their claim, introducing new details about the payments—The court noted that the plaintiffs' inconsistent stand and delay in filing the suit influenced its decision to refuse the injunction—As a result, the court dismissed the appeal, finding that the trial court had rightfully denied the injunction—The plaintiffs were also denied the c...
Penal Code, 1860—Section 420, 120-B, 467, 468, 471 & 34—Criminal Procedure Code, 1973—Section 482—FIR—Quashing for—Agreement to sell—Bona-fide purchaser—According to the records, it appears that prima facie it is a case of breach of contract—The complainant filed an FIR instead of a suit for specific performance of contract and cancellation of sale deed, which was the appropriate remedy—The police registered the FIR without examining whether the cognizable offence was made out or not—Criminal Prosecution for Cheating Requires Initial Fraudulent Intent in Breach of Contract—The criminal Courts are not meant to be used for settling scores or pressurize parties to settle civil disputes—The registered sale deed cannot be termed as a...
Limitation Act, 1963—Section 9 and Article 54 of Part II of Schedule—Agreement to sell—Suit for Specific Performance—Limitation—Should be filed within three years from the date specified for performance in the contract—If no specific date is mentioned, the three-year limitation period starts from the date when the plaintiff becomes aware of the defendant's refusal to perform the contract—It's important to note that once the limitation period begins, it continues to run, regardless of any subsequent disability or inability to file the suit—In cases where no performance date is fixed, the court must determine the date when the plaintiff received notice of the defendant's refusal to fulfill the contract. (Para 20 & 21) ...
Specific Relief Act, 1963, Section 20—Evidence Act, 1872, Section 114—appellant was the defendant in a suit filed by the respondent seeking specific performance of a Sale Agreement—The respondent claimed that the appellant agreed to sell certain properties but failed to execute the Sale Deed—The appellant argued that the Sale Agreement was executed as security for a loan and that there was no intention to sell the properties—The main issue was whether the respondent was ready and willing to perform the contract—The court found that the respondent did not prove their readiness and willingness to execute the Sale Deed, and therefore, the equitable relief of specific performance was not granted—The appellant was ordered to return the advance payment with interest to the respondent. ...
(A) Agreement to Sell—Registration Act, 1908—Sections 49 and 17—Tamil Nadu Amendment Act, 2012—17(1)(g)—Agreement to sell—Suit for specific performance—Instituted by plaintiff—Trial Court held preliminary issue in favour of defendant and against plaintiff—By observing that un registered Agreement shall not be admissible in evidence—Revision application—Allowed by High Court—Directing that document in question shall be received in evidence in suit for specific performance—Appeal against—Preferred by defendant—Determination of—Facts and circumstances of the case High Court has rightly observed and held relying upon proviso to Section 49 of Registration Act that unregistered document in question namely unregistered Agreement to sell in question sh...
Suit for Specific Performance—Agreement to sell—Evidence by examining witnesses—Unless the plaintiff was called upon to produce the passbook either by the defendant or, the Court orders him to do so, no adverse inference can be drawn—High Court has materially erred in quashing and setting aside the judgment and decree passed by the learned Trial Court by reversing the findings on the readiness and willingness of the plaintiff. ...
Specific Relief Act, 1963—Section 16(c)—Specific Performance—Agreement to Sell—Readiness and Willingness—Concurrent Findings: In a second appeal, the defendants challenged the concurrent judgments of the Trial Court and Appellate Court, which decreed the plaintiff's suit for specific performance of an agreement to sell—The plaintiff alleged that the defendants agreed to sell a portion of land, accepted an advance payment, but later refused to execute the sale deed—The defendants argued the agreement was a security for a loan and not an intention to sell—Both courts found the plaintiff had proved the agreement, payment, and readiness and willingness to perform, while the defendants failed to establish their defense—The High Court held that concurrent findings of fact could not be re...
Civil Procedure Code, 1908 (CPC)—Order 14 Rule 1—Framing of issues—Agreement to sell —Joint Hindu Family Property—Mulla's Hindu Law—Article 254 and 241—Coparcenary property—Alienation of—Rights of Karta—The Karta of a Hindu joint family enjoys wide discretion in taking a decision on the existence of any legal necessity for disposing of joint family property—A coparcener who has right to claim a share in the joint Hindu family estate cannot seek injunction against the Karta restraining him—Where a Karta has alienated a joint Hindu family property for value either for legal necessity or benefit of the estate it would bind the interest of all undivided members of the family even when they are minors or widows. ...
Specific Relief Act, 1963—Section 10(a) & 20—Suit for specific performance of contract— Proceeding under—Nature of Held, specific performance is no longer a discretionary relief Readiness and willingness of plaintiff may be inferred from facts and circumstances of a particular case—It is not necessary for plaintiff to produce ready money but it is mandatory on his part to prove that he has means to generate consideration amount—Discretion u/s 20 of Act is required to be exercised judiciously, soundly and reasonably—Even while proving readiness and willingness plaintiff is not required to make any averment that plaintiff required executant of agreement to sell to attend office of Sub—Registrar to execute sale deed within time agreed—Not to grant decree of specific performance d...
(A) Negotiable Instruments Act, 1881, Section 138—Cheque dishonour—Agreement to sell—There was a transaction between the parties—Thesignature on the agreement and more particularly the dishonored cheque was not disputed—The presumption as provided in law had arisen—Such presumption would remain till it is rebutted—The case put forth by accused does not satisfy requirement of rebuttal even if tested on touchstone of preponderance of probability—Criminal Revision Petition herein has been dismissed—The sentence to undergo simple imprisonment for six months and fine modified. (Para 19 to 22) (B) Negotiable Instruments Act, 1881, Section 138, 118 and 139—Cheque dishonour—Presumption under—The signature on the cheque is admitted—Thepresumption for passing of the co...
Civil Procedure Code, 1908 (CPC)—Section 100—Specific Performance—Agreement to Sell—Non-Joinder of Necessary Parties—Lis Pendens—Appellate Interference—Dismissal of Appeal—In this case, the appellant challenged the decree for specific performance of an agreement to sell, arguing non-joinder of necessary parties (his wife and children) who allegedly acquired rights in the suit property during the pendency of the suit—The court held that the subsequent purchasers were bound by the outcome of the suit under the doctrine of lis pendens since the transaction was not proven to be a bona fide transfer before the suit's filing—The concurrent findings of the lower courts, based on credible oral and documentary evidence, including Ex.P.2 (registered sale agreement), established that th...
Karnataka Stamp Act, 1957—Section 2(a)(b)—Specific Relief Act, 1963—Section 10—The defendants contested the trial court's decree for specific performance of an agreement dated June 26, 2000, concerning the sale of land measuring 4 acres and 22 guntas—The plaintiffs asserted their financial contributions towards the land's acquisition, claiming the defendants failed to honor the agreement—The trial court upheld the plaintiffs' authority to sue and found the agreement enforceable, despite defendants' claims of insufficient consideration and evidence of payment—The appellate court affirmed the trial court's findings, emphasizing the validity of the agreement and the plaintiffs' substantial evidence supporting their claims—The decision underscored the legal standards gove...
A suit for specific performance based on an agreement to sell dated 4th July 1980, the Court reaffirmed the principle that land prices are not uniform, especially in rural areas—The price of land varies depending on factors such as location, accessibility, and usability—For instance, land situated near a motorable road may command a higher price than land adjacent to a forest or a flood-prone area—In the present case, the appellants failed to prove that the consideration agreed upon in the sale agreement (Rs. 23,000) was inadequate—They did not plead or establish the prevailing market value of the land at the relevant time, nor did they produce sale deeds of any adjacent lands for comparative analysis—The Court found no cogent evidence to suggest undervaluation or fraud and observed that the agreement was vol...
(A) Negotiable Instruments Act, 1881, Sections 138, 139—Cheque dishonour—Agreement to sell—The money transaction was carried out between the parties—The signatures are never disputed except in the cross examination of the complainant—Trial Court as well as first Appellate Court have committed no error in rejecting plea raised by the respondent/accused that blank cheque was received by the complainant to obtain the loan from the bank—The existence of a fiduciary relationship between the payee of a cheque and its drawer, would not disentitle the payee to the benefit of the presumption under Section 139 of the Act—may reasonably be presumed that the cheque was filled in by the appellant-complainant being the payee in the presence of the respondent/accused being the drawer, at her request and/or with ...
riminal Procedure Code, 1973—Section 438—Anticipatory Bail—Agreement to Sell—Allegations of Cheating and Forgery—The petitioner sought anticipatory bail under Section 438 Cr.P.C., as accused no.1 in a private complaint lodged for offences under IPC Sections 418, 420, 465, 468, 469, 471, 504, and 506—The complaint alleged that the petitioner and his wife entered into an agreement to sell property for ₹1.5 crore and received ₹70 lakh as earnest money but later mortgaged the property, cheating the complainant—The petitioner argued that the dispute was civil in nature and had issued a notice canceling the agreement prior to the complaint—The Court noted that the dispute appeared civil and granted anticipatory bail with conditions, including furnishing a bond of ₹1 lakh, cooperating with th...
Limitation Act, 1963 —Articles 54 and 113—Specific performance of the agreement to sell—Applicability of Articles 54 and 113—Limitation Act. The trial court had dismissed the suit, primarily on the grounds of it being time-barred, citing Article 54 of the Limitation Act. Conversely, the plaintiff contended that Article 113 of the Limitation Act should be applicable, given the circumstances—They argued that the right to sue had arisen when they served a notice to the defendants, requesting the execution of the sale deed, which was met with a refusal—It is noteworthy that the agreement to sell placed the responsibility of resolving all disputes related to the property on the vendor. The subject land had been subject to acquisition proceedings, which were subsequently quashed at the plaintiff's behest ...
Negotiable Instruments Act, 1881, Section 138 and 139—Code of Criminal Procedure, 1973, Section 482—Cheque dishonour—Agreement to sale—Incomplete sale transaction—The cheque came to be issued without any consideration—As per complaint the cheque was not issued towards any consideration or to clear of any debt or liability—No deed / agreement for sale executed as required under law, the payment for consideration does not arise and in that view of the matter the requirement of Section 138 N.I. Act, i.e., money paid to discharge in whole or in part of any debt or other liability, is found absent—The order of taking of cognizance for that offence is not sustainable in the eye of law, hence, the same is liable to be quashed —The petition is allowed. (Paras 8 to 10) ...
Karnataka Rent Act, 2001—Section 43—Specific Relief Act, 1963—Section 16(c)—Agreement to Sell—Eviction of Tenant—Where the petitioner was in possession of the premises for about 11 years under an agreement of sale, it was held that mere possession coupled with such agreement did not terminate the jural relationship of landlord and tenant—The petitioner’s status as tenant continued despite the agreement to sell—The suit for specific performance was dismissed by the High Court and the findings of the Trial Court were upheld—The eviction proceedings based on tenancy were therefore valid. ...
Civil Procedure Code, 1908—Section 100—Second Appeal—Specific Performance—Agreement of Sale—Concurrent Findings—No Substantial Question of Law—Appeal Dismissed—The second appeal was filed by the defendants challenging the concurrent findings of the Trial Court and First Appellate Court, which had partly decreed the plaintiff’s suit for refund of earnest money and discharge amount with interest, rejecting the prayer for specific performance of contract in respect of a site situated at Shimoga—The plaintiff claimed that the defendants executed a registered agreement of sale dated 11.01.2011 (Ex.P1) and a subsequent endorsement dated 19.01.2012 (Ex.P2), agreeing to sell the suit property for ₹6,20,000 and received ₹5,00,000 as earnest money—The defendants failed to hand ov...
Evidence Act, 1872 - Section 114 — Agreement to sell — Suit-property — The High Court also went into error in stating that the value of the property was Rs.10 lakhs at the time of the sale agreement. PW-1 in his cross examination admitted that it was Rs.10 lakhs on the date when PW1 was cross-examined. The value of the property on the date of the sale agreement was only Rs.6 lakhs, and it was open for the parties to negotiate the said price upwards or downwards, which was what the parties did in the facts of the present case. Nothing can, therefore, be derived from the erroneous assumption that a valuable property had been sold at a throwaway price. — For all these reasons, therefore, we allow the appeal and set aside the judgment of the High Court and restore that of the Courts b...
Limitation Act, 1963 - Article 54—Specific Relief Act, 1963 - Section 20—Specific Performance—Proof of Agreement of Sale—Plaintiff examined himself as PW.1 and examined attestors to the agreements as PW.2 and PW.3—No material elicited in cross-examination to discredit their testimony regarding execution of Ex.P1 to Ex.P3—Ex.P4 to Ex.P12 establish that notice dated 26.07.2011 was issued to defendants demanding execution of sale deed—No reply issued by defendants denying execution of agreements or receipt of consideration—Courts below rightly held that execution of agreements was proved—No perversity found in such concurrent findings—Suit for specific performance rightly decreed. ...
Civil Procedure Code, 1908—Section 100—Second Appeal—Specific performance—Agreement of sale—Plaintiff filed suit for specific performance alleging execution of sale agreement and advance payment—Trial court held execution proved but dismissed suit for lack of proof of readiness and willingness—First appellate court reversed decree, allowed appeal, and decreed suit—Held: Defendants did not challenge finding of execution of agreement—Readiness and willingness can be proved by Power of Attorney Holder if within his personal knowledge—Plaintiff's husband as PW-1 not shown to lack personal knowledge—Agreement not void as prohibition on alienation expired—No substantial question of law arises—Second appeal dismissed. ...
Transfer of Property Act, 1882—Section 111, Clauses (e) and (f)—Evictio—Bona fide Need of Landlord—Agreement to sell executed between parties—The agreement's conditions did not show any intention to surrender the tenancy, and therefore, the tenancy was not determined under Section 111 of the TP Act—The eviction order was upheld in favor of the landlord. ...
Civil Procedure Code, 1908—Order 7, Rule 11(d)—Rejection of plaint—Issue of limitation, which can be a mixed question of fact and law, can serve as a valid ground for the rejection of a plaint—This applies to suits like those for specific performance of an agreement to sell—The limitation period for such cases is three years from the date fixed for performance, or if no such date is set, then from the date when the plaintiff has notice of refusal—When seeking the rejection of a plaint under Order 7, Rule 11, the decision is made based on the facts of each case and the averments made in the plaint without delving into the merits or demerits of the matter or the allegations made by the parties. ...
Suit for specific performance—Agreement to Sell—Stipulated that the defendant must obtain permission from the competent authority, the appellant admitted that the provisions were applicable—The defendant had applied for permission, which was not granted—The appellant argued that a subsequent amendment removed the necessity for permission but was not applicable retroactively—The court upheld the concurrent findings of the First Appellate Court and the High Court, stating that the appellant could not insist on performance due to the refusal of permission by the competent authorities—The appeal was dismissed. ...
Specific Relief Act, 1963—Section 12—Transfer of Property Act, 1882—Section 53A—Registration Act, 1908—Section 17(1A) read with Section 49—Agreement to sell—Suit for specific performance—Case involves a dispute over the admissibility of documents in a specific performance suit—The plaintiff filed a suit seeking specific performance of an agreement to sell land—The documents in question, including an unregistered sale agreement and a registered power of attorney, were challenged by the defendants—The trial court allowed the documents as evidence, but the High Court declared them inadmissible, citing Section 17(1A) of the Registration Act, 1908—However, the Supreme Court held that the documents could be admitted as evidence for a limited purpose and remanded the case to...
Parties involved in the dispute have settled their differences—An earlier order allowed the respondent to file additional documents related to the settlement, and a subsequent report from the District Judge, Agra confirmed the genuine settlement—Consequently, the appeal (C.A. No.3232/2015) is dismissed as it has become irrelevant due to the settlement—Any pending applications are also disposed of, and there are no costs imposed. ...
Civil Procedure Code, 1908 (CPC)—Section 100, Section 34—Specific Relief Act, 1963—Section 12, Section 12, Section 16, Section 16(c), Section 20Plaintiffs filed a suit for specific performance of the agreement after the defendants failed to execute the sale deed—Trial court and the first appellate court found that the plaintiffs were not ready and willing to perform their part of the contract and did not have the necessary funds—However, the High Court partially decreed the suit, ordering specific performance for part of the contract—Supreme Court, in its judgment, held that this decision was incorrect and ordered the refund of the advance money with interest to the plaintiffs—Plaintiffs were also directed to pay the defendants' legal costs ...
Portuguese Civil Procedure Code, 1867—Article 2177—Specific Relief Act, 1963—Section 17, Section 20—Transfer of Property Act, 1882—Section 44—Agreement to sell—Defendant No. 7 is a company that has entered into an agreement to sell the suit property with Defendant Nos. 1 to 6—This agreement is being challenged, as it allegedly ignores the legal rights of the plaintiffs to the suit property—The plaintiffs claim collusion among the defendants and anticipate the execution of a conveyance deed—This compels the plaintiffs to file the suit—Even if one of the heirs' undivided share of the property cannot be transferred, the remaining shares of the other heirs can still be transferred—The buyer has the right to apply for the partition of the property and have the shares d...
Criminal Procedure Code, 1973 (CrPC)—Section 482—Penal Code, 1860 (IPC)—Section 120B, Section 166, Section 167, Section 380, Section 406, Section 417, Section 420, Section 423, Section 427, Section 447, Section 448, Section 451, Section 465, Section 468—Agreement to sell—The appellant had executed an agreement to sell a plot and received a sum of Rs. 10,500 but did not complete the sale—The appellant filed a petition under Section 482 of the Cr.P.C. seeking to quash the proceedings, claiming that the agreement was executed by their deceased mother, and as the patta was not issued, the sale could not be completed, and the complainant had received a refund—The criminal proceedings initiated by the complainant were deemed to be an abuse of the court process—As a result, the appeal has been allo...
Civil Procedure Code, 1908 (CPC)—Section 96—Limitation Act, 1963—Article 54—Specific Relief Act, 1963—Section 38—Agreement to sell—The appellant filed a suit, and the question arises whether it was time-barred under the first part of Article 54 of Schedule 1 of the Limitation Act, 1963—The High Court, sitting as a court of first appeal, is obligated to address all the issues and evidence presented by the parties before reaching its conclusions—However, in this appeal, the High Court only examined the issue of limitation and neglected to consider other aspects of the appeal, which was impermissible—Consequently, the appeal has been allowed. ...
Civil Procedure Code, 1908 (CPC), Order 9 | Rule 13—The Supreme Court dismissed a Special Leave Petition (SLP) as it found no substantial questions of law and agreed with the concurrent decisions of the lower courts. The case involved a suit for the performance of an agreement to sell from 16.3.1993, contested by the Defendant, who, during the trial, absented themselves, leading to an ex-parte proceeding and a decree on 24.4.1996. The original Defendant passed away on 20.11.1996, and the legal representatives sought to set aside the ex-parte decree, but both lower courts found no valid reasons. The Supreme Court concluded that no legal questions warranted consideration, and therefore, the SLP was dismissed. ...
Specific Relief Act, 1963 — Sections 16 and 20 — Suit for specific performance —Direction given to pay a sum of Rs. 5 lacs in addition to Rs. 1,10,000/-, i.e., the balance due to be paid under agreement ...
Civil Procedure Code, 1908 (CPC)—Section 96—Specific Relief Act, 1963—Sections 16(c), 20 and 21—Case involving an agreement to sell, the plaintiff paid Rs. 8,500 as earnest money, with a balance of Rs. 80,000 to be paid within 15 days after the defendant received the building plan from the Development Authority. The plaintiff sent the plan, but the defendant unilaterally canceled the agreement, citing the prohibition on plot transfer in the lease deed. The trial court decreed specific performance, but the High Court, noting the defendant's gift of the plot to his son due to rising property prices, dismissed the appeal. The Supreme Court held that the plaintiff was entitled to specific performance, and the prohibition on transfer was not a condition precedent for such a decree. However, considering the circumsta...
Specific Relief Act, 1963—Section 20, Section 23—Case involving an agreement to sell a property, the second party (plaintiff) filed a suit for specific performance against the first party (defendant), alleging the defendant's refusal to honor the agreement. The court allowed the suit, emphasizing that the document must be read in its entirety. Notably, the agreement contained a default clause. The defendant's failure to respond to the pre-suit notice by the plaintiff was considered significant, leading to an inference that the defendant's claim that it was merely a loan agreement was an afterthought. The court's decision favored the plaintiff's plea for specific performance of the agreement to sell the property. ...
Transfer of Property Act, 1882—Section 53—Specific Relief Act, 1963—Section 34—Agreement to sell - An appeal filed by unsuccessful defendants against a final judgment by the High Court of Madhya Pradesh—The respondent/plaintiff executed a sale deed, and the appellant claimed ownership after buying the property—The plaintiff filed a suit asserting the sale was nominal and sought possession—The trial court dismissed the suit, but the High Court, on appeal, concluded the sale wasn't genuine—The defendants appealed, arguing against the High Court's interference with factual findings—The Supreme Court affirmed the High Court's decision, emphasizing that the sale was a surety for a loan, not a real transfer of title—The Court held that both lower courts erred, justifyi...
Specific Relief Act, 1963—Section 20—Agreement to Sell—Plaintiff entered into an agreement with Defendant No. 1 to purchase a house—Despite the plaintiff's readiness to fulfill the contract, Defendant No. 1, in collusion with Defendant No. 2, evaded execution of the sale deed. Defendant No. 2 filed a collusive suit, and both obtained a compromise decree—The trial court decreed specific performance in favor of the plaintiff—However, the High Court, invoking Section 20 of the Specific Relief Act, exercised discretionary powers, denying specific performance but awarding a refund to the plaintiff—The Supreme Court held that Defendant No. 2 was not a bona fide purchaser and there was no equity in his favor—The court allowed the appeal, setting aside the High Court's order and affirming sp...
Civil Procedure Code, 1908 (CPC)—Order 21 Rule 16, Section 47—Agreement to sell—High Court's order in a Review Petition, summarily dismissing it—The case involves a suit for specific performance, initially won by the plaintiff, later set aside in a Second Appeal—The plaintiff's legal representatives and the assignee (appellant) pursued the matter—The Supreme Court allowed the appeal, rejecting a belated objection to the appellant's locus standi—Subsequently, during execution proceedings, objections were raised questioning the validity of the assignment—The Executing Court and Revisional Court rejected these objections—However, the High Court, in a writ petition, directed the Executing Court to reexamine the assignment's validity—The Supreme Court held that the Hig...
Civil Procedure Code, 1908 (CPC)—Order 6 Rule 17, Order 7 Rule 11, Section 115, Section 151—Court set aside the High Court's order that recalled the allowance of an amendment to the plaint in a suit for specific performance—The trial court, while allowing the first application to amend the suit from injunction to specific performance, had not faced objections, and the suit was filed within the limitation period—The second amendment sought to rectify an inadvertent omission regarding the plaintiff's readiness and willingness to perform the contract, which did not alter the nature of the suit—Despite objections based on the limitation period for filing a specific performance suit, the court held that the second amendment was justified—The High Court's refusal to recall its order and insistence...
Civil Procedure Code, 1908 (CPC)—Section 100—Dispute over an agreement to sell a property, with the appellant and respondents being parties to conflicting agreements—The trial court decreed the suit in favor of the plaintiff-respondent for specific performance, but the first appellate court reversed part of the judgment based on the violation of the Karnataka Village Offices Abolition Act, 1961—The High Court, while dismissing the second appeal by the appellant and respondents, accepted the cross-objections by the plaintiff-respondent without formulating the question of law—The Supreme Court set aside the High Court's order, emphasizing that the High Court erred in not framing the questions of law arising from the first appellate court's findings—The case is remitted back to the High Court for a...
Transfer of Property Act, 1882—Section 43—Civil Procedure Code, 1908 (CPC)—Section 144—Specific Relief Act, 1963—Section 12(3)—Agreement to sell—An agreement to sell, a suit for specific performance, and the court's power to grant partial relief—The vendor, having only life interest, entered an agreement to sell his full interest, including the reversioners' interest, subject to court sanction—The court found that due to unforeseen reasons, the sanction wasn't granted within a reasonable time—The vendor, facing the threat of coercive tax recovery, withdrew from the contract, negotiated a new deal, and sold the property to another—The court held that the vendor, having waited reasonably for the sanction, didn't breach the contract—The subsequent vendee ...
Civil Procedure Code, 1908 (CPC)—Section 100—Limitation Act, 1963—Article 54—Performance of an agreement to sell—The trial court dismissed the suit, but the first appellate court allowed the appeal and directed the decree for specific performance—One of the defendants, claiming to be a mortgagee in possession and a bona fide purchaser without notice, filed second appeals, which the High Court summarily dismissed, finding no substantial questions of law—The Supreme Court, after hearing the parties, held that the appeals raised substantial questions of law, including interpretation of the agreement clause regarding the time of performance, the continuous readiness and willingness of the plaintiff, and the exercise of discretion in granting specific performance considering the delay in filing the sui...
Civil Procedure Code, 1908 (CPC)—Section 115—Appellant filed a civil suit for declaration of ownership and possession over a shop—The defendant, appellant herein, relied on an unregistered agreement to sell as evidence—The trial court rejected its admissibility, stating it was insufficiently stamped and not admissible for any purpose—The High Court, while acknowledging the trial court's flawed reasoning, erroneously delved into the merits of the agreement's validity under contract law—The Supreme Court held that the High Court exceeded its jurisdiction by addressing the agreement's substantive validity, as the revision's scope was limited to the admissibility of the document—The order virtually decided the suit prematurely—The Court set aside the High Court's order and re...
Constitution of India, 1950—Article 136—Agreement to sell, the central issue before the High Court was whether the plaintiffs, post-execution of the agreement, expressed inability and later refused to purchase the house, thereby waiving their pre-emption right—The Supreme Court, in its review, held that unless there is a total perversion in the findings of fact, interference is unwarranted—The High Court's judgment, grounded in the consideration of evidence, was deemed justifiable—The Court highlighted the proper contextual perspective adopted by the High Court in interpreting the language used in the notification, dismissing any need for intervention under Article 136 of the Constitution.The legal discussion also delves into the principles of talab in Muslim law, emphasizing the three facets: talab-e-muw...
An agreement for the sale of a property—The plaintiff alleged that the defendants agreed to sell the entire property to her, but the agreement only mentioned the ground floor—Despite the plaintiff's payment of Rs. 16,000, the defendants failed to convey the entire property—Both lower courts initially ruled in favor of the defendants, but on appeal, the Supreme Court held that the defendants had indeed agreed to sell the entire property—The court directed the defendants to execute a registered Sale Deed for the entire property, including the first floor, in favor of the heirs of the original plaintiff—The decision was made considering the clear terms of the agreement and the circumstances of the case—The court commended the legal representatives for their assistance. ...
Specific Relief Act, 1963—Section 20—High Court's decree for specific performance in favor of the plaintiffs—Upon reviewing the records and submissions, it is acknowledged that the plaintiffs were ready to fulfill the contract, while the defendants breached it—However, considering the construction of costly structures on the disputed land by the defendants, granting specific performance would cause undue hardship—Therefore, instead of executing a sale deed, the defendants are directed to pay Rs. 1,25,000 to the plaintiffs within six months, in two equal installments—Failure to comply will result in 12% interest—If paid within the stipulated time, no interest will be levied, and the decree will be considered satisfied—The appeal is disposed of accordingly, with no costs awarded. ...
Specific Relief Act, 1963 - Section 20 - Specific performance of contract - Agreement to sell - The relief of specific performance substituted with the relief of damages. ...
Specific Relief Act, 1963 - Sections 10 and 16 - Specific performance - Agreement to sell - Identification of property - Intention of the parties - Exclusion of common portion - ...