1998(5) Supreme 56
Supreme Court of India
(From Karnataka High Court)
S.B. Majmudar & M. Jagannadha Rao, JJ.
Ganesh Shet -Appellant
versus
Dr. C.S.G.K. Shetty & Ors. -Respondents
Civil Appeal No. 1347 of 1988
Decided on 15-5-1998
Counsel for the Parties :
For the Appellant : R.F. Nariman, Sr. Advocate, Girish Ananthamurthy, G.V. Chandrasekhar, B.Y. Kulkarni, Advocates.
For the Respondent No. 1 : M. Rama Jois, Sr. Advocate, P. Mahale, Advocate.
For the Respondent Nos. 2-3 : G.L. Sanghi, Sr. Advocate, T.V. Ratnam, Advocate.
(ii) Specific Relief Act, 1963-Section 20-Specific performance of contract - Relief sought on basis of concluded contract on 28.1.1984 at Bangalore which is different from that sought in original plaint-Cannot be given as plaintiff, rejected opportunity given by High Court for amendment of plaint. (Paras 8 and 9)
(iii) Specific Relief Act, 1963-Section 20-Civil Procedure Code, 1908-Order 7, Rule 7-Specific performance of contract-Decree for-Grant of-Exercise of discretion-Principles-Variance between contract pleaded and contract proved on basis of evidence adduced-Relief on basis of contract proved in evidence but not pleaded in original plaint-Cannot be permitted as that amounts to giving effect to a contract which was not the agreement between the parties according to plaintiff-Further, other relief sought for must also be consistent with pleading and proof. (Para 11)
(iv) Specific Relief Act, Sections 16 and 20-Civil Procedure Code, 1908-Order 7, Rule 7-Specific performance of contract-Relief-Plaintiff in original plaint pleading concluded contract on 25.1.1984 at Delhi-However, oral and documentary evidence-Does not prove existence of concluded contract on 25.1.1984 at Delhi-Plaintiff alleging at stage of evidence, a concluded contract on 28.4.1984 at Bangalore - Said allegation assumes absence of concluded contract on 25.1.1984 at Delhi-No specific allegation by plaintiff of any fresh contract on 28.4.1984 at Bangalore in the plaint-Also, relief sought in plaint only with respect to concluded contract on 25.1.1984 at Delhi - Moreover, opportunity granted by High Court to amend plaint for proof of contract on 28.4.1984 and for specific performance of such contract-Rejected by plaintiff-Evidence and correspondence between parties does not establish concluded contract on 28.4.1984 at Bangalore-Hence, no concluded contract on 28.4.1984 at Bangalore-Case not coming within exceptions mentioned in Sections 16 and 20 of 1963 Act-General relief under Order 7, Rule 7, ref=act:10444>CPC on basis of alleged concluded contract of 28.4.1984 at Bangalore-Not permissible even if proved-Exercise of discretion by High Court in refusing to grant decree for specific performance-Not perverse or contrary to established principles. (Paras 13 to 16)
Key Points: - The court holds there was no concluded contract on 25.1.1984 at Delhi, based on pleadings and subsequent correspondence. (!) - The plaintiff’s attempt to obtain relief for a Bangalore agreement on 28.4.1984 was rejected due to failure to amend plaint and lack of proveability under the pleaded case. (!) (!) (!) (!) - Section 20 discretionary principles: relief for specific performance requires clear and certain proof of the contract; disputes between pleading and proof are resolved by strong judicial principles, not by liberal liberalization of pleadings. (!) (!) (!) (!) - General relief under Order 7 Rule 7 CPC may be granted only if consistent with pleading and proof; not to override the pleaded contract. (!) (!) - Court refused to grant decree for a contract not pleaded (28.4.84) and found no part performance or immaterial variation to justify granting relief on the proved evidence. (!) (!)
Judgment
M. Jagannadha Rao, J.-The appellant is the plaintiff. He filed the suit O.S. No. 50 of 1985 for specific performance of an agreement of sale of house property located at Shimoga, Karnataka State executed in his favour. He succeeded in the trial Court but on appeal by the Vendors-defendants, the Judgment of the trial Court was set aside by the High Court and the suit was dismissed. Against the said Judgment of the High Court, this appeal was preferred.
2. The case of the appellant in the suit filed on the file of the Civil Judge, Shimoga was as follows : The defendants 1 to 3 are three brothers and are joint owners of the house at Shimoga. The 1st defendant who was a Professor was working at Delhi (now retired); the 2nd defendant was at Madras and the third defendant was at Bangalore. The defendants No. 2 and 3 gave powers-of-attorney to the 1st defendant. There were consultations between plaintiff and the 1st defendant which started in 1983 by way telephone calls and letters and after the negotiations reached a final stage’ the 1st defendant wanted the plaintiff to come to Delhi “for finalising” the proposals. The plaintiff took along with him, one Mr. R.K. Kalyankar (PW 2) to help him in the negotiations. They took two Bank drafts for Rs. 50,000/- and Rs. 10,000/- respectively and reached Delhi in January 1984. On 25.1.1984, at the residence of the 1st defendant, a draft agreement of sale was approved’ by the 1st defendant with small changes made in his own handwriting and the 1st defendant told the plaintiff `that he has approved the draft and “the contract was concluded”. (The photocopy of the agreement was filed and its original was marked as Ex. P3). The agreed consideration was Rs. 5 lakhs and the purchaser agreed to bear the stamps and registration charges. It was also agreed that the sale deed was to be executed on or before 30.6.1984 or within a reasonable time and that thereafter the plaintiff would be put in possession. The 1st defendant did not accept the Bank drafts but said he would accept the entire consideration in one lump sum at the time of registration. The plaintiff returned to Shimoga and the further correspondence only confirmed that the defendants would execute the sale deed’. The plaintiff received a telegram (Ex. P 7 dated 4.4.84) addressed to PW 2 that the terms of the agreement were acceptable. Further, the 3rd defendant also “confirmed” the terms of the agreement by letter dated 11.4.84 (Ex. P 6). The plaintiff received another letter dated 18.4.1984 (Ex. P 4) which stated that 1st defendant would be coming over to Bangalore on 28.4.1984. They met at Bangalore and it was agreed that plaintiff was to be ready with the entire sale consideration by about 3rd week of June 1984. The plaintiff raised finances by selling some of his properties. The plaintiff was ready and willing to perform the contract. The 1st defendant came to Shimoga on or about 17.6.1984 but surprisingly he did not meet the plaintiff. On the other hand defendants gave a paper advertisement on 26.6.84 for sale of the house. Plaintiff then got a regd. notice dated 2.7.84 (Ex. P 12) issued and defendants 2 and 3 give a reply dated 31.7.84 (Ex. P 16). The suit was laid for specific performance of the agreement of sale said to be dated 25.1.84 entered into at Delhi and for possession and also for permanent injunction restraining alienation by defendants.
3. A written statement was filed by the 1st defendant contending mainly that there was correspondence between parties, the negotiations did not reach any ‘final’ stage and that there was ‘no concluded contract’. There were only proposals and counter proposals. Sale consideration was not Rs. 4 lakhs. The 1st defendant had an obligation to consult his brothers. They were not willing for a consideration of Rs. 5 lakhs. The 1st defendant did not state, as contended, in any telegram dated 4.4.84 nor any letter dated 11.4.84. PW 2 sent another draft agreement (Ex. D 11) alongwith hi
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