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2004 Supreme(SC) 917

2004(6) Supreme 331
SUPREME COURT OF INDIA
(From Kerala High Court)
Ashok Bhan & S.H. Kapadia, JJ.
Shamsu Suhara Beevi -Appellant
versus
G. Alex & Anr. -Respondents
Civil Appeal No. 3729 of 2000
Decided on 20-8-2004
Counsel for the Parties :
For the Appellant : E.M.S. Anam, Advocate.
For the Respondents : V.J. Francis, Advocate.

IMPORTANT POINT
In a suit for specific performance compensation u/s 21 of the Specific Relief Act either in addition to relief of specific performance or in substitution cannot be granted in absence of prayer made in plaint.

Headnote:Specific Relief Act, 1963-Sections 21(5) and 28-Suit for specific performance of agreement to sell suit property decreed on 24.7.1997 and respondent plaintiff deposited balance of sale consideration Rs. 34,66,385 on 23.10.1997 besides Rs. 10 lakhs already paid as earnest money-Sale deed was executed by defendant-Appellant on 17.8.1999-Application by plaintiff-respondent in 1997 to measure suit property to ascertain exact extent of land and another application claiming interest at 12% on Rs. 44,66,385/- from date of deposit till registration of sale deed-Trial Court allowed both applications and respondents-plaintiffs were permitted to recover Rs. 12,77,780/- -High Court found Section 28 of the Act would not be attracted but held respondents entitled to compensation u/s 21 of the Act-Appeal-Whether compensation could be awarded in a suit for specific performance in addition to or in substitution of specific performance of agreement without making a claim for such compensation either in original plaint or by amending the plaint? No.

       Held : It is admitted position before us that in the original plaint the respondents did not claim compensation for the breach of agreement of sale either in addition to or in substitution of the performance of the agreement. Further the respondents did not amend their plaint and ask for compensation either in addition to or in substitution of the performance of the agreement of sale. Sub-section (5) of Section 21 emphatically provides that no compensation shall be awarded under section 21(5) unless the relief for compensation has been claimed either in the plaint or included later on by amending the plaint at any stage of the proceedings. The need to file an execution petition did not arise as the appellant executed the sale deed on 17.8.1999. We have perused the application filed by the respondents. It is a simple application filed under Section 28(3) of the Act seeking permission to ascertain the extent of plaint schedule property by measuring the same with the help of Village Officer or by deputing an Advocate Commissioner and directing defendant/appellant to obtain no objection certificate from the Department of Income Tax, in addition the respondents prayed that they be permitted to recover interest @ 12% towards loss of income on the sale amount of Rs. 45,66,385/- from 23.10.1997, i.e., the date of deposit till delivery of the possession of the property. Permission seeking to amend the plaint to include the relief of compensation for breach of the contract in addition to the specific performance has not been made. The relief was claimed under Section 28 and not under Section 21 of the Act. The High Court came to the conclusion that Section 28 would not be applicable to the facts of the case but granted the relief under Section 21 of the Act. In our view, the High Court has clearly erred in granting the compensation under Section 21 in addition to the relief of specific performance in the absence of prayer made to that effect either in the plaint or amending the same at any later stage of the proceedings to include the relief of compensation in addition to the relief of specific performance. Grant of such a relief in the teeth of express provisions of the statute to the contrary is not permissible. On equitable consideration court cannot ignore or overlook the provisions of the statute. Equity must yield to law. (Para 11)

       The learned Single Judge has also erred in including the amount of cost which have been awarded in the main suit towards the amount of compensation. Of course, the plaintiff/respondents are entitled to recover the amount of cost which has been decreed in the main suit but the same cannot form part of compensation by way of additional relief to the specific performance of the agreement of sale. (Para 13)

       

JUDGMENT

Bhan, J.-The defendant/appellant (hereinafter referred to as "the appellant") entered into an agreement of sale with the plaintiff/respondents (hereinafter referred to as "the respondents") on 20.10.1994 for the sale of land measuring 15.125 cents owned by her at the rate of Rs. 3,15,000/- per cent for a total consideration of Rs. 44,66,385/-. The agreement was to be executed within a period of 3 months from the date of the execution of the agreement of sale. A sum of Rs. 10 Lakhs was paid by the respondents as advance/earnest money towards the sale consideration. As the appellant failed to execute the sale deed the respondents on 26.4.1995 filed a suit being O.S. No. 458 of 1995 in the Court of III Additional Sub-Judge, Ernakulam for specific performance of the agreement dated 20.10.1994. Appellant filed the written statement. The suit was decreed on 24.7.1997 in the following terms:

"1. That the defendants shall cause the plaint schedule property be sold in terms of Ext.A4 sale agreement dated 20.10.94 within three months from the plaintiffs depositing the balance sale consideration with the court after causing the property to be measured and satisfying the plaintiff about the measurements and complying the requirements under the Indian Income Tax rules and Act obtaining necessary sanction and permission and certificate from the authorities under the Income Tax Act. It is made clear that it shall not be the duty of the plaintiff to inform the defendant about the deposit of the balance sale consideration with the court and it is for the defendant to make enquiries with the office and ascertain as to whether the balance sale consideration was deposited by the plaintiffs with the court.

2. The plaintiff shall deposit the balance sale consideration with the court within three months from the date of this decree. The balance sale consideration shall be paid for the entire area shown in the plaint and if in any case it is found by measuring the property that the actual extent is short of the area shown in the plaint the plaintiff shall get back the amount paid in excess by them by taking into consideration of the difference if any found in the measurements.

3. If defendant fails to cause the registration of the sale deed as aforesaid within the time mentioned above the plaintiffs are at their liberty to move the court in execution for causing the sale deed executed and then it shall be the duty of the defendant to obtain necessary permission and sanction and certificate from the Income Tax authorities for the purpose of the sale in compliance with the requirements of the Indian Income tax Act and rules and shall take steps to get the property measured and the actual extent ascertained.

4. The defendant shall pay the cost of the plaintiffs in the suit."

This judgment became final as the appellant did not contest the case by filing further appeal.

2. Respondents in terms of the decree deposited the sum of Rs. 34,66,385/- in the Court as balance of the sale consideration on 23.10.1997 within the period of 3 months. The Court directed that the amount deposited be kept in a nationalised Bank and accordingly the amount was deposited in the Indian Bank, Mattancherry Branch. Respondents moved IA No. 5187 of 1997 for permission to measure the suit property to ascertain the exact extent of land and a direction to the appellant to obtain "no objection certificate" from the Department of Income Tax so that sale deed could be executed. On 17.2.1998 respondents moved another application, IA No. 851 of 1998, under Section 28(3) of the Specific Relief Act, 1963 (hereinafter referred to as "the Act") claiming interest @ 12% on Rs. 44,66,385/- (sale consideration) from the date of deposit of the amount till the registration of the sale deed and delivery of possession of the suit property. The sale deed was executed and registered by the appellant on 17.8.1999. It was found that clearance from the Department of Income Tax was not required. Soon af
































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