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SUPREME COURT OF INDIA
PATTANAIK, J
NAHAR SINGH
Vs.
HARNAK SINGH
Decided on October 29, 1996
Key Points from the legal document:
The appeal concerns a suit for specific performance of an agreement of sale where the respondent agreed to sell land measuring 4 bighas 15 biswas at a specified price, with an intention to execute the sale deed by a certain date. The appellant claimed to have paid part of the consideration and was ready to perform his part of the contract (!) .
The respondent denied the allegations, contending that the appellant borrowed money and executed a pronote for a different purpose, and that the suit for specific performance was based on a false premise (!) .
The lower courts examined the validity of the agreement and found that the agreement was vague regarding the exact area and boundaries of the land, and that it was entered into primarily to save stamp duty and registration fees, which was against public policy (!) (!) .
The appellate courts dismissed the suits, holding that the property was not sufficiently identifiable, and that the agreement was therefore unenforceable for specific performance. The courts also noted that the agreement was void due to its being undervalued to evade stamp duty (!) (!) .
The appellant's argument that the courts should enforce the agreement because it was valid and the parties intended to perform it was rejected, as enforceability depends on the property being clearly identifiable (!) .
The courts emphasized that without clear identification of the property, a decree for specific performance cannot be granted. The fact that the agreement was entered into is insufficient if the property cannot be precisely located or described (!) .
The higher courts confirmed the lower courts' findings, and the appeal was dismissed, reinforcing that enforceability of a contract for specific performance hinges on the property being identifiable and the agreement not being contrary to public policy (!) .
The courts also clarified that interference under constitutional provisions is not warranted when the factual findings are supported by the record, especially regarding the vagueness of the property description (!) .
No costs were awarded, and the decision was final, emphasizing the importance of clear property descriptions in agreements for sale and the limitations on granting specific performance where such clarity is lacking (!) .
These points highlight the principles that enforceability of specific performance depends on clear identification of the property and compliance with legal and policy standards.
( 1 ) DELAY condoned
( 2 ). Leave granted.
( 3 ). This appeal by special leave is directed against the judgment dated 9/5/1995, of the High court of Punjab and Haryana in Regular Second Appeal No. 220 of 1995. The appellant filed the suit for specific performance of the agreement of sale dated 28/11/1984, alleging therein that the respondent had agreed to sell his land measuring 4 bighas 15 biswas Rs. 7,500. 00 per bigha and agreed to execute the sale deed by 15/6/1985. Part of the money was paid as earnest money and remaining amount of Rs. 23,000. 00 was to be paid before the Sub-Registrar at the time of registration of the sale deed. It was further alleged that Rs. 2. 50 paise were paid as writing charges of pronote and pronote was executed for Rs. 11,050. 00 but no amount was paid in cash to the appellant by the respondent as recited in the pronote. The appellant further urged that he was and is still ready and willing to perform his part of the contract but the respondent committed breach and did not execute the sale deed. And therefore, a suit was filed for the relief of specific performance, as already stated. The respondent resisted the said suit by denying the allegations made in the plaint. It was further pleaded that the appellant had borrowed a sum of Rs. 11,050. 00 from the respondent and executed a pronote and therefore, he had filed a suit for recovery of the amount along with interest which had been registered as Suit No. 463 of 1987. He accordingly prayed for dismissal of suit for specific performance. In the suit filed by Hamak Singh for realisation of the sum of Rs. 11,050. 00 together with the interest thereon, Nahar Singh took the plea that he had never taken any money as alleged and never executed any pronote. Both these suits were tried together and disposed of by a common judgment dated 31/1/1990. The suit filed by Hamak Singh for recovery of money was dismissed (Civil Suit No. 463 of 1987, the suit filed for specific performance by Nahar Singh was decreed (Civil Suit No. 181 of 1988. Two appeals were preferred by Hamak Singh and the learned Additional District Judge, Sangrur by his judgment dated 13/9/1994 came to hold that the agreement dated 28/11/1984 (Exhibit D-l) is not enforceable and no specific performance of the said agreement can be ordered as the property in respect of which the agreement had been entered into is vague and unidentifiable. He further found that the said agreement Exhibit D-l having been deliberately undervalued to save the stamp duty and registration fee, is void on the ground of public policy.
( 4 ). So far as the suit filed by Hamak Singh for recovery of money is concerned, the Lower Appellate court affirmed the findings of the trial Judge and confirmed the dismissal of the suit for recovery of the money on the basis of the alleged pronote. Thus the Lower Appellate court ultimately dismissed both the suits. Regular second appeal having been carried to the High court, the High court agreed with the conclusion of the Lower Appellate court with regard to the vagueness of the property in respect of which the agreement had been entered into and therefore, dismissed the second appeal, and thus the present appeal by special leave.
( 5 ). The learned counsel for the appellant vehemently argued that the parties having entered into an agreement whereunder the respondent agreed to execute the sale deed in respect of the property in question and the courts below not having found the agreement to be invalid, committed error in denying the relief of specific performance and, therefore, this court should interfere with the judgment and decree of the Lower Appellate court as confirmed by the High court in second appeal, so far as it relates to the suit for specific performance. The learned counsel for the respondents, on the other hand contended, that the findings of the Lower Appellate court that the agreement in question was vague and the property for which the agreement had been entered i
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