IMPORTANT POINT
Existence of a valid and enforceable contract pre requisite for exercising jurisdiction to order specific performance.

JUDGMENT :

M.Y. Eqbal, J.

The question that needs consideration in the instant appeal is as to whether the so called agreement to sell dated 6.1.1995, which is extracted hereinbelow, is enforceable in law for passing a decree for specific performance of contract. The said agreement reads as under :-

“RECEIPT + AGREEMENT DATED 6.1.1995

Received a sum of amount Rs.2,30,000/- (Two Lac Thirty Thousand) from Karan Singh S/o Sh. Basti Ram R/o Village and PO Mahipal Pur New Delhi-110 037 on sixth January, 1995 against our DDA alternative plot F.No.32(5)113/87/L&B/Alt./2511 dated 11.8.1989 in the name of Sh. Jaishi S/o Sh. Ram Saran R/o V&PO Mahipalpur New Delhi. The total area of the above said plot is 400 Sq.Yds. The total premium settled for the above said plot is Rs.4,60,000/- (Four Lacs Sixty Thousand) will be given at the time of receive the lease after execution at the Registrar Office. No payment will be given in between.”

Sd/-

Jaisi Ram

In the presence of S/o Ram Saran

J.N. Sehrawat Village Mahipal Pur

V& PO Mahipal Pur

New Delhi-110037.

2. The trial court after recording the evidence decreed the suit of plaintiff-respondent for specific performance and the High Court by the impugned judgment dismissed the appeal filed by the appellant and affirmed the decree passed by the Trial Court.

3. We have heard learned counsel appearing for the parties.

4. The plaintiff’s case in the plaint is that a decision was taken by the Delhi Development Authority for allotment of a plot of land measuring 400 Sq.yds. in favour of the defendant-respondent. It was pleaded that in the year 1995 the defendant had desired to sell his right in the said recommendation letter which was to be allotted by the DDA in favour of the defendant. It was further pleaded that the defendant agreed to sell his right in the aforesaid recommendation letter and the plot to be allotted at a price of Rs.4,60,000/-. For better appreciation para 6 of the plaint is extracted hereinbelow :-

“6. That the negotiations in between the parties had taken place and the plaintiff had agreed to purchase the said rights of the defendant in the said recommendation letter and the plot to be allotted thereto. The dealings were finalized and a Receipt-cum-Agreement (for short Agreement) was also executed in between the parties on January 6, 1995.

It is stated that the defendant had agreed to sell his rights in the aforementioned recommendation letter and the plot to be allotted thereunder to the plaintiff for the sale consideration of Rs.4,60,000/- (Rupees Four lakhs and Sixty thousand only). A sum of Rs.2,30,000/- (Rupees Two Lakhs and Thirty Thousand only) was also paid by the plaintiff to the defendant on January 6, 1995 itself. Vide the said agreement dated January 6, 1995, the defendant had acknowledged receipt of the sum of Rs.2,30,000/- (Rupees Two Lakhs Thirty Thousand only) from the plaintiff. It was further agreed that the balance amount of Rs.2,30,000/- (Rupees Two Lakhs Thirty Thousand only) would be paid by the plaintiff to the defendant when the defendant hands over the original lease deed duly executed by the Delhi Development Authority in favour of the defendant.”

5. Curiously enough although the total sale consideration fixed was Rs. 4,60,000/- but the suit was valued at Rs.6,77,262.75p. on the basis of the value fixed by the DDA in respect of the plot in question.

6. During the pendency of the suit in the trial court the original defendant who was an old person died and his legal representative was substituted. The original defendant as also the legal representative contested the suit denying and disputing the alleged receipt-cum-agreement and stated that no decree for specific performance can be passed. The trial court held that the receipt-cum-agreement is a legal and valid agreement to sell and shall be enforced by passing a decree for specific performance. The High Court on the basis of evidence adduced by the parties affirmed the finding recorded by the trial court.

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