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2022 Supreme(SC) 913

SUPREME COURT OF INDIA
B.R. GAVAI, C.T. RAVIKUMAR, JJ.
M/s. Shivali Enterprises - Appellant
Versus
Smt. Godawari (Deceased) Thr. Lrs. and Others - Respondents
Civil Appeal Nos. 8904-8907 of 2010
Decided On : 13-09-2022

Advocates appeared:
For the Appellant(s) : Mr. Rishi Malhotra, AOR
For the Respondent(s): Mr. S.R. Singh, Sr. Adv. Mr. Siddharth Sengar, Adv. Mr. Gaurav Lomes, Adv. Mr. Prithvi Yadav, Adv. Mr. A. Venayagam Balan, AOR Mr. Abhishek Atrey, AOR

The High Court's jurisdiction in second appeal is limited to errors in law or procedure and does not extend to re-examining or re-appreciating facts settled by the lower courts.

Headnote:

Interference with Concurrent Findings - Agreement to Sell - Punjab Courts Act, 1918 - Section 41 - Specific Performance - Sale Deed - ITC Certificate - Revenue Records - Possession - Second Appeal - Error in Law or Procedure - Contrary to Law or Custom - Failure to Determine Material Issue of Law - Gross or Inexcusable Error in Fact - Re-examination of Evidence - Perversity - Specific Relief Act, 1963 - Section 14 - Right to Alienate Property

Fact of the Case:

The appellant-plaintiff entered into an agreement to sell with the respondents-defendants for a property in Uttar Pradesh, which later became part of Haryana. Dispute arose when the sale deed could not be executed due to a dispute between the states. The appellant-plaintiff filed a suit for specific performance, which was decreed by the trial court and upheld by the Appellate Court. The High Court, in second appeal, reversed the concurrent findings and directed the appellant-plaintiff to pay the prevalent market rate for specific performance.

Finding of the Court:

The High Court erred in interfering with the concurrent findings of fact recorded by the trial court and the Appellate Court. The appellant-plaintiff was justified in filing the suit as the respondents-defendants were trying to alienate the property. The High Court's judgment did not discuss the issue of perversity and did not explicitly bring to light any fact justifying interference.

Issues: Interference with Concurrent Findings, Specific Performance, Right to Alienate Property, Error in Law or Procedure, Perversity

Ratio Decidendi: The High Court's jurisdiction in second appeal is limited to cases contrary to law or custom, failure to determine material issue of law, or gross error in procedure. The High Court cannot re-examine or re-appreciate facts settled by the lower courts. The High Court erred in interfering with the concurrent findings without demonstrating perversity or error in law.

Final Decision: The appeals are allowed, the High Court's judgment is quashed, and the judgments and decrees of the trial court and the Appellate Court are upheld.

JUDGMENT :

B.R. Gavai, J.

1. These appeals challenge the judgment dated 3rd March 2008 passed by the learned Single Judge of the High Court of Punjab and Haryana at Chandigarh in Regular Second Appeal Nos.1206 and 1207 of 2005, thereby allowing the appeals filed by the respondents-defendants challenging the concurrent judgments and decrees dated 3rd January 2001 passed by the Additional Civil Judge (Senior Division), Faridabad (hereinafter referred to as the “trial court”) in RBT 329/90/2000, and 8th February 2005 passed by the learned District Judge, Faridabad (hereinafter referred to as the “Appellate Court”) in Civil Appeal No. 11 of 2001. Vide the impugned judgment, the learned Single Judge of the High Court directed that, if the plaintiff desires to get the sale deed executed pursuant to the agreement(s) to sell, he would do so by paying the present prevalent market value as sale consideration. The appellant-plaintiff has also assailed the order dated 10th April 2008 passed by the learned Single Judge of the High Court, thereby dismissing the review applications being R.A. No. 19-C of 2008 in R.S.A. No. 1206 of 2005 and R.A. No. 18-C of 2008 in R.S.A. No. 1207 of 2005, filed by the appellant-plaintiff.

2. Facts in brief giving rise to the present appeals are as under :

The appellant-plaintiff through its partner Raj Kumar, entered into an agreement to sell dated 29th October 1983 with the respondents-defendants No. 1 to 4 with regard to the suit property, which was situated in the revenue estate of Chak Salarpur, Tehsil Dadri, District Ghaziabad (U.P.), at the rate of Rs.2900/- per Bigha. Though the suit property initially was in the State of U.P., vide notification of the Central Government dated 15th September 1983, it became a part of the State of Haryana. At the time of agreement to sell dated 29th October 1983, earnest amount of Rs.50,000/- was paid by the appellant-plaintiff to the respondents-defendants.

3. Due to a dispute between the State of U.P. and Haryana, the aforesaid sale deed could not be executed in favour of the appellant-plaintiff. Therefore, another agreement to sell was executed between the parties on 23rd August 1985. At the time of execution of the said agreement, an additional amount of Rs.1,00,000/- was paid by the appellant-plaintiff to the respondents-defendants. It is not in dispute that the total amount payable as per the terms of the agreement to sell dated 29th October 1983 was Rs.1,65,000/- out of which, an amount of Rs.1,50,000/- was duly received by the respondents-defendants on or before 23rd August 1985. As per the terms of the agreement(s) to sell, the remaining sale price was to be paid before the Sub-Registrar at the time of execution and registration of sale deed. It is not in dispute that the physical possession of the suit property was also delivered to the appellant-plaintiff by the respondents-defendants at the time of execution of the agreement(s) to sell. It is also not in dispute that the appellant-plaintiff is thereafter in continuous possession of the suit property.

4. As per the terms of the agreement(s) to sell, the respondents-defendants were required to obtain Income-Tax Clearance (for short “ITC”) Certificate and to also get the revenue records mutated to show them as the owners inasmuch as the Central Government was shown as the owner mistakenly. The agreement to sell further stipulated that, in case of default by the respondents-defendants, the appellant-plaintiff was at liberty to get the sale deed executed and registered.

5. After coming to know that the respondents-defendants were trying to create 3rd party rights, the appellant-plaintiff filed a suit for specific performance with further prayer for permanent injunction as against the respondents-defendants. The said suit was resisted by the respondents-defendants by filing their written statement. The learned trial court vide judgment and decree dated 3rd January 2001 decreed the suit. In an appeal filed by the respond


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