SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2023 Supreme(SC) 430

SUPREME COURT OF INDIA
M.R. SHAH, C.T. RAVIKUMAR, JJ.
T.D. Vivek Kumar & Anr. - Appellants
Versus
Ranbir Chaudhary - Respondents
Civil Appeal Nos. 2514-2516 of 2023
Decided on : 28-04-2023

Advocates appeared:
For the Appellant(s) : Mr. Amit Anand Tiwari, AOR
For the Respondent(s): Mr. Daya Krishan Sharma, AOR

IMPORTANT POINT
Plaintiff being a party to agreement to sell is bound by terms and conditions stipulated in sale agreement.

Headnote:

Specific relief Act, 1963 – Section 20 – Agreement to sell – Suit for Specific Performance – Rejection of suit with direction for recovery of earnest money – As per sale agreement, on failure on part of seller to execute sale deed within stipulated time, purchaser/buyer shall be entitled to double of amount given as advance – Plaintiff being a party to agreement to sell is bound by terms and conditions stipulated in sale agreement – Trial Court as well as First Appellate Court as such rightly refused to pass decree for specific performance of sale agreement and rightly passed decree for recovery of Rs. 4 lakhs being double amount given as an advance which as such was in consonance with clause 2 of sale agreement – Judgment passed by High Court set aside and judgment and decree passed by Trial Court affirmed by First Appellate Court restored. (Paras 6.3 and 8)

Facts of the case:

Feeling aggrieved and dissatisfied with impugned judgment and order passed by High Court of Punjab and Haryana at Chandigarh in Review Application No. 149-C/2016 in RSA No. 596/2012 and XOBJC 10C/2010, original defendants have preferred the present appeals.

Findings of Court:

High Court has materially erred in setting aside concurrent judgment(s) of Trial Court as well as First Appellate Court refusing to pass the decree for specific performance and passing decree for recovery of Rs. 4 lakhs being double amount of advance paid. Under the circumstances, impugned judgment and order passed by High Court is unsustainable.

Result : Appeals allowed.

JUDGMENT :

M.R. SHAH, J.

1. Feeling aggrieved and dissatisfied with the impugned judgment and order passed by the High Court of Punjab and Haryana at Chandigarh in Review Application No. 149-C/2016 in RSA No. 596/2012 and XOBJC 10C/2010, the original defendants have preferred the present appeals.

2. The facts leading to the present appeals are as under: -

2.1 That a “sale agreement” was entered into between appellant No. 1 as attorney of appellant No. 2 (original defendants) and the respondent herein (original plaintiff) for sale of the suit plot in question for a consideration of Rs. 17,61,700/-. The date for execution and registration of sale deed was tentatively fixed as 18.09.2004. A total amount of Rs. 2 lakh was paid as earnest money by the respondent. That thereafter, respondent – original plaintiff instituted the civil suit in the Court of Additional Civil Judge (Senior Division), Faridabad, seeking specific performance of sale agreement and consequential relief of injunction. The suit was resisted by the appellants herein – original defendants on all grounds including the ground that even as per the agreement to sell and on failure of the defendants to execute the sale deed, the plaintiff shall be entitled to double the amount given as an advance and therefore, the plaintiff is not entitled to the decree for specific performance.

2.2 The learned Trial Court vide judgment and decree dated 16.01.2010 refused to pass a decree for specific performance of the sale agreement, however, decreed the suit for recovery of Rs. 4 lakhs i.e., double of the earnest money paid by the plaintiff in accordance with the contract i.e., sale agreement.

2.3 The First Appellate Court dismissed the appeal. Feeling aggrieved and dissatisfied with the judgment and decree passed by the learned Trial Court confirmed by the First Appellate Court refusing to grant the relief of specific performance of the sale agreement, the respondent herein – original plaintiff preferred the second appeal before the High Court. The appellant(s) also filed the cross objection in the second appeal on the findings recorded by the learned Trial Court and the First Appellate Court that the plaintiff was ready and willing to perform his part of the contract. By the impugned judgment and order dated 27.07.2016 the High Court allowed the second appeal by way of overturning the concurrent judgments of the learned Trial Court confirmed by the First Appellate Court and consequently, granted the relief of specific performance of the sale agreement by observing that as the plaintiff was ready and willing to perform his part of the contract and therefore, he is entitled to the decree for specific performance. The High Court dismissed the cross objection preferred by the appellants – original defendants.

2.4 That aggrieved by the judgment and order dated 27.07.2016 passed by the High Court allowing the second appeal and dismissing the cross objection, the appellants herein preferred Special Leave Petition (C) Nos. 32215-32216/2016 before this Court. The appellants were relegated to file a review petition before the High Court as according to the appellants the High Court did not consider the relevant clauses of the sale agreement which as such were considered by the learned Trial Court as well as the First Appellate Court.

2.5 That thereafter, the appellants filed the present Review Application No. 149/2016 before the High Court. By the impugned judgment and order the High Court has dismissed the review application by observing that there is no error apparent on record and no ground for review is made out. Hence, the present appeals.

3. Shri Guru Krishna Kumar, learned Senior Advocate appearing on behalf of the appellants – original defendants, has vehemently submitted that in the facts and circumstances of the case the High Court has committed a very serious error in dismissing the review application which as such was filed pursuant to the liberty reserved by this Court. It is submitte


Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top