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2024 Supreme(SC) 495

SUPREME COURT OF INDIA
PANKAJ MITHAL, PRASHANT KUMAR MISHRA, JJ.
Rajesh Kumar – Appellant
Versus
Anand Kumar & Ors. – Respondents
Civil Appeal No. 7840 of 2023
Decided On : 17-05-2024

Advocates appeared:
For the Appellant(s) : M/S. Aura & Co., AOR Mr. Dhruv Agrawal, Sr. Adv. Mr. Yashish Chandra, Adv. Mr. Nishit Agrawal, AOR Mr. Kushagra Pandey, Adv. Mr. Harsh Bansal, Adv. Ms. Kanishka Mittal, Adv.
For the Respondent(s): Mr. Gagan Gupta, Sr. Adv. Mr. Rahul Gupta, AOR

IMPORTANT POINT
Agreement to Sell – If plaintiff, in a suit for specific performance is required to prove that he was always ready and willing to perform his part of contract, it is necessary for him to step into witness box and depose said fact and subject himself to cross-examination on that issue – Plaintiff cannot examine in his place, his attorney holder.

Headnote:

Specific Relief Act, 1963 – Section 12 – Civil Procedure Code, 1908 – Order 3 Rule 2 – Agreement to Sell – Suit for Specific Performance – If plaintiff, in a suit for specific performance is required to prove that he was always ready and willing to perform his part of contract, it is necessary for him to step into witness box and depose said fact and subject himself to cross-examination on that issue – Plaintiff cannot examine in his place, his attorney holder who did not have personal knowledge either of transaction or of his readiness and willingness – Term ‘readiness and willingness’ refers to state of mind and conduct of purchaser, as also his capacity and preparedness, one without other being not sufficient – A third party having no personal knowledge about transaction cannot give evidence about readiness and willingness – If Power of Attorney Holder has rendered some ‘acts’ in pursuance of power of attorney, he may depose for principal in respect of such acts, but he cannot depose for principal for act done by principal and not by him – Similarly, he cannot depose for principal in respect of matter of which only principal can have personal knowledge and in respect of which principal is entitled to be cross-examined – Suit having been preferred after a long delay, plaintiff is not entitled for specific performance – Judgment and decree passed by High Court upheld. (Paras 12, 18 and 19)

Facts of the case:

Appellant/plaintiff has called in question Judgment rendered by High Court of Madhya Pradesh dated 01.09.2016 in First Appeal No. 340 of 2003 allowing appeal preferred by respondent nos. 1 to 3/defendant nos. 12 to 14 thereby setting aside judgment and decree dated 25.04.2003 passed by Trial Court in Civil Suit.

Findings of Court:

In case in hand, plaintiff entered into an agreement with only one of co-owners and thereafter sought extensions for execution of sale deed but did not prefer any suit though he was aware of sale deed dated 14.05.1997 executed in favour of defendant nos. 12 to 14 and sent a legal notice on 30.05.1997 and even objected to subsequent purchasers’ application for mutation of their names in the revenue records on 20.08.1997 and refers to a meeting of the Gram Panchayat dated 06.12.1997, yet the suit was preferred, on 09.05.2000 on the last date of limitation.

Result : Appeal dismissed.

Judgement Key Points

Key Points: - The plaintiff must personally testify to readiness and willingness and cannot rely on an attorney-holder without personal knowledge. (!) (!) (!) - A Power of Attorney Holder can only depose for acts performed in pursuance of the power, not for acts requiring personal knowledge or for the principal’s acts. (!) (!) (!) (!) - The suit is dismissed where the plaintiff delays beyond the extended time for registration and where there is long delay after breach, with consideration of conduct and discretionary relief. (!) (!) (!)

What is the standard for proving readiness and willingness in a suit for specific performance?

What are the limitations on using a Power of Attorney Holder to depose for the plaintiff in a suit for specific performance?

What is the consequence of filing a suit for specific performance after a long delay or beyond the time extended for registration?


The appellant/plaintiff has called in question the judgment rendered by the High Court of Madhya Pradesh dated 01.09.2016 in First Appeal No. 340 of 2003 allowing the appeal preferred by the respondent nos. 1 to 3/defendant nos. 12 to 14 thereby setting aside the judgment and decree dated 25.04.2003 passed by the Trial Court in Civil Suit No. 38-A of 2000.

2. The facts of the case briefly stated, are that the appellant/plaintiff entered into an agreement to sell with respondent no. 4 (acting as Power of Attorney holder of respondents/defendant nos. 2 to 11) for purchase of land admeasuring 145.60 acres bearing Khasra No. 214 to 233 (except Khasra No. 225) and Khasra Nos. 67/1 to 212 situated at village Khirsau, Tehsil Sihora, District Jabalpur, M.P for sale consideration at the rate of Rs.3,000/- per acre, totalling Rs.4,41,000/-. The appellant/plaintiff paid earnest money of Rs.41,000/- on the date of agreement to sell and the balance amount was to be paid on the date of registration of the sale deed which was to be done within six months from the date of agreement.

2.1 On 22.05.1996, the appellant/plaintiff paid an additional amount of Rs.20,000/- for which an endorsement was made on the backside of the agreement. Further amount of Rs.40,000/- was paid on 30.06.1996 which too was endorsed on the backside of the agreement. On 26.12.1996, another agreement was executed between the appellant/plaintiff and the Power of Attorney Holder extending the execution of the sale deed till 31.03.1997, remaining terms being the same. The date was further extended to 31.05.1997 vide entry made in the subsequent agreement dated 26.12.1996. Another entry was made on 23.04.1997 mentioning that the agreement to sell shall come to an end on 31.05.1997.

2.2 However, the respondent/defendant no. 1 being the Power of Attorney Holder of respondents/defendant nos. 2 to 11 executed the sale deed of the suit land on 14.05.1997 in favour of respondent nos. 1 to 3/defendant nos. 12 to 14 even though the said respondents were aware of the earlier sale agreement and its extensions. The sale deed dated 14.05.1997 was executed behind the back of the appellant/plaintiff which came to his notice subsequently on which a legal notice was sent on 30.05.1997 calling upon the respondents/defendant nos. 1 to 11 to be present in the Registrar’s office at Sihora on 31.05.1997 to carry out the formalities for execution of the sale deed. Despite receipt of this notice, the respondents/defendant nos. 1 to 11 did not attend the Registrar Office. On 31.05.1997, the appellant/plaintiff was informed by the sub Registrar that the suit land has been sold in favour of respondent nos. 1 to 3/defendant nos. 12 to 14.

2.3 According to the appellant/plaintiff, he is in possession of the suit land, therefore, he objected to the application dated 20.08.1997 moved by the respondents/defendant nos. 12 to 14 for mutation of their names. The Gram Panchayat assured the appellant/plaintiff in its meeting dated 06.12.1997 that defendant nos. 12 to 14 will execute a sale deed in favour of the appellant/plaintiff, therefore, legal action was not initiated. The present suit was filed on 19.06.2000.

2.4 The respondents/defendants in joint written statement averred that the suit land is in possession of the respondent nos. 1 to 3/defendant nos. 12 to 14 being the bona fide purchasers for value paid vide registered sale deed dated 14.05.1997. It was pleaded that the respondents/defendants were not aware of any agreement to sell between the appellant/plaintiff and respondent nos. 1 to 11 and that the suit is barred by limitation. It was also pleaded that time was the essence of the contract and the sale deed was to be executed within six months from the date of the agreement and that the appellant/plaintiff did not have sufficient funds with him for payment of the sale consideration and the advance amount of Rs.40,000/- was also returned to the appellant/plaintiff through one Subhash Chandra Bansal. Th


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