SUPREME COURT OF INDIA
VIKRAM NATH, PRASHANT KUMAR MISHRA, JJ.
Shyam Kumar Inani – Appellant
VERSUS
Vinod Agrawal & Ors. – Respondents
Civil Appeal No. 2845 of 2015 With Civil Appeal No. 2846 of 2015 Civil Appeal No. 2850 of 2015 Civil Appeal No. 2847 of 2015 Civil Appeal No. 2848 of 2015 Civil Appeal No. 2852 of 2015
Decided On : 12-11-2024
(A) Specific Relief Act, 1963 – Section 20 – Agreement to sell – Suit for specific performance – Present case is one of non-concurrent judgement, where Trial Court, after appreciating and analysing evidence on record, decreed suit, however High Court, on appeal, reversed findings of Trial Court and dismissed suit for specific performance – Plaintiff-appellants discharged their burden of proving transaction between owner of property and plaintiffs, passing of consideration and execution of Agreement to Sell – Considering evidence on record with regard to execution of Agreement to Sell, same had been validly proved by plaintiff-appellants and defendants had failed to establish their claim that it was a forged document – On issue of limitation, it was second part of Article 54 of Schedule to Limitation Act which would be applicable once there was no date fixed for performance in Agreement to Sell – High Court fell in error in holding that suit is barred by limitation – Purchaser who has paid full consideration and received original title deeds from seller would have taken possession under normal circumstances – Any possession taken by any other party thereafter would be unauthorised and illegal – Conduct of original defendants disentitles them from any discretion being exercised in their favour, as they blatantly and knowingly violated interim injunction order. (Paras 23, 26, 27, 30, 32 and 33)
(B) Specific Relief Act, 1963 – Section 20 – Agreement to sell – Suit for specific performance – Power of Attorney was himself one of vendees and all transactions in six suits having taken place simultaneously on same day, same time and at same place he was well aware personally of all facts – Subsequent purchasers and intervenors who had further purchased property from third parties, will only get rights of their vendors – If vendors did not have any rights, vendees cannot be said to be in any better position – Impugned judgment and order of High Court set aside in all six appeals, and that of Trial Court restored – Impleadment/intervention application(s) filed by subsequent purchasers allowed. (Paras 35, 36 and 37)
Facts of the case:
Six appellants are plaintiffs in a suit for specific performance of a contract. Trial Court decreed suit. However, High Court, on first appeal, allowed appeal, set aside the order of Trial Court and dismissed the suit. Aggrieved, present appeals by the plaintiffs.
Findings of Court:
All the respondents, including the newly added respondents, shall execute sale deed in favour of appellants as per directions of Trial Court.
Result : Appeals allowed.
Key Points: - A purchaser who pays full consideration and receives original title deeds would have taken possession under normal circumstances; any later possession by others is unauthorized (!) (!) . - Subsequent purchasers and intervenors who further purchased property from third parties will only get rights of their vendors; if vendors lacked rights, vendees cannot be in a better position (!) . - When no specific time for performance is fixed in an agreement to sell, limitation runs from the date of refusal by the seller; the suit filed within three years was not barred (!) . - The conduct of original defendants disentitles them from discretion in their favor, as they blatantly and knowingly violated an interim injunction order (!) . - The appellants discharged their burden of proving the agreement, payment of full consideration, and execution, while defendants failed to establish forgery (!) (!) .
JUDGMENT
VIKRAM NATH, J.
1. The six appellants are the plaintiffs in a suit for specific performance of a contract. The Trial Court decreed the suit. However, the High Court, on first appeal, allowed the appeal, set aside the order of the Trial Court and dismissed the suit. Aggrieved, the present appeals by the plaintiffs.
2. The dispute relates to 23.98 acres of Khasra Nos.546, 547 and 548 situate in village Godar Mau, Tehsil Huzur, District Bhopal. It is an admitted position between the parties that a larger area measuring 27.56 acres of the aforesaid three khasra numbers was purchased by one Sushila Bai, wife of late Chandra Mal Aggarwal, vide registered sale deed dated 29.04.1966 executed by erstwhile owner Vijay Chhatti for a sale consideration of Rs.7,000/-. Based on the said instrument, the name of Sushila Bai was mutated in land revenue records.
3. The appellants filed separate suits for specific performance in May, 1995 against the legal heirs of Sushila Devi.
4. It would be relevant to mention here that in the plaint, defendant nos.1, 2, 3, 4 and 5 were the other legal heirs of late Sushila Devi. We have mentioned the name of Kailash Aggarwal separately as he had a distinct role to play in the entire transaction. The sequence of events which would be discussed and pleaded upon at a later stage will reflect upon the role of Kailash Aggarwal. However, needless to say that Kailash Aggarwal was the eldest son of Sushila Devi. All the plaints are more or less identically worded, as such, we are not giving any specific details of the separate suit schedule property for each of the plaint, but we have generally dealt with the plaint allegations. Briefly stated the plaint allegations are as follows:
b) Details of the land covered and the sale consideration with respect to six Agreement to Sell are as follows:
| S. No. | Khasra No. | Area | Consideration | Name of Purchaser |
| 1. | 548 | 3.48 acres | Rs.58,000/- | Bharat Kumar Lathi |
| 2. | 547 | 3.50 acres | Rs.70,000/- | Shyam Kumar Inani |
| 3. | 547 | 4.0 acres | Rs. 80,000/- | Suryakanta Maheshwari w/o KD Maheshwari |
| 4. | 547 | 4.0 acres | Rs. 80,000/- | Ram Kumar Inani |
| 5. | 546 | 4.50 acres | Rs. 90,000/- | Sangeeta Maheshwari d/o K.D. Maheshwari |
| 6. | 546 | 4.50 acres | Rs. 90,000/- | K.D. Maheshwari |
d) As the entire sale consideration had been paid as per the contents of the Agreement to Sell, the appellants were put into possession also. The original title deed of 1966 in favour of Sushila Devi was also handed over to the appellants. The witnesses to the Agreement to Sell were Dipesh Chandra Patni PW-2 and one Mr. Sharma. As the entire sale consideration had been paid, the time was not the essence of contract and the same was also incorporated in the Agreement to Sell in clause 6. Smt. Sushila Devi executed
a registered General Power of Attorney in favour of M.K. Maheshwari on 04.09.1990. She died on 25.12.1992 leaving behind the respondent nos. 1, 2, 3, 9 and 10 as her legal heirs and representatives.
e) The legal heirs applied for mutation of their names over the suit schedule property to which objectio
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