SUPREME COURT OF INDIA
J.B. PARDIWALA, R. MAHADEVAN, JJ.
Rohit Kochhar – Petitioner
Versus
Vipul Infrastructure Developers Ltd. and Others – Respondents
Special Leave Petition (Civil) Nos. 10169-10171 of 2008
Decided On : 26-11-2024
(A) Civil Procedure Code, 1908 – Section 16(d) – Transfer of Property Act, 1882 – Section 55 – Return of plaint – Suit for specific performance and permanent injunction – Even if suit for specific performance is decreed without a specific decree for transfer of possession of suit property, same can be enforced only when trial court directs defendants to convey suit property to plaintiff by getting a sale deed registered with respect to suit property, as it is only after registration that transfer of title would take place from defendants to plaintiff – Registration of sale deed in present case would have to take place at Gurugram as suit property is situated there – Sale deed is not sought to be registered at Delhi – Such a relief cannot be obtained entirely by personal obedience of defendants as defendants will have to go to jurisdiction of another court to get the decree executed – Since present case would require defendants to go to Gurugram for the purpose of execution of sale deed, proviso to Section 16 of CPC will not be applicable – It is now for plaintiff to take appropriate steps to present plaint before court of competent jurisdiction and get his suit adjudicated on merits in accordance with law. (Paras 20, 21, 35 and 37)
(B) Specific Relief Act, 1963 – Section 22 – Agreement to sell – Any person suing for specific performance of contract for transfer of immovable property may, in an appropriate case, sue for possession, or partition and separate possession of property, in addition to such performance – Relief of possession of immovable property which is subject matter of agreement for sale cannot be granted by court unless relief for possession is specifically prayed for. (Paras 22, 27 and 29)
Facts of the case:
Present petitions arise from a common order passed by a Division Bench of High Court of Delhi by which appeals filed by respondents herein came to be allowed and the plaint was ordered to be returned to petitioner herein for presenting it before appropriate court having territorial jurisdiction to try suit for specific performance.
Findings of Court:
It is clear from terms of alleged contract between parties that transfer of possession of suit property is implicit in the contract and absence of a specific prayer seeking transfer of possession would not have any bearing on character of suit, which is one covered by Section 16(d) of CPC.
Result : Special Leave Petitions dismissed.
Certainly. Based on the provided legal document, here are the key points summarized:
A suit for specific performance of an agreement to sell, even if decreed without a specific decree for transfer of possession, can only be enforced when the court directs the defendants to convey the property through a registered sale deed. The transfer of ownership occurs only after registration, which must take place at the location where the property is situated. If the registration is to occur outside the court's jurisdiction, the relief cannot be fully enforced through personal obedience alone, and the suit must be filed in a court with proper territorial jurisdiction (!) (!) .
Relief for possession of immovable property cannot be granted unless it is specifically claimed in the suit. The relief of possession of the property, which is the subject of the agreement for sale, is inherently linked to the decree for specific performance and must be explicitly pleaded and claimed (!) (!) (!) .
The territorial jurisdiction of a court to entertain a suit depends on whether the relief sought can be entirely obtained through the personal obedience of the defendant within that jurisdiction. If the relief involves actions outside the jurisdiction, such as executing a sale deed at a different location, the suit must be filed where the property is situated or where the defendant resides or carries on business (!) (!) (!) .
The court's jurisdiction is also influenced by the location of the property and the nature of the relief sought, including whether the relief involves establishing title, possession, or enforcement of contractual obligations. The location of the property plays a crucial role in determining the proper forum (!) (!) .
The provisions of the Specific Relief Act allow a plaintiff to claim additional reliefs such as possession or partition in a suit for specific performance, but only if these are expressly claimed in the plaint. The relief for possession of the property cannot be granted unless specifically pleaded, and the relief must be directly related to the subject matter of the suit (!) (!) (!) .
The overall purpose of these legal principles is to prevent multiplicity of suits and to ensure that the relief sought is within the territorial jurisdiction of the court where the property is located or where the defendant resides or carries on business. The suit must be filed in a court with proper jurisdiction that can effectively enforce the reliefs granted (!) (!) .
If the relief requires the defendant to go outside the court's jurisdiction for execution, such as registering a sale deed at a different location, the proviso to the jurisdictional provisions does not apply, and the suit must be filed where the property is situated or where the defendant resides or works (!) (!) .
The legal framework emphasizes that the primary consideration in determining jurisdiction is whether the relief can be fully obtained within the court's territorial limits through personal obedience, or whether enforcement actions outside that jurisdiction are necessary. This influences whether a suit is properly instituted in a particular court (!) (!) (!) .
The legal principles also highlight that the nature of the relief, the terms of the contract, and the location of the property are critical factors in establishing the appropriate forum for litigation. Proper jurisdiction ensures effective enforcement of rights and prevents misuse of procedural rules (!) (!) .
The court has clarified that the relief of possession, especially in cases involving the transfer of immovable property, must be specifically claimed and is inherently tied to the enforcement of the decree for specific performance. Without explicit claim, the relief cannot be granted, and jurisdiction must align with the location of the property or the defendant's residence or business (!) (!) (!) .
These points collectively underscore the importance of correctly establishing jurisdiction based on the location of the property and the specific reliefs claimed, especially in cases involving agreements for sale and the enforcement of transfer of ownership.
ORDER :
1. These petitions arise from a common order passed by a Division Bench of the High Court of Delhi dated 11.03.2008 in FAO (OS) Nos. 196-197/2005 and FAO (OS) No. 205/2005 respectively, by which the appeals filed by the respondents herein came to be allowed and the plaint was ordered to be returned to the petitioner herein for presenting it before the appropriate court having territorial jurisdiction to try the suit for specific performance.
2. The petitioner herein, who is the original plaintiff, instituted Civil Suit No. 1138/2004 in the Delhi High Court on its original side for permanent injunction and specific performance of the contract dated 16/20.01.2004 entered into with the respondents herein, the original defendants, in connection with a commercial property admeasuring 10,747 sq. ft. situated on the second floor of the Fortune Global Hotel & Commercial Complex in Gurgaon (“suit property”).
3. It is the case of the plaintiff that sometime in September 2003, the original defendant no. 2 offered to sell to it commercial space of approximately 10,000 sq. ft. on the second floor of the commercial complex of the Fortune Hotel and Commercial Complex project which was being developed by the defendants. After discussions and negotiations regarding the same, a written communication was received by the plaintiff on 16.01.2004 containing the aforesaid offer in relation to the suit property and the terms and conditions for the transaction.
4. The offer was accepted by the plaintiff vide letter dated 20.01.2004 and a cheque dated 20.01.2004 for Rs 20,000,00/- was issued by the plaintiff in favour of original defendant no. 3 in furtherance of the said acceptance. Further payment of Rs 20,000,00/- was made by the plaintiff on 06.02.2004.
5. Thereafter, disputes cropped up between the parties regarding certain terms contained in the “Flat Buyers Agreement.” It is the case of the plaintiff that despite several attempts on its part to negotiate the terms of the said agreement so as to arrive at a settlement, the defendants insisted upon unreasonable, arbitrary and unconscionable terms with a view to wriggle out of their liability arising out of the binding contract dated 16/20.01.2004.
6. Aggrieved by the defendant's alleged refusal to honour the binding contract despite the expression of willingness and readiness by the plaintiff on multiple occasions, the plaintiff instituted the aforesaid suit for specific performance and permanent injunction.
7. The defendants in their written statements, inter alia, raised a preliminary objection as regards the territorial jurisdiction of the Delhi High Court to entertain the suit instituted by the plaintiff. The defendants submitted that there was no concluded and binding contract between the parties and the letters dated 16.01.2004 and 20.01.2004 respectively were only a part of the ongoing discussion and negotiations between the parties in relation to the suit property. The letter dated 16.01.2004 was only a letter of intent and was to be followed by a property buyer agreement to be signed by the plaintiff which would contain detailed terms and conditions regarding the sale of the suit property. Further, in the alternative, the defendants submitted that the plaintiff failed to show his readiness and willingness to pay the balance amount at any point in time and thus cannot seek specific performance of the contract.
8. The learned Single Judge vide its order dated 25.04.2005 overruled the objection raised by the defendants as regards the territorial jurisdiction and took the view that it had the jurisdiction to entertain the suit. The Court took the view that as the plaintiff was seeking the relief of specific performance simpliciter and had not prayed for a decree to put him in possession of the suit property, such a relief could be granted and enforced by the personal obedience of the vendor and thus the Court in whose territorial jurisdiction the vendor resides or carries on business or works
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