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2025 Supreme(SC) 1798

SUPREME COURT OF INDIA
VIKRAM NATH, SANDEEP MEHTA, JJ.
Prem Aggarwal – Appellant
Versus
Mohan Singh & Ors. – Respondents
Special Leave to Appeal (C) No(s). 26593 of 2025
Decided On : 07-10-2025

Advocates appeared:
For the Petitioner(s): Mr. Mayank Kshirsagar, AOR Ms. Pavani Verma, Adv.
For the Respondent(s): Ms. Priyanjali Singh, AOR

Absolving unjust enrichment, a party awarded compensation must not obstruct possession; equitable relief principles demand compliance with execution orders.

Headnote:(A) Transfer of Property Act, 1882 - Specific performance - Order II Rule 2 Code of Civil Procedure, 1908 - Appeal against High Court's order regarding execution of decree - Appellant obstructed possession despite lawful compensation of Rs.2,00,00,000/- awarded in lieu of Rs.25,000/- earnest money, following appellate decisions upholding execution - Equitable relief sufficient to prevent unjust enrichment; continued possession unjustified - Appellant's appeal dismissed for causing unwarranted delays. (Paras 2, 11, 16)

(B) Execution proceedings - Duty to execute judgments - The process exists to enforce legal rights and not to reward obstinacy in litigation - A party must yield possession when compensation is duly awarded. (Paras 2, 10)

Facts of the case:
The appellant entered into a sale agreement in 1989 for a property for Rs. 14,50,000/-, paying Rs. 25,000/- as earnest money. After prolonged litigation regarding specific performance and claims of possession based on this agreement, the apex court awarded Rs. 2 Crores to the appellant due to defendants' delay in execution, which the appellant refused to accept. The defendants were compelled to seek court assistance for possession execution.

Findings of Court:
The court held that despite the payment of Rs. 2 Crores, the appellant had no right to retain possession based on the history of litigation and compensation provided for relinquishing that possession.

Issues: The key issues included whether the appellant could justifiably retain possession despite a substantial compensation award and whether the defendants could seek eviction through execution proceedings.

Ratio Decidendi: The court emphasized that the appellant was obstructing lawful execution and could not exploit the legal system to unjustly retain possession, reaffirming that substantial equitable compensation mitigates past interests.

Result: Appeal dismissed with costs of Rs. 10,00,000/- to be paid by the appellant.

Table of Content
1. conclusion and order for costs (Para 1 , 17)
2. agreement details and initial court rulings (Para 4)
3. execution proceedings and court orders (Para 5 , 6 , 7)
4. obstruction of possession rights and legal arguments (Para 10 , 11 , 12 , 13 , 14)
5. principle of actus curiae neminem gravabit (Para 15)
6. dismissing the appeal based on court findings (Para 16)

JUDGMENT

VIKRAM NATH, J.

1. Leave granted.

2. Some litigants, it seems, cannot take yes for an answer. After this Court on 1st April, 2025 set aside the decree but moulded equitable relief by directing payment of Rs.2,00,00,000/- (Rupees Two Crores), a sum 800 (eight hundred) times the Rs.25,000/- (Rupees Twenty Five Thousand only) paid as earnest money in 1989, the appellant refused the tender, obstructed execution, and has returned to this Court in an effort to delay the inevitable. This appeal is a cautionary tale about how the pursuit of a windfall can turn the process of law against those who seek to exploit it, in order to retain possession while spurning an extraordinary monetary award. The appellant has shot himself in the foot and in the same breath dug his own grave. Equity will not allow unjust enrichment. The process of execution exists to give effect to judgments and not to underwrite windfalls. A party that has received such compensation must yield possession.

3. This appeal assails the correctness of the judgment and order dated 11.09.2025 passed by the High Court of Punjab & Haryana at Chandigarh in Civil Revision No. 5810 of 2025, titled ‘Prem Aggarwal through her GPA Holder vs. Mohan Singh and others’, whereby the said revision assailing the correctness of the order dated 07.08.2025 as well as order dated 12.08.2025 passed by the Civil Judge (Junior Division), Chandigarh (for short, “Executing Court”) directing for issue of warrant of possession and rejecting the objections/application of the appellant, was dismissed.

4. The facts giving rise to the present appeal in brief are as follows. Appellant hereinafter is referred to as the plaintiff and the respondents as defendants for the initial part of the order.

    i) An agreement to sell dated 12.06.1989 was executed by the defendants whereby they agreed to sell the suit property for a total sale consideration of Rs. 14,50,000/- in favour of the plaintiff. At the time of execution of the agreement to sell, an advance amount of Rs. 25,000/- was paid as earnest money. The suit property consisted of two floors. On the first floor there were two tenants. The ground floor was vacant. Its possession was given to the plaintiff pursuant to the agreement. In February 1990, the plaintiff instituted Civil Suit No. 44 of 1990 for a simple relief of permanent injunction to restrain the defendants from alienating or dispossessing them from the suit property. The plaintiff apprehended that the defendants intended to resell the suit property as an advertisement had been issued by them on 07.01.1990 in daily newspaper ‘The Tribune’. The said suit for permanent injunction was dismissed as withdrawn by the Trial Court on 15.06.1990 and attained finality.

    ii) The plaintiff thereafter instituted another suit bearing Civil Suit No. 55 of 1990 in June 1990 seeking a decree of specific performance of the agreement to sell dated 12.06.1989. The said suit was decreed by the Trial Court, vide judgment and order dated 11.12.2009. Against the said order, the first appeal preferred by the defendants was dismissed on 19.09.2013. The second appeal before the High Court was also dismissed, vide judgment and order dated 13.05.2022. A review petition by the defendants also received the same fate and was dismissed on 19.08.2022. High Court although dealt with the issue of Order II rule 2 Code of Civil Procedure, 1908 [For short, “CPC”] but fell in error as it ignored the fact that the suit for injunction and the suit for specific performance were based on the same cause of action, i.e., the advertisement for sale published on 07.01.1990 in

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