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2025 Supreme(SC) 2102

SANJAY KAROL, MANOJ MISRA
Amit Arya – Appellant
Versus
Kamlesh Kumari – Respondent


Advocates appeared:
For the Petitioner(s): Mr. P.S. Patwalia, Sr. Adv. Ms. Natasha Dalmia, AOR Ms. Anisha Jain, Adv. Ms. Shambhavi Singh, Adv. Ms. Deveshi Chand, Adv.
For the Respondent(s): Ms. Anukriti Pareek, AOR

Judgement Key Points

Certainly. Here are the key points from the provided legal document:

  1. The appeal concerns the execution of a decree for specific performance related to an agreement to sell property in Panchkula. The initial decree was in favor of the appellant, requiring the respondent to execute the sale deed upon payment of the remaining consideration within two months (!) (!) .

  2. The dispute involves whether delays beyond the stipulated period invalidate the decree or whether the appellant’s conduct and willingness to perform should be considered. The High Court had dismissed the execution petition on grounds of delay and lack of readiness, whereas the Trial Court had decreed the suit with directions for the respondent to execute the sale deed upon payment of the balance consideration (!) (!) .

  3. The appellant paid earnest money and filed an execution application after the decree, but objections were raised regarding the delay in payment and deposit of the balance sale consideration. The objections argued that the delay of over two months rendered the decree inoperative (!) (!) (!) .

  4. The High Court found that the appellant was not ready with the balance amount within the prescribed period, and the deposits made were after significant delays. It emphasized that non-payment within the time frame, without a clear refusal to perform, could lead to rescission of the contract, and the decree became inexecutable (!) (!) (!) .

  5. The Court clarified that non-extension of time by the court, and the absence of an application for extension by the appellant, meant the decree could not be executed once the stipulated period lapsed. The Court also noted that mere filing of an execution application after the deadline does not automatically extend the time for performance (!) (!) .

  6. The doctrine of merger was discussed, indicating that once a higher court has disposed of an appeal or objections, the original decree merges into the final order, and subsequent proceedings must be based on the final decree. If the decree or objections are set aside, the original decree ceases to be operative, and execution cannot proceed unless a fresh decree is passed (!) (!) (!) .

  7. The Court emphasized that readiness and willingness to perform are critical in such cases, and delays do not necessarily amount to abandonment or rescission of the contract unless there is a clear indication of refusal to perform (!) (!) .

  8. Ultimately, the Court set aside the High Court's decision and restored the order of the executing court, allowing the execution of the decree for specific performance to proceed, given that the appellant remained ready and willing to perform his contractual obligations (!) (!) (!) .

  9. The judgment underscores that procedural technicalities, such as delays beyond the stipulated period, do not automatically nullify a decree for specific performance if the conduct of the parties indicates continued willingness to perform, and that the doctrine of merger and the absence of court-ordered extensions are significant considerations in such proceedings (!) (!) (!) .

  10. The Court directed that the matter be remanded to the executing court to proceed with execution in accordance with law, reaffirming that a final decree remains operative unless explicitly rescinded or merged through proper legal proceedings (!) .

Please let me know if you require further analysis or specific legal advice based on this document.


JUDGMENT :

SANJAY KAROL, J.

Leave Granted.

2. This appeal arises out of a judgment and order dated 8th August 2022 of the High Court of Punjab & Haryana at Chandigarh in CR.No.979 of 2018 (O&M), titled Kamlesh Kumari v. Dr. Amit Arya. The dispute pertains to the execution of an ‘agreement to sell’ between the parties regarding a property located in the District of Panchkula. A certain sum of money was deposited as ‘earnest money’, but the matter did not proceed further. A suit for specific performance1[Civil Suit No. 47 of 2006] was decreed by the Trial Court2[Addl. Civil Judge (Sr. Divn.) Panchkula, by judgment dated 14th May 2011], which was eventually affirmed on second appeal3[RSA 4080 of 2013 (O&M); judgment dated 8th February 2016] by the High Court. Seeking execution, the plaintiff/decree holder, the appellant herein, filed the said application4[Execution Application No.35 of 2016], in which the respondent’s objections were dismissed.5[Judgment dated 20th January 2018] The appeal against the dismissal of such objections gave rise to the impugned judgment, which accepted the objections and dismissed the execution petition.

BACKGROUND AND PREVIOUS PROCEEDINGS

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