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2016 Supreme(Bom) 2240

IN THE HIGH COURT OF JUDICATURE AT BOMBAY BENCH AT NAGPUR
A.B. CHAUDHARI, J.
SURESEH - Appellant
Vs.
NAMDEO - Respondent
Second Appeal No. 60 of 2007
Decided On : 04-04-2016

Advocates Appeared:
For the Appellant :Mr. J.M. Gandhi, Advocate.
For the Respondent:Mr. S.R. Narnaware, Advocate.

The main legal point established in the judgment is that the power of attorney holder for the proposed vendees could validly depose about the readiness and willingness of the plaintiffs to perform their part of the contract, and the suit for specific performance of the contract was maintainable even without one of the proposed vendees being a party to the appeal.

Headnote:

Specific Performance of Contract - Agreement for Sale of Property - Order VI Rule 14 of the Code of Civil Procedure - Lis Pendens - Ready and Willingness of the Plaintiffs - Cancellation of Agreement - Time Limitation for Suit - Possession of Property - Registration of Agreement

Fact of the Case:

The respondents-plaintiffs filed a suit for specific performance of a contract for the sale of a property against the defendant. The plaintiffs alleged that the defendant failed to obtain necessary permissions and no objections for the sale deed, and thus, the sale deed could not be executed. The plaintiffs claimed to be ready and willing to perform their part of the contract and sought specific performance or refund of the earnest money.

Finding of the Court:

The Court found that the power of attorney holder for the proposed vendees could validly depose about the readiness and willingness of the plaintiffs to perform their part of the contract. The Court also held that the suit was maintainable even though one of the proposed vendees was not a party to the appeal. The Court further found that the plaintiffs had proved their readiness and willingness to perform their part of the contract. The Court rejected the argument that the suit was not maintainable due to the cancellation of the agreement, as the cancellation was ineffective and of no consequence. Additionally, the Court held that the suit was filed within the limitation period and that the discretionary relief of specific performance should not be denied to the plaintiffs. The Court also ruled that the possession of the property was not delivered to the plaintiffs, and thus, no registration of the agreement was necessary.

Issues: The issues included the validity of the power of attorney holder's deposition, the maintainability of the suit, the readiness and willingness of the plaintiffs, the cancellation of the agreement, the time limitation for the suit, and the possession of the property.

Ratio Decidendi: The Court held that the power of attorney holder could depose about the readiness and willingness of the plaintiffs. The Court also emphasized that the suit was maintainable even without one of the proposed vendees being a party to the appeal. Additionally, the Court found that the plaintiffs had proved their readiness and willingness to perform their part of the contract and that the cancellation of the agreement was ineffective. The Court also ruled that the suit was filed within the limitation period and that the discretionary relief of specific performance should not be denied to the plaintiffs. Furthermore, the Court held that no registration of the agreement was necessary as the possession of the property was not delivered to the plaintiffs.

Final Decision: The Second Appeal was dismissed, and no order as to costs was made.

JUDGMENT :

A.B. Chaudhari, J.

Being aggrieved by judgment and decree dated 02.01.2007 in Regular Civil Appeal No.300/2001 passed by Ad hoc District Judge 10, Nagpur by which the judgment and decree dated 13.02.2001 in Regular Civil Suit No.214/1989 dismissing the suit filed by respondents-plaintiffs was set aside and the decree for specific performance of contract etc. was made, the present second appeal was filed by the unsuccessful defendants.

FACTS :

2. The respondents-plaintiffs, through their power of attorney holder by name Dhairyasheel, instituted Special Civil Suit No.214/1989 for specific performance of contract against the defendant no.1Santosh Vaidya. Defendant no.2-Kailash Lute was in fact the proposed vendee in the agreement who was joined as defendant because of his absence. The case of respondents-plaintiffs was that defendant no.1Santosh Vaidya was the owner of field survey No.32, 1.57 HR at mouza Hudkeshwar and he entered into an agreement on 07.04.1986 in favour of the plaintiff and defendant no.2 for the sale thereof at the rate of Rs.40,500/-per Acre and all the proposed vendees paid an amount of Rs.10,000/- as earnest amount to him. It was also agreed that defendant no.1 will execute the sale deed within 1 years from the date of the agreement and remaining consideration would be paid accordingly at the time of registration of the sale deed. It was agreed that in case there was any legal impediment in getting the sale deed registered, further time of 1 years would be extended. It was then stated in the plaint that the defendant no.2 thereafter paid additional amount of Rs.10,000/- to defendant no.1Vendor on the tenth day from the date of agreement. Thereafter, they were insisting on the defendant no.1 to execute and register the sale deed by completing all the legal formalities namely; to obtain necessary no objections from the Urban Land Ceiling authorities, town planning and other competent authorities which are required to be placed before the Registrar for registration. But the defendant no.1 did not respond and for want of no objection from those authorities, it was not possible to register the sale deed. The plaintiff and defendant no.2 were throughout ready and willing to get the sale deed registered and pay the remaining consideration to defendant no.1. But it could not be done due to lapse on the part of defendant no.1 and he was careless and negligent in getting the no objections from the Government authorities for preparation of necessary documents. The defendant no.1 having not complied with the obtaining of permissions and no objections from the authorities, was not entitled to cancel the agreement nor could do so since the agreement itself provided for extension by another 1 year. The plaintiffs and defendant no.2 again informed defendant no.1 that they were ready and willing to get the sale deed registered and then defendant no.1 also realised his mistake of not obtaining the necessary documents of no objections etc and agreed to make compliance. However, defendant no.1 still did not produce no objections from the competent authority or clearance from Urban Land Ceiling authorities, town planning authorities and, therefore, the registered notice dated 03.03.1989 was issued to him to attend Sub Registrar's office on 13.03.1989 but he did not turn up and, therefore, had no alternative but to file suit for specific performance of contract thereafter. Accordingly, suit was filed for decree of specific performance of contract and in the alternative for refund of money on 27.03.1989. The suit was dismissed for want of prosecution on 21.01.1994 and was again restored by detailed order on 19.11.1997. thereafter, it was set down for trial. The power of attorney holder of respondent-plaintiff PW1 Dhairyasheel (PW1) was examined on their behalf while the appellants-defendants examined PW1-Santosh and defendant no.3 PW2-Suresh the subsequent purchaser who purchased the suit property on 14.09.1989 and 31.01.1
















































































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