IN THE HIGH COURT OF BOMBAY
Sandeep V. Marne, J.
Devoo Ambo Patil (Since Deceased) Through Its Legal Representatives & Ors. - Appellants
Versus
Hiren Venilal Sevak & Ors. - Respondents
Second Appeal No. 350 of 2022 with Interim Application No. 2526 of 2022 in Second Appeal No. 350 of 2022 with Second Appeal No. 353 of 2022 with Interim Application No. 17807 of 2023 in Second Appeal No. 353 of 2022
Decided On : 16-04-2024
| Table of Content |
|---|
| 1. challenge to original judgment and decree. (Para 1 , 2 , 3) |
| 2. background of the case and agreements involved. (Para 4 , 5 , 6 , 7) |
| 3. transfer of interests in relevant land parcels. (Para 9 , 10 , 11) |
| 4. limitations and claims concerning specific performance. (Para 14 , 15 , 16 , 18 , 19) |
| 5. arguments regarding the limitation period were pivotal in evaluating the suit's maintainability. (Para 21 , 22) |
| 6. court's overview on limitation issues. (Para 25 , 26 , 29 , 30 , 31) |
| 7. discussion regarding the validity of termination notice. (Para 40 , 41 , 42) |
| 8. arguments against maintainability of appeals. (Para 59 , 63 , 64 , 65) |
| 9. the decree's validity is contingent on the ownership status of the property being disputed. (Para 60) |
JUDGMENT
A. The Challenge
1. These appeals are filed challenging the Judgment and Decree dated 15 January 2022 passed by the learned District Judge-2, Thane in Regular Civil Appeal No. 188 of 2012, by which the appeal has been allowed and the Judgment and Decree dated 30 March 1998 passed by the Civil Judge Senior Division, Thane in Special Civil Suit No. 454 of 1994 is set aside. The first Appellate Court has decreed Special Civil Suit No. 454 of 1994 holding that the Plaintiff is entitled to specific performance of the Agreement for Sale dated 11 January 1988. It has directed Plaintiff to deposit the balance amount of consideration of Rs. 4,30,850/- with further directions to Defendant Nos. 1 to 9 to execute Conveyance Deed in Plaintiff's favour in respect of the suit lands. Defendants are further restrained by an order of permanent injunction from alienating, transferring and /or creating third party interests in respect of the suit lands.
2. In the Special Civil Suit No. 454 of 1994, original Defendant Nos. 1 to 9 were vendors, who had executed Agreement for Sale dated 11 January 1988 in Plaintiff's favour. After dismissal of the Suit by the Trial Court on 30 March 1998, M/s. Everest Land Developers (Everest) purchased land bearing Survey No. 62 Hissa No. 6 from Defendant Nos.1 to 9 on 13 May 2009. Therefore, Everest came to be impleaded as Respondent No. 10 in Regular Civil Appeal No. 188 of 2012. On 2 August 2012, Everest sold the land bearing Survey No. 62 Hissa No. 6 to M/s Harmony Lifestyle Structures Private Limited (Harmony), who was not impleaded in the appeal before the first Appellate Court.
3. The impugned decree of the first Appellate Court directs original Defendant Nos. 1 to 9 (vendors) to execute Conveyance Deed in respect of the suit lands bearing Survey No. 62 Hissa No. 2 and Survey No. 62 Hissa No. 6 in Plaintiff's favour. Out of original Defendant Nos.1 to 9, only original Defendant Nos.1, 3 to 5, 8 and 9 have filed Second Appeal No. 350 of 2022 alongwith Everest, who was impleaded as Respondent No. 10 in Regular Civil Appeal No. 188 of 2012. The original Defendant Nos. 2, 6 and 7 are impleaded as Proforma Respondents to Second Appeal No. 350 of 2022. On the other hand, Harmony, who purchased part of the suit land on 2 August 2012 and who was not impleaded either before the Trial or the first Appellate Court has filed Second Appeal No. 353 of 2022. By order dated 21 August 2023 this Court (Coram: N.R. Borkar, J.) has granted leave to Harmony to file appeal challenging the Judgment and Decree of the first Appellate Court.
B. Factual Matrix
4. Defendant Nos. 1 to 9 are the original owners in respect of to agricultural lands bearing Survey No. 62 Hissa No. 2 admeasuring 1267.28 square yards, equivalent to 1060 square meters and Survey No. 62 Hissa No. 6 admeasuring 4567.75 square yards equivalent to 3820.60 sq.meters at village-Ovale, Taluka and District -Thane. This is the suit property described in the Plaint.
5. On 11 January 1988, the original owners i.e Defendant Nos. 1 to 9 executed unregistered agreement for sale in Plaintiff's favour agreeing to sell the suit property for consideration of Rs. 641,850/-. The agreement records that the consideration was fixed at Rs.

C. Padmawati Naidu and Ors. vs. Friends CHS Ltd. Nagpur and Ors.
Chand Rani (Dead) by Lrs vs. Kamal Rani (Dead) by Lrs. (1993) 1 SCC 519;
Dwarka Prasad Singh v. Harikant Prasad Singh (1973) 1 SCC 179.
I.S. Sikandar vs. K.Subramani and others : (2013) SCC 27
Kasturi v. Iyyamperumal (2005) 6 SCC 733
Khatri Hotels Pvt. Ltd. & Ana. vs. Unind if inain and Anr. (2011) 9 SCC 126.
L.C. Hanumanthappa vs. H.B. SCivak2mnd (2016) 1 SCC 332
M. Arul Jothi Ce Ans. cSa Cejje Bal Cdasedned) and Anr. (2000) 3 SCC 723;
Thomson Press (India) Ltd. v. Nanak Builders & Investors P. Ltd. 2013 (3) Scale 26.
Vundavalli Ratna Manikyam anP Vnr. vs. V.P.P.R.N. Prasada Rao (2020) 3 SCC 289
The suit for specific performance was barred by limitation as per Articles 54 and 58 of the Limitation Act, requiring a specific challenge to the termination notice for maintainability.
The court ruled that both declaration of termination and specific performance can be sought together. The suit was within the limitation period as the cause of action arose from the cancellation noti....
The suit was filed after a delay of 28 years and no genuine cause of action was found from the plaint, leading to the dismissal of the appeal.
Contract and Specific Reliefs - Section 20 of Specific Relief Act vests a discretionary power in court to grant a decree of specific performance and court is not bound to grant such a relief merely b....
A sale agreement signed solely by the vendor is enforceable, and no fixed date of performance in an agreement allows suit filing within three years of notice of refusal.
The main legal point established in the judgment is that the time for specific performance of a contract starts to run after the expiry of the time fixed in the agreement, as per the provisions of Ar....
Contractual obligations in specific performance suits require timely action; failure to act within statutory limitation renders claims void.
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