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2026 Supreme(Bom) 107

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
SARANG V.KOTWAL, SANDESH D. PATIL, JJ.
Kanchan G. Rohira - Appellant
Versus
Nirman Constructions Pvt. Ltd. - Respondent
Appeal No.171 of 2010 In Suit No.1642 of 1984 With Interim Application [Lodging] No.8008 of 2026 In Appeal No.171 of 2010 With Appeal No.490 of 2010 In Suit No.1642 of 1984
Decided On : 02-04-2026

Advocates:
Advocate Appeared:
For the Parties :Mr. Shailesh Shah, Senior Advocate a/w. D. Banerji, Niranjan Jagtap i/b. M/s. Niranjan Jagtap
Mr. Simil Purohit, Senior Advocate a/w. Rubin Vakil, Faran Khan, Manish Doshi, Anjali Ajmera i/b. Vimadalal

Subsequent purchaser protected from specific performance if bona fide for value without notice; constructive notice requires full registration proof including indexes; discretion under S.20 denies relief favoring long possessor despite plaintiff readiness.

Headnote:(A) Specific Relief Act, 1963 - Sections 19(b), 20 - Transfer of Property Act, 1882 - Section 3 - Indian Registration Act, 1908 - Sections 51, 55 - Agreement for sale of immovable property - Time essence clause, but conduct showed not intended as such due to construction delays from seller disputes - Termination notice illegal without prior time essence notice - Plaintiff proved readiness and willingness despite non-payment per schedule - Subsequent transferee protected if paid value in good faith without notice - Constructive notice under Section 3 Explanation I requires proof of registration completion, book entry under Section 51, and correct index under Section 55 - Mere registration insufficient - Discretion under Section 20(1) not arbitrary, guided by principles; long possession since 1986 and substantial payment justify denial of specific performance despite plaintiff readiness. (Paras 21-27, 49-76)

(B) Code of Civil Procedure, 1908 - Order XLI Rule 22 - Respondent may challenge adverse finding without cross-objection to sustain decree. (Paras 57-58)

(C) Specific Relief Act - Section 20 - Distinction between sub-section (1) discretionary jurisdiction and sub-section (2) illustrations; hardship under (2)(b) needs pleading/proof, but (1) wider considering conduct, possession, equity. (Paras 69-71)

Facts of the case:
Plaintiff entered registered agreement for sale of flat paying Rs.10,500/- earnest/advance of Rs.26,000/- total; balance due per schedule but construction delayed by seller company disputes till 1981; termination notice 1981 held illegal; flat resold to intermediate buyer 1981 then to defendant 1986 for Rs.1,40,000/- who took possession; suit partly decreed damages, specific performance denied.

Findings of Court:
Plaintiff ready/willing, termination illegal; subsequent buyer bona fide for value without notice; discretion properly denies specific performance; damages Rs.1,52,250/- with 6% interest from decree and Rs.10,500/- with 12% from payment upheld.

Issues: Whether plaintiff proved readiness/willingness and termination invalid; whether subsequent transferee bona fide without notice; propriety of discretion denying specific performance.

Ratio Decidendi: Constructive notice absent proof of full registration formalities including indexes; protection to innocent transferee with possession outweighs equity for delayed claim; appellate interference limited unless discretion perverse.

Result: Appeals dismissed; trial decree confirmed.

Table of Content
1. linked appeals from partial specific performance decree (Para 1 , 2 , 3 , 4 , 5)
2. 1977 registered sale agreement details and prayers (Para 6 , 7 , 8 , 9)
3. defendant claims bona fide purchase without notice (Para 10 , 11 , 12)
4. trial evidence on readiness and due diligence (Para 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20)
5. trial court finds invalid termination, awards damages (Para 21 , 22 , 23 , 24 , 25 , 26 , 27)
6. improper discretion; constructive notice from registration (Para 28 , 29 , 30 , 31 , 32 , 33 , 34 , 35)
7. no readiness; bona fide purchaser; wide discretion (Para 36 , 37 , 38 , 39 , 40 , 41 , 42 , 43 , 44 , 45 , 46 , 47 , 48)
8. plaintiff ready; time not essence by conduct (Para 49 , 50 , 51 , 52 , 53)
9. no constructive notice without index proofs (Para 54 , 55 , 56 , 57 , 58 , 59 , 60 , 61 , 62 , 63 , 64 , 65 , 66 , 67 , 68)
10. section 20 discretion favors long possessor (Para 69 , 70 , 71 , 72 , 73 , 74 , 75 , 76)
11. decree confirmed; appeals dismissed (Para 77 , 78 , 79)

JUDGMENT :

[Per Sarang V. Kotwal, J.]

1. Both these Appeals are decided by this common judgment because they arise out of the same judgment and decree Deshmane(PS) dated 14.1.2010 passed in Suit No.1642/1984. For convenience, the parties are referred to by their original status in the Suit. Appeal No.171/2010 is preferred by the original Plaintiff Kanchan Rohira and Appeal No.490/2010 is preferred by the original Defendant No.4 Suresh Dhoot.

2. The Suit was filed by the Plaintiff for specific performance of the agreement dated 9.1.1977 executed between the Plaintiff and the Defendant No.1 Nirmal Constructions Private Limited. Initially, the suit was filed only against the Defendant No.1. However, during pendency of the Suit, the Defendant No.1 had informed the Plaintiff that the flat which was the subject matter of the agreement was already sold by the Defendant No.1 to the Defendant No.3 M/s. Ravi Overseas Corporation by an agreement for sale dated 18.11.1981. The Defendant No.2 Girish Jalani had informed that he was an employee of the Defendant No.3 and was in occupation of the said flat in that capacity. The Defendant No.3, in turn, sold the said flat to the Defendant No.4 vide agreement for sale dated 12.5.1986.

3. The Suit was filed by the Plaintiff for specific performance of the agreement for sale dated 9.1.1977. The learned Judge partly decreed the suit. The prayer for specific performance was dismissed but the decree was passed in terms of prayer clauses (d) and (e) which read as follows :

“(d) that in the alternative to prayer (c) above and in the event of this Hon'ble Court not granting specific performance as prayed for, the 1st Defendant be ordered and decreed to pay to the Plaintiff a sum of Rs.1,52,250/- as and by way of damages in lieu of the specific performance as per particulars of damage hereto annexed and marked Exhibit 'H'.

(e) that in the alternative to prayer (c) and (d) above and in the event of this Hon'ble Court not granting specific performance or damages as prayed for, the 1st Defendant be ordered and decreed to pay to the Plaintiff the sum of Rs.10,500/- being the sum already paid by the Plaintiff to the 1ª Defendant as advance towards the price of the said flat with interest at the rate of 12% per annum from the date of payment till return of the same as per particulars hereto annexed and marked Ex. 'I'.” On the amount of Rs.1,52,250/- interest was directed to be payable @ 6% P.A. from the date of decree till realisation.

4. Aggrieved by the refusal to grant decree of specific performance, the Plaintiff has preferred Appeal No.171/2010 whereas the Defendant No.4 has challenged the finding recorded by the learned Judge on the first three issues where the learned Judge has held that the Plaintiff has proved that she was always ready and willing to perform her part of the obligation under the agreement of sale dated 9.1.1977; that she had proved that the notice of termination dated 30.9.1981 is illegal and b

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