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1998 Supreme(Pat) 749

PATNA HIGH COURT
M.Y.Eqbal, J.
Ramashish Rai
Versus
Baijnath Mishra
Civil Revision No. 2 of 1997 ;
Decided On : NOVEMBER 03, 1998

An agreement to sell creates a right in personam and not in the estate. Such right created against a vendor to obtain specific performance can ultimately bind any subsequent transferee. Till a decree of specific performance is obtained, the vendor or a purchaser from him is not entitled to full enjoyment of the property. Consequently, temporary injunction cannot be granted till sale-deed is executed on the basis of decree of specific performance of contract to prevent the transferee under the sale-deed from enjoying possession.

Headnote:

SPECIFIC PERFORMANCE OF CONTRACT - AGREEMENT TO SELL - RIGHT IN PERSONAM - NO RIGHT IN PROPERTY - TEMPORARY INJUNCTION - NOT MAINTAINABLE - ACT-SECTION REFERRED : SPECIFIC RELIEF ACT, 1963 - SECTION 10, 12, 20, 21, 22 - SUMMARY : An agreement to sell creates a right in personam and not in the estate. Such right created against a vendor to obtain specific performance can ultimately bind any subsequent transferee. Till a decree of specific performance is obtained, the vendor or a purchaser from him is not entitled to full enjoyment of the property. Consequently, temporary injunction cannot be granted till sale-deed is executed on the basis of decree of specific performance of contract to prevent the transferee under the sale-deed from enjoying possession.

Fact of the Case:

Plaintiff filed a suit for specific performance of contract and confirmation of possession of the suit land. He also filed an application for temporary injunction restraining the defendant from alienating the suit land till the disposal of the suit. The trial court granted the injunction, but the appellate court set it aside.

Finding of the Court:

The appellate court found that there was no reliable evidence to substantiate the story of oral agreement of sale and payment of earnest money. It also found that the story of oral sale and delivery of possession of the suit land to the plaintiff has not been established.

Issues: Whether the plaintiff has a legal right to restrain the defendant from alienating the suit land by obtaining an order of temporary injunction.

Ratio Decidendi: An agreement to sell creates a right in personam and it does not create any right in the property. An agreement to sell gives a right to the proposed purchaser to bring a suit for specific performance of contract to sell but he cannot claim any interest in the property till his suit for specific performance is decreed.

Final Decision: The application for temporary injunction was dismissed.

Judgment

M.Y.Eqbal, J.

1. This civil revision application is directed against the order dated 28.9.1996 passed by 3rd Additional District Judge, Saran in Miscellaneous Appeal No. 108/94 whereby he set aside the order dated 6.10.94 passed by Munsif. III. Chapra in Title Suit No. 76/94 by which defendant opposite party was restrained from alienating the suit land till further order is passed in suit.

2. The plaintiff petitioner filed the aforementioned suit against the defendant opposite party for a decree of Specific Performance of Contract and also for confirmation of possession with respect to the suit lands measuring an area of 8 katha, 1 dhur towards north of plot No. 1615 appertaining to khata No. 182 situated in Mauza Hakma, District Saran. The plaintiffs case, in brief, is that he purchased a portion of plot No. 1615 towards eastern side and constructed his residential house. On 20.12.93 uncle of defendant No. 1 agreed to sell his share towards southern side of the said plot to the plaintiff and on that day, he gave possession of the said land on payment of consideration amount and a sale-deed was executed on 22.12.93. It is alleged that on the same day the defendant also agreed to sell his share in plot No. 1615 to the plaintiff and en receipt of Rs. 20,000.00 the plaintiff took possession thereof and since then the plaintiff has been coming in possession of the suit land and amalgamated the same with his own land. On account of the failure of the defendant to execute a registered sale-deed the plaintiff filed the aforementioned suit and also filed a separate application under Order XXXIX, Rules 1 and 2 of the Code of Civil Procedure for an order of temporary injunction restraining the defendant from alienating the disputed land till the disposal of the suit. The trial Court after hearing the parties, by an order dated 6.10.94 allowed the application and issued temporary injunction restraining the defendant from alienating the suit land. Aggrieved by the said order, the defendant filed appeal being Misc. Appeal No. 108/94 which was ultimately allowed by the appellate Court in terms of order dated 28.9.96 and the order of injunction passed by the trial Court was set aside.

3. Mr. Sukumar Slnha, learned Counsel appearing for the plaintiff petitioner assailed the impugned order passed by the appellate Court as being illegal and contrary to the facts on record. Learned Counsel submitted that the appellate Court has not correctly appreciated the law with regard to grant of temporary injunction and the order suffers from serious illegality and infirmity.

4. I have gone through the orders passed by the trial Court and the appellate Court. From perusal of the appellate Court order it appears that the appellate Court found that there was no any reliable evidence to substantiate the story of oral agreement of sale and payment of earnest money. The appellate Court on the basis of evidence further came to a prima facie finding that the story of oral sale and delivery of possession of the suit land to the plaintiff has not been established. I do not find any illegality or infirmity in the order passed by the learned appellate Court. The appellate Court, after considering the entire facts and evidence came to a finding that neither the plaintiff has prima facie case nor the petitioner will suffer irreparable loss or injury which are essential ingredients for the grant of temporary injunction.

5. Be that as it may, admittedly, the plaintiffs case is that there was an oral agreement to sell of the suit land and on payment of consideration money the plaintiff was put in possession. There is no dispute that a suit for Specific Performance of Contract can be filed on the basis of oral agreement. The question for consideration in this case is whether the plaintiff has a legal right to restrain the defendant from alienating the suit land by obtaining an order of temporary injunction. It is well settled that an agreement to sell creates a rig


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