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2006 Supreme(Cal) 112

High Court Of Calcutta
Bhaskar Bhattacharya, Pravendu Narayan Sinha
VIPIN BHIMANI - Appellant
Versus
SUNANDA DAS - Respondent
F. M. A. T. 3789 Of 2005
Decided On : 02/24/2006

Advocates Appeared:
ABHRAJIT MITRA, KABITA MUKHERJI, MANAS DAS GUPTA, S.P.ROYCHOWDHURY, Saktinath Mukherjee, SAPTANSU BASU, SUDESHNA BAGCHI

A suit for specific performance of a development agreement at the instance of a developer is not maintainable under Section 14(3)(c) of the Specific Relief Act unless the conditions specified therein are fulfilled.

Headnote:

SPECIFIC PERFORMANCE - CONTRACT - INJUNCTION - IRREVOCABLE POWER OF ATTORNEY - REVOCATION - SECTION 14(3)(C) SPECIFIC RELIEF ACT - SUIT FOR SPECIFIC PERFORMANCE OF DEVELOPMENT AGREEMENT BY DEVELOPER - MAINTAINABILITY - CONDITIONS - SECTION 202 TO 204 CONTRACT ACT - IRREVOCABLE POWER OF ATTORNEY - SCOPE OF REVOCATION - SECTION 54 TRANSFER OF PROPERTY ACT - INTEREST IN IMMOVABLE PROPERTY - CREATION - AD INTERIM INJUNCTION - GRANT OF - CONDITIONS - PRIMA FACIE CASE - BALANCE OF CONVENIENCE AND INCONVENIENCE.

Fact of the Case:

Plaintiffs filed a suit for specific performance of a contract and injunction, alleging that they had entered into an agreement with the defendants, the owners of the suit property, to develop a part of the premises. The plaintiffs claimed that they had made an advance payment, taken steps for negotiation with tenants and occupants, and obtained necessary permissions and clearances. However, the defendants later revoked the power of attorney granted to the plaintiffs and refused to sign the agreement. The plaintiffs sought an ad interim injunction restraining the defendants from entering into any fresh agreement with any third party for the development of the suit property.

Finding of the Court:

The court held that the suit for specific performance of the development agreement was not maintainable at the instance of the developer as it was hit by the provisions of Section 14(3)(c) of the Specific Relief Act. The court further held that the plaintiffs had no prima facie case for specific performance and that the balance of convenience and inconvenience was in favor of refusing the injunction as the plaintiffs had an adequate remedy of damages.

Issues: 1. Whether a suit for specific performance of a development agreement at the instance of a developer is maintainable under Section 14(3)(c) of the Specific Relief Act? 2. Whether an irrevocable power of attorney can be revoked in any circumstances? 3. Whether the plaintiffs had a prima facie case for specific performance and an ad interim injunction?

Ratio Decidendi: 1. A suit for specific performance of a development agreement at the instance of a developer is not maintainable under Section 14(3)(c) of the Specific Relief Act unless the conditions specified therein are fulfilled. 2. An irrevocable power of attorney can be revoked by the principal unless it is coupled with an interest in the subject-matter of the power. 3. The plaintiffs did not have a prima facie case for specific performance as the suit was hit by the provisions of Section 14(3)(c) of the Specific Relief Act. The balance of convenience and inconvenience was also in favor of refusing the injunction as the plaintiffs had an adequate remedy of damages.

Final Decision: The appeal was dismissed, and the order of the trial court refusing to grant an ad interim injunction was upheld.

BHASKAR BHATTACHARYA, J.

( 1 ) THIS first miscellaneous appeal is at the instance of the plaintiffs in a suit for specific performance of contract and injunction and is directed against Order No. 2 dated 20th September, 2005 passed by the Civil Judge (Senior Division), 4th Court, Alipore in Title Suit No. 69 of 2005 thereby refusing to grant an ad interim order of injunction in favour of the plaintiffs although the learned Trial Judge issued a notice to show-cause why the prayer of the plaintiffs for temporary injunction should not be granted.

( 2 ) THE appellants herein filed the aforesaid suit being Title Suit No. 69 of 2005 in the 4th Court of learned Civil Judge (Senior Division), Alipore, thereby praying for the following relief:"a) Specific performance of the agreement made between the plaintiffs and the defendants as mentioned in paragraph 5 above; b) Alternatively, specific performance of the agreement between the plaintiffs and the defendants recorded in Annexure 'a' hereto; c) A decree directing the defendants and each of them to specifically perform and/or comply their part of the agreement mentioned in paragraph 5 hereinabove; d) Alternatively, a decree directing the defendant and each of them to perform and/or comply their part of the agreement as recorded in Annexure 'a' hereof; e) If default is committed by the defendants or any of them in complying with their obligations in terms of the agreement mentioned in the plaint, the Registrar of this learned Court be directed to sign, execute and register such paper document and/or deed as may be necessary or expedient for the purpose of specifically performing the said agreement; f) Permanent injunction restraining the defendants and each of them from dealing and/or disposing of the said suit property in any manner whatsoever; g) Receiver; h) Costs of, and incidental to, the suit be paid by the defendants; i) Such further order/orders as Your Honour may deem fit and proper. "

( 3 ) THE case made out by the plaintiffs may be summarised thus: (a) The plaintiffs are engaged in construction and development of building projects. In the year 1990, the defendants, the owners of the suit property approached the plaintiffs to develop a part of the premises being 236b, Acharya Jagadish Chandra Bose Road, Kolkata containing an area of 27 cottahs as described in the schedule of the plaint. At that point of time, the property was partly under the occupation of one balmer Lawrie and Company Ltd. and partly of one Associated Metal works and the adjacent premises being 236a, Acharya Jagadish chandra Bose Road, Kolkata were under the monthly tenancy of one hindustan Petroleum Corporation Ltd. (b) At that point of time, the appellants agreed to develop the suit property on the following terms: (i) The plaintiffs would make arrangement for having the suit property vacated by the tenants and occupants through negotiation. (ii) The plaintiffs would take all the responsibilities and the obligations to negotiation with the tenants and the occupants of suit property and the compensation to be paid and/or the alternative accommodation to be provided by the plaintiffs would be adjusted from the area to be allocated to the defendants upon development of the suit property. (iii) The plaintiffs would make an advance of Rs. 50,00,000/- as an interest free security deposit to the defendants within six months from the date the Balmer Lawrie and Company would vacate the property and the plaintiffs would at their own costs and expenses obtain the necessary permissions and sanction of the building plan from the appropriate authority. (iv) Out of the construction area of the new building, 58 per cent of such area together with the proportionate share in the land, common areas, roof and car parking space would be allotted to the defendants absolutely and the balance 42 per cent would be available for the plaintiffs. (v) The said agreement was duly accepted and recognised by the defendants through their



















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