IN THE HIGH COURT OF CHHATTISGARH, BILASPUR
GOUTAM BHADURI, SACHIN SINGH RAJPUT, JJ.
Udaya Sahkari Grih Nirman Sahkari Sanstha Maryadit Tatibandh Raipur, Chhattisgarh, Registration No. Upa.P./r P R/75/81-82 Through President/Vice-President/Authorized Director - Appellant
Versus
Smt. Hathiyarin Bai, W/o. Late Vishwambhar Sahu and Ors. – Respondents
FA No. 386 of 2016
Decided On : 27-04-2023
Urban Land Ceiling Act - Suit for specific performance - Ready and willing to perform its part of contract - Decree of Court - Held, suit is hit by Section 42 of the Specific Relief Act - Plaintiffs have not sought possession of those properties -Merely claimed a declaration that they are the owners of the suit properties. Hence the suit is not maintainable-Subsequent sale deed in favour of defendants would show that they were put into possession of suit land - Plaintiff though filed a suit for specific performance of suit and for cancellation of sale deed but specific finding has been arrived at by court below which on - Court do not find to be perverse that defendants were put into possession - conduct of the plaintiff would show that certain notice was issued for specific performance in the year 2011 and sale-deed having not been executed, for all probabilities, they were in know of the fact that the performance of contract is refused. So Article 54 of the Limitation Act which speaks of the period for filing of suit for specific performance would be applicable in the facts of this case, which provides that within 3 years' period, a suit has to be filed for specific performance of sale. Therefore, 3 years would be the limitation for applying the suit when the refusal to execute the sale deed is made. Hence, the finding of the trial Court that the suit was barred under Article 54 of the Limitation Act does not call for any interference - Appeal Dismissed.
JUDGMENT :
(Goutam Bhaduri, J.)
1. The instant appeal is against the judgment and decree dated 28.07.2016 passed in Civil Suit No.13-A/2015 by the learned 9th Additional District Judge, Raipur, whereby the civil suit for specific performance of agreement was dismissed.
2. The plaintiff filed a suit for specific performance that initially on 07.01.1982 and 01.07.1982 two agreements were executed for sale of land bearing Kh.No. 189/1 admeasuring 0.162 acres, Kh.No.189/2 area 0.081 acres, Kh.No.201 area 0.299 acres and Kh.No.202 area 0.259 acres and Kh.No.203/2 area 0.405 acres situated in Tatibandh, Raipur and pursuant to such agreement with Kejau Ram and Bismal and also acting through the minor Khubi Ram, the amount was paid to the predecessor of the defendants. Subsequently, on 14.01.1987, Rs. 1 lakh (one lakh) was given to Kejau Ram whereby the consent was also given to include the part and parcel of the further land bearing Kh.No.189/1 so as to amalgamate into one agreement. Kejau Ram died on 16.09.2011 and subsequently Bishambar (since deceased) on behalf of himself and as a Power of Attorney Holder of other land owners executed another agreement on 21.09.2007 whereby the earlier execution of agreement dated 07.01.1982 was acknowledged. As per the agreed terms, on the date of agreement, since the land was comprised within the ceiling limit, as such, it was agreed that the saledeed would be executed as and when the land would be released from Ceiling Act. The plaintiff asserted that at that time, another part of sale consideration Rs.2 lakhs was paid and remaining Rs.16 lakhs was agreed to be paid at the time of execution of the sale deed. It is stated that subsequently the subject land in question was released from ceiling limit but the same was not informed to the plaintiff. The names of defendants 1 to 11 were recorded in revenue records. Subsequently, when a publication was made in a daily Newspaper on 25.12.2013, they came to know that defendants 1 to 11 have sold the lands to defendants 12, 13 & 14 by sale deed dated 13.11.2013. Consequently, the application was filed in the mutation proceeding to object the sale on the ground that prior agreement dated 21.09.2007 was in existence, therefore, the subsequent sale to defendants 12 to 14 would be illegal. The plaintiffs further state that they were not in possession of the said land and they are ready and willing to purchase the same but despite all their efforts, the defendants have not executed the sale deed.
3. During pendency of such mutation proceeding , the present suit was filed for specific performance and declaratory relief. Few of the defendants filed their written statements wherein they stated that when the agreement was executed, the land was enveloped within the Urban Land Ceiling Act, therefore, any agreement would not be specifically enforced while the land was comprised in the process of Ceiling Act. The defendants would submit that after the death of Karta, they are in possession of the said land and their names were also recorded in the revenue records to hold that they are in possession. Pursuant thereto, when the lands were declared to be released from ceiling limit, defendants 1 to 11 have executed the sale deed in favour of defendants 12 to 14 and had handed over the possession to the purchasers.
4. On the basis of these pleadings, the learned trial Court framed as many as 11 issues and held that the agreement on which the plaintiff placed its reliance was not proved and also held that the plaintiff was not ready and willing to perform its part of contract and dismissed the suit. Hence this appeal.
5. The subsequent agreement on which the suit was primarily based is Ex.P-19. In the said agreement, the sale consideration of Rs.29,56,000/- was fixed and by way of earnest money, Rs.10 lakhs was paid by Cheque. The agreement further reflects the fact that earlier Rs.1,56,000/- was already paid in cash, thereby a total sum of Rs.11,56,000/- was paid. It w
Arulmigu Chokkanatha Swamy Koil Trust, Virudhunagar Vs. Chandra
Venkataraja Vs. Vidyane Doureradiaperumal (dead) through LRs reported in (2014) 14 SCC 502
Muni Lal Vs. Oriental Fire and General Insurance Co. Ltd.
Shakuntala Devi Vs. Kamla (2005) 5 SCC 390
Parakash Chand Khurana v. Harnam Singh (1973) 2 SCC 484
The court emphasized the importance of providing convincing evidence and demonstrating genuine interest in seeking specific performance of a contract.
The court found the specific performance suit invalid due to the sale agreement being deemed fabricated, emphasizing that such claims cannot coexist with adverse possession expectations.
The main legal point established is that in a suit for specific performance of contract, the plaintiff must demonstrate readiness and willingness to perform the contract, and the suit must be filed w....
The court ruled that a civil suit for specific performance must be filed within three years from the refusal to perform, reinforcing that delay and lack of sufficient pleading detail bar such claims.
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.
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