IN THE HIGH COURT OF CHHATTISGARH, BILASPUR
GOUTAM BHADURI, RADHAKISHAN AGRAWAL, JJ.
Smt. Sangeeta Agrawal, Wd/o. Late Shri Manoj Agrawal & Ors. - Appellants
Versus
Santosh Bhimnani, S/o. Late Shri Ashok Bhimnani & Ors. - Respondents
FA No. 31 of 2017
Decided On : 29-04-2024
specific performance - agreement for sale of immovable property - 16-11-2006, 14-11-2009 - 3.77 acres - 4.33 acres - Rs. 52.00 lacs - Rs. 10.00 lacs - Rs. 22.00 lacs - Rs. 20.00 lacs - demarcation, partition - time extended - legal notice - public notice - suit filed on 10-5-2012
Fact of the Case:
The legal heirs of Manoj Agrawal filed a suit for specific performance against the legal heirs of Ashok Bhimnani for an agreement for the sale of immovable property. The agreement involved the sale of 3.77 acres and 4.33 acres of land for a total consideration of Rs. 52.00 lacs, out of which Rs. 10.00 lacs was initially paid, and the remaining amount was to be paid at a later date. The parties agreed to demarcate and partition the land, and the time for execution of the agreement was extended. Legal and public notices were issued, and the suit was filed on 10-5-2012.
Finding of the Court:
The trial Court held that the suit was barred by time and that the physical possession of the suit property was not delivered to the purchaser. The Court dismissed the suit for specific performance.
Issues: The issues included the payment of consideration, possession of the land, extension of time, and the authenticity of the agreements.
Ratio Decidendi: The Court found that time was not the essence of the contract, and the conduct of the parties indicated an extension of time. The Court also considered the authenticity of the agreements and the possession of the land.
Final Decision: The Court upheld the dismissal of the suit for specific performance, but directed the defendants to pay an amount of Rs.17.00 lacs to the plaintiffs along with interest at the rate of 6% per annum from 31-1-2007.
JUDGMENT :
Goutam Bhaduri, J.
1. Challenge in this appeal is to the judgment and decree dated 21-10-2016 passed by the Additional District Judge, Bilaspur, in civil suit No.344-A/2014 wherein the suit for specific performance was dismissed.
2. The legal heirs of Manoj Agrawal namely; Smt. Sangeeta Agrawal, Satuti Agrawal & Mridulhari Agrawal filed a suit for specific performance against the legal heirs of Ashok Bhimnani namely; Dinesh Bhimnani, Santosh Bhimnani, Kamal Bhimnani, Simran and Smt. Mala.
3. (i) The facts of the case, in brief, are that Ashok Bhimnani (since deceased) and Manoj Agrawal (since deceased) entered into an agreement for sale of immovable property of part of share of Ashok Bhimnani of land bearing khasra No.1190, 1205, 1207, 1208, 1209, 1210, 1211, 1212, 1216/2 and 1217 admeasuring 3.77 acres and from individual land bearing khasra No.1204 and 1218 admeasuring 0.56 acres in total 4.33 acres. The plaint allegation and agreement purport that the total sale consideration was fixed at Rs. 52.00 lacs. Out of the said sale consideration, an amount of Rs. 10.00 lacs was initially paid i.e. Rs. 8.00 lacs was in cash and Rs. 2.00 lacs was in the form of cheque dated 16-11-2006. The lands are situated at Mouza Sendri, PH No.16, RI Circle, Tahsil & District Bilaspur. It was further agreed, according to the plaint and the agreement, that out of remaining amount an amount of Rs. 22.00 lacs would be paid by 11-1-2007 to the seller Ashok Bhimnani by the purchaser Manoj Agrawal as per convenience and rest of the amount of Rs. 20.00 lacs would be paid at the time of registration of sale deed.
(ii) According to the plaintiffs, the suit land would be demarcated and the seller on his own cost would get the partition of his own share and subsequently, the seller would also level the field at par with the adjacent land of Laxminarayan Sahu. The parties agreed that from the date of agreement i.e. 16-11-2006 up till October, 2007 the demarcation, partition, etc. would be done and it would be the duty of the seller to get the sale deed executed. The plaintiffs stated that on 21-1-2007 further an amount of Rs. 7.00 lacs was paid thereby time for execution of the agreement was extended and subsequently another agreement was executed on 14-11-2009 vide Ex.P/2 in acknowledgment of the amount received. The agreement was executed to show that an amount of Rs. 17.00 lacs was received and another Rs. 4.00 lacs in cash was received on 14-11-2009. According to the plaintiff, while execution of agreement dated 14-11-2009 the original document of the land and revenue papers were handed over to the purchaser. The plaintiff, therefore, contended that the time was extended and contract was kept alive.
(iii) The plaintiff stated that the seller was trying to sell the land, therefore, a notice was served on 25-9-2009 whereby Manoj Agrawal objected the registration and application was also filed and public notice was also issued. It is contended that the legal notice though was served vide Ex.P/7 the trial Court ignored the same. Ashok Bhimnani, the seller, died on 25-9-2010 and after a month Manoj Agrawal, the purchaser, also died on 25-10-2010. In between legal notice was issued and public notice was also carried out making the public aware about existence of the agreement and eventually the suit was filed on 10-5-2012.
4. The defendants contended that for the personal need of their father and family, he received the amount. They had denied the execution of agreement and also denied the fact that possession of the land was handed over on 16-11-2006. Rest of the plaint allegations were denied instead it was stated that Ashok Bhimnani was ailing and was treated in different cities, therefore, there was no occasion to execute the said agreement. The legal heirs who filed the written statement strenuously denied the fact about execution of agreement or receipt of any amount. It was stated that Ashok Bhimnani was not the sole owner and his brothers & sister
Corpn. of the City of Bangalore v. M. Papaiah
Guru Amarjit Singh v. Rattan Chand
Azhar Sultana v B. Rajmani and Others
Swarnam Ramchandran (Smt.) and Another v Aravacode Chakungal Jayapalan
Union of India and Others v Vasavi Cooperative Housing Society Limited and Others
Rathnavathi and Another v Kavita Ganashamdas
Govind Prasad Chaturvedi v Hari Dutt Shastri
Gomathinayagam Pillai v Palaniswami Nadar
Bhargavi Constructions and Anr. v Kothakapu Muthyam Reddy and Ors.
India Council for Enviro-legal Action v Union of India and Ors.
The main legal point established in the judgment is that time was not the essence of the contract, and the conduct of the parties indicated an extension of time for performance.
Time as Essence of Contract - Plaintiff's Failure to Prove Readiness and Willingness - Unjust Enrichment
The plaintiff's continuous readiness and willingness to perform the contract, as well as the concept of unjust enrichment, were central legal principles established in the judgment.
The main legal point established in the judgment is that the plaintiff's failure to obtain necessary documents and contradictory actions led to the dismissal of the specific performance claim. Additi....
Mere escalation of price does not constitute hardship to the vendor, and the conduct of the parties and the terms of the agreement are crucial in determining entitlement to specific performance.
The court ruled that a written contract prevails over oral agreements, and unjust enrichment principles require the return of amounts paid towards part performance of a contract.
Time is generally not considered essence in immovable property contracts; refusal to perform requires consideration of readiness alongside equitable claims for refund.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.