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2024 Supreme(Chh) 484

RAJANI DUBEY, SANJAY KUMAR JAISWAL
Priyabratta Choudhary, S/o Kheermohan Choudhary – Appellant
Versus
Jayshankar Sahu, S/o D. R. Sahu – Respondent


Advocate Appeared:
For the Appellants :Mr. Manoj Paranjpe and Mr. Anurag Singh, Advocates
For the Respondent: Mr. Siddharth Rathod, Mr. Kishan Lal Sahu, Dy. G.A.

Judgement Key Points

Key Points: - The court held that a written contract prevails over oral agreements and that restitution of part performance amounts is warranted. (!) (!) - The plaintiffs paid Rs.35,70,000 towards part performance of the sale agreement and the defendant retained this amount; the court directed return of this amount with interest. (!) (!) - The judgment discusses unjust enrichment and restitution, emphasizing that the defendant must return amounts paid toward part performance. (!) (!) - The trial court had dismissed the suit for specific performance; on appeal, the court considered Section 16(e) and Section 20 of the Specific Relief Act in relation to specific performance and restitution. (!) (!) (!) - The appellate court partly allowed the appeal by directing restitution of Rs.35,70,000 to the plaintiffs at 6% interest from the date of filing of the suit. (!) (!)

What is the effect of a written contract prevailing over oral agreements in a specific performance action for sale of property?

What are the principles of unjust enrichment and restitution as they apply to part performance of a contract in a specific performance suit?

What are the remedies or orders regarding return of amounts paid towards part performance when specific performance is denied?


JUDGMENT :

Per Rajani Dubey, J.

1. The appellants have filed the instant appeal against the judgment and decree dated 30.04.2018 passed by the 6th Additional District Judge, Durg, District- Durg Chhattisgarh in Civil Suit No. 6388A/2013 whereby the suit filed by the appellants/plaintiffs for grant of decree of Specific Performance of Contract has been dismissed.

2. Brief facts of the case as mentioned in the appeal are that the the appellants/plaintiffs filed a civil suit for Specific Performance of Contract in respect of the property i.e. the building block No.88, plot No.10 Motilal Nehru Nagar (East) Bhilai, Tahsil and District Durg. The claim in the suit was based on the ground that the plaintiffs are the permanent resident of Bhilai District Durg. The plaintiff No.1 is a Software Engineer working at Bangalore and he is earning a very handsome salary i.e. Rs. 1 lakh/month. The plaintiff No.2 is holding the degree of MBBS and at the relevant time was prosecuting his studies at Bangalore. The father and power of attorney holder of the plaintiffs was Assistant General Manager in Bhilai Steel Plant who retired from the said post in the year 2010 and he has obtained Rs.60 lakhs towards

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