High Court Of Delhi
ROHIT KOCHHAR - Appellant
Versus
VIPUL INFRASTRUCTURE DEVELOPERS LTD - Respondent
CS(OS) : 1138 of 2004
Decided On : 04/25/2005
JURISDICTION - Specific Performance of Contract - Code of Civil Procedure 1908, Section 16 - Specific Relief Act, 1963, Section 22 - Transfer of Property Act, 1882, Section 55 - The court discussed the provisions of Section 16 of the Code of Civil Procedure, Section 22 of the Specific Relief Act, and Section 55 of the Transfer of Property Act to determine the jurisdiction of the court in a suit for specific performance of a contract for sale of immovable property. The court emphasized that the suit for specific performance of an agreement to sell simplicitor, even if it relates to immovable property, is not a suit in which the relief claimed relates to title or to land. It held that unless possession of immovable property is specifically prayed for, the suit could be instituted within the local limits of the court having jurisdiction where the defendant resides, carries on business, or personally works for gain.
Fact of the Case:
The plaintiff sought a decree for specific performance to transfer the right, title, and interest in the suit premises. The defendants raised a preliminary objection to the jurisdiction of the court to entertain the suit.
Finding of the Court:
The court held that it had jurisdiction to entertain the suit for specific performance of the contract for sale of immovable property, emphasizing that the suit was not for determination of title or delivery of possession of the property.
Issues: The main issue was whether the court had jurisdiction to entertain the suit for specific performance of the contract for sale of immovable property.
Ratio Decidendi: The court's decision was based on the interpretation of the provisions of Section 16 of the Code of Civil Procedure, Section 22 of the Specific Relief Act, and Section 55 of the Transfer of Property Act, emphasizing that the suit for specific performance of an agreement to sell simplicitor, even if it relates to immovable property, is not a suit in which the relief claimed relates to title or to land.
Final Decision: The court decided in favor of the plaintiff, holding that it had jurisdiction to entertain the suit for specific performance of the contract for sale of immovable property.
( 1 ) PRESENT order disposes of the preliminary objection raised by the defendants to the jurisdiction of this Court to entertain the present suit.
( 2 ) SUIT prays that :
"i)A decree for specific performance be made against the defendants and in favour of the plaintiff, commanding the defendants to transfer the right, title and interest in the suit premises to the plaintiff, by executing and getting registered sale deed/document to transfer the title of the suit premises totally ad-measuring 10,747 sq. ft. situated on the second floor of the fortune Global Hotel and Commercial complex, Gurgaon in terms of the contract dated 16/20. 01. 2004 for sale concluded between the parties. "
( 3 ) PLEADINGS pertaining to accrual of cause of action are :
"44. THAT the cause of action first arose on January 16, 2004 when the defendants made an offer to sell the suit premises to the plaintiff. The cause of action further arose on January 20, 2004 when the said offer dated January 16, 2004 was accept ed by the plaintiff and a payment of Rs. 20,00,000. 00 (Rupees twenty lacs only) was made by the plaintiff in favour of MAB Finlease limited on the request of the defendants. The cause of action further arose on February 6,2004 when another part payment of Rs. 20,00,000. 00 (Rupees Twenty Lacs only) was made by the plaintiff to MAB Finlease Limited on the request of the defendants. The cause of action further arose when the defendants 1 and 2 failed to issue receipts for the part payments of rs. 40,00,000. 00 (Rupees Forty Lacs only) made by the plaintiff. The cause of action further arose on 21. 02. 2004 when the defendants issued the receipt for the advance/part payment of rs. 40,00,000. 00 (Rupees Forty Lacs only) made by the plaintiff. The cause of action further arose when the cheques/drafts for the payment of rs. 40,00,000. 00 (Rupees Forty Lacs only) issued by the plaintiff were enchased by the defendants and binding agreement to sell was concluded between the plaintiff and the defendants. The cause of action again arose on 26. 07. 2004 and 04. 08. 2004 when the plaintiff called upon the defendants to finalize the terms and conditions of sale. The cause of action again arose on 14. 08. 2004, when the defendants practically refused to honor the agreement dated 16/20. 01. 2004 between the parties and told the plaintiffs colleague to forget the deal. The cause of action further arose on each of the dates when the plaintiff called upon the defendants to execute and register the sale deed in favour of the plaintiff in terms of the agreement dated 16/20. 01. 2004 The cause of action is a continuous one and continuing from day to day as the defendants have failed to execute and register a sale deed/ documents to transfer the title of the suit premises in favour of the plaintiff. "
( 4 ) PLEADINGS qua jurisdiction are in para 46 of the plaint. Plaintiff has pleaded :
"46. That the Corporate office of defendants 1 and 2 and the registered office of defendant No. 3 is at Saket, new Delhi and the defendants carry on business and work for gain at Delhi. The defendants made the offer to sell the suit premises to the plaintiff at New delhi and the plaintiff accepted the said offer also at New Delhi. The payments were also made by the plaintiff to defendant No. 1 at New Delhi. Accordingly, the Agreement was concluded at New Delhi. Further, the plaintiff is merely seeking the relief of specific performance of the contract dated 16/20. 01. 2004 for sale concluded between the parties, which relief can be entirely enforced through the personal obedience of the defendants. Therefore, this Hon ble Court has the territorial jurisdiction to entertain and try the present suit. "
( 5 ) AT the outset it maybe noted that not only has the plaintiff not prayed for a decree to be put in possession of the suit property but in para 46 of the plaint has specifically pleaded that plaintiff is merely seeking the relief of specific performance of contract d
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