High Court Of Delhi
SEWA SINGH - Appellant
Versus
R.S.MALHOTRA - Respondent
Suit 1642 of 1992
Decided On : 05/13/2003
specific performance - Sale of Property - Government Grants Act 1895, Transfer of Property Act 1882, Clause 4(a) of Perpetual Lease Deed - The court found that the agreement to sell the property was subject to a clause in the perpetual lease deed which prohibited the sale or transfer of the property without the consent of the lessor for a period of 10 years. The court held that the clause did not render the agreement null and void, but directed the defendant to apply for permission from the appropriate authority as envisaged in the clause and execute the conveyance deed in favor of the plaintiff upon receipt of permission.
Fact of the Case:
The plaintiff sought specific performance for the sale of a property, while the defendant claimed that the agreement to sell was null and void due to a clause in the perpetual lease deed prohibiting the sale or transfer of the property without the lessor's consent for 10 years.
Finding of the Court:
The court found that the clause in the perpetual lease deed did not render the agreement null and void, but directed the defendant to apply for permission from the appropriate authority as envisaged in the clause and execute the conveyance deed in favor of the plaintiff upon receipt of permission.
Issues: The issues included the validity of the agreement to sell, the existence of exceptional circumstances for the grant of consent to sell the property, and the entitlement of the plaintiff to specific performance.
Ratio Decidendi: The court held that the clause in the perpetual lease deed did not render the agreement null and void, but directed the defendant to apply for permission from the appropriate authority as envisaged in the clause and execute the conveyance deed in favor of the plaintiff upon receipt of permission.
Final Decision: Decree for specific performance was passed with the direction to the defendant to apply to the DDA for permission/consent to sell the suit land bringing out the factual position and exceptional circumstance. Relevant period of consideration for the DDA shall be from 1982 to 1992. On receipt of permission defendant shall execute the conveyance deed in favor of the plaintiff within one month. No order as to costs.
( 1 ) THIS is a suit for specific performance seeking execution and registration of Sale Deed and delivery of possession and permanent injunction in respect of property bearing plot number B-140 , Block B, situated at Vivek Vihar, Delhi measuring 300 sq. yards.
( 2 ) THE case of the plaintiff, in brief, is that the defendant represented to the plaintiffs through M/s Amba Property Dealers (Regd) that he is perpetual lessee of Plot No. 140, Block B, situated at Vivek Vihar, Delhi measuring 300 sq. yards and offered to sell the same for valuable consideration. After negotiations the total consideration of sale of the plot was settled at Rs. 7,72,500/ -. At the time of execution of agreement to sell , a sum of Rs. 20,000/- (Rs. 10,000 by means of cheque and Rs. 10,000/- by cash) was paid leaving a balance of Rs. 7,52,500/- which was agreed to be paid at the time of registration of the sale deed in the Office of Sub-Registrar, Delhi.
( 3 ) IN order to complete the sale, the defendant was to obtain necessary permissions from various authorities viz. `no Objection Certificates from the Income Tax, Delhi Development Authority, Urban Land Ceiling etc. which the defendant agreed to obtain within a period of 365 days and as such 365 days time was fixed for the performance of the agreement of sale. It was agreed that in case the defendant failed to execute the sale deed and get the same registered within the stipulated period of 365 days, the plaintiffs could get the agreement of sale enforced specifically through the Court of Law.
( 4 ) IT was also agreed that the possession of the property shall be delivered to the plaintiffs immediately after the execution of the sale deed and the expense of stamp papers, registration fee shall be borne by the plaintiffs.
( 5 ) IT was assured by the Defendant that the plot under sale was free from all kinds of encumberances, sale, mortgages, gift, transfer etc and the defendant agreed to convey the property to the plaintiffs to their entire satisfaction. Consequenlty a Receipt-cum-Agreement to Sell dated 25. 4. 88 was executed by the defendant.
( 6 ) THE defendant after executing the Receipt-cum-Agreement to Sell and after receiving the amount of Rs. 20,000/- did not take any step to convey the property in question to the plaintiff.
( 7 ) THE plaintiffs asked the defendant several times to convey the property. Sometimes defendant refused to do so, sometimes he promised to convey the property and thus had been marking time on the pretext that he was seeking requisite permissions to complete the sale deed.
( 8 ) IT is averred that the plaintiffs were always ready and willing to perform their part of contract and are still ready and willing to perform their part of commitment and to pay the remaining amount of sale consideration of Rs. 7,52,500/- to the defendant but the defendant is not prepared to execute and register the sale deed in favour of the plaintiff due to rise in the market value of the plot. It is further averred that on 19. 4. 92 the defendant flatly refused to convey the property to the plaintiff and on further enquiries it transpired that he was nogotiating to sell the same at a higher price to some other persons. Hence, this suit.
( 9 ) IN Written Statement, the defendant has challenged the maintainability of the suit on the terms that no valid agreement to sell or concluded contract for sale of the property was executed and the alleged agreement to sell is unilateral document and, therefore, does not constitute a concluded contract. Apart from this , the defendant has also taken the plea that the perpetual lease obtained from DDA prohibits sale and transfer of the plot in question for a period of 10 years and therefore the alleged agreement , if any, violates the terms and conditions of the lease and is null and void.
( 10 ) ON merits the defendants has taken the stand that he was not aware of this fact and this fact came to his knowledge when the perpetual lease deed was ex
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