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2002 Supreme(Del) 1358

High Court Of Delhi
LALIT KUMAR SABHARWAL - Appellant
Versus
VED PRAKASH VIJH - Respondent
Suit 751 of 1996
Decided On : 09/11/2002

Advocates Appeared:
R.M.Bagai, R.P.SHARMA

Headnote:Specific Performance - Agreement to sell or receipt — Distinction — A perusal of the document, which is in the handwriting of the defendant himself, shows that this document is merely a receipt for the reason that it was not signets by both the parties which is an essential attribute of an agreement between the parties — Document does not fulfill the essential conditions of an agreement to sell — It is merely a "receipt" evidencing receipt of Rs. 1 lac by the defendant from the plaintiff, thereforee, -there was no valid and legal agreement for the sale of the suit property between the parties and the said document merely shows that the plaintiff had paid a sum of Rs. 1 lac to the defendant — Contract Act, 1872, Section 10.

       Held :

       Exhibit P-1 is an agreement to sell between the parties. It has to be termed as a "receipt" only executed by defendant on receipt of Rs. 1 lac from the plaintiff. This Court may not be impressed with the Explanationn tendered by the defendant in regard to the receipt of Rs. 1 lac from the plaintiff, but the fad remains that the burden of establishing a valid and legally enforceable "agreement to sell" was upon the plaintiff which he was failed to discharge and as such, whatever might have been the transaction between the parties, this Court is unable to hold that the document Exhibit P-1 is an "agreement to sell" the suit property to the plaintiff. The conclusion that Exhibit P-1 is not an agreement to sell stands fortified by the pleadings and affidavit of the plaintiff which show that a stamp paper of Rs. 2/- was purchased by the plaintiff next day and an agreement to sell was drafted thereon. The said agreement to sell was never signed by the parties and as such, it never came into existence. The move to purchase a stamp paper and draft an agreement to sell thereon containing various terms and conditions clearly suggests that Exhibit P-1 was not an agreement to sell and the agreement to sell which was drafted next day was never signed by the parties. Had Exhibit P1 been an agreement to sell, there was no need to purchase a stamp paper of Rs. 2/- and get another agreement to sell drafted next day.

       Exhibit P-1 does not fulfill the essential conditions of an agreement to sell. It is merely a "receipt" evidencing receipt of Rs. 1 lac by the defendant from the plaintiff. The issues, thereforee, stand disposed of by holding that there was no valid and legal agreement for the sale of the suit property between the parties and the Exhibit P-1 merely shows that the plaintiff had paid a sum of Rs. 1 lac to the defendant

R. C. CHOPRA

( 1 ) THIS is a suit for specific performance of an agreement to sell dated 8. 11. 1994 in respect of House n0. 8/15-A, West Patel Nagar, New Delhi measuring 100 sq. yards.

( 2 ) THE case of the plaintiff, briefly stated, is that the defendant is the co-owner of a House constructed on Plot NO. 8/15-A, West Patel Nagar, New delhi-8. The defendant approached the plaintiff for sale of his share in the said house measuring about 100 sq. yards and showed him the copies of the documents in 2 support of hie title. The plaintiff agreed to purchase the said house for a sum of Rs. 27 lacs and accordingly, an agreement dated 8. 11. 1994 was entered into between the parties. The plaintiff paid a sum of Rs. l lac to the defendant. Re. 50,000/- were paid in cash and rs. 50,000/- were paid by a crossed cheque. The agreement was signed by the parties and attested by two witnesses. It was also agreed that a formal agreement on a non-judicial stamp paper of Rs. 2/- would be executed on 9. 11. 1994 recording the terms and conditions which were orally agreed upon by the parties. The plaintiff purchased a stamp paper of Rs. 2/- for the said purpose and got the agreement typed out. However, when he approached the defendant for signing the same, the defendant did not sign it on one pretext or the other and thereafter avoided the specific performance of the agreement to sell. The plaintiff sent him a legal notice dated 10. 2. 1995. The defendant sent a reply dated 22. 2. 1995 along with a draft of Rs. l lac claiming it to be loan amount allegedly taken by the defendant from the plaintiff. The plaintiff alleged that he was always ready and willing to perform his part of the agreement for the execution of the sale deed and hence the suit for the decree of a specific performance.

( 3 ) THE defendant filed a written statement disputing that there was any agreement to sell between the parties in respect of the property in question. According to him, the marriage of his daughter was fixed on 11. 2. 1995 and that of his son on 14. 10. 1995 and as such, he was in need of money. He approached a property broker Nirmal singh who introduced him to the plaintiff. The plaintiff assured to arrange a loan of Rs. 6 lacs within two months and advanced him loan of Rs. l lac on interest of 20% per annum. The property in question was to remain a security against the loan but since the plaintiff failed to pay the balance loan and the answering defendant had to make alternative arrangements from other sources, the loan of Rs. l lac received from the plaintiff was returned vide a pay order dated 22. 2. 1995. The defendant emphatically denied that any agreement to sell was entered into between the parties and averred that the plaintiff was harassing and blackmailing him. It was alleged that the plaintiff was a builder and was eyeing his property. It was also stated that the document dated 8. 11. 1994 was merely a receipt and not an agreement to sell. The plaintiff filed replication to the written statement of the defendant controverting the pleas raised by the defendant.

( 4 ) ON the pleadings of the parties, following issues were framed :

1. Whether there is valid and legal contract for sale of the suit property? OPP 2. Whether plaintiff had advanced a loan of rs. 1,00,000/- out of agreed sum of rs. 6,00,000/- for the marriage of the children of the defendant @ 20% against the security of suit property? OPD 3. Whether defendant returned a sum of rs. 1,00,000/- on 22. 2. 1995 received by the plaintiff on 6. 3. 1995 and if so, what is the effect? OPD 4. Relief.

( 5 ) THE parties filed only affidavits in support of their pleas. The plaintiff filed his own affidavit and the defendant his own. I have heard learned counsel for the parties and gone through the records. My findings on the issues are as under : issues NO. 1 and 2

( 6 ) BOTH these issues are being taken up together as these are inter-linked and based on common pleas end evidence. The decision of one is to a










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