1997 Supreme(Del) 952
High Court Of Delhi
RAVI SOOD - Appellant
Versus
VIR BALA SHARMA - Respondent
Suit 502 of 1982
Decided On : 11/26/1997
Gaurav Duggal, K.R.Gupta, RAJIV NAYAR
Headnote:Specific Relief Act, 1963 - Section 16(c) — Readiness and willingness — Determination of — Agreement to sell land — Denial of permission by Competent authority under Land Ceiling Act — No steps taken by vendee to tile appeal against thee order — Vendor immediately refunding the amount of advance by cheque as agreement became unenforceable — Vendee not entitled to decree of specific performance.
( 1 ) THE present suit has been filed by the plaintiffs for specific performance of agreement to sell dated May 10, 1978 entered into between the defendant as the Vendor and the plaintiffs as Vendees in respect of the property known as plot No. G-47 Block No. 6, Green Park, New Delhi.
( 2 ) THE facts as enumerated in the plaint are that the defendant by means of an agreement dated May 10, 1978 agreed to make sale of the aforesaid plot to the plaintiff for total consideration of Rs. 1,70,000. 00 out of which a sum of Rs. 5,000. 00 was paid by means of cheque No. SB/031386 dated May 8, 1978 drawn on Punjab and Sind Bank, Sector 17-C, Chandigarh. The said payment was made as alleged earnest money and part sale consideration which was accepted by the defendant. The agreement to sell was entered into between the parties in writing and signed by plaintiff No. 1 for self and on behalf of his wife plaintiff No. 2 and the defendant appended the signatures on each page of the agreement. The defendant enshed the aforesaid cheque of Rs. 5,000. 00 and acknowledged having received the amount in consideration of the agreement to sell. In terms of the covenants contained in the agreement, defendant was to obtain the necessary permission from the Competent Authority and was to deliver actual and physical possession of the property to the plaintiff at the time of registration of the sale deed and was to receive the balance consideration amount of Rs. 1,65,000. 00 before the Sub Registrar at the time of presentation of the Sale Deed for its admission of execution and registration. The defendant assured plaintiffs that the plot in question was self acquired and free from all encumbrances and there was no charge, lien etc. in respect of the same. The defendant further undertook that she would obtain `no Objection Certificate from the Competent Authority as envisaged in terms of the Urban Land (Ceiling and Regulations) Act, 1976 (hereinafter REFERRED TO to as `the Act ) and she would obtain necessary income tax clearance from the authorities concerned and after having obtained the same she would intimate to the plaintiffs accordingly and would get the sale deed executed from the said date within a period of 30 days thereof. The relevant facts and pleadings are contained in paragraphs 9,10,11,12 and 13 of the plaint which may be reproduced as follows:
"9. That the defendant as required made application for seeking necessary permission from the Competent Authority in accordance with the Urban Land (Ceiling and Regulations) Act, 1976. The application was made under the signatures of the parties. She came to Delhi as aforesaid, received a sum of Rs. 5,000. 00 on 15. 5. 1978 and on the same very day she made application after having duly filled the necessary forms for obtaining the necessary permission from the Competent Authority. It was categorically stated in the said application for obtaining necessary permission that the property was to be sold to the plaintiffs and the signatures of the plaintiffs were also obtained, as required under law. It is pertinent to note that the original application was filled in in the hands of the plaintiff No. 1 though it might not have been much relevant but it has its own significance since thereafter a fraud has been played and manipulation in the record has been made by the defendant who has also been summoned as an accused in the criminal proceedings and she is being prosecuted for the same in the circumstances as shall be REFERRED TO to hereinafter. As required she also filed an affidavit along with the application dated 15. 5. 1978 stating therein that she did not own any other property except the plot in question. 10. That when the petition was submitted on 15. 5. 1978 for seeking permission under section 27 (2) of the Act a receipt was issued from the office of the Competent Authority to that effect and she was directed to appear on 12. 6. 1978 at 11 A. M. with necessary documents in original.