1989 Supreme(Del) 260
High Court Of Delhi
SANJAY VATS - Appellant
Versus
ATTRO - Respondent
Interim Application 7177 of 1988
Decided On : 07/19/1989
C.B.Verma, S.S.VATS
A plaintiff is entitled to a decree for specific performance of a contract to sell land if he has a prima facie case, the balance of convenience lies in his favor, and irreparable loss and injury would be caused to him if the injunction is not granted.
Headnote:
SPECIFIC PERFORMANCE - AGREEMENT TO SELL - POSSESSION DELIVERED - INJUNCTION - BALANCE OF CONVENIENCE - IRREPARABLE LOSS - Prima facie case for specific performance and injunction - Possession delivered to plaintiff under agreement to sell - Balance of convenience in favor of plaintiff - Irreparable loss and injury to plaintiff if injunction not granted - Defendant restrained from selling, alienating or encumbering suit land and from interfering with plaintiff's possession during pendency of suit.
Fact of the Case:
Plaintiff filed a suit for specific performance and perpetual injunction against the defendant based on an agreement to sell agricultural land. The plaintiff claimed that he had paid an advance of Rs. 2,38,000 and was given possession of the land on the date of the agreement. The defendant, however, backed out of the agreement and refused to execute the sale deed. The plaintiff sought an injunction restraining the defendant from selling, transferring, or encumbering the land and from interfering with his possession.
Finding of the Court:
The court found that the plaintiff had a prima facie case for specific performance and injunction. The court noted that the agreement to sell contained a recital that possession had been delivered to the plaintiff and that there were other circumstances and documents which demonstrated that the plaintiff was in possession of the land. The court also found that the balance of convenience lay in favor of the plaintiff and that irreparable loss and injury would be caused to him if the injunction was not granted.
Issues: 1. Whether the plaintiff had a prima facie case for specific performance and injunction. 2. Whether the balance of convenience lay in favor of the plaintiff. 3. Whether irreparable loss and injury would be caused to the plaintiff if the injunction was not granted.
Ratio Decidendi: The court held that the plaintiff had a prima facie case for specific performance and injunction because the agreement to sell contained a recital that possession had been delivered to the plaintiff and there were other circumstances and documents which demonstrated that the plaintiff was in possession of the land. The court also found that the balance of convenience lay in favor of the plaintiff and that irreparable loss and injury would be caused to him if the injunction was not granted.
Final Decision: The court granted the injunction restraining the defendant from selling, alienating or encumbering the suit land and from interfering with the plaintiff's possession during the pendency of the suit. The court also allowed the plaintiff to withdraw the amount of Rs. 25,000 deposited in court by the defendant.
( 1 ) IN a suit for specific performance and perpetual injunction filed by the plaintiff against the defendant on the basis of an agreement to sell the agricultural land in village Mundka, Delhi dated 9th October: 1987 he has also filed an application under Order 39 Rules I and 2 read with Section 151 of the Code of Civil Procedure praying therein that the defendant should be restrained from selling, transferring, alienating or otherwise encumbering the land in dispute and also interfering in any manner with peaceful possession of the plaintiff over such land.
( 2 ) THE relevant facts stated in the plaint by the plaintiff are that the defendant has entered into an agreement to sell the agricutural land bearing Khasra Nos. 111/13 (2-14), 111/17 (4. 16), 111/18 (5-06) and 111124 (4-16), total measuring 37 bighas 12 biswas with the plaintiff on 9th October, 1987. The defendant having entered into the agreement to sell received a sum of Rs. 2,38,000 in advance by way of part payment from the plaintiff out of the total sale consideration of Rs 23,83,330 and the defendant executed a separate receipt for the amount so received by him. The balance consideration was to be paid by the plaintiff to the defendant at the time of registration of the sale deed within a period of twelve months from the date of execution of the said agreement. Pursuant to the agreement to sell, the possession of the suit land was delivered to the plaintiff on the spot by the defendant on the date of the agreement itself and the plaintiff has been in possession of the suit land since then. It was also agreed to and stipulated in the agreement that the defendant shall obtain ths necessary Income Tax Clearance Certificate as well as No Objection Certificate from the competent authorities and execute the regular sale deed in favour of the plaintiff within the stipulated time. As mentioned above, the sale deed was to be executed by the defendant in favour of the plaintiff within a period of twelve months from the date of the agreement, i. e. , 9th October, 1987. It was also specifically agreed that if the defendant failed to execute the sale deed after obtaining the necessary certificates/documents for execution and registration of the sale deed within a period of twelve months from the date of the agreement, the plaintiff shall be entitled to seek enforcement of the agreement through the court of law, in addition to the right to recover double the advance money paid by the palintiff to the defendant. It appears that the defendant because of escalation in prices has backed out from the agreement and does not want to sell the land in accordance with the agreement to sell. However, the plaintiff has all along been willing to perform his part of the agreement and is still willing for the same. The plaintiff has approached the defendant to effect the sale deed in. accordance with the terms of the agreement to sell but of no use. Hence this suit.
( 3 ) THE defendant, on the other hand, has emphatically stated that notwithstanding the alleged admission in the agreement to sell that vacant physical possession has been handed over to the plaintiff, in fact no possession whatever has been handed over. In fact it was agreed between the parties that the dehorse the said clause, the possession would remain with the defendant till the entire sale consideration was paid. In the revenue records till date the defendant continues to be shown as owner. in possession in the Khasra Girdawari for kharif 1988-89 prepared by the patwari after inspection of the site. The plaintiff admittedly not in possession is not entitled to any decree restraining the defendant from interfering with the non-existent possession of the plaintiff. Furthermore the case set up by the defendant is that the sale would be completed within six mouths of the execution of the agreement to sell. The plaintiff within this period neither paid nor tendered the balance sale consideration and to get ou