IN THE HIGH COURT OF DELHI AT NEW DELHI
HON’BLE MR. JUSTICE S. RAVINDRA BHAT, J.
SHRI DEEWAN ARORA- Plaintiff
Vs.
SMT. TARA DEVI SEN & ORS. – Defendants
CS (OS) NO. 1095/2008
Decided on: 12.10.2009
specific performance - property dispute - Registration Act, 1908, Section 17; Transfer of Property Act, 1882, Section 53A; Stamp Act - The court discussed the requirement of compulsory registration of certain instruments and the effect of unregistered documents in conveying possession. It also emphasized the importance of proving readiness and willingness to perform the contract for specific performance under the Specific Relief Act, 1963, Section 16(c). The court highlighted the need for appropriate pleadings and evidence to establish the plaintiff's entitlement to the decree of specific performance.
Fact of the Case:
The plaintiff filed a suit for specific performance against the defendant, seeking a decree in his favor for a property. The defendant had allegedly executed an agreement to sell the property to the plaintiff, but the plaintiff failed to prove readiness and willingness to perform his part of the contract.
Finding of the Court:
The court found that the plaintiff failed to establish readiness and willingness to perform his obligations under the agreement, as required by Section 16(c) of the Specific Relief Act, 1963. The court also concluded that the plaintiff was not entitled to claim a decree of specific performance and dismissed the suit.
Issues: The key issues were the validity of the agreement to sell, the plaintiff's readiness and willingness to perform the contract, and the entitlement to the decree of specific performance.
Ratio Decidendi: The court emphasized the importance of proving readiness and willingness to perform the contract for specific performance under Section 16(c) of the Specific Relief Act, 1963. It also discussed the effect of unregistered documents in conveying possession and the requirement of appropriate pleadings and evidence to establish entitlement to the decree of specific performance.
Final Decision: The suit for specific performance was dismissed, and the plaintiff was not entitled to claim a decree of specific performance.
S.RAVINDRA BHAT
1. This suit for specific performance was filed by the plaintiff (hereafter, Deewan), against the first defendant (hereafter, Tara Devi) seeking a decree of specific performance in terms of the Agreement to Sell dated 14.02.2008 that was allegedly executed by her in respect of C-515, Avantika, Rohini, Sector-1, Delhi-110085 (hereafter “the suit property”), in Deewan’s favour, along with a direction to the third defendant, GE Money Housing Finance (hereafter, GE Money), to hand over all the documents of the suit property on repayment of home loan taken by the defendant for the purchase of the suit property.
2. According to the suit averments Tara Devi is the owner of the suit property, which is a freehold property that she had purchased through a valid sale deed dated, 27.07.2007 from one Tajinder Singh S/o Mahendra Singh, and had executed an agreement to sell on 14.02.2008 in Dewan’s favour for a sale consideration of Rs. 23,50,000/-. It is alleged that a sum of Rs. 8,00,000/-was paid to her in cash on 14.02.2008 by Deewan, and it was agreed that she would handover vacant physical possession of the suit property to him by 10.04.2008, which condition was complied with. It is further alleged that it was agreed between the parties that the balance consideration of Rs. 15,50,000/-was to be paid by Deewan to her on or before 10.05.2008. Accordingly a sum of Rs. 9,30,000/-was again paid in cash on 02.05.2008. Deewan alleges further that, when on 03.05.2008 he visited Tara Devi and her husband (the second defendant) at their house to pay the balance of the consideration amount, they were not there and could not be traced. Later it was discovered that the property was mortgaged with GE Money against a home loan of Rs. 13,50,000/-, whereas in terms of the agreement to sell, the suit property was stated to be free from all encumbrances, such as sale, mortgage, gift, lien, lease, litigation dispute, notification, acquisition, attachment, etc.
3. It was also agreed that if it is proved otherwise, Tara Devi, shall indemnify Deewan in full, to the extent of loss sustained by him. It is stated that Deewan approached GE Money and volunteered to repay the pending loan amount in full requesting that the original documents pertaining to the suit property should be handed over to him, which request was declined.
4. The defendants were served through affixation of summons, and by publication; they did not, however appear in the proceedings. By order dated 09.02.2009 the first and the second defendants were proceeded ex-parte and the third defendant’s right to file a written statement was closed, as it had failed to file it for almost six months. An ad interim injunction was also granted by the Court against GE money restraining it from creating any third party rights or parting with the possession of the suit property. Further, on 16.07.2009 GE Money was also proceeded ex-parte.
5. Two affidavits in evidence were filed in support of Deewan’s case, his own (Ex. PW1/A) and that of one Ajay Pal (Ex. PW2/A), who allegedly is the witness to agreement to sell. The averments made in the plaint were affirmed in both the affidavits. The original of the Agreement to Sell dated 14.02.2008 is exhibited as Ex. PW-1/1 and the original copy of the Sale deed dated, 27.07.2007 executed by Tajinder Singh if favour of Tara Devi is exhibited as Ex. PW-1/2. The plaintiff has also filed two receipts for advance cash payments on two occasions, for Rs. 2,00,000/-on 24.02.2008 and Rs. 9,30,000/-on 02.05.2008, both bearing endorsement of the second defendant, exhibited as Ex. PW-1/3 (Colly).
6. The Court has carefully considered the averments in the plaint and the documents produced in support of the suit. Deewan has, in the opinion of this Court, established the existence of the alleged agreement to sell dated 14.02.2008. However, it is noteworthy that the said agreement to sell is an unregistered document which purports to also convey possession t
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