IN THE HIGH COURT OF DELHI AT NEW DELHI
JUSTICE SHIV NARAYAN DHINGRA, J.
Sobhag Narain Mathur - Plaintiff
Versus
Pragya Agrawal & Ors. - Defendants
IA No. 932/2009 in CS(OS) No. 176/2007
Decided on : November 11, 2009
Specific Performance - Contract for Sale - Stamp Duty Act - Specific Relief Act - [BAYANA] - [Specific Performance] - [Stamp Duty Act, Specific Relief Act] - The court discussed the interpretation of the 'bayana' receipt and whether it constituted a concluded contract for the sale of the property. It highlighted key legal provisions from the Stamp Duty Act and the Specific Relief Act, emphasizing that the absence of certain details in the contract did not make it unenforceable under the Specific Relief Act.
Fact of the Case:
The defendant sought rejection of the suit on the ground that no cause of action had been disclosed by the plaintiff for specific performance of the alleged contract. The plaintiff relied on a 'bayana' receipt as the basis of the suit, claiming that it constituted a contract for the sale of the property.
Finding of the Court:
The court found that the 'bayana' receipt indicated a concluded contract for the sale of the property, emphasizing that the absence of certain details did not render the contract unenforceable under the Specific Relief Act.
Issues: The main issue was whether the 'bayana' receipt constituted a concluded contract for the sale of the property.
Ratio Decidendi: The court emphasized that the intention of the parties and the basic and material aspects of the contract, such as the consideration and payment date, were crucial in determining the existence of a concluded contract.
Final Decision: The court dismissed the application seeking rejection of the suit, ruling that the 'bayana' receipt constituted a concluded contract for the sale of the property.
1. By this application under Order 7 Rule 11 CPC, the applicant/defendant has sought rejection of the suit on the ground that no cause of action had been disclosed by the plaintiff for specific performance of the alleged contract. The contract relied upon by the plaintiff was merely a contract for entering into a further agreement and the Court could not compel the parties to enter into an agreement to sell.
2. Before dealing with further averments made by the applicant, it would be fruitful to reproduce the contract which is the basis of this suit. The contract as disclosed by on ‘bayana’ receipt executed by the defendant, reads as under:
BAYANA RECEIPT
I, Pragya Aggrawal w/o Manoj Agrawal, residing at 58A/4 Sainik Farms, New Delhi-110062. I have agreed to sell my plots no. A, B, C, D Local Shopping Center, Madangir, area is 82.5 meters per plot, altogether 330 meter, approximately 44 guz, to S.N.Mathur, s/o Late Sh. Swarup Narainji Mathur r/o 152/10 Swarup Narain Mathur Marg Civil Lines Ajmer for a total consideration of Rs.6,20,00,000/- (Six Crore twenty lac). I hereby acknowledge the acceptance of Rs.20 lac in cash as bayana. The remaining
payment of Rs.6 crore shall be paid by 15.2.2007. Installments towards the same as part payment will be decided as per this agreement on the day of payment of 10% bayana day. The tea vendor, tyre puncture repair vendor and scooter repair mechanic, squatting in front of the plots would be removed by me. The detailed agreement will be signed on 14.12.2006 on receiving the 10% of the sale consideration.
Sd/-
Sellers Signature
Buyers Signature
Witness:
1) Bhagmal Jindal
2) Shri Pal Gupta
3. It is contended by the applicant that the above ‘bayana’ receipt does not amount to an agreement to sell and it only provides that a detailed agreement would be signed between the parties on 14th February 2006 on receiving 10% of the sale consideration. Thus, the ‘bayana’ receipt was an agreement to enter into a further agreement in respect of the property in question and does not amount to a concluded contract and cannot be specifically performed. It is submitted that the ‘bayana’ receipt does not contain mode or installments of payment. It does not record the responsibility of obtaining mandatory prior consent of the perpetual lessor and also does not contain as to who shall be liable to pay the unearned increase for the property. The document does not record as to who shall obtain prior consent of income tax authorities and ‘bayana’ receipt was not even stamped and thus, is no document in the eyes of law in view of provisions of the Stamp Duty Act. It was also silent about the obligation of the defendant to obtain sale deed in her favour from the predecessor in interest from whom she allegedly acquired rights in respect of the property in question. It is stated that in absence of any agreement regarding material aspects, ‘bayana’ receipt would not amount to a concluded contract between the parties and this is clear from the receipt itself where parties had agreed to enter into a sale agreement after payment of 10% earnest money by the plaintiff.
4. Thus, the question which arises and to be answered is - whether the above ‘bayana’ receipt is a concluded contract of sale or not. The Counsel for the plaintiff submitted that the ‘bayana’ receipt shows that the parties had concluded a contract for sale of the property. The parties were ad idem on the identification of properties which were to be sold to the plaintiff. They had also agreed to the sale consideration of Rs.6,20,00,000/- as is clear from the agreement. Parties also agreed that this consideration was to be paid by the plaintiff to the defendant on or before 15th February, 2007. It was also agreed that tea vendor, tyre puncture repair vendor and scooter repair mechanic, squatting in front of the plots would be removed by the defendant. The only unconcluded part of the contract was the details of payment of consideration that is how the cons
AI
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.