2014 Supreme(Del) 1034
High Court of Delhi
RAJIV SAHAI ENDLAW
H.K. Chhabra
Versus
Manmeet Kaur
CS (OS) No. 127 of 2012 & IA No. 958 of 2012
Decided On : 02-04-2014
Advocate Appeared:
For the Plaintiff:Kuldeep Kumar, Advocate.
For the Defendant: None.
An agreement for specific performance must contain sufficient details for the court to determine the exact nature of the building or work to be undertaken.
Headnote:
Specific Performance - Agreement to Sell - Specific Relief Act, 1963, Section 14(3)(c) - Indian Contract Act, 1872, Section 29
Fact of the Case:
The plaintiff sought specific performance of an Agreement to Sell for a property. The defendant failed to fulfill the agreement, leading to a legal dispute.
Finding of the Court:
The court found that the Agreement to Sell lacked vital particulars and could not be specifically enforced. The plaintiff was only entitled to a refund of the earnest money with interest, and costs of the suit.
Issues: Enforceability of the Agreement to Sell, Claim for compensation, Valuation of the suit
Ratio Decidendi: An agreement lacking vital particulars cannot be specifically enforced. The plaintiff is entitled to a refund of the earnest money with interest and costs of the suit.
Final Decision: The plaintiff was permitted to recover Rs.30,00,000/- paid as earnest money along with interest and costs of the suit.
1. The present suit has been instituted by the plaintiff praying for specific performance of an Agreement to Sell dated 26.05.2010, or in the alternative, for compensation of Rs. 1 Crore, pleading:
(I) that the plaintiff and one Sh. Subhash Dhingra were business partners and owners of property bearing No. 43, Samrat Enclave, Pitampura, in the ratio of 40% and 60% respectively, vide a registered Sale Deed dated 18.01.2010 executed in their favor by Smt. Gurdeep Kaur and Pradeep Kaur;
(II) that subsequently the plaintiff and his partner Sh. Subhash Dhingra sold the aforesaid property to the defendant for a total sale consideration of Rs.48,00,000/- vide a registered Sale Deed dated 29.05.2010;
(III) that thereafter the plaintiff agreed to purchase back from the defendant, the first floor (without roof rights) of the aforesaid property (hereinafter referred to as the suit property) for a total consideration amount of Rs.50,00,000/-and the parties executed the Agreement to Sell dated 26.05.2010 for the said purpose;
(IV) that as per the said Agreement to Sell, the defendant received a sum of Rs.30,00,000/- from the plaintiff as earnest money amount, with the balance being payable at the time of handing over possession of the suit property by the defendant to the plaintiff and execution of sale/transfer documents with regard thereto;
(V) that though the defendant had promised to hand over possession of the suit property upon its construction, which was to be completed within a year, the defendant did not even commence the construction of the first floor and had not even got the building plan sanctioned from the MCD for the said purpose till the time of institution of the suit;
(VI) that 19 months had lapsed since the Agreement to Sell was executed between the parties and the defendant had all along deliberately avoided performance of his obligations under the same;
(VII) that the plaintiff is ready and willing to pay the remaining amount of Rs.20,00,000/- but the defendant is not willing to transfer the suit property in favor of the plaintiff;
(VIII) that on 27.07.2011, the defendant along with her husband Sh. Surjit Singh, in response to a legal notice dated 26.07.2011 got sent by the plaintiff calling upon them to perform their obligations under the contract, agreed to register the Sale Deed by 01.08.2011 and requested the plaintiff to tender the balance payment of Rs.18,00,000/-(at a concession of Rs.2,00,000/- for delay) with the assurance that the cheques so issued for the said purpose would not be presented by them prior to execution of Sale Deed;
(IX) that however the plaintiff was shocked to learn that the cheques so issued by him and one Sh. Jagdish Singh (a relative of the plaintiff) for Rs.10,00,000/- & Rs.8,00,000/-respectively in favour of the plaintiff, had been presented for payment before the agreed date and been dishonored on account of insufficient funds;
(X) that when the plaintiff attempted to bring up the said matter with the defendant, she harassed and intimidated him with the threat that she would put him behind bars under a forged case of cheating;
(XI) that the plaintiff thus filed a Criminal Compliant under Section 200 of the Cr.P.C. against the defendant and her associates, and which is pending disposal before Ms. Manika Sehrawat, MM, New Delhi.
2. Summons of the suit were issued and upon non-appearance of the defendant, the defendant was proceeded ex-parte on 23.02.2012.
3. The plaintiff has led his ex-parte evidence by examining himself as the sole witness. The contents of the affidavit filed by the plaintiff in evidence are a reiteration of the averments in the plaint culled out above. The plaintiff, in addition, has tendered the following documents in evidence to support his case:
I. Photocopy of Sale Deed dated 18.01.2010 in favor of the plaintiff and his partner, exhibited as PW1/1;
II. Photocopy of Sale Deed dated 28.05.2010 executed by the plaintiff and his partner in favor o