DELHI HIGH COURT
Mukta Gupta, J.
Vijendra Kumar - Appellant
Versus
Shailender Kapoor - Resopndent
I.A No. 2151/2013 in CS(OS) 2161/2011
Decided On : 05-09-2013
specific performance - agreement to sell - Order XII Rule 6 CPC, Section 151 CPC - Satya Bhushan Kaura Vs. Vijaya Myne 142 (2007) DLT 426, Vijaya Myne Vs. Satya Bhushan Kaura 142 (2007) DLT 483 (DB); Sunrise Construction Vs. Veena Wahi 2009 (111) DRJ 710 - Surjit Kaur Vs. Naurata Singh and Anr. (2000) 7 SCC 379 - Himani Alloys Ltd. Vs. Tata Steel Ltd. 2011 (7) SCC 566
Fact of the Case:
The plaintiff seeks specific performance of an agreement to sell a property, claiming that the defendant failed to perform his part of the agreement and is now citing changed circumstances as a defense.
Finding of the Court:
The court found that the defendant's plea of changed circumstances and revocation of the agreement was not a clear admission, and the defendant is entitled to prove the revocation of the agreement by leading evidence.
Issues: The main issue was whether the defendant's plea of changed circumstances and revocation of the agreement constituted a clear admission, warranting a judgment on admission.
Ratio Decidendi: The court held that a judgment on admission should be based on a clear, unambiguous, and unconditional admission, and the discretion of the court should not be exercised to deny the defendant the right to contest the claim unless such admission exists.
Final Decision: The application for specific performance was dismissed, and the defendant was entitled to prove the revocation of the agreement by leading evidence.
1. By this application under Order XII Rule 6 CPC read with Section 151 CPC the plaintiff prays for passing of a decree of specific performance directing the defendant to perform his part of agreement dated 29th August, 2010 and hand-over possession of ground floor, measuring 200 sq. yards, half portion of terrace/roof rights at back side portion of third floor of suit property bearing No. 7/8, West Patel Nagar, New Delhi (hereinafter referred to as the ‘suit property’) to the plaintiff and damages along with interest till realization and costs.
2. Learned counsel for the plaintiff/applicant contends that a preliminary decree for part performance of the agreement to sell and purchase dated 29th August, 2010 is liable to be passed in favour of the plaintiff and against the defendant in view of the admissions made by the defendant. The defendant has admitted the agreement to sell and purchase dated 29th August, 2010, the ownership in the suit premises, receipt of part payment of Rs. 14 lakhs and the legal notice dated 1st July, 2011 which was not replied to by the defendant. The only defence taken by the defendant is that the agreement to sell and purchase has become un-executable in view of the changed circumstances. Thus, even if the defendant is not able to comply with the terms of agreement fully, it can sell portions of the property which are in his possession and conclude the part performance of the contract. In order to avoid the present contract, collusive suit was filed between one Shri Sanjeev Kumar Bahal and the defendant, thus ensuring that the agreement to sell and purchase between the plaintiff and defendant could not be executed due to change in circumstances. Reliance is placed on Satya Bhushan Kaura Vs. Vijaya Myne 142 (2007) DLT 426, Vijaya Myne Vs. Satya Bhushan Kaura 142 (2007) DLT 483 (DB); Sunrise Construction Vs. Veena Wahi 2009 (111) DRJ 710 and order dated 16th September, 2011 in CS(OS) No.(OS) 2528/2008 titled Nitin Arora Vs. Yashoda Nand Sharma and Ors. passed by this Court. Relying upon Surjit Kaur Vs. Naurata Singh and Anr. (2000) 7 SCC 379 it is also contended that a party can elect to accept part-performance of the contract at any stage of the litigation. Mere filing of a suit for specific performance of the agreement and not averring that the party was willing to accept performance in part does not preclude a party from subsequently electing to accept performance in part.
3. Learned counsel for the defendant/non-applicant on the other hand contends that the agreement between the parties is a single agreement and cannot be bifurcated. Neither in the notice nor in the e-mails sent subsequently the plaintiff ever expressed his willingness to accept part-performance of the contract. There is no clear admission on behalf of the defendant in the written statement as the defendant has denied that the plaintiff was willing and ready to perform his part of the contract. The written statement has to be read as a whole and sentences here and there cannot be read in isolation. Reliance is placed on Kishan Lal Chhabra Vs. Anil Arora 156 (2009) DLT 779, Express Towers P. TD & Anr. Vs. Mohan Singh and Ors. 2007 (97) DRJ 687 (DB); Amit Jain Vs. Harvinder Kaur 2013 II AD (DELHI) 408; M/s. Jeevan Diesels & Electricals Ltd. Vs. M/s. Jasbir Singh Chadda (HUF) & Anr. AIR 2010 SC 1890 and Himani Alloys Ltd. Vs. Tata Steel Ltd. 2011 (7) SCC 566.
4. Heard learned counsel for the parties. The case of the plaintiff is that the defendant represented to the plaintiff that the defendant was the exclusive and absolute owner and in possession of property with structure thereon in respect of built-up back side portion of basement measuring 900 sq. feet, entire ground floor measuring 200 sq. yards and half portion of the terrace/roof rights at back side portion of third floor, out of property bearing No. 7/8, West patel Nagar, New Delhi along with proportionate undivided, indivisible and impartial ownership right undearnea
Express Towers P. TD & Anr. Vs. Mohan Singh and Ors. 2007 (97) DRJ 687 (DB) [Para 3]
Himani Alloys Ltd. Vs. Tata Steel Ltd. 2011 (7) SCALE 566 [Paras 4 & 6]
Jeevan Diesels and Electricals Ltd. v. Jasbir Singh Chadha 2010 (6) SCC 601 [Para 6]
Karam Kapahi v. Lal Chand Public Charitable Trust 2010 (4) SCC 753 [Para 6]
Kishan Lal Chhabra Vs. Anil Arora 156 (2009) DLT 779 [Para 3]
Satya Bhushan Kaura Vs. Vijaya Myne 142 (2007) DLT 426 [Para 2]
Sunrise Construction Vs. Veena Wahi 2009 (111) DRJ 710 [Para 2]
Surjit Kaur Vs. Naurata Singh and Anr. (2000) 7 SCC 379 [Para 2]
Uttam Singh Duggal and Co. Ltd. v. United Bank of India 2000 (7) SCC 120 [Para 6]
Vijaya Myne Vs. Satya Bhushan Kaura 142 (2007) DLT 483 (DB) [Para 2]
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