IN THE HIGH COURT OF DELHI AT NEW DELHI
VALMIKI J.MEHTA, J.
SARABJEET SINGH - Plaintiff
Versus
ANUP SHARMA & ORS. – Respondent
CS(OS) No. 439/2008
Decided on : 17-05-2016
Contract Act, 1872 - Section 55 - Specific performance - Two agreement to sell - Interlinked Agreement - Test of - Specific performance of the agreement to sell with defendant nos.1 to 3 is linked with the specific performance of the agreement to sell with late B.N. Sharma - Plaintiff claims both the agreements to sell are interlinked - Nothing is contained in any of the two Agreements to Sell which links the performance of the two agreements - Two agreements to sell have been entered into at one point of time does not necessarily mean that both the agreements are interlinked as regards their performance.
Specific Relief Act, 1963 - Section 16(c) - Agreement to sell - Specific performance - Non-payment of balance amount - Performance, denied - Agreement to sell within 40 days from entering into the agreement - Plaintiff had to pay the balance sale consideration - Defendants no.1 to 3 then had to at such time execute the sale deed in favour of the plaintiff - Plaintiff never tendered the balance amount of Rs. 1.46 crores to defendant nos.1 to 3 - Legal Notice was sent by the defendants demanding payment of balance consideration - Once plaintiff is guilty of breach of contract, it has to be held that plaintiff is not entitled to specific performance.
VALMIKI J.MEHTA, J.
1(i) This is a suit for specific performance of entire property being plot no.D-16-G, Block No.D, admeasuring 247-9/10 sq. yds, in the residential colony known as Hauz Khas Enclave, situated at Village Kharera on Delhi Qutub Road in the state of Delhi except the first floor portion. Plaintiff is the proposed purchaser namely Sh. Sarabjeet Singh.
(ii) The specific performance suit is not for one agreement to sell but two Agreements to Sell dated 19.6.2006. The reason for two agreements to sell is that the predecessor-in-interest of defendant nos. 1 to 3 in the suit namely Sh. Jagdish Chander Sharma was the owner of the ground floor portion of the property, and therefore, qua the ground floor portion one agreement to sell was executed by the plaintiff. The total sale consideration of the agreement to sell of the plaintiff with defendant nos.1 to 3 was for a sum of Rs.1.71 crores, of which an amount of Rs.25 lacs was paid on the date of entering into the agreement to sell.
(iii) Late Sh. Badri Nath Sharma, and who is now represented by defendant nos.4 to 9, was the other co-owner of the property as he was the owner of the first floor, second floor and portion above the second floor as also the basement (theoretical) of the suit property. Plaintiff entered into the second Agreement to Sell dated 19.6.2006 with late Sh. Badri Nath Sharma for selling of the basement (theoretical), second floor and above portion of the suit property. Consideration for the second agreement to sell with Sh. Badri Nath Sharma was that Sh. Badri Nath Sharma besides being paid an amount of Rs.33 lacs, of which an amount of Rs.5 lacs had been received by late Sh. Badri Nath Sharma on the date of the agreement to sell, plaintiff was responsible for reconstruction of the entire property and cost of the construction of the first floor, which was to remain with Sh. Badri Nath Sharma, was also to be borne by the plaintiff. Therefore, the sale consideration with respect to the agreement to sell with Sh. Badri Nath Sharma was that plaintiff was to bear the cost of reconstruction of the first floor and pay the amount of Rs.33 lacs.
(iv) Simultaneous to the entering into of the agreement to sell by the plaintiff with Sh. Badri Nath Sharma with respect to the basement (theoretical), second floor and above portion of the property, a Memorandum of Understanding (MOU) was also entered into on the same date of the agreements to sell dated 19.6.2006 with late Sh. Badri Nath Sharma under which the plaintiff undertook to reconstruct the property at his own cost and out of the reconstructed property plaintiff was to have the newly constructed basement, ground floor, second floor and terrace above the second floor and the newly constructed first floor was to remain with late Sh. Badri Nath Sharma.
(v) With respect to the aspect that late Sh. Badri Nath Sharma and late Sh. Jagdish Chander Sharma (predecessor-in-interest of defendant nos. 1 to 3) were the co-owners of the complete property, the same is an admitted fact by the plaintiff. This is because the plaintiff in the plaint refers to the factum of the suit property being originally owned by Smt. Kasto Devi, the mother of Sh. Jagdish Chander Sharma and Sh. Badri Nath Sharma and who purchased this property by a Sale Deed dated 15.5.1956. Smt. Kasto Devi expired on 2.2.1977 leaving behind her Will dated 28.10.1976 bequeathing the ground floor portion along with entire rear courtyard and the open space in the front to the younger son Sh. Jagdish Chander Sharma and rest of the suit property to her elder son Sh. Badri Nath Sharma. Both Sh. Jagdish Chander Sharma and Sh. Badri Nath Sharma accepted the genuineness of the Will dated 28.10.1976 and to this effect a mutual Settlement Deed dated 15.2.1977 was entered into between the two brothers Sh. Jagdish Chander Sharma and Sh. Badri Nath Sharma. Mutation of the respective portions of the property thereafter took place in the names of Sh. Jagdish Chander
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