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2023 Supreme(Del) 2636

IN THE HIGH COURT OF DELHI AT NEW DELHI
Vibhu Bakhru, Amit Mahajan, JJ.
Yashwant Pal – Appellant
Versus
Satinder Singh & Ors. – Respondents
FAO(OS) 250 of 2019
Decided On : 21-02-2023

Advocates appeared:
Mr. Jitender Chaudhary, Advocate, for the Appellant.
Mr. K.K. Sharma, Senior Advocate With Mr. Rajiv Bakshi & Mr. Ram Pravesh Rai, Advocates, for the Respondent-1 to 3.
Mr. Dhruv Gorver & Mr. Shreya Maggu, Advocates, for the Respondent-No.4 to 7.

Headnote:

Order XXXIX Rule 4 - Agreement to Sell - Section 151 CPC - [No specific act section referenced] - The court discussed the Agreement to Sell and the application under Order XXXIX Rule 4, and clarified that the suit cannot be decreed in whole as a part of the suit property has already been alienated. The court also emphasized that the observation in the impugned order that a decree is required to necessarily follow is not binding on either of the parties.

Fact of the Case:

The appellant filed an appeal against the dismissal of its application under Order XXXIX Rule 4, styled as an application under Section 151 CPC, which was related to an Agreement to Sell for a property. The purchasers had paid a sum of Rs.2,00,00,000 but the suit property could not be released from the mortgage, and the purchasers filed a suit for specific performance.

Finding of the Court:

The court found that the suit cannot be decreed in whole as a part of the suit property has already been alienated, and the observation in the impugned order that a decree is required to necessarily follow is not binding on either of the parties.

Issues: The issues revolved around the application for vacation of the stay order, the amendment to the plaint, and the claim for recovery of money by the purchasers.

Ratio Decidendi: The court clarified that the suit cannot be decreed in whole as a part of the suit property has already been alienated, and the observation in the impugned order that a decree is required to necessarily follow is not binding on either of the parties.

Final Decision: The appeal was disposed of with the observations that the suit cannot be decreed in whole as a part of the suit property has already been alienated, and the observation in the impugned order that a decree is required to necessarily follow is not binding on either of the parties.

JUDGMENT

Vibhu Bakhru, J. The appellant has filed the present appeal impugning an order dated 16.10.2019, whereby its application under Order XXXIX Rule 4 (styled as an application under Section 151 CPC) being I.A No. 14356/2019, was dismissed.

2. The appellant along with the predecessor of respondent nos. 4 to 7 (hereafter `the vendors') entered into an Agreement to Sell dated 06.01.2011 (hereafter `the Agreement to Sell'), whereby they agreed to sell a property bearing no. S-257, Greater Kailash, Part-1, New Delhi-110048 (hereafter `the suit property') to respondent nos.1 to 3 for a total consideration of Rs.7,50,00,000/- (Rupees Seven Crores and Fifty Lakhs only). Respondent nos.1 to 3 (hereafter `the purchasers') paid a sum of Rs.1,80,00,000/- (Rupees One Crore and Eighty Lakhs only) immediately at the time of entering into the Agreement to Sell and paid a further sum of Rs.20,00,000/- (Rupees Twenty Lakhs only) thereafter.

3. The appellant claims that out of the aforesaid sum of Rs.2,00,00,000/- (Rupees Two Crores only), he received a sum of Rs.45,00,000/- (Rupees Forty-Five Lakhs only).

4. At the material time, a part of the said property was mortgaged to Catholic Syrian Bank (hereafter `the Bank'). It is the appellant's case that the vendors were required to discharge a loan of Rs.2,70,00,00/- (Rupees Two Crores Seventy Lakhs only) availed from the Bank to make the suit property free from any encumbrance. He also claims that the purchasers had agreed to pay the said amount upfront to enable the vendors to do so. However, the purchasers had failed and neglected to pay the entire amount and therefore, the suit property could not be released from the mortgage in favour of the bank.

5. The purchasers filed the present suit [CS(OS) No. 2536/2017] claiming a decree of specific performance. The said plaint was moved before the Court on 17.12.2013 and on that date, the learned Single Judge passed an order restraining the defendants (the appellant and respondent nos. 1 to 3 - the vendors) from creating any third-party interest in the suit's premise/property. The said order was subsequently modified and clarified by an order dated 23.09.2016 pursuant to an application filed by the Bank. It was clarified that the interim stay order interdicted the defendants (the vendors) from dealing with the suit property but did not affect the rights of the Bank to enforce its security interest in the suit property.

6. A part of the suit property has since been sold by the successor-in-interest of the Bank. Thus, the vendors are not in a position to transfer the suit property to the purchasers.

7. It appears that the purchasers had also during the proceedings in the suit contended that they are now interested in recovering the money as part of the suit property has already been sold. In the aforesaid context, the learned Single Judge, in the proceedings held on 09.08.2019, observed that "[F]rom a reading of the order dated 24th April, 2019, it appears that the plaintiffs are no longer interested in specific performance.". The court had after taking note of the aforesaid development, deferred framing issues. This was because the purchasers had indicated that they would confine their claim only to recovery of money, and therefore the issue whether the Agreement to Sell was required to be specifically performed need not be framed.

8. The said position continues to obtain till date and the issues have not been framed.

9. In the meanwhile, the purchasers filed an application seeking amendment to the plaint to claim recovery of certain amounts including the amount of Rs.2,00,00,00/- (Rupees Two Crores only) as paid by them. The said application was rejected by the concerned Registrar by an order dated 24.04.2019. It is stated that although the purchasers have filed an appeal against the order dated 24.04.2019, they have not pursued the appeal and the same is lying in defects.

10. In the aforesaid context, the appellant had filed the applicati

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