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2021 Supreme(Guj) 243

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
VAIBHAVI D. NANAVATI, J.
PANKAJKUMAR VANECHAND MEGHANI – Appellant
Versus
MAJUMDAR AND ASSOCIATES, A PARTNERSHIP FIRM – Respondents
SECOND APPEAL NO. 116 of 2020
CIVIL APPLICATION (FOR INTERIM RELIEF) NO. 1 of 2020
Decided On : 31-03-2021

Advocates Appeared:
For the Appellant : MR DHAVAL D VYAS
For the Respondent: MR AMAR N BHATT, MR AS VAKIL MR KUNAL P VAISHNAV

Point of Law: Court is conscious of its limitation while exercising jurisdiction under Section 100 of the Civil Procedure Code. Unless the findings are so perverse, the same cannot be accepted, the Court would not interfere into the same.

Headnote:

Civil Procedure Code, 1908 - Section 100 - Second Appeal -Income Tax Department - U/s 294D - defendants had assured the Plaintiffs that the construction of good quality flats shall be completed as early as possible. The land was proposed to be acquired U/s 294D by the Income Tax Department. After being aware that the acquisition was to be dropped.

Finding of the Court : Under Section 20 of the Specific Relief Act, grant of specific performance of contract is discretionary. Though the decree for specific performance is discretionary, yet the court is not bound to grant such a relief merely because it is lawful to do so. But the discretion exercised by the court should not be arbitrary, but sound and reasonable, guided by judicial principles of law and capable of correction by a court of appeal and should be properly exercised keeping in view the settled principles of law as envisaged in Section 20 of the Act. The jurisdiction of decreeing specific performance is a discretion of the court and it depends upon facts and circumstances of each case. The court would take into consideration circumstances of each case, conduct of the parties, recitals in the Agreement and the circumstances outside the contract have to be seen - Court is conscious of its limitation while exercising jurisdiction under Section 100 of the Civil Procedure Code. Unless the findings are so perverse, the same cannot be accepted, the Court would not interfere into the same.

Result: Appeal dismissed

JUDGMENT :

1. The appellants have filed present Second Appeal under Section 100 of the Civil Procedure Code, 1908 challenging the common judgment and decree dated 18.11.2019 passed by the 8th Additional District Judge, Surat in Appeal Nos. 82, 83 and 84 of 2006, in so far as the impugned judgment is passed in Regular Civil Appeal No.82 of 2006 of the present Appellants. By the impugned judgment, the Appellate Court has partly allowed the Appellants' Regular Civil Appeal No.82 of 2006 and has directed the respondents defendants to pay an amount of Rs.1,20,000/along with interest at the rate of 12% per annum from the date of filing of the Suit till realisation. By the impugned judgment, the Appellate Court has granted the appellants plaintiffs' alternative prayer of seeking refund of Rs.11,000/towards earnest money plus a sum of Rs,1,09,999/towards compensation totaling to Rs.1,20,000/. By the present Second Appeal, the appellants plaintiffs are pursuing the relief of specific performance of the alleged contract which the Trial Court, as well as the Appellate Court, have refused in their discretion.

2. Brief facts, leading to institution of the present appeal are as under The respondents defendants are the owners of the land, bearing Final Plot No. 279 of Ward No. 13 [having Entry No. 300A]. They decided to construct appartments, named as “Sundaram” out of which, Flat No. 1, admeasuring about 1880 sqft was agreed to be sold to the appellants herein for an aggregate sum of Rs 1,16,560/on18th October 1978 and against which, the appellants plaintiffs paid consideration of Rs.11,000/which was receipted on 16.10.1978, 18.10.1978 and 28.12.1978 by the defendants. The defendants had assured the Plaintiffs that the construction of good quality flats shall be completed as early as possible. The land was proposed to be acquired U/s 294D by the Income Tax Department. After being aware that the acquisition was to be dropped, the Defendants therefore sent back Rs.11000/citing impossibility of performance vide letter dated 03.10.1979. The refusal was not acquiesced by the plaintiffs and the cheque was returned to the defendants.

Thereafter, the proposed acquisition of the land was dropped which was communicated by the IT Department to the Defendants vide letter dated 15.11.1979 (Exh. 116). The plaintiffs therefore issued notice dated 24.12.1979 calling upon the Defendants to specifically perform the agreement with willingness that in the eventuality of any impediments in completing construction, the plaintiffs were prepared to bear reasonable expenses and complete the construction. The Defendants responded vide letter dated 01.02.1980 declining to perform the Agreement.

3. The appellants plaintiffs had filed Special Civil Suit No.163 of 1981 for specific performance of an agreement dated October, 1978 with the following prayers:“

1) Kindly pass an order to draw decree of Specific Performance directing to handover the construction of the Sundaram Apartment to the plaintiff or to sell the constructed flat no.1 admeasuring 1880 Sq. Feet after constructing Sundaram Apartments on the land registered vide Mutation Entry No.300A of Ward No.13, Final Plot No.279 of T.P.Scheme near Dhavalgiri in Athwalines of Surat City;

In the alternative

2. Kindly grant the cost to the plaintiffs from the respondents in respect of the earnest money amount of Rs.500/paid by the plaintiff no.1 and Rs.500/paid by the plaintiff no.2 and the sale consideration amount of Rs.5000/taken by the respondents from the plaintiff no.1 and Rs.5000/taken by the respondents from the plaintiff no.2 and Rs.1,09,999/towards damages, aggregating to Rs.1,20,000/with compounding interest @ 12% accrued thereon.

3. Kindly grant the entire cost of the suit from respondents to the plaintiff.”

The appellants plaintiffs had paid Rs.500/each on 18.10.1978 and Rs.5000/Page each on 26.12.1978 and 28.12.1978 respectively aggregating to Rs.11,000/to the dependents. The receipts mention Flat No.1, area of

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