IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
Sandeep N. Bhatt, J.
Ramakant Madhavlal Mahajan - Appellant
Vs.
Pinky Gautambhai Bakde - Respondent
Appeal From Order No. 251 of 2023 With Civil Application (For Stay) No. 1 of 2023
Decided On : 06-05-2024
Appeal From Order - Property Dispute - Order 39 Rule 1, Order 43 Rule 1 - The court discussed the provisions of Order 39 Rule 1 and 2 as well as Order 43 Rule 1 of the C.P.C. The court also referred to the judgment of the Hon’ble Apex Court in the case of Wander Ltd. v. Antox India (P) Ltd., and emphasized that the appellate court will not interfere with the exercise of discretion of the court of first instance except where the discretion has been shown to have been exercised arbitrarily, capriciously, or perversely.
Fact of the Case:
The plaintiff entered into an agreement to sell a property with a stipulated payment period of six months. The plaintiff paid a partial amount but failed to pay the remaining sum within the stipulated time. The trial Court granted an injunction restraining the defendants from transferring the property, which was challenged in the Appeal From Order.
Finding of the Court:
The court found that the trial Court's decision to grant the injunction was based on possible and convincing reasons. The court emphasized that the plaintiff's conduct did not indicate unjust or improper behavior and that the trial Court did not commit any error of law or fact.
Issues: The issues revolved around the existence of the agreement, the plaintiff's readiness and willingness to perform obligations, and the trial Court's decision to grant the injunction.
Ratio Decidendi: The court emphasized that the time stipulated in the agreement was not of the essence and considered the conduct of the parties, the payment made by the plaintiff, and the correspondence between the parties. The court also highlighted the legal principle that the appellate court should not interfere with the exercise of discretion of the court of first instance unless it has been shown to have been exercised arbitrarily, capriciously, or perversely.
Final Decision: The Appeal From Order was dismissed, and the connected civil application was disposed of accordingly.
ORDER :
1. The present Appeal From Order is preferred being aggrieved and dissatisfied with the order dated 05.09.2022 passed by the trial Court below Exh.6/7 in Civil Suit No.3037 of 2015, whereby, the trial Court has granted the application below Exh.6/7 and prayer in terms of para 7(A) of the notice of motion application.
2. It is observed in the order dated 05.09.2022 that the defendants are restrained from assigning or transferring the suit property to his men, servants, agents or any other persons till final disposal of the suit and the same is under challenge by filing the present appeal from order on 11.10.2022, it is relevant to note that though the appeal from order is filed on 11.10.2022, it was actually registered on 07.11.2023. Considering this factual background in mind, the present appeal from order is taken up for hearing.
3. Heard learned advocate Mr. Chirag A. Prajapati for the appellant.
4. On 01.12.2023, the Coordinate Bench of this Court has passed the following order:
Stand over to 22.01.2024.”
5. On inquiry, learned advocate Mr. Chirag Prajapati has submitted that the said instructions were regarding something else and not for the withdrawal of the appeal from order, therefore, though the earlier order passed by the Coordinate Bench indicates the same, however, the present appeal from order is argued and actually the same is considered on merits.
6. Learned advocate Mr. Prajapati has drawn my attention towards the fact that in the agreement to sell, the term is stipulated within six months plaintiff-respondent herein has to pay the amount of the consideration. At the time of execution of the agreement to sell, the plaintiff has paid Rs.3 lakhs in cash and Rs.1 Lakh by way of cheque. The remaining amount is not paid. Thereafter, within six months, as per the term of agreement to sell, the plaintiff-respondent herein was not able to pay the remaining amount in question and thereafter, notice correspondence has taken place. Learned advocate has drawn my attention towards the notice correspondence and has submitted that from the notice correspondence also, the plaintiff in the suit is not in a position to pay the amount immediately as she has prayed that she has to take loan for further payment. He has also drawn my attention towards the findings of the trial Court, whereby, the trial Court has found that the agreement is still in existence. Learned advocate Mr. Prajapati has submitted that the trial Court has wrongly considered this aspect and has committed error in finding that the agreement is still in existence as the period of six months stipulated for the payment is over and therefore, agreement could not be considered in existence and therefore, he has submitted that the trial Court has given erroneous findings. He has further submitted that there is no readiness and willingness shown by the plaintiff as required under the law and therefore, also Court has committed error in granting injunction.
6.1 Learned advocate Mr. Prajapati has further submitted that the appellant-original defendant is an Auto Rickshaw driver and the respondent-original plaintiff, from her conduct cannot be considered that she is ready and willing to perform her obligation. He has relied on the judgment of the Hon’ble Apex Court in the case of Shenbagam & Ors. Vs. K.K. Rathinavel rendered in Civil Appeal No.150 of 2022, more particularly, para 36 of that judgment. He has also relied on the judgment of the Hon’ble Apex Court in the case of Katta Sujatha Reddy Vs. M/s Siddamsetty Infra Projects Pvt. Ltd. rendered in Civil Appeal No.5822 of 2022, more particularly, the observations made in para 79 of that judgment. He has submitted that in view of this, the order passed by the trial Court is bad in the eye of law and therefore, he prays to exercise jurisdiction of this Court under Order 43 Rule 1 of the Code of Civ
The appellate court should not interfere with the exercise of discretion of the court of first instance unless it has been shown to have been exercised arbitrarily, capriciously, or perversely.
To obtain a temporary injunction, a plaintiff must demonstrate a prima facie case, balance of convenience, and potential for irreparable harm, without conducting a mini trial.
In contracts for the sale of immovable property, time is generally not of the essence unless explicitly stated, and parties must demonstrate readiness and willingness to perform their obligations.
A plaintiff's delay in filing a suit impacts the entitlement to injunction and specific performance, as timely prosecution and adherence to evidential requirements are essential for equitable relief.
It is well settled principle of law that in an appeal against the exercise of 'discretion' by Court of first instance, power of Appellate Court to interfere with exercise of discretion is restrictive....
Section 52 of Transfer of Property Act, 1982, the rights of the appellants in the suit for Specific Performance against the Immovable property is protected under Section 52 of Transfer of Property Ac....
The court emphasized that failure to demonstrate readiness and willingness to perform contractual obligations justifies the denial of interim injunctions in specific performance cases.
The main legal point established is the application of principles for granting interim injunctions, the interpretation of time as the essence of a contract, and the significance of fulfilling recipro....
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