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2017 Supreme(Raj) 1626

IN THE HIGH COURT OF RAJASTHAN AT JODHPUR
VIRENDRA KUMAR MATHUR, J.
M/s. Solanki Green Marbles Private Limited - Appellant
Versus
Kalu Masar S/o Shri. Heeraji Masar - Respondent
S.B Civil Misc. Appeal No. 1011 of 2017
Decided On : 07-12-2017

Advocates Appeared:
For the Appellant : Mr. Narendra Thanvi, Mr. P.S Chundawat
For the Respondent: Mr. OP Mehta, Mr. VD Vaishnav, Mr. Vipul Dhandia

AN AGREEMENT WHICH IS UNCERTAIN AND INDEFINITE CANNOT BE SPECIFICALLY ENFORCED.

Headnote:

SPECIFIC PERFORMANCE - AGREEMENT - SECTION 29 INDIAN CONTRACT ACT - UNCERTAIN AGREEMENT - TEMPORARY INJUNCTION - BALANCE OF CONVENIENCE - IRREPARABLE LOSS - COURT'S DISCRETION - MAIN LEGAL POINT - AN AGREEMENT WHICH IS UNCERTAIN AND INDEFINITE CANNOT BE SPECIFICALLY ENFORCED.

Fact of the Case:

Appellant filed a suit for specific performance of an agreement dated 15.09.2014, seeking an injunction restraining the respondent from selling excavated minerals to any person other than the appellant. The respondent admitted the transfer of the mining lease in favor of the appellant and the execution of the rider agreement but claimed that the agreement was forged and denied the allegations of the appellant.

Finding of the Court:

The court found that the agreement dated 15.09.2014 was uncertain and indefinite as it did not specify the rate at which the excavated mineral would be sold by the respondent to the appellant, the partial profit to be shared, and the rent for the machinery deployed by the respondent for excavation of minerals. The court held that such an uncertain agreement could not be specifically enforced under Section 29 of the Indian Contract Act.

Issues: 1. Whether the agreement dated 15.09.2014 was uncertain and indefinite. 2. Whether the appellant was entitled to a temporary injunction restraining the respondent from selling excavated minerals to any person other than the appellant.

Ratio Decidendi: 1. The court relied on Section 29 of the Indian Contract Act, which states that an agreement is void if it is uncertain or indefinite. The court held that the agreement dated 15.09.2014 was uncertain and indefinite as it did not specify the rate at which the excavated mineral would be sold by the respondent to the appellant, the partial profit to be shared, and the rent for the machinery deployed by the respondent for excavation of minerals. 2. The court held that the appellant was not entitled to a temporary injunction as the agreement was uncertain and indefinite and there was no likelihood of irreparable loss to the appellant.

Final Decision: The court dismissed the appeal and upheld the trial court's order refusing to grant a temporary injunction.

JUDGMENT :

VIRENDRA KUMAR MATHUR, J.

1. This Civil Misc. Appeal under Order 43 Rule 1 CPC has been filed against the order dated 28.01.2017 passed by the learned Additional District Judge, Kherwara in Civil Misc. Case No. 40/2016.

2. Briefly stated, a suit was filed by the appellant for specific performance of contract and permanent injunction along with an application for temporary injunction stating that the respondent is holding a mining lease near village Nayagaon, Tehsil Simalwada, District Dungarpur for an area measuring 10,000 square meter, which stands renewed up to 05.02.2022 It was submitted that the respondent made an application before Mining Engineer, Dungarpur and the said mining lease was transferred vide order dated 17.12.2012 and the rider agreement was executed and registered on 19.12.2012 It was stated that the appellant had invested crores of rupees for development of the mining lease area by deploying latest machineries, by raising loans from financial institutions, however, the sanction for transfer of mining lease and rider agreement were canceled by the State Government on the ground that in the various land mining lease could not be transferred without prior permission of the Ministry of Forest, Government of India. It was further stated that the appellant had challenged the aforesaid cancellation by way of writ petition before this Court and this Court has directed for maintaining status quo and the writ petition is pending. It was further stated that since the humble appellant has developed the mining lease area by investing huge money and by deploying machineries, the respondent had executed an agreement dated 15.09.2014 in favour of the appellant to the effect that whatever mineral shall be excavated by respondent shall be sold to the appellant only and to none else. Thus, a concluded contract came to be executed between the parties. In pursuance of the agreement dated 15.09.2014, the respondent handed over the excavated mineral to the appellant and started earning profit, however, in the meantime, due to greed, the respondent started selling the mineral to other parties and when the appellant started watching the activities of the respondent, he started threatening the appellant that he will not sell entire excavated material to him and will not abide by the agreement dated 15.09.2014 It was submitted that the respondent is bound to comply with the terms of the agreement dated 15.09.2014 and in case the respondent does not comply with the terms, the appellant would suffer irreparable injury, which could not be computed in terms of money. It was prayed that during the pendency of the suit, temporary injunction may be granted and that the respondent be restrained from selling the excavated mineral to any person and comply with the terms of the agreement dated 15.09.2014

3. The respondent filed reply to the application for temporary injunction and denied allegations contained in the application for temporary injunction. However, the transfer of mining lease in favour of the humble appellant vide order dated 17.12.2012 was admitted. It was submitted that the writ petition is pending before this Court and the suit is not maintainable. It was also submitted that the agreement dated 15.09.2014 is forged. The respondent also raised the question of jurisdiction of the Court. It was also submitted that the appellant filed an application under Order 8 Rule 9 read with Section 151 CPC and controverted the allegations contained in the reply filed by the respondent. It was prayed that the humble appellant may be permitted to file rejoinder. A rejoinder was also filed on record by the humble appellant, which was taken on record by the trial court. Certain documents filed by the parties were also taken on record by the trial court.

4. After hearing the counsel for the parties, the trial court, vide its order dated 28.01.2017, rejected the application for temporary injunction of the appellant by observing that none of
































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