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1996 Supreme(P&H) 1050

PUNJAB & HARYANA HIGH COURT
R.L.Anand, J.
Man Singh
Versus
H.S.Kohli (Harbhajan Singh Kohli)
Civil Revision No. 3797 of 1995,
Decided On : JULY 19, 1996

A suit for injunction to restrain the vendor from selling the property to others is not maintainable in view of Section 41(h) of the Specific Relief Act, 1963.

Headnote:

INJUNCTION - SPECIFIC RELIEF ACT, 1963 - SECTION 41 - TRANSFER OF PROPERTY ACT, 1882 - SECTION 54 - ORDER 39 RULES 1 AND 2, C.P.C. - SUIT FOR INJUNCTION - AGREEMENT OF SALE - NO PRIMA FACIE CASE - BALANCE OF CONVENIENCE - IRREPARABLE INJURY - EQUALLY EFFICACIOUS REMEDY.

Fact of the Case:

Plaintiffs entered into an agreement with defendants for the purchase of 1523 equity shares of a company and a property. Plaintiffs paid Rs. 35 lacs as earnest money. Defendants failed to give possession of the property and transfer the shares. Plaintiffs filed a suit for injunction to restrain defendants from alienating the property and shares.

Finding of the Court:

The agreement of sale did not confer any right, title, or interest in the property to the plaintiffs. The plaintiffs had an equally efficacious remedy by filing a suit for specific performance. The balance of convenience did not lie in favor of the plaintiffs. The plaintiffs failed to establish a prima facie case, balance of convenience, and irreparable injury.

Issues: Whether the plaintiffs had a prima facie case to succeed in the suit. Whether the balance of convenience lay in favor of the plaintiffs. Whether the plaintiffs would suffer irreparable injury if the injunction was not granted.

Ratio Decidendi: A mere agreement of sale does not confer any right, title, or interest in the property to the vendees. The remedy for non-performance of a contract is a suit for specific performance, not an injunction. Injunction will be refused when an equally efficacious remedy can be obtained by any other usual mode of proceedings.

Final Decision: The application for injunction under Order 39 Rules 1 and 2, C.P.C., filed by the plaintiffs was dismissed. The order of the lower appellate court allowing the application in part was set aside.

Judgment

R.L.Anand, J.

1. By this judgment I dispose of two Civil Revision Nos. 3079 of 1995 (Harbans Singh Kohli and Ors. v. Man Singh and Ors.), and 3797 of 1995 (Man Singh and Anr. v. H.S. Kohli and Ors.) as both these revision petitions have arisen from one judgment dated 7th June, 1995, passed by the Court of District Judge, Ludhiana, who partly accepted the appeal of the plaintiffs (petitioners of C.R. No. 3797 of 1995) and allowed in part the application under Order 39 Rules 1 and 2, C.P.C., filed by the plaintiffs Man Singh and Paramjit Singh Bhatia, who are the petitioners of C.R. No. 3797 of 1995, and granted temporary injunction in their favour restraining the sale of 1292 equity shares of the land measuring 1200 sq. yards till the disposal of the suit against the defendants, i.e., H.S. Kohli; H.S. Kohli and Sons - H.U.F. Firm; Smt. Arvinder Kaur Kohli and M/s Preet Builders Private Limited. It may be mentioned here that defendants Nos. 1 to 3 aforesaid have filed a separate Civil Revision No. 3079 of 1995 against the aforesaid judgment of the learned District Judge and had prayed for the dismissal of the application under order 39 Rules 1 and 2, C.P.C., of the plaintiffs Man Singh and Paramjit Singh Bhatia.

2. The brief facts of the case are that, according to the plaintiffs, defendant No. 1 i.e. H.S. Kohli made a representation to the plaintiffs to believe that he is the Managing Director of Khalsa Nirbhai Transport Company Pvt. Ltd., Ludhiana, and Karta of H.U.F. of H.S. Kohli & Sons defendant No. 2 and general attorney of Smt.Arvinder Kaur defendant No. 3 and as such is competent to enter into an agreement for the sale of 1523 equity shares of Rs. 100/- each and also is competent to transfer the property Measuring 1200 sq. yards, fully described in the head-note of the plaint, situated in Ludhiana city. On this representation by defendants Nos. 1 to 3 through defendant No. 1, the plaintiffs entered into an agreement for the purchase of 1523 equity shares of Rs. 100/- each fully paid-up for a total consideration of Rs. l,73,00,000/-, at the rate of Rs. 11360/- per equity share of Rs. 100/-. The plaintiffs and defendants Nos. 1 to 3 entered into an agreement for the purchase of 1523 equity shares of Rs. 100/- each and the agreement was reduced into writing at the instance of the parties. The plaintiffs paid Rs. 35 lacs by way of earnest money to defendants Nos. 1 to 3. As per terms of the agreement Rs. 10 lacs were to be paid on the vacation of the shop occupied by M/s Amar Tyres. The balance payment of Rs. 1,28,00,000/- was to be made on the delivery of the possession of the premises bearing No. B.VII-755(old) and B.VII-1083 (new). The time of payment by the party of the second part was 30 days from the date of the intimation by the party of the first part to the party of the second part. In lieu of payment of Rs. 46 lacs by the plaintiffs to defendants Nos. 1 to 3 the vendors agreed to transfer the property i.e. 310 equity shares of Rs. 100/- each fully paid up on or before 31st August, 1993. The balance of the equity shares of the abovesaid company was agreed to be transferred on the payment of Rs. 1,28,00,000/- only. It was also agreed that the party of the second part would give 2000 sq.ft. of the area free of costs on the first floor, if lift is not installed, otherwise, if the lift is installed, then on the floor below the last floor to the party of the first part on the completion of the construction of the premises. It was also agreed that the sale deed/ lease deed would be executed by the abovesaid company of 360 sq. yards on the plot in favour of M/s R.K.Hotels. The plaintiffs alleged that they were ready and willing to perform their part of the contract and had got the balance sale consideration with them, but defendants Nos. 1 to 3 did not give any intimation to them regarding the vacation of the premises by M/s R.K.Hotels as the 49 shares owned by Satnam and Family and a shop were to be purchased/got













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