SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1987 Supreme(P&H) 114

PUNJAB & HARYANA HIGH COURT
D.V.Sehgal, J.
Surjeet Singh
Versus
Kartar Singh
Second Appeal No. 1403 of 1977,
Decided On : FEBRUARY 9, 1987

The mere fact that the contract is onerous to the defendant or improvident in its nature shall not be deemed to constitute an unfair advantage or hardship.

Headnote:

SPECIFIC PERFORMANCE - AGREEMENT TO SELL - DISPLACED PERSONS (COMPENSATION AND REHABILITATION) ACT, 1954 - SECTION 33 - SPECIFIC RELIEF ACT, 1963 - SECTIONS 16, 20 - SALE OF LAND - CONSTRUCTION OF AGREEMENT - PAYMENT OF CONSIDERATION - READINESS AND WILLINGNESS TO PERFORM CONTRACT - DISCRETION OF COURT TO GRANT SPECIFIC PERFORMANCE - INADEQUACY OF CONSIDERATION - HARDSHIP.

Fact of the Case:

Plaintiff-respondent No. 1 filed a suit for specific performance of an agreement dated 12-6-1966 (Exhibit P3) against the defendant-appellant. The agreement was for the sale of a plot of land in equal shares to the plaintiff and Sunder Singh respondent No. 2 for a sum of Rs. 21,000. The appellant entered into an agreement with the respondents on 12-6-1966 to sell the said piece of land in equal share to them for a sum of Rs. 21,000. The appellant was directed to execute sufficient instrument of transfer in favor of respondent No. 1 and to deliver possession of the said one-half share of the land to respondent No. 1 on payment by the latter of a sum of Rs. 7590.92 P. The appellant was directed to execute sufficient instrument of transfer in favor of respondent No. 1 and to deliver possession of the said one-half share of the land to respondent No. 1 on payment by the latter of a sum of Rs. 7590.92 P.

Finding of the Court:

The court found that the appellant had failed to implement the terms of the agreement and that the plaintiff was ready and willing to perform his part of the contract. The court also found that the appellant had not been ready and willing to perform his part of the contract and that he had not given the plaintiff an opportunity to perform his part of the contract.

Issues: 1. Whether defendant No. 1 entered into an agreement with the plaintiff and defendant No. 2 for the sale of the land in suit on the terms mentioned in para 2 of the plaint ? 2. Whether defendant No. 1 has failed to implement the terms of the agreement, if so, its effect ? 3. Whether the plaintiff has been willing and ready to perform his part of the contract ? 4. Whether defendant No. 1 has been already and willing to perform his part of the contract ? 5. Relief. 5-A. Whether the plaintiff has locus standi to sue ? 5-B. Whether the plaintiff is barred by his act and conduct to sue ? 5-C. Whether the suit is premature as alleged in para 4 of the preliminary objection of the written statement ?

Ratio Decidendi: The court held that the agreement to sell was valid and enforceable and that the plaintiff was entitled to specific performance of the agreement. The court also held that the appellant was not entitled to rely on the defense of inadequacy of consideration or hardship.

Final Decision: The court dismissed the appeal and affirmed the judgments and decrees of the courts below.

Judgment

1. A suit filed by the plaintiff-respondent No. 1 for specific performance of the agreement dated 12-6-1966 (Exhibit P3) was decreed in his favour and against the defendant-appellant by the learned Senior Sub Judge, Jalandhar, vide judgement and decree dated 11-6-1976 and a decree for possession of one-half share of the property described as plot No. 954 measuring 7 Kanals 7 Marlas comprising Khasra No. 7411, 19380/7412, 17300/7424, 17301/7420 and 7409 min situated near Sewa Sadan, Neela Mahal, Jalandhar City, was passed in his favour. The appellant was directed to execute sufficient instrument of transfer in favour of respondent No. 1 and to deliver possession of the said one-half share of the land to respondent No. 1 on payment by the latter of a sum of Rs. 7590.92 P. An appeal filed by the appellant against the aforesaid judgement and decree failed and was dismissed by the learned Additional District Judge, Jalandhar vide judgement and decree dated 28-5-1977. Still being aggrieved, he has filed the present appeal.

2. The facts in brief as alleged in the plaint are that the appellant purchased the aforesaid plot, which was described to measure 7 Kanals 7 Marlas, for a sum of Rs. 20,550.00 in open auction on 7-6-1966 for and on behalf of respondent No. 1 and Sunder Singh respondent No. 2. The appellant entered into an agreement (Exhibit P3) with the respondents on 12-6-1966 to sell the said piece of land in equal share to them for a sum of Rs. 21,000. At the time of the auction of the land they deposited through the appellant vide receipt dated 8-6-1966 a sum of Rs. 1,000.00 with the Rehabilitation Department. A sum of Rs. 500.00 was paid to him by the respondents at the time of execution of the agreement as earnest money. A sum of Rs. 3,110.00 was to be paid to the Department in order to make up the one fifth of the auction amount of Rs. 20,550.00 . This amount was to be deposited by the respondents through the appellant on receipt of an intimation to that effect from the appellant after he had received a like intimation from the Rehabilitation Department. After acceptance of the bid the respondents were to deposit through the appellant the balance 4/5th of the price i.e. Rs. 16,440.00 for which the appellant was to give an intimation to them in writing well in advance. The possession of the land was deemed to be that of the respondents. Stamp and registration expenses were also to be borne by them. The appellant was to execute a power of attorney in favour of the respondents with an authority to sell and to execute the sale deed in favour of any other person as the respondents so chose. They would be entitled to get any number of sale deeds executed either in their favour or in favour of any other person or persons at their expense. In case of default on the part of the appellant, they had a right to get the agreement for sale specifically enforced through a court of law. They had also the option to claim the sum of Rs. 21,000.00 as damages besides Rs. 21,000.00 paid as sale consideration to the appellant i.e. total amounting to Rs. 42,000.00 . In case of default on the part of the respondents, the appellant had no right to forfeit any amount paid to him or to the Government by the respondents.

3. In pursuance of the agreement (Exhibit P3) the respondents deposited Rs. 3,110.00 on 14-6-1966 with the Rehabilitation Department through the appellant vide Treasury Challan, copy of which is Exhibit LCW/1. The appellant in turn executed a power of attorney dated 3-8-1966 in favour of respondent No. 1 and one Gulab Singh a nominee of respondent No. 2 to whom, it appears, respondent No. 2 had agreed to sell his share of the land. Both these attorneys were authorised individually and jointly to sell or dispose of the said land, to take its possession and arrange to conduct all the proceedings in any court or department with regard to the same.

4. Respondent No. 1 alleged that he was put in possession in pursuance of the term























Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top