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

1985 Supreme(P&H) 77

PUNJAB & HARYANA HIGH COURT
J.V.Gupta, J.
Resham Singh
Versus
Manmohan Singh Kent
Civil Revision No. 3271 of 1982,
Civil MISCELLANEOUS No. 309 of 1985,
Decided On : JANUARY 30, 1985

A conditional decree passed in a suit for specific performance of an agreement to sell is valid and the suit stands dismissed on the expiry of the period specified in the decree if the amount is not deposited within that time. The executing Court has no jurisdiction to extend the time for depositing the sale price in a conditional decree.

Headnote:

SPECIFIC PERFORMANCE - CONDITIONAL DECREE - EXTENSION OF TIME - JURISDICTION - C.P.C., Ss.148, 151 - SPECIFIC RELIEF ACT, S.28 - Where a conditional decree is passed in a suit for specific performance of an agreement to sell, and the amount is not deposited within the time allowed, the suit stands dismissed automatically. The executing Court cannot extend the time for depositing the sale price as it would amount to varying the decree. The proper course in such a situation is to pass a decree for specific performance which would, for all practical purposes, be a preliminary decree.

Fact of the Case:

In a suit for specific performance of an agreement to sell, a conditional decree was passed in favor of the plaintiffs. The decree specified that a sum of Rs. 50,500.00 was to be paid within one month, failing which the plaintiffs' suit was to stand dismissed. The plaintiffs failed to deposit the amount within the time allowed and sought execution of the decree. The judgment-debtors contested the execution application on the ground that the suit stood dismissed. The plaintiffs then filed an application for extending time for depositing the sale price and condoning delay. The trial Court dismissed both the applications.

Finding of the Court:

The Court held that the conditional decree passed in the suit for specific performance was valid and that the plaintiffs' suit stood dismissed on the expiry of the period of one month when they failed to deposit the sale price. The Court further held that it had no jurisdiction to extend the time for depositing the sale price as it would amount to varying the decree without there being any appeal against the same.

Issues: 1. Whether a conditional decree could be passed in a suit for specific performance of an agreement to sell. 2. Whether the executing Court had jurisdiction to extend the time for depositing the sale price in a conditional decree.

Ratio Decidendi: 1. The Court held that there was no bar under the C.P.C. to passing a conditional decree in a suit for specific performance of an agreement to sell. 2. The Court held that the executing Court had no jurisdiction to extend the time for depositing the sale price in a conditional decree as it would amount to varying the decree without there being any appeal against the same.

Final Decision: The Court dismissed the petitions filed by the plaintiffs challenging the order of the trial Court.

Judgement Key Points

Please provide the content of the legal document (inside ... tags) so I can extract and summarize the key points with proper references as instructed.


Judgment

1. This order will dispose of Civil Revision No. 3271 of 1982 and 154 of 1983, as both the petitions have been filed against the same order of the Additional Senior Sub Judge, Hoshiarpur, dt. 27th Aug, 1982.

2. In a suit for specific performance of agreement to sell, a conditional decree was passed on 29th Oct, 1981 in favour of the plaintiff-petitioners. According to the decree, a sum of Rs. 50,500.00 was to be paid within one month, failing which the plaintiffs suit was to stand dismissed. Admittedly, no appeal was filed by either party against the said decree of the trial Court which had become final between the parties. Admittedly, the plaintiffs did not deposit the amount of the decree within the time allowed. They sought execution of the decree by filing an application dt. 15th Mar, 1982. This application was contested on behalf of the judgment-debtors on the ground that the amount had not been deposited within time and, therefore, the plaintiffs suit stood dismissed, and the question of execution as such did not arise. Then the decree-holders filed an application dt. 7th April, 1982 under Ss.148 and 151, C.P.C., for extending time for depositing the sale price and condoning delay for depositing the same. This application was contested on behalf of the judgment-debtors. The learned Sub Judge disposed of both the applications by the impugned order, dt. 27th Aug, 1982. It came to the conclusion that,

"since the decree-holders failed to deposit the amount within one month of the decree, their suit stood dismissed and this Court has no jurisdiction now to extend the time."

It was further held that the judgment-debtors were not obliged to move application for the rescission of the contract. Thus both the applications, that is, the execution application as well as the application for seeking the extension of time, were dismissed. Dissatisfied with the same, the decree-holders filed these petitions in this Court.

3. The learned counsel for the petitioners contended that under the C.P.C., there is no provision by virtue of which conditional decree could be passed in a suit for specific performance of the agreement to sell. The only provision in the Code is O.20, R.12-A which provides that where a decree for specific performance of the contract for sale or lease of immoveable property orders that the purchase money or other sum be paid by the purchaser or lessee it shall specify the period within which the payment shall be made. Thus, argued the learned counsel, no further condition could be put and in case the said amount was not deposited the suit shall not stand dismissed. According to the learned counsel, a decree in a suit for specific performance was in the nature of a preliminary decree, and in case the amount was not deposited within the time allowed, it was open to the judgment-debtors to move an application under Sec.28 of the Specific Relief Act for rescission of the contract for the sale. It was further contended that simply because the Court had imposed this condition in the decree, it did not debar the Court from extending the time for depositing the amount of the sale price in view of the provisions of Sec.148 of the C.P.C., and, therefore, the executing Court has failed to exercise its jurisdicton by not extending the time to deposit the amount of the sale price. In support of this contention, he referred to K. Saraswathi V/s. P.S.S. Somasundaram Chettiar, (1977) 2 Mad LJ 68, Someshwar Dayal V/s. Widow of Lalman Shah AIR 1958 All 488; Gokul Prasad V/s. Fattelal, AIR 1946 Nag 29; Tribeni Tewary V/s. Ramarattan Nonia, AIR 1959 Patna 460; K. Kalpana Sarswathi V/s. P.S.S. Somasundram Chettiar, AIR 1980 SC 512. On the other hand, the learned counsel for the respondents submitted that since the decree was a conditional one which decree could be passed, as there was no bar under the C.P.C. to pass such a decree, the plaintiffs suit stood dismissed on the expiry of the period of one month when they failed to depos









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