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2005 Supreme(P&H) 172

PUNJAB & HARYANA HIGH COURT
M.M.Kumar, J.
Raj Singh
Versus
Inder Jeet
Civil MISCELLANEOUS No. 6595 of 2001,
Decided On : FEBRUARY 1, 2005

The main legal point established is that when a valid agreement to sell is proved and the plaintiff is ready and willing to perform, specific performance should be ordered. Claiming damages as an alternative relief does not waive the entitlement to specific performance of the contract.

Headnote:

Specific Performance - Agreement to Sell - Code of Civil Procedure, 1908 - Section 100 - 7-6-1995 - 2000 (126) Pun LR 115 - Surya Narain Upadhyaya V/s. Ram Roop Pandey, 1995 Supp (4) SCC 542 : (AIR 1994 SC 105) - Her Highness Maharani Shantidevi P. Gaikwad V/s. Savjibhaai Haribhai Patel, (2001) 5 SCC 101 : (AIR 2001 SC 1462 - Mohinder Singh (2000 (126) Pun LR 115) - Moti Lal Jain V/s. Ramdasi Devi, (2000) 6 SCC 420 : (AIR 2000 SC 2408)

Fact of the Case:

The defendant's appeal challenges the judgment and decree passed by the Addl. District Judge, Rohtak, reversing the findings of the Civil Judge. The plaintiff's suit was decreed for the refund of earnest money, but the Appellate Court decreed specific performance of the agreement to sell.

Finding of the Court:

The Court found that there was a valid agreement to sell executed, and the plaintiff was ready and willing to perform the contract. The lower Appellate Court's decree for specific performance was upheld, and the alternative relief of damages was reversed.

Issues: The issues revolved around the validity of the agreement to sell, the plaintiff's readiness and willingness to perform, and the discretion exercised by the trial court in granting alternative relief.

Ratio Decidendi: The Court relied on the requirement to enforce specific performance of the agreement when a valid agreement is proved and the plaintiff is ready and willing to perform. It also emphasized that claiming damages as an alternative relief does not waive the entitlement to specific performance of the contract.

Final Decision: The appeal was dismissed as no substantive question of law was raised, and the lower Appellate Court's decree for specific performance was upheld.

Judgment

1. This defendant s appeal filed under Section 100 of the Code of Civil Procedure, 1908 (for brevity the Code ) challenging the judgment and decree dated 23-5-2001 passed by the Addl. District Judge, Rohtak who has reversed the findings of the Civil Judge (Jr. Division) Rohtak recorded in his judgment and order dated 7-12-1999. The Civil Judge has recorded the finding that there was an agreement to sell executed by the defendant-appellant on 7-6-1995 and the plaintiff-respondent was always ready and willing to perform that contract. However, the suit of the plaintiff-respondent was decreed to the extent of awarding of alternative relief by directing the defendant-appellant to refund the earnest amount of Rs.1,90,000.00 received by him from the plaintiff-respondent in the form of cash as well as draft. The basic reason followed by the learned Civil Judge for declining the specific performance of the contract by execution of the sale deed was that the plaintiff-respondent did not verify the title of the suit land as it was mortgaged with Rohtak Primary Co-operative Bank. The other reason was that the plaintiff-respondent has himself prayed for the refund of the earnest money as an alternative relief. However, the ld. Appellate Court by placing reliance on a judgment of this Court in the case of Mohinder Singh V/s. Guljit Singh, 2000 (126) Pun LR 115 has concluded that once the lawful agreement is proved then the requirement of equity would be to enforce such an agreement instead of granting alternative relief of damages especially when the plaintiff is shown to be ready and willing to perform his part of the contract. The prayer for alternative relief could not be construed as a waiver or abandonment of the relief in the main suit. Finding that facts and circumstances of the case in hand are similar to that of Mohinder Singh s case (supra), the lower Appellate Court decreed the suit of the plaintiff-respondent in his favour by passing a decree that he is entitled to specific performance of agreement dated 7-6-1975. A direction has been issued to the defendant-appellant to get the sale deed registered by getting the land redeemed, if any, on the receipt of balance amount of sale consideration of Rs.49,500.00 which was to be paid by the plaintiff-respondent within 60 days from that judgment i.e. 23-5-2001. It was further observed that if the defendant-appellant fails to get the sale deed executed after redeeming the suit land from mortgage the plaintiff-respondent would be entitled to get the sale deed executed through the Court after getting the land redeemed. He was also entitled to consequential relief of recovery of mortgage amount from the defendant-appellant with future interest @ 9% p.a. from the date of decree till realisation. Accordingly the finding recorded by the trial Court granting the alternative relief of damages was reversed.

2. Shri Narinder Hooda, learned counsel for the defendant-appellant has argued that the only question which arise for the consideration of this Court is whether the discretion exercised by the trial court in granting alternative relief deserves to be interfered with or not.

3. After hearing the learned counsel I am of the considered view that this appeal deserves to be dismissed as there are concurrent findings of facts on the issue that an agreement to sell was validly executed on 7-6-1995 for valuable consideration. It has also been proved under issue No.3 that the plaintiff-respondent had been ready and willing to perform his part of the contract and there was failure on the part of the defendant-appellant who did not appear before the Sub-Registrar where the sale deed was to be executed. The finding in this regard has been recorded under issue No.1 also. Whenever there is proof of execution of agreement to sell and readiness and willingness on the part of the plaintiff-respondent is proved then unless the enforcement of specific performance result into unfairness the specific perf



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