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2003 Supreme(P&H) 524

PUNJAB & HARYANA HIGH COURT
Jasbir Singh, J.
Siri Ram
Versus
Parma Devi Alias Paramjit Kaur
Civil Revision No. 740 of 1992,
Decided On : APRIL 9, 2003

Non-compliance with the deposit requirement can lead to the rescission of an agreement under Section 28 of the Specific Relief Act, justifying the restoration of possession to the aggrieved party.

Headnote:

Specific Relief Act - Restoration of Possession - Section 28(2)(a) and (b) - [Specific Relief Act, 1963, Section 28]

Fact of the Case:

The petitioner filed a suit for specific performance based on an agreement to sell. The trial court decreed the suit in favor of the petitioner, directing the defendants to execute and register the sale deed. The petitioner failed to deposit the balance sale price within the specified time, leading to objections from the respondents and subsequent rescission of the agreement under Section 28 of the Specific Relief Act, 1963.

Finding of the Court:

The court found that the petitioner's failure to comply with the deposit requirement led to the rescission of the agreement under Section 28 of the Specific Relief Act, and the restoration of possession was ordered in favor of the respondents.

Issues: The issues revolved around the petitioner's failure to deposit the balance sale price within the specified time and the subsequent rescission of the agreement under Section 28 of the Specific Relief Act, 1963.

Ratio Decidendi: The court held that the petitioner's non-compliance with the deposit requirement led to the rescission of the agreement under Section 28 of the Specific Relief Act, and the restoration of possession was justified.

Final Decision: The revision petition was dismissed, and the court upheld the restoration of possession in favor of the respondents based on the rescission of the agreement under Section 28 of the Specific Relief Act, 1963.

Judgment

Jasbir Singh, J.

1. The revision petition has been filed against an order, vide which application filed by the respondent Nos. 1 to 4, under Section 28(2)(a) and (b) of Specific Relief Act, 1963, was allowed and the applicants were held entitled to restoration of possession of the suit property and they were also held entitled to retain amount of earnest money of Rs.1500/-, by way of compensation towards rents and profits of suit property.

2. It is apparent from the records that Siri Ram, petitioner filed a suit for specific performance, on the basis of an agreement to sell dated 21st September, 1980. That suit was instituted on 20th July, 1981 against the, respondents. Suit was decreed by the trial Court, vide judgment and decree dated 15th February, 1984 and the following relief was granted in favour of the petitioner:-

"23. In view of the above discussion and my findings on the above issues, plaintiff succeeds. I, therefore, grant a decree for specific performance of agreement Ex.P1 dated 21st September, 1980 directing the defendants to execute and get the sale deed registered in respect of suit land in favour of the plaintiff. As a consequential relief, a decree for permanent injunction is also granted restraining the defendants from alienating the suit land in any manner whatsoever to any other person except the plaintiff or from dispossessing the plaintiff from the decree against the defendants, with costs. This decree shall be treated as ex parte against defendant Nos.2 and 3. Plaintiff Siri Ram shall deposit Rs.500/-, the balance sale price of the plot in dispute, for payment to the defendants, within one month from today and thereafter the defendants shall execute the sale deed and get it registered in favour of plaintiff within another one month. Decree be drawn. File be consigned."

3. As is apparent from the relief given above, it was incumbent upon the petitioner to deposit Rs.500/- i.e. balance price of the plot, in dispute, within one month from the date of passing that judgment. Against judgment dated 15th February, 1984, respondents filed an appeal wherein interim stay was granted. However, ultimately that appeal was dismissed by the appellate Court below on 20th November, 1986. Against above mentioned judgments, Regular Second Appeal bearing No. 1218 of 1987 was filed in this Court, which was admitted on 6th August, 1987. No stay was granted. However, subsequent thereto, appeal was got dismissed as withdrawn, vide order dated 19th November, 1991. It is apparent from the records that even after dismissal of appeal by the appellate Court below on 20th November, 1986, petitioner failed to deposit the amount within one month, thereafter, as directed by the trial Court. Remaining sale consideration of Rs.500/- was deposited by the petitioner with permission of the Court on 7th December, 1987. In the meantime, petitioner filed execution application, on the basis of judgment passed in his favour on 15th February, 1984. In that execution application, objection petition was filed by the respondents, by stating that execution application is not maintainable, as the decree had become void and inexecutable since the petitioner/decree holder had failed to deposit the amount of Rs.500/- within one month from the date of judgment and decree dated 15th February, 1984 onwards. Executing Court below, after noticing contentions of both the parties, allowed the objection application. It was opined by the Court below that keeping in view facts and circumstances of the case, agreement, on the basis of which decree was passed, be held to have been rescinded under Section 28 of the Specific Relief Act, 1963 . Relevant part of the order dated 12th December, 1987 reads as under:-

"A perusal of the relief clause shows that the plaintiff was bound to deposit the balance sale price i.e. Rs.500/- within one month from the passing of the decree i.e. 15th February, 1984 but he did not. The amount of Rs. 500/- has been deposited by hi






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