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1998 Supreme(P&H) 874

PUNJAB & HARYANA HIGH COURT
Swatanter Kumar, J.
Rattan Lal
Versus
Bharpal
Regular Second Appeal No. 1506 of 1998,
Decided On : JULY 20, 1998

The court's discretion to grant or decline specific performance under Section 20 of the Specific Relief Act, 1963 is to be exercised in consonance with settled principles of law and equity. The mere fact that an alternative prayer for damages is made in the suit does not preclude the grant of specific performance.

Headnote:

SPECIFIC PERFORMANCE - SECTION 20, SPECIFIC RELIEF ACT, 1963 - ALTERNATIVE PRAYER FOR DAMAGES - EFFECT ON GRANT OF SPECIFIC PERFORMANCE - COURT'S DISCRETION - PRINCIPLES GOVERNING EXERCISE OF DISCRETION.

Fact of the Case:

Plaintiffs filed a suit for specific performance of an agreement to sell land against the defendant. The defendant denied the execution of the agreement and claimed that he was ready and willing to perform his part of the contract. The trial court and the first appellate court decreed the suit in favor of the plaintiffs.

Finding of the Court:

The court found that the plaintiffs were always ready and willing to perform their part of the agreement and had gone to the Court Complex with money on the appointed dates. The stand of the defendant was totally inconsistent and no averments of fraud had been pleaded.

Issues: Whether the plaintiffs were entitled to specific performance of the agreement to sell land.

Ratio Decidendi: The court held that the plaintiffs were entitled to specific performance of the agreement to sell land. The court observed that the alternative prayer for damages in the suit did not amount to a waiver or abandonment of the main relief of specific performance. The court further held that the defendant had not suffered any unfair disadvantage or hardship which would justify non-performance on his part. The court also held that the plaintiffs had acted with prudence and reasonable expectation and had not delayed the legal remedies available to them.

Final Decision: The court dismissed the appeal and upheld the decree of the first appellate court.

Judgment

Swatanter Kumar, J.

1. The only argument vehemently advanced by the learned counsel for the appellant, in this Regular Second Appeal, is that the plaintiffs had made an alternative prayer in the suit for grant of liquidated damages/compensation for a sum of Rs. 26,000/- and thus, the learned courts below ought not to have granted the decree for specific performance. In support of his contention, he placed reliance on the judgment of Honble Supreme Court in the case of S. Rangaraju Naidhu v. S. Thiruvarakkarsau, A.I.R. 1995 S.C. 1769.

2. In order to appreciate this contention, it is necessary to refer certain facts of this case.

3. A suit for specific performance of the agreement dated 7.11.1985 executed by the defendants in regard to the suit land was filed by the plaintiffs against the defendant, Rattan Lal. It was stated that the defendant had agreed to sell the land for the total sale consideration of Rs. 47,000/-. Out of which Rs. 13,000/- was paid to the defendant at the time of agreement and the balance was to be paid upon execution of the sale deed which was to be executed on 1.6.1986. The agreement also contains a clause that in the event of default on the part of the defendant, the plaintiffs would be entitled to recover Rs. 26,000/- double of the amount paid by them and if the plaintiffs fails to get the sale deed executed in their favour, the earnest money would be forfeited. The plaintiff, Smt. Bharpai, upon informing the defendants had gone to the Court Complex on 31st of May, 1986 alongwith balance consideration and other amount for the purpose of registration of the sale deed. She went there but the defendant did not turn up. The plaintiff went on 31st of May, 1986 since 1.6.1986 was holiday. When the plaintiff was leaving the Court Complex after inspecting the court record, she met defendant and the defendant requested her to get the date for execution of sale deed extended as he could not obtain necessary clearance and accordingly time for execution of the sale deed was extended upto 5.6.1986 for which again an agreement was executed which was duly thumb marked by the defendant. However, as the defendant failed to appear on that date, the plaintiff given a notice on 10th June, 1986 to execute the sale deed and without any loss of further time filed the present suit.

4. The suit was contested by the defendant, who denied the execution of the agreement dated 7.11.1985. Accordingly to the defendant a fraud had been played on him and the agreement was a result of mis-representation. He alleged that another agreement had been got executed from the defendant by the plaintiff in favour of one Dharam Pal without paying any consideration. According to him, he came to the Court Complex on 5.6.1986 but was made to sit with the deed writer and thus the sale deed could not be executed though his thumb impression were taken on the papeRs. He further submitted that since the plaintiffs failed to perform their part of agreement, the earnest money stood forfeited.

5. The learned trial court framed as many as six issues and after prolonged trial for about 10 years, decreed the suit for specific performance in favour of the plaintiffs and against the defendant vide judgment and decree dated 10.10.1996 passed by the Additional Civil Judge, Charkhi Dadri.

6. This judgment and decree was unsuccessfully assailed in appeal by the defendant before the learned Additional District Judge, Bhiwani. The learned Additional District vide judgment and decree dated 2.5.1998 dismissed the appeal the same being without merits, thus, giving rise to the present appeal.

7. Before, I advert to discuss the merit of the proposition propounded by the learned counsel for the appellant, in the light of the judgment of the Honble Apex Court, it would be appropriate to make a reference to the concurrent findings of fact arrived at by the learned courts below.

8. While affirming the findings on all the issues the learned first Appellate Court heldas













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