PUNJAB & HARYANA HIGH COURT
N.K.Agrawal, J.
Lt.Colonel Jaswant Singh (Deceased By Lr)
Versus
Daljit Singh (Deceased By Lr)
Regular Second Appeal No. 1242 of 1990,
Decided On : MARCH 31, 1998
SPECIFIC PERFORMANCE - AGREEMENT TO SELL - VALIDITY - OFFER AND ACCEPTANCE - PART PERFORMANCE - REPUDIATION - ENFORCEABILITY - IMPROVEMENT TRUST ALLOTMENT - CONDITIONS - PERMISSION FOR TRANSFER - LIMITATION.
Fact of the Case:
Plaintiff filed a suit for specific performance of an agreement to sell a residential plot allotted by the Improvement Trust, Amritsar, to defendant No. 2. Plaintiff claimed that defendant No. 2 offered to sell the plot to him on the same terms as specified by the Improvement Trust. Plaintiff paid a sum of Rs. 3000/- to defendant No. 2 and also deposited the entire sale price with the Improvement Trust. Defendant No. 2 admitted the receipt of money from the plaintiff but denied that it was given as payment of the sale price. Defendant No. 2 claimed that he was in need of money and the plaintiff had paid him the aforesaid amount by way of help. The trial court decreed the suit and the appellate court affirmed the decree.
Finding of the Court:
The court found that there was a valid and enforceable agreement between the plaintiff and defendant No. 2. The court held that the plaintiff had performed his part of the contract and was ready and willing to perform the rest of the contract. The court also held that the defendant No. 2 had repudiated the contract without any justification. The court further held that the suit was not time-barred as it was filed after the expiry of ten years from the date of the agreement, which was the condition imposed by the Improvement Trust for the transfer of the land.
Issues: 1. Whether there was a valid and enforceable agreement between the plaintiff and defendant No. 2? 2. Whether the plaintiff had performed his part of the contract? 3. Whether the defendant No. 2 had repudiated the contract? 4. Whether the suit was time-barred?
Ratio Decidendi: 1. An offer and acceptance can be made through letters or other written communication. Part performance of a contract can be evidence of a valid and enforceable agreement. Repudiation of a contract without justification can give rise to a cause of action for specific performance. 2. A suit for specific performance of a contract is not time-barred if it is filed within the limitation period prescribed by law.
Final Decision: The appeal was dismissed with costs.
1. This is second appeal by defendant No. 2, Lt. Col. Jaswant Singh against the judgments and decrees of Sub Judge, Amritsar, and Additional District Judge, Amritsar.
2. Plaintiff Daljit Singh filed a civil suit for specific performance on 24-10-1980 in the Court of Sub Judge Ist Class, Amritsar, against (i) Improvement Trust, Amritsar (since dissolved and now represented by the Commissioner, Municipal Corporation, Amritsar, (ii) Lt. Col, Jaswant Singh, and (iii) Sukhdev Singh. Plaintiff sought specific performance of agreement dated 25-8-1970 in respect of a residential plot of land, No. 119, Green Avenue, Amritsar. During the course of trial, the learned Sub Judge passed an order on 4-6-1981 directing the parties to keep the property in status quo condition regarding possession, construction and transfer. Issues were framed and evidence of the parties was recorded. The suit was decreed on 3-11-1987. In appeal, filed by defendant No. 2, the judgment and decree of the trial Court were affirmed by Additional District Judge, Amritsar, on 23-4-1990.
3. Plaintiffs case before the trial Court was that Improvement Trust, Amritsar, framed a development scheme, commonly known as Green Avenue Scheme and carved out plots of land for allotment to the defence personnel. Defendant No. 2, filed an application dated 14-7-1964 for the allotment of a plot under the said scheme and paid a sum of Rs. 500/- as earnest money. Improvement Trust, Amritsar, informed the defendant to agree to certain conditions as mentioned in its letter dated 29-7-1964. Defendant No. 2 agreed to the conditions and thereupon plot No. 119, measuring 500 square yards, was allotted to him by letter dated 25-5-1965. The defendant was asked by the Improvement Trust, Amritsar, by letter dated 2-7-1970, to deposit a sum of Rs. 1300/- and also to execute a formal agreement of sale. Defendant No. 2 deposited the said amount on 21-8-1970. An agreement was executed on 25-8-1970 in Form D whereunder defendant No. 2 agreed to purchase one residential plot measuring 500 square yards at the rate of Rs. 16.20 per square yard for a total sum of Rs. 8100/-. The balance amount was to be paid in instalments with interest at the rate of 7.5 per cent per annum. The plaintiffs case, as put forward in the trial Court, was that defedant No. 2, by his letter 18-6-1970, offered to sell the said plot to him on the same terms as were specified by the Improvement Trust. Defendant No. 2 wanted the plaintiff to pay him Rs. 2700/- which had been already paid by that time by defendant No. 2 to the Improvement Trust, Amritsar, as part payment of the price of land. Thereafter, defendant No. 2 sent two more letters to the plaintiff, permitting the transfer of the plot in the plaintiffs name from the Improvement Trust. The plaintiff agreed to the terms offered by the defendant and paid a sum of Rs. 3000/- to him. Thereafter, the plaintiff paid, in instalments, a total sum of Rs. 8587.47 to the Improvement Trust. Defendant No. 2 also sent two stamped papers to the plaintiff for the purpose of executing an agreement in respect of the transfer of land. Defendant No. 2 also moved the Improvement Trust for the transfer of the land but the request was declined on the ground that no transfer of land was permissible before the expiry of ten years from the date of agreement. Defendant No. 2 withdrew his offer and showed inability to the plaintiff for transferring the land.
4. The plaintiff filed civil suit on 24-10-1980, after the expiry of ten years from the date of agreement dated 25-8-1970. The plaintiff asserted in his plaint that, at the time of execution of the agreement between Improvement Trust, Amritsar, and defendant No. 2 on 25-8-1970, he was also present and he signed the said agreement as a witness. Possession of the land was delivered to the vendee, namely, defendant No. 2, Lt. Col. Jaswant Singh, at that time through the plaintiff. Thus, the plaintiff came in possession of the plot on that d
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