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

1997 Supreme(P&H) 1301

PUNJAB & HARYANA HIGH COURT
V.K.Jhanji, J.
Rao Narain Singh (Deceased)
Versus
Durga Devi (Deceased)
Regular Second Appeal No. 2454 of 1995,
Decided On : AUGUST 27, 1997

A suit for specific performance is barred under Order 2 Rule 2, Code of Civil Procedure, if the plaintiff omits to sue for specific performance in an earlier suit based on the same cause of action.

Headnote:

SPECIFIC PERFORMANCE - AGREEMENT OF SALE - ORDER 2 RULE 2, CODE OF CIVIL PROCEDURE - SUIT FOR SPECIFIC PERFORMANCE BARRED - PRIOR AGREEMENT OF SALE - CAUSE OF ACTION - SAME CAUSE OF ACTION - RES JUDICATA - AGREEMENT OF SALE EXECUTED BY DURGA DEVI IN FAVOUR OF DEFENDANT NO.2 PRIOR TO AGREEMENT OF SALE IN FAVOUR OF PLAINTIFFS - SUIT FOR SPECIFIC PERFORMANCE BY PLAINTIFFS DISMISSED.

Fact of the Case:

Plaintiffs filed a suit for specific performance of an agreement of sale dated 21.12.1984, alleging that Durga Devi agreed to sell her house to them for Rs. 2,12,000/- and executed an agreement of sale. Plaintiffs paid Rs. 5,000/- as earnest money and were to pay the remaining consideration before the Sub-Registrar at the time of registration of the sale deed. Defendant No.2, Kulbhushan, claimed that he had entered into an agreement of sale with Durga Devi on 2.10.1984 for the same property and had paid Rs. 1000/- as earnest money and Rs. 4000/- later. The trial court found that the agreement in favor of Defendant No.2 was valid and the agreement in favor of the plaintiffs was voidable due to fraud and misrepresentation. The first appellate court affirmed the findings of the trial court.

Finding of the Court:

The High Court found that the Courts below had appreciated the evidence on record and had come to a reasonable conclusion that the agreement in favor of Defendant No.2 was executed prior to the agreement in favor of the plaintiffs. The Court also held that the suit for specific performance was barred under Order 2 Rule 2, Code of Civil Procedure, as the plaintiffs had omitted to sue for specific performance in their earlier suits for injunction, which were based on the same cause of action.

Issues: 1. Whether the agreement of sale dated 21.12.1984 between Durga Devi and the plaintiffs was valid and enforceable? 2. Whether the agreement of sale dated 2.10.1984 between Durga Devi and Defendant No.2 was valid and enforceable? 3. Whether the suit for specific performance was barred under Order 2 Rule 2, Code of Civil Procedure?

Ratio Decidendi: 1. The Courts below had appreciated the evidence on record and had come to a reasonable conclusion that the agreement in favor of Defendant No.2 was executed prior to the agreement in favor of the plaintiffs. 2. The plaintiffs had omitted to sue for specific performance in their earlier suits for injunction, which were based on the same cause of action. Therefore, the suit for specific performance was barred under Order 2 Rule 2, Code of Civil Procedure.

Final Decision: The appeal was dismissed.

Judgment

V.K.Jhanji, J.

1. This is plaintiffs second appeal directed against the judgment of the Court below whereby suit of the plaintiffs for possession by way of specific performance of the agreement of sale dated 21.12.1984 relating to the house in dispute has been dismissed.

2. In brief, the facts are that one Durga Devi now represented after her death by her daughter and daughters daughter (respondent (i) & (ii) herein) was the owner of the house measuring 475 sq. yards in Ballabgarh. According to the plaintiffs, she agreed to sell the house to the plaintiffs for a consideration of Rs. 2.12,000/- and in this regard, executed agreement of sale on 21.12.1984. At the time of execution of the agreement, plaintiffs paid a sum of Rs. 5,000/- as earnest money and the remaining consideration was to be paid before the Sub-Registrar at the time of Registration of the said sale-deed. In respect of half portion of the house, plaintiffs were to get the sale-deed executed and registered on or before 31.3.1985 on payment of half of the amount and for the remaining half portion, plaintiffs were to get the sale-deed executed and registered on or before 30.6,1985. It is the case of the plaintiffs that they had always been ready and willing to perform their part of the contract in accordance with the terms of agreement of sale and for that matter, they approached Durga Devi to execute the sale-deed in accordance with the terms of the agreement, who in turn with a malafide intention demanded a sum of Rs. 5000/- over and above the sale consideration already agreed between the parties, but the plaintiffs did not agree to the said unjust and illegal demand of Durga Devi. It is further the case of the plaintiffs that Durga Devi was informed through telegram dated, 27.3.1985 to come to the office of the Sub-Registrar on 29.3.1985, because 30.3.1985 and 31.3.1985 were holidays, and to execute the sale-deed in favour of the plaintiffs but she did not come present as requested. Instead she threatened to sell the suit property in favour of a third party and so, under compelling circumstances two suits for injunction for restraining her from selling the suit property to the third party, were filed. Plaintiffs also averred in their plaint that after the institution of suits, plaintiffs came to know that Kulbhushan, respondent No.2 (defendant No.2 in the suit) had filed an application before the Deputy Commissioner, Faridabad, Under Section 41 of the Indian Stamp Act, seeking permission to make up the deficiency on the amount of stamp duty in respect of agreement of sale dated 2.10.1984 regarding the house in dispute. Plaintiffs objected to the course adopted by respondent No.2. The Deputy Commissioner, Faridabad, rejected the application and did not make any endorsement on the said agreement. Plaintiffs alleged that agreement dated 2.10.1984 set up by respondent No.2 is a forged and fictitious document and has been created in collusion with Durga Devi. Plaintiffs thus, prayed that they are entitled to the decree for specific performance of the contract of sale dated 21.12.1984 and in the alternative, decree for recovery of Rs. 2,12,000/- as damages. On notice of the suit, Durga Devi and Kulbhushan (respondents 1 and 2 respectively) contested the suit by filing separate written statement. In her written statement, Durga Devi alleged that prior to the agreement of sale in favour of the plaintiffs, she on 2.10.1984 had contracted to sell with Kulbhushan (respondent No.2) the house in dispute for a consideration of Rs. 2,12,000/-. She further submitted that Kulbhushan had paid Rs. 1000/- as earnest money at the time of execution of the agreement and further paid Rs. 4000/- on 12.10.1984. She also submitted that Kulbhushan was put in possession of the house in part performance of the contract. In regard to the agreement of sale in favour of plaintiffs, she submitted that one Subhash Grover, a deed-writer of Ballabgarh, was doing the business of real estate










































Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

AI

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