PUNJAB & HARYANA HIGH COURT
G.C.Mittal and H.S.Bedi JJ.
Harnam Kaur
Versus
Jagtar Singh
Letter Patent Appeal No. 627 of 1983,
Decided On : JULY 23, 1991
SPECIFIC PERFORMANCE - SECTION 12 OF THE SPECIFIC RELIEF ACT, 1963 - RELINQUISHMENT OF CLAIM - STAGE OF RELINQUISHMENT - INTERPRETATION - DISCRETIONARY RELIEF - FORFEITURE OF RIGHT TO SPECIFIC PERFORMANCE.
Fact of the Case:
Plaintiff-appellant (appellant) and defendant-respondent (respondent) entered into an agreement to sell (Ex. P-1) on 23/03/1962, where the respondent agreed to sell the suit property for Rs. 50,000/- and received Rs. 15,200/- as earnest money. The sale deed was to be executed on or before 15/06/1962, with the balance of the sale price to be paid before the Registrar. The respondent failed to execute the sale deed despite a registered notice (Ex. R-4) served on him. The appellant issued another notice (Ex. P-5) and filed a suit seeking a decree for specific performance or, alternatively, the return of Rs. 15,200/- along with Rs. 4800/- as damages, totaling Rs. 20,000/-.
Finding of the Court:
The trial court found that 9 Khasra numbers mentioned in the plaint were not the property of the respondent at the time of the execution of the agreement to sell (Ex. P-1) and could not be sold by him. However, the court granted a decree for specific performance of the suit land and houses except for the area of 46 kanals 3 marlas, subject to the appellant paying Rs. 29,605/- more to the respondent. The respondent appealed, and the single judge allowed the appeal, holding that the appellant could not obtain a decree for specific performance without relinquishing his claim to the 46 kanals 3 marlas area and that such relinquishment should have been pleaded in the plaint. The appellant challenged this decision in a Letters Patent Appeal.
Issues: 1. Whether the relinquishment envisaged under Section 12 of the Specific Relief Act, 1963 (the Act) can be made at any stage of the suit or appeal. 2. Whether the appellant forfeited his right to specific performance due to the efflux of time and his default.
Ratio Decidendi: 1. Section 12 of the Act allows for specific performance of a part of a contract if the part left unperformed is small and admits compensation in money. Sub-clause (ii) of subsection (3) of Section 12 specifies that a decree for specific performance can be obtained where the plaintiff relinquishes all claims to the performance of the remaining part of the contract and all rights to compensation or damage sustained by him through the default of the defendant. 2. The court interpreted Section 12 to allow relinquishment at any stage of the suit or appeal, as supported by judgments in Waryam Singh V/s. Gopi Chand (AIR 1930 Lahore 34) and Kalyanpur Lime Works V/s. State of Bihar (AIR 1954 SC 165). 3. However, the court held that a decree for specific performance is a discretionary relief, and in this case, the appellant forfeited his right to this relief due to the efflux of time and his default in not making a timely plea for relinquishment.
Final Decision: The Letters Patent Appeal was dismissed, with no order as to costs. The appellant's alternative prayer for a sum of Rs. 20,000/- and certain amounts towards payment of interest, as granted by the single judge, were maintained.
1. Vide agreement to sell dated 23/03/1962, (Exhibit P-1) the defendant-respondent (hereinafter called the respondent) agreed to sell the suit property for a sum of Rs. 50,000 / - and obtained a sum of Rs. 15,200.00 as earnest money. It was stipulated in the agreement (Ex. P-1) that the sale deed was to be executed on or before 15/06/1962, and the balance of the sale price was to be paid before the Registrar at the time of the execution of the sale deed. It is, however, alleged that the respondent did not agree to execute the sale deed in spite of a registered notice dated 5/06/1962, (Ex. R-4) having been served upon him. Therefore, the plaintiff-appellant (hereinafter called the appellant) issued another notice (Ex. P-5) to the respondent and thereafter filed the present suit in which a decree for specific performance was sought in the alternative, the appellant claimed the return of Rs. 15,200.00 together with Rs. 4800/ - as damages, making a total Rs. 20,000/ - in all.
2. In answer to the plaint, various objections were taken by the respondent and a specific plea was raised that the Khasra numbers forming a part of the property were not the same as mentioned in the agreement Ex. P-1 and further that some of the Khasra numbers entered in that agreement had gone out of the ownership of the respondent and, as such, they could not be the subject-matter of sale at his instance. On the pleadings of the parties, the trial Court framed the following issues :-
1. Is the suit property the same regarding which agreement of sale took place between the parties? 2. Did the defendant receive Rs. 6000 / - at the time of the agreement? 3. Was the agreement executed under undue influence, if so its effect? 4. Is the agreement vague, unfair and unconscionable, if so its effect? 5. Was not the defendant in his sense when the agreement was executed; if so its effect? 6. Was the agreement made by mistake between the parties? 7. Is it necessary for the plaintiff to file plan of the houses in dispute, if so has a proper plan been filed? 8. Relief.
3. Under Issue No. 1 the trial Court concluded that 9 Khasra Nos. mentioned in para No. 7 of the plaint which were included therein, were not the property of the respondent at the time of the execution of agreement of sale. The total area of these Khasra numbers came to 46 kanals 3 marlas, whereas the property agreed to be sold vide agreement Ex. P-1 was 305 kanals 9 marlas of the agricultural land and 4 small houses measuring 1 kanal 8 marlas in area. The trial Court accordingly found that the area comprising 46 kanals 3 marlas which was roughly 1/7th share of 305 kanals 9 marlas of land did not belong to the respondent and, as such, could not be sold by him. However, the Court found that 1/7th share being a small portion of the property agreed to be sold, the appellant was entitled to a decree for specific performance on appropriate reduction of the sale price. On issue No. 2, the trial Court found that it was not possible to determine with accuracy as to the actual amount that had been paid towards earnest money. Issues Nos. 3, 4, 5, 6 and 7 were also decided against the respondent. Under Issue No. 8, the trial Court granted a decree for specific performance of the suit land and houses except the area of 46 kanals 3 marlas subject to the appellants paying Rs. 29,605 / - more to the respondent. Feeling dissatisfied with the same, the respondent filed an appeal before this Court and the same having been allowed, the present Letters Patent Appeal is before us.
4. The learned single Judge found that the respondent had no proprietary rights over the area of 46 kanals 3 marlas at the time of the execution of the agreement to sell "Ex. P-1 and, as such, was not competent to sell that particular portion. Reliance was placed by the learned single Judge on Sec. 12 of the Specific Relief Act, 1963 (hereinafter called the Act) to hold that if the appellant was to succeed in the suit for specific performan
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