2007 Supreme(P&H) 1851
2008 (1) RCR(Civ) 649
IN THE PUNJAB AND HARYANA HIGH COURT AT CHANDIGARH
VINOD K. SHARMA, J.
Moti Ram ... Appellants
Versus
Mahender Singh & Ors. ....Respondents
R.S.A. No. 3451 of 2007 (O&M)
Decided On : 15.10.2007
Mr. K.B. Sharma, Advocate for the appellant.
The court emphasized the importance of proving that the sale consideration was made without notice of the original agreement in a specific performance case, and held that the evidence led by the plaintiff went unrebutted.
Headnote:
specific performance - contract enforcement - Specific Relief Act, Section 19(b) - Summary: The court decreed the suit for specific performance, finding that the plaintiff was ready and willing to perform the contract, while the defendant failed to do so. The sale deed in favor of the defendant was held illegal and not binding on the plaintiff. The court dismissed the appeal, stating that the appellant failed to prove that the sale consideration was made without notice of the original agreement, and the evidence led by the plaintiff went unrebutted.
Fact of the Case:
The plaintiff filed a suit for specific performance of an agreement to sell land, claiming that the defendant violated the terms of the agreement by executing a sale deed in favor of another party and creating a charge over the land.
Finding of the Court:
The court found that the plaintiff was ready and willing to perform the contract, while the defendant failed to do so. The sale deed in favor of the defendant was held to be illegal and not binding on the plaintiff. The court dismissed the appeal, stating that the appellant failed to prove that the sale consideration was made without notice of the original agreement, and the evidence led by the plaintiff went unrebutted.
Issues: Violation of agreement terms, validity of sale deed, and creation of charge over the land.
Ratio Decidendi: The court decreed the suit for specific performance based on the plaintiff's readiness and willingness to perform the contract, and the defendant's failure to do so. The sale deed in favor of the defendant was held to be illegal and not binding on the plaintiff. The appellant failed to prove that the sale consideration was made without notice of the original agreement, and the evidence led by the plaintiff went unrebutted.
Final Decision: The court decreed the suit for specific performance and dismissed the appeal.
VINOD K. SHARMA, J. (ORAL) - This regular second appeal has been filed against the judgments and decrees passed by the learned Courts below vide which suit filed by the plaintiff-respondent No.1 for specific performance of the contract, has been ordered to be decreed.
2. The plaintiff respondent No.1 brought a suit for specific performance for enforcement of an agreement to sell dated 3.6.1998 executed between the plaintiff and defendant No.1, for sale of land, for a total sale consideration of Rs. 3,85,000/-(Rupees three lac and eighty five thousand only). Out of that a sum of Rs. 3,00,000/-( Rupees three lac only) was received as earnest money-cum-part payment from the plaintiff respondent No.1 and it was agreed that sale deed would be executed on or before 30.6.1998 on payment of balance sale consideration. Liberty was also given to plaintiff respondent No.1 to get the sale deed executed and registered in his favour or in favour of his nominee.
3. The plaintiff pleaded that he was always ready and willing to perform his part of contract, however, defendant No.1 on 9.9.1998 executed a sale deed in favour of defendant No.2 for a total sale consideration of Rs. 3,24,000/-( Rupees three lac and twenty four thousand only) in violation of the terms and conditions of the agreement to sell dated 3.6.1998. It was specifically pleaded in plaint that the agreement to sell dated 3.6.1998 was well within the knowledge of defendant No.2-appellant herein and the impugned sale deed dated 9.9.1998 was executed in order to create or cause wrongful loss to the plaintiff. The mutation in favour of the appellant defendant No.2 was also challenged. It was also the case of the plaintiff that in order to defeat the rights of the plaintiff appellant, respondents herein in collusion with each other createad a charge over the suit land by way of mortgage with defendant No.3. The mortgage was also challenged. It was also claimed that the defendants in collusion with each other, are threatening to dispossess the plaintiff from the suit land illegally and forcibly and also want to alienate the same further with a view to defeat the valuable and legitimate right of the plaintiff.
4. Defendants No.1 and 3, chose not to contest the suit. The suit was contested by defendant No.2 who filed written statement. It was claimed that he purchased the land in dispute for a total consideration of Rs. 3,24,000/-( Rupees three lac and twenty five thousand only) and sale deed was executed in his favour. It was also claimed that possession of the suit land was given to him in pursuance to the said sale deed. It was claimed that subsequent sale deed and mutation was valid. One of the pleas taken was that defendant No.2 had no knowledge of the agreement dated 3.6.1998 entered into between the plaintiff and defendant No.1. It was further claimed that defendant No.2 had mortgaged the suit land as owner thereof. Collusion with defendant No.1 was denied. It was pleaded that agreement to sell dated 3.6.1998 was not in the knowledge of defendant No.2 or defendant No.3. Other preliminary objections were also taken.
5. The learned Courts below on appreciation of evidence have recorded a concurrent finding of fact that defendant No.1 had entered into an agreement to sell the suit property to the plaintiff/respondent No.1 for a sum of Rs. 3,85,000/-( Rupees three lac and eighty five thousand only). A finding has also been recorded that a sum of Rs.3,00,000/-(Rupees three lac only) had been paid as earnest money. The Courts below also come to the conclusion that the plaintiff was always ready and still ready and willing to perform his part of contract and it was defendant No.1 who had failed to perform his part of the contract. The sale deed in favour of defendant No.2 was held to be illegal, null and void and not binding on the rights of the plaintiff. The suit was held not to be collusive between the plaintiff and defendant No.1.
6. Defendant No.2 was not held to be bona f