2018 Supreme(P&H) 982
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
AMIT RAWAL, J.
Ram Niwas and Others – Appellants
Vs.
Raghbir Singh – Respondent
RSA No.2342 of 2014 (O&M)
Decided On : 10-01-2018
For the Appellants :Mr. Alok Jain, Advocate
For the Respondent:Mr. S.S. Dinarpur, Advocate
The main legal point established in the judgment is the finding that the plaintiff was in breach of the agreement to sell, and the consideration of the collusive nature of the judgment and decree dated 28.07.2007 and 07.10.2007, along with the legal principles from relevant case law and documentary evidence.
Headnote:
Recovery Suit - Agreement to Sell - CPC Order 22 Rules 4 and 9 - Collusive Decree - Specific Performance - Forfeiture of Earnest Money - Legal Principles from Dr. Habibur Rehman Khan Vs. Naresh Kumar and another 2014(207) DLT 15 and Satish Batra vs. Sudhir Rawal 2012(4) RCR (Civil) 890 - Judgment and Decree dated 11.12.2014 in Civil Suit No.306 of 2011 - Judgment and Decree dated 28.07.2007 and 07.10.2007 - Death Certificate Ex.PW2/1 - Jamabandis Ex.P19 to Ex.P23
Fact of the Case:
The respondent-plaintiff filed a suit seeking recovery of Rs.11,20,000/- along with interest, based on an agreement to sell a property. The defendants contested the suit, claiming that the agreement was not maintainable and that the plaintiff was in breach of the agreement.
Finding of the Court:
The trial Court decreed the suit, rejecting the objections raised by the defendants. The appeal against the decree was dismissed by the Lower Appellate Court, which modified the judgment and decree of the trial Court to award the plaintiff Rs.10 lacs along with interest at 6% per annum.
Issues: The issues included the entitlement of the plaintiff to recovery, the maintainability of the suit, and the relief sought.
Ratio Decidendi: The Court found that the plaintiff was in breach of the agreement to sell, and that the judgment and decree dated 28.07.2007 and 07.10.2007 were collusive, conferring title on the defendants. The Court also considered the legal principles from Dr. Habibur Rehman Khan Vs. Naresh Kumar and another 2014(207) DLT 15 and Satish Batra vs. Sudhir Rawal 2012(4) RCR (Civil) 890, and the judgment and decree dated 11.12.2014 in Civil Suit No.306 of 2011, as well as the death certificate Ex.PW2/1 and jamabandis Ex.P19 to Ex.P23.
Final Decision: The Court found no illegality and perversity in the judgments and decrees of the Courts below, and dismissed the appeal.
AMIT RAWAL, J.
1. The appellant-defendants are in Regular Second Appeal against the concurrent findings of facts and law, whereby, suit seeking recovery of Rs.11,20,000/- along with pendent lite interest at the rate of interest 6% per annum from the date of filing of the suit till its final realization, has been decreed. The appeal filed against the same was partly accepted and the judgment and decree of the trial Court has been modified to the extent that the respondent-plaintiff is entitled to recover the original claimed amount of Rs.10 lacs from the defendants along with interest 6% per annum.
2. Before I could advert to the arguments of learned counsel for the parties, it would be in the fitness of things to give preface of the matter for adjudication of the dispute.
3. Respondent-plaintiff instituted a suit for recovery of aforementioned amount which included Rs.10,00,000/- as principal amount and Rs.1,20,000/- as interest at the rate of Rs.1/- per hundred per month from 02.05.2008 to 02.05.2009, in reference to the agreement to sell No.100 dated 02.05.2008.
4. As per the case set out in the plaint, it was averred that the plaintiff being resident of village Barwas, Tehsil Loharu, District Bhiwani and the defendants being resident of same village, by presuming themselves to be owners of the land comprising in khewat no.234, khatoni No.249, kites 19, total measuring 92 kanals 03 marlas situated at village Barwas, Tehsil Loharu, District Bhiwani, on the basis of mutation no.975, had agreed to sell 800/1843 shares i.e. 40 kanals to the plaintiff on 2.5.2008 for a total sale consideration of Rs.30,00,000/- against the receipt of Rs.10,00,000/- as earnest money from the plaintiff in view of the agreement to sell dated 02.05.2008, ibid. The date for execution and registration of the sale deed was fixed as 02.05.2009.
5. As per the averments, the plaintiff was told by the defendants that the said land was free from all encumbrances. It was further averred that the plaintiff came to know that defendants were not owners of the property as they had acquired the title on the basis of judgment and decree dated 07.10.2007 (Ex.P39) from Jagan Nath, who had become the owner by virtue of a decree dated 28.07.2007 (Ex.P6) passed in civil suit No.155 of 2006, wherein, one Parwati was arrayed as co-sharer but she had already died in the year 2006, i.e., 26.04.2006. There was every likelihood that decree could be challenged and the plaintiff may be deprived of ownership and title in the sale deed, as per terms and conditions of the agreement to sell, ibid, if executed. One of the enquiry revealed that the children of Parwati had been threatening to get the decree dated 28.07.2007 (Ex.P6) set aside. It is in this background of the matter, the only relief of recovery was sought.
6. The aforementioned suit was contested by the appellant-defendants by taking various preliminary objections with regard to cause of action, locus standi, maintainability, estoppel by denying that the aforementioned decree was obtained by playing fraud upon Parwarti or any threat was ever extended by the children of Parwati to Jagan Nath in a suit titled as Jagan Nath vs. Suraj Mal.
7. Since the parties were at variance, the following issues were framed by the trial Court:-
“1. Whether the plaintiff is entitled to recovery of Rs.11,20,000/- from the defendants along with interest at the rate of Rs.1% per month, as alleged in the head note of the plaintiff, if so to what effect? OPP
2. Whether the suit is not maintainable in the present form? OPD
3. Relief.”
8. The trial Court on the basis of the preponderance of the evidence, decreed the suit by rejecting the objections raised by the defendants and the appeal preferred against thereof, has been dismissed.
9. Mr. Alok Jain, learned counsel for the appellant-defendants contented that the judgments and decrees are outcome of perversity as the defendants had marked the presence before the Sub-Registrar on 01.05.2009 (Ex.D1