The judgment emphasizes the enforceability of agreements and the obligation to refund payments received, based on the principles of equity and justice.

AMIT RAWAL, J.

1. The appellant-defendant No.1 is in Regular Second Appeal against the judgment and decree dated 03.08.2015 rendered by the Lower Appellate Court, whereby, judgment and decree dated 31.07.2014 of the trial Court dismissing the suit, has been modified.

2. It would be apt to give factual matrix of the suit.

3. Plaintiff-respondent No.1 instituted a suit in the month of July, 2008 claiming declaration to the effect that plaintiff is legally entitled to the flat to be constructed by defendant no.2, i.e., The New Haryana Officer Cooperative Group Housing Society Limited, GH-2, Sector 6 MDC, Panchkula in place of defendant no.1/appellant-Narain Singh being bonafide member of the Society being allottee of plot No.GH 2, Sector 6, MDC, Panchkula on the basis of documents, i.e., agreement dated 17.12.2004, registered General Power of Attorney dated 17.12.2004 and Will dated 22.02.2007 against the receipt of Rs. 10,80,000/- by challenging the cancellation of all the documents with a consequential relief of permanent injunction restraining defendant no.1 from alienating share in defendant no.2 on the premise that defendant no.2 was a registered Group Housing Society and defendant No.1 became a member of the same and had deposited the required amount of the share entitling him to a dwelling unit/flat to be constructed by the Society. A share certificate was also issued for construction of the multi-storey flats in the site duly allotted by the Estate Officer, HUDA, Panchkula.

4. It was averred that defendant No.1 deposited his share money with defendant no.2 for purchase of the land from the Estate Officer, HUDA, Panchkula, who had allotted the site, ibid, for construction of the multi-storey flats. That due to some financial constraints, defendant no.1 could not deposit further installaments with defendant no.2 and in order to safeguard the financial interest showed his willingness by offering share/rights in defendant no.2 to the plaintiff after accepting the offer. Resultantly, an agreement to sell dated 17.12.2004 was executed in favour of the plaintiff by defendant no.1 for a total sale consideration of Rs. 10,80,000/- which was allegedly paid to defendant no.2 against the receipt duly executed by defendant no.1 on the back of the first page of the agreement to sell dated 17.12.2004 in the presence of witnesses. Defendant no.1 further executed a GPA which was duly registered with the Sub Registrar Panipat, a Will dated 17.12.2004 and also sworn three affidavits before the Executive Magistrate Panipat required for transfer of the share of defendant no.1 by defendant no.2 in favour of the plaintiff.

5. It was pleaded that plaintiff had been paying the installments to defendant no.2 without any default but acquired the knowledge that there was some dispute regarding the eligibility of plaintiff to acquire the membership of defendant no.2 which was pending before the Registrar, Cooperative Societies, Haryana, resulting in delay in transferring the membership. The plaintiff was shocked and surprised to see the letter dated 31.05.2007, whereby, appellant/defendant no.1 cancelled all the documents executed in favour of the plaintiff, depriving the right, despite receiving the full and final payment by defendant no.1.

6. Plaintiff acquired the knowledge that membership of defendant no.1 by the Registrar, Cooperative Societies was restored, resultantly, approached defendant no.1 for transfer of the share but instead of acceding to the request of plaintiff, defendant no.1 flatly refused to do so and threatened to alienate the suit property. It is in that background of the matter, suit aforementioned was filed along with an application under Order 39 Rules 1 and 2 of Code of Civil Procedure (in short 'CPC) for interim stay.

7. Appellant/defendant No.1 contested the suit by taking certain preliminary objections qua locus-st