IN THE HIGH COURT FOR THE STATES OF PUNJAB AND HARYANA AT CHANDIGARH
Raj Mohan Singh, J.
Prtitam Singh - Appellants
Versus
Karan Garg - Respondent
Regular Second Appeal No. 5450 of 2017
Decided On : 09-08-2018
specific performance - agreement to sell - - [Specific Relief Act, 1963, Section 16(c), Section 20, Section 21] - The court discussed the execution of the agreement to sell, the readiness and willingness of the plaintiff, and the legal aspects of specific performance under the Specific Relief Act, 1963. The court emphasized the lawful execution of the agreement to sell and the plaintiff's fulfillment of the conditions for specific performance.
Fact of the Case:
The plaintiff filed a suit for specific performance of an agreement to sell and for permanent injunction. The defendants contested the suit on the grounds that the agreement was executed as collateral security and they did not intend to execute it as the property's value exceeded the agreed amount.
Finding of the Court:
The trial court decreed the suit, holding that the execution of the agreement to sell was proved and it was not a security document. The lower appellate court affirmed the decree.
Issues: The issues included the execution of the agreement, the plaintiff's readiness and willingness, entitlement to possession through specific performance, locus standi and cause of action, maintainability of the suit, and entitlement to permanent injunction.
Ratio Decidendi: The court found that the execution of the agreement to sell was proved, the plaintiff demonstrated readiness and willingness, and the defendants failed to provide evidence to disprove the lawful execution of the agreement.
Final Decision: The court dismissed the appeal, finding it devoid of merits.
JUDGMENT
Raj Mohan Singh, J. - Defendants have preferred this Regular Second Appeal against concurrent judgments and decrees passed by the Courts below in a suit for specific performance of agreement to sell dated 13.11.2006 and for permanent injunction.
2. Brief facts of the case are that the plaintiff filed a suit for specific performance on the basis of agreement to sell dated 13.11.2006 and for permanent injunction restraining the defendants from alienating the suit property in any manner to any other person except the plaintiff. It was also alleged by the plaintiff that the defendants were the co-sharers to the extent of half share in house measuring 8 Biswas and were in exclusive possession of house measuring 4 Biswas (34' x 53') consisting of three rooms, three shops, kitchen and bathroom etc. The defendants entered into an agreement to sell dated 13.11.2006 for a consideration of Rs. 9 lakhs and received an amount of Rs. 2 lakhs as earnest money. The date for execution of sale deed was fixed on or before 30.07.2007. The registration charges were to be born by the plaintiff and the remaining sale consideration was to be paid at the time of registration of the sale deed. The possession was held to be delivered after the execution of sale deed.
3. Plaintiff further alleged that on the target date, he remained present in the office of Sub-Registrar, Dhuri on 30.07.2007 along with remaining sale consideration and registration charges, but the defendants did not come present to perform their part of obligation. Plaintiff always remained ready and willing to perform his part of contract. Thereafter defendants started threatening to alienate the suit property. Earlier the plaintiff filed a suit for permanent injunction in which ad interim injunction was granted when the defendants refused to executed the sale deed. That is how the suit came to be filed before the trial Court.
4. The suit was contested by the defendants on number of grounds. It was pleaded that the defendants borrowed a sum of Rs. 2 lakhs from the plaintiff and executed the agreement to sell dated 13.11.2006 as collateral security. They did not intend to execute the aforesaid agreement as the value of the property was more than Rs. 30 lakhs.
5. After filing of the replication, both the parties went to trial on the following issues:-
"1. Whether the defendants entered into an agreement to sell dated November 13, 2006 with the plaintiff for sale of the suit property for consideration of Rs. 9,00,000/- and received Rs. 2,00,000/- as earnest money in the presence of the witnesses? OPP
2. Whether the plaintiff always remained ready and willing to get the sale deed executed as per terms of the agreement to sell dated November 13, 2006?OPP
3. Whether the plaintiff is entitled to the relief of possession by way of specific performance of the agreement to sell dated November 13, 2006? OPP
4. Whether the plaintiff has no locus standi and cause of action to file the present suit? OPD
5. Whether the suit of the plaintiff is not legally maintainable in the present form? OPD 5-A. Whether the plaintiff is entitled for permanent injunction as prayed for? OPP
6. Relief."
6. Both the parties led their respective evidence in order to prove their case.
7. The trial Court after consideration of evidence decreed the suit by holding that execution of agreement to sell is proved and the agreement is not proved to be security document. The defendants could not lead any evidence with regard to market value of the property as alleged.
8. The decree passed by the trial Court was affirmed by the lower Appellate Court.
9. Learned counsel for the appellants sought to argue the appeal on the following legal parameters as mentioned in para No.14 of grounds of appeal:-
"a) Whether the learned Courts below have erred in not properly appreciating the oral as well as documentary evidence available on record?
b) Whether there is total misreading of facts and evidence by the learned Courts below whil
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