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2021 Supreme(P&H) 821

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Anil Kshetarpal, J.
Sri Krishan & Ors. - Appellants
Versus
Silver Line Builders Pvt. Ltd. & Ors. - Respondents
Regular Second Appeal No. 30 of 2021 (O&M) and Regular Second Appeal No. 31 of 2021 (O&M)
Decided On : 25-02-2021

Advocates Appeared:
Mr. Hemant Bassi, Advocate, Mr. Vaneet Soni, Advocate, for the Appellant; Mr. Ashish Aggarwal, Senior Advocate, Ms. Aashna Aggarwal, Advocate, for the Respondent

The main legal point established in the judgment is the entitlement to specific performance of an agreement to sell, and the requirement of readiness and willingness on the part of the plaintiff.

Headnote:

specific performance - land dispute - [Transfer of Property Act, Section 54, Specific Relief Act, Section 16(c), Code of Civil Procedure, Order XLI Rule 27] - The court discussed the specific performance of the agreement to sell and the readiness and willingness of the plaintiff, as well as the additional evidence applications filed by the defendants. The court found that the plaintiff had proved its case and was entitled to a decree for specific performance. The court also modified the decree to include payment of the balance sale consideration with interest.

Fact of the Case:

The plaintiff filed a suit for specific performance of an agreement to sell land. The defendant had transferred the property to his sons before the agreed date for execution of the sale deed. The plaintiff claimed readiness and willingness to perform the contract.

Finding of the Court:

The court found that the plaintiff had successfully proved its case and was entitled to a decree for specific performance. The court also modified the decree to include payment of the balance sale consideration with interest.

Issues: The issues included whether the defendant had agreed to sell the land, whether the plaintiff was ready and willing to perform the contract, and whether the plaintiff had concealed material facts.

Ratio Decidendi: The court held that the plaintiff had proved its readiness and willingness to perform the contract, and that the defendant's transfer of the property to his sons before the agreed date did not affect the plaintiff's entitlement to specific performance.

Final Decision: The court decreed the suit for specific performance and modified the decree to include payment of the balance sale consideration with interest.

ORDER

Anil Kshetarpal, J. - It has been brought to the notice of the Court that defendant No.1 along with his three other brothers had entered into a separate agreements to sell with respect to adjoining pieces of land in favour of the plaintiff-company. The plaintiff-respondent (the company) filed five suits for specific performance of the various agreements to sell. All the remaining suits were also ordered to be decreed. Before the first Appellate Court, the parties settled the dispute as the plaintiff-company agreed to pay the balance amount of the sale consideration as also additionally undertook to allot one flat each.

2. Learned counsel for the respondents has submitted that similar offer has been given to learned counsel for the appellants herein. However, learned counsel for the appellants have stated that they have spoken to the appellant(s), but the offer is not acceptable and want the Court to decide the appeals on merits.

3. Two different sets of defendants have filed these regular second appeals against the concurrent findings of fact arrived at by the Courts below while decreeing the suit for specific performance of the agreement to sell.

4. Some facts are required to be noticed.

5. The respondent-plaintiff filed the suit claiming that the defendant No.1-Sri Krishan son of Sh. Narain Singh (appellant in RSA-30-2021) agreed to sell 15 kanals 8 marls of land @ Rs. 50,00,000/- per acre for a total sale consideration of Rs. 96,25,000/- on receipt of Rs. 9,66,500/- as earnest money. Out of which Rs. 7,21,875/- was paid through cheque drawn in favour of defendant No.1 on 15.12.2005, whereas the remaining amount was paid in cash.

6. It has come on record that defendant No.1 transferred the property in question in favour of defendant no.2 and 3 (his own sons) vide release (transfer) order dated 18.09.2006, but the plaintiff came to know about this fact on 12.12.2006. As per the agreement to sell, the sale deed was agreed to be executed and registered on or before 14.12.2006. The plaintiff-Company on 22.11.2006 issued a notice, calling upon defendant No.1 to come and execute the sale deed as per agreement to sell. However, there was no response.

7. The plaintiff instituted the suit on 26.02.2007. On notice, the defendants contested the suit and it was claimed that apart from the written agreement there was an oral understanding that defendant would be paid the price @ Rs. 3,00,00,000/- per acre. The receipt of payment of Rs. 7,21,875/-made through cheque was admitted. However, the receipt of remaining payment through cash was denied. Defendant No.1 also pleaded that Hari Singh, one of the witness of margin got the agreement signed from him. Defendant No.2 to 5 pleaded that the land is ancestral and therefore, defendant No.1 is not entitled to sell it.

8. As noticed above, both the Courts, on appreciation of evidence, have found that the plaintiff has successfully proved its case and therefore, entitled to a decree for specific performance of the agreement to sell. The plaintiff examined Sharad Mohan Parsad, a bank official as well as attesting witness of the agreement to sell, Ram Krishan.

9. This Court has heard learned counsel for the parties at length and with their able assistance, perused the paper books of both the appeals.

10. Learned counsel appearing for the appellants-defendant No.2 and 3 submits that in the written statement, it was pleaded that the property is ancestral and therefore, the defendants had no right to sell. He contends that both the Courts below have neither framed issue on this aspect nor have adverted to this fact. He further submits that the appellant has filed an application for leading additional evidence before the First Appellate Court, which had been wrongly dismissed.

11. On the other hand, learned counsel representing defendant No. 1-appellant contends that the plaintiff has failed to prove its readiness and willingness which is sine qua-non for decreeing the suit for specific performance. He fur

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