IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Arvind Singh Sangwan, J.
Kamlesh Kumari – Appellant
Versus
Amit Arya – Respondent
CR No.979 of 2018 (O&M)
Decided On : 08-08-2022
Specific Performance - Interpretation of Judgment and Decree - Order 20 Rule 1, Rule 12-A CPC - Section 148 CPC - Specific Relief Act, 1963 - RSA No.4080 of 2013 - CR No.6645 of 2016 - Bhupinder Kumar vs Angrej Singh - Prem Jeevan vs K.S. Venkata Raman and another - Ramankutty Guptan vs Avara - Surinder Pal Soni vs Sohan Lal (D) through LRs & Others - Main Legal Point
Fact of the Case:
The respondent filed a suit for specific performance of an agreement to sell. The trial Court decreed the suit, directing the petitioner to execute the sale deed. The petitioner appealed, and the judgment was restored by the High Court. The respondent filed an execution petition after the restoration of the judgment.
Finding of the Court:
The Court found that the time for depositing the balance sale consideration was not extended automatically after the restoration of the judgment. The Court held that the decree became inexecutable as the respondent failed to deposit the balance amount within the stipulated time and did not seek an extension of time.
Issues: Interpretation of the judgment and decree regarding the time for depositing the balance sale consideration, applicability of Order 20 Rule 1, Rule 12-A CPC, and Section 148 CPC, and the maintainability of the objections raised by the judgment-debtor.
Ratio Decidendi: The Court held that the time for depositing the balance sale consideration was not automatically extended after the restoration of the judgment. It emphasized that the decree became inexecutable as the respondent failed to deposit the balance amount within the stipulated time and did not seek an extension of time.
Final Decision: The petition was allowed, the impugned order was set aside, and the objections filed by the petitioner were accepted. The execution petition was dismissed.
JUDGMENT
Arvind Singh Sangwan, J. - Prayer in this petition is for setting-aside the order dated 20.01.2018 passed by the trial Court vide which the objections filed by the petitioner in the execution petition filed by the respondent, stands dismissed.
2. Brief facts of the case are that the respondent/plaintiff Dr. Amit Arya, filed a suit for specific performance of agreement to sell dated 11.12.2004, by way of execution and registration of a sale deed qua the plot in dispute and further to grant a decree of possession or in the alternative for recovery of an amount of Rs.2.46 lacs with interest @ 18%. The petitioner contested the suit, however, the trial Court decreed the suit vide judgment and decree dated 14.05.2011 and it was directed that the petitioner/judgment-debtor, will execute the sale deed in favour of the respondent/decree-holder on receiving the balance sale consideration of Rs.8.05 lacs as per the agreement dated 11.12.2004, within a period of 02 months from the date of decree, failing which the respondent/decree-holder will be at liberty to get the sale deed executed on deposit of necessary expenses.
3. The petitioner filed an appeal before the Lower Appellate Court, which was partly allowed on 22.04.2013 and vide the decree dated 22.04.2013, the petitioner/judgment-debtor was directed to deposit a sum of Rs.2.00 lacs being double the amount of earnest money along with interest @ 9% p.a. and the said amount was deposited by the petitioner in the Treasury with an information to the respondent.
4. The respondent/plaintiff preferred a regular second appeal i.e. RSA No.4080 of 2013 and the same was allowed on 08.02.2016, setting-aside the judgment and decree passed by the Lower Appellate Court and the judgment of the trial Court was restored.
5. Since the primary dispute is with regard to interpretation of the judgment and decree dated 14.05.2011, passed by the trial Court, the same is reproduced as under:-
'It is ordered that the suit of the plaintiff succeeds and is decreed with costs. Resultantly, the plaintiff is entitled for possessions of the suit land and defendant is directed to execute the sale deed in favour of the plaintiff on receiving balance sale consideration of Rs.8,05,000/- from the plaintiff, in terms of the agreement to sell dated 11.12.2004 Ex.P1 within two months from today, failing which the plaintiff shall be at liberty to get executed the sale deed from the court on deposit of necessary expenses.
The defendant is also restrained from alienating the suit land in favour of any other person, except the plaintiff.'
6. The judgment and decree passed by the Lower Appellate Court dated 22.04.2013, reads as under:-
'This appeal coming on this 22nd day of April, 2013 before me (Sanjay Sandhir, Additional District Judge, Panchkula) for final disposal in the presence of Ms. Kanchan Bala, counsel for the appellant/defendant and Sh. Manoj Kumar, counsel for respondent/plaintiff.
It is ordered that the appeal filed by the appellant/defendant is hereby dismissed. However, decree for recovery of Rs.2,00,000/- being double amount of the earnest money along with interest @ 9% p.a. from the date of execution of agreement to sell till the date of its actual realization is passed in favour of the appellant.'
7. The operative part of the judgment passed by this Court in RSA No.4080 of 2013, on 08.02.2016, reads as under:-
'In view of what has been discussed hereinabove, the appeal is allowed, judgment and decree passed by the appellate Court is set aside and that of the trial Court is restored. The respondent shall be liable to pay costs throughout.'
8. Counsel for the petitioner has argued that the decree- holder filed an execution on 04.07.2016 i.e. after 02 months and 25 days but did not deposit the balance sale consideration, however, deposited the amount of Rs.7,39,700/- on 26.08.2016 i.e. after 41/2 months of the judgment of this Court by extending 02 months time.
9. The petitioner/judgment-debtor filed objections on 03
R.R. Yelumalai Vs N.M. Ravi 2015(9) SCC 52
Ramankutty Guptan vs. Avara - (1994) 2 SCC 642
The time for depositing the balance sale consideration in a decree for specific performance is not automatically extended after the restoration of the judgment. The decree becomes inexecutable if the....
The decree for specific performance remains executable despite delays in deposit of balance sale consideration, provided no rescission is sought by judgment debtors.
The executing court has the authority to extend time for deposit of balance consideration in specific performance cases, but such discretion must be exercised judiciously, taking into account the rea....
(1) Recession of contract – Moving of application under Section 28 of S.R. Act for rescinding contract for non-compliance of condition is not mandatory rather optional and immaterial – Court is not p....
Late deposit of balance sale consideration was justified under the circumstances, observing procedural compliance and bona fide actions of the decree holder.
The court retains jurisdiction to extend time for performance of a decree, but such extensions must be justified and considered alongside applications for rescission to ensure fairness.
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