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2023 Supreme(P&H) 1506

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Arun Monga, J.
Santosh – Appellant
Versus
Kanta Devi & Ors. – Respondents
CR No. 2112 of 2023
Decided On : 12-04-2023

Advocates appeared:
For the Parties : Mr. Sumit Sangwan

Headnote:(A) Specific Relief Act, 1963 - Section 14 - Limitation Act, 1963 - Suit for specific performance - Petition for setting aside the order dismissing the application to stay operations of judgment and decree - Suit filed after a significant delay - Time was the essence of the contract, and the trial court did not consider the limitation period when rendering judgment. (Paras 2.1, 3).

(B) Balance of equities - Where execution of the decree during the pendency of the appeal would cause irreversible damage to the rights of the appellant/defendant, a stay on the operation of the decree is warranted to protect rights and the suit property. (Paras 5, 6).

Facts of the case:
Respondents filed suit for possession through specific performance based on an alleged agreement of sale executed in 2010, but the suit was filed in 2017, beyond the limitation period. The trial court ruled in favor of respondents, against which the appellant sought to appeal and stay the execution.

Findings of Court:
The court found the potential for irreparable harm to the appellant/defendant's rights and determined to stay the execution of the decree while prohibiting any alienation of the suit property.

Issues: The main issues included whether the trial court considered the time limitation relevant to the contract and whether a stay on execution of the decree is justified during the appeal process.

Ratio Decidendi: The court emphasized the importance of balancing equities in the context of a pending appeal and the irreparable harm that could be inflicted by executing the decree.

Result: Application is allowed with conditions imposed on the execution of the decree.

Table of Content
1. overview of the factual background of the case. (Para 2)
2. arguments regarding the significance of contract timing and limitations. (Para 3)
3. court's observations on potential harm and property rights. (Para 4 , 5 , 6)
4. conclusion and order regarding the case disposition. (Para 7 , 8)

Judgment

Mr. Arun Monga, J.

Petition herein is for setting aside order dated 17.03.2023(Annexure P-1) passed by Ld. Additional District Judge, Bhiwani, whereby Ld. First Appellate Court dismissed the application, moved by petitioner/defendant, under Order 41 Rule 5 CPC for staying operation of impugned judgment and decree dated 30.01.2020 (Annexure P-2) during pendency of first appeal.

2. Succinct facts first, as pleaded in the instant petition.

2.1. Respondents filed a suit for possession by way of specific performance of an agreement to sell dated 03.03.2010 allegedly executed by petitioner in favour of Ompal Singh, predecessor-in-interest of respondent/plaintiffs, agreeing to sell land measuring 12 Kanals. The suit was filed on 08.12.2017 i.e. after about 7 years from the alleged agreement. Ld. trial Court decreed the suit vide judgment and decree dated 30.01.2020 (Annexure P-2).

2.2. Aggrieved from judgment and decree dated 30.01.2020, petitioner/defendant preferred an appeal on 04.10.2021. Allegedly, due to pandemic, the appeal was filed after more than 1½ years. Along with the appeal, the petitioner also filed an application (Annexure P-3) under Order 41 Rule 5 CPC for staying operation of impugned judgment and decree dated 30.01.2020 during pendency of first appeal. However, vide impugned order (Annexure P-1), Ld. First Appellate Court dismissed the said application.

3. Learned counsel for petitioner, inter alia, argues that in the instant case, time was the essence of contract. In the present case, the date of alleged agreement is 03.03.2010 whereas the suit was instituted on 08.12.2017 i.e. after more than 7 years. Therefore, even if the target date is not mentioned, then also the period of limitation is three years, but Ld. trial Court had not considered this most crucial aspect and wrongly passed judgment and decree against petitioner. He relies upon the Supreme Court judgment rendered in Mool Chand Yadav and another vs. Raza Buland Sugar Company Limited, Rampur and others , (1982) 3 SCC 484 and the judgment of this Court in Ashwani Kumar Bindra vs. Satish Kumar and another , 2018(2) Law Herald (P&H) 1253 in support of his contention that during pendency of appeal, any order having serious civil consequences connected with appeal, ought to be stayed. Resultantly, the impugned order is liable to be set aside and operation of impugned judgment and decree has to be stayed during pendency of first appeal.

4. Given the nature of order being passed, there is no necessity to issue notice to respondents, as no serious prejudice would be caused to them. Notice to respondents is thus dispensed with.

5. Having heard learned counsel for petitioner, I am of the view that since the first appeal is sub judice and during pendency thereof if the decree is executed and petitioner is dispossessed from the suit property and/or title is transferred to plaintiff/respondents, the same would cause irreversible and irreparable damage qua rights of petitioner/defendant in the suit property. That apart, it transpires that petitioner/defendant has all throughout been in possession of the suit property.

6. In the premise, I am of the view that in order to balance the equities and to meet the ends of justice and to protect the suit property during pendency of first appeal, the Executing Court shall not insist for specific performance of the alleged agreement, subject of course to petitioner also being restrained not to alienate the suit property and to create any third party rights in any manner, during pendency of first appeal.

7. Disposed of in above terms.

8. Pending civil miscellaneous application(s), if any, shall also stand disposed of.

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