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2023 Supreme(P&H) 2627

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
ALOK JAIN, J.
Rohini Lowe – Appellant
Versus
Prem Chand – Respondent
RSA NO. 2295 of 2016
Decided On : 03-05-2023

Advocates Appeared:
Mr. M.L. Sarin, Senior Advocate with Mr. Ritesh Aggarwal, Advocate; For the Appellant
Mr. Ashish Aggarwal, Senior Advocate with Ms. Vibhuti, Advocate and Ms. Nidhi Gakkhar, Advocate; For the Respondent

Headnote:(A) Specific Relief Act, 1963 - Section 20 - Agreement for sale - Suit for specific performance decreed - Defendant/appellant failed to execute sale deed despite receiving earnest money and being aware of buyer's identity - Court held no fraud established by defendant, affirmation of validity of agreement signed by son on behalf of father - Appellant sought to void agreement over lack of signature, but court found acceptance of buyer as purchaser. (Paras 4, 19)

(B) Agreement to Sell - Conditions for enforcement - Signing by party can utilize authorized representatives - Not necessary for purchaser to sign for validity; courts maintained that any undue hardship claimed by appellant doesn’t negate the original obligations made by defendant. (Paras 10, 19)

Facts of the case:
The defendant was engaged in a sale agreement for property, received earnest money, and failed to fulfill obligations leading to suit by plaintiff for performance of contract. The agreement was purportedly signed by the plaintiff’s son.

Findings of Court:
The agreement was deemed valid, with the defendant’s arguments lacking substantive proof of fraud; prior courts upheld the intent of ownership transfer and the completion of contractual obligations.

Issues: The key issues were the validity of the agreement without the plaintiff's signature, and whether the defendant's claims of fraud nullified the contract execution.

Ratio Decidendi: The court ruled that the agreement remained valid even if not signed by the actual purchaser; the acceptance of payment and presence in formal procedures indicated the defendant's knowledge of terms.

Result: Appeal dismissed.

Table of Content
1. judgment overview and procedural history. (Para 1 , 2)
2. factual background of the property transaction. (Para 4 , 5)
3. arguments by the defendant challenging the agreement. (Para 6 , 7 , 8 , 9)
4. counterarguments by the plaintiff supporting the agreement's validity. (Para 10 , 12 , 14)
5. court's analysis and ruling on the appeal. (Para 15 , 19)
6. final ruling dismissing the appeal. (Para 20)

JUDGMENT

Alok Jain, J.

This is defendant's second appeal raising challenge to the judgment dated 12.08.2014 passed by the Additional Civil Judge (Senior Division), Gurgaon (now Gurugram),whereby the suit for possession by way of specific performance was decreed and the present appellant was directed to execute the sale deed in favour of the plaintiff-respondent herein within two months by clearing the loan pending, if any, within a specific period, failing which the plaintiff-respondent shall be at liberty to get the sale deed executed through the Court.

2. The learned First Appellate Court of Additional District and Sessions Judge, Gurugram, vide judgment and order dated 15.02.2016, also, after hearing the appellant (defendant), at length and after going through record, dismissed the appeal.

3. Learned Senior counsel has opened his arguments by reiterating the brief facts which are briefly detailed as under taking the parties as they are nominated in the suit:-

4. The defendant is owner in possession of residential apartment No. 1003 located in Wing-T on 10th Floor alongwith parking space No. T-6-OP-3 in the multi-storied building known as Sushant Estate situated in village Kanhai, District Gurgaon having super area of 723 sq. feet. Allegedly, in April, 2006, the defendant approached the plaintiff to purchase the suit property stating that she was full fledged owner in possession of the same and she had clear title of it. Accordingly, the plaintiff agreed to purchase the suit property for a total sale consideration of Rs. 21,50,000/- and an agreement of sale was executed on 25.04.2006, regarding the aforesaid property in favour of the plaintiff. The defendant received a sum of Rs. 2,00,000/- in cash as advance payment of the sale consideration from the plaintiff. As per the aforesaid agreement the balance sale consideration amount of Rs. 19,50,00/- was payable to the defendant by 1st of July, 2006 subject to all paper/documents and title of the property in order to be transferred simultaneously with the execution and registration of the sale deed of the apartment in question. It was further alleged that the plaintiff had always been ready and willing and is still ready and willing to get the apartment transferred in his favour by incurring all obligations arising out of the said agreement dated 25.04.2006. The plaintiff orally contacted the defendant who intimated that she would get the same done on 03.07.2006. On 03.07.2006 the plaintiff remained present in the office of Sub-Registrar alongwith funds for paying balance sale consideration amount to the defendant and to fulfill all his obligation. However the defendant failed to turn up on the said date. The plaintiff had, in fact, got his presence marked with the Sub Registrar, Gurgaon. Plaintiff issued notice dated 19.06.2006 through his counsel to the defendant calling upon her to fulfill her due obligations as per agreement in question whereupon she agreed to fulfill her part. Thereafter on 04.07.2006 the plaintiff got served another notice upon the defendant but in vain. It was further alleged that the defendant had intentionally concealed the fact that the suit property in question was already mortgaged with ICICI Home Finance Company Ltd., as such played fraud with the plaintiff, misrepresenting in the agreement dated 25.04.2006 that the suit property in question was free from all encumbrances.

5. The defendant finally resiled from the terms and conditions of the agreement and threatened to alienate the suit property to create third party interest therein and to ge

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