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2023 Supreme(P&H) 2752

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
ARUN MONGA, J.
Pargat Singh – Appellant
Versus
M/s. Kakkar Bricks – Respondent
RSA-5482 of 2014 (O&M)
Decided On : 24-05-2023

Advocates Appeared:
Mr. Munish Gupta, Advocate; For the Appellant
Mr. B.R. Mahajan, Senior Advocate with Mr. Daanish Mahajan, Advocate for Respondent.

Headnote:(A) Specific Relief Act, 1963 - Section 14 - Indian Partnership Act, 1932 - Section 69 - Indian Contract Act, 1872 - Sections 55 and 74 - Appeal regarding possession by specific performance of an agreement to sell - The trial court decreed the suit for possession on the grounds of lack of defendant's willingness to perform the agreement. The plaintiff proved readiness to fulfill contractual obligations, while the defendant failed to act. (Paras 3, 11, 15, 16)

(B) Agreement to Sell - The agreement clauses require redemption of mortgage prior to executing the sale deed, causing the agreement to become unenforceable despite mutual readiness - The plaintiff is entitled to refund of earnest money due to defendant's failure to perform. (Paras 14, 16)

Facts of the case:
The plaintiff and defendant entered into an agreement to sell land for Rs.5,18,000/- per acre, with earnest money of Rs.2,00,000/- paid; the defendant failed to redeem the property from the bank or execute the sale deed as agreed.

Findings of Court:
The trial court found in favor of the plaintiff, confirming his readiness and willingness to perform his part of the agreement and establishing the defendant's failure to execute the sale.

Issues: Main issues included whether the plaintiff was ready and willing to perform, and whether the suit was maintainable under relevant laws.

Ratio Decidendi: The court determined that the facts presented established the plaintiff's entitlement to specific performance; however, a ruling clarified the unenforceability of the agreement due to mortgage restrictions.

Result: Second appeal dismissed with modifications to refund earnest money.

Table of Content
1. contract details and obligations (Para 2 , 3)
2. defendant's objections to maintainability (Para 4)
3. trial court's findings on evidence (Para 7)
4. analysis of agreement execution and willingness (Para 11 , 12)
5. misinterpretation of contract terms (Para 13 , 14)
6. refund of earnest money as relief (Para 15 , 16)
7. conclusion and order on appeal (Para 17 , 18)

JUDGMENT

Arun Monga, J. (Oral)

CM-9407-C-2015

For the reasons stated in application, same is allowed subject to all just exceptions. Copy of order dated 18.07.2014 (Annexure R-1) is taken on record.

CM-14691-C-2014

This is an application for amendment of grounds of appeal.

No grounds for amendment are made out, at this stage.

Dismissed.

Main case (O&M)

For convenience, parties herein are addressed as per the recitals before learned trial Court.

2. Having suffered concurrent adverse findings by the two Courts below, appellant/defendant is in second appeal before this Court assailing learned trial Court judgment and decree dated 10.01.2012, as upheld by learned First Appellate Court vide its judgment and decree dated 18.07.2014 decreeing the plaintiff/respondent's suit for possession by way of specific performance of the agreement to sell dated 27.10.2004 relating to land measuring 11 Kanals 19 Marlas i.e., 1/6th of land measuring 71 Kanals 13 Marlas bearing Killa numbers 50/3/2 (2- 9), 8/1 (4-8), 63/8/2/2 (5-9), 9 (8-0), 13 (7-11), 11/1 (5-0), 11/2 (3-0), 3 (8-0), 10 (8-0), 8/1 (1-0), 50/7/2/2 (4-12), 63/8/2/2/1 (2-0), 50/6/2 (4-16), 6/3 (3-), 7/1 (1-4), 7/2/2 (1-8), 8/2 (1-12), 6/1 (0-4) bearing Khasra No.54/201 to 210 situated in the area of village Maure Kalan, Tehsil Ajnala, District Amritsar along with consequential relief of permanent injunction.

3. Briefly stated, facts, as noticed by learned Courts, are as below:

    "2. Briefly stated, the facts of the case are that defendant agreed to sell the suit land measuring 11 kanals 9 marlas i.e. 1/6th of landmeasuring 71 kanal 13 marlas in favour plaintiff for a value consideration of Rs.5,18,000/- per acre vide agreement to sell dated 27.10.2004. At the time of entering into an agreement to sell dated 27.10.2004 with the plaintiff the defendant received a sum of Rs.2,00,000/- as earnest money from the plaintiff which was paid by the plaintiff and which was duly received by the defendant and after admitting the contents of agreement to sell dated 27.10.2004 to be true and correct defendant signed, put thumb impressions on the same in the presence of his attesting witnesses and the said agreement to sell was also duly signed by the plaintiff firm through Sh. Ramesh Chander Kakkar its Proprietor after admitting contents of the same to be true and correct. The defendant also agreed to redeem the land in question from the bank after paying the due amount to the bank before 29.11.2004 and further agreed to execute the sale deed in favour of the plaintiff on 29.11.2004. Thereafter, the plaintiff through its proprietor Sh. Ramesh Chander Kakkar many a times approached the defendant before stipulated date for the redemption of the said land from the bank after paying the due amount and further requested to execute the sale deed in favour of the plaintiff on the due stipulated date but the defendant lingered on the matter on one pretext or the other. The plaintiff was always and is still ready and willing to perform his contractual part relating to the said agreement to sell dated 27.10.2004. On 29.11.2004, the plaintiff approached the office of Sub Tehsil Complex, Lopoke for the purpose of registration of sale deed and remained present in the office of Sub Tehsil Complex, Lopoke till 5.00 p.m. but the defendant did not turn to perform his part and then the plaintiff moved an application before the Sub Registrar, Lopoke for marking his presence and his presence was duly marked. The plaintiff has also served a legal notice dated 17.01.2005 upon the defendant giving him time to execute the sale deed in his favour on 24.01

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