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2023 Supreme(P&H) 2773

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
ARUN MONGA, J.
Mehal Singh – Appellant
Versus
M/s. Kakkar Bricks – Respondent
RSA-5517 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 and 16 - Indian Contract Act, 1872 - Section 69 - Plaintiff sought specific performance of an agreement to sell land - Defendant disputed readiness and willingness of the plaintiff - Court found defendant's denial of executing the agreement not credible - Noted no evidence of escalation in land value nor hardship to defendant - Concluded suit for specific performance should be modified to grant refund of earnest money with interest. (Paras 4.3, 11, 15, and 16)

(B) Specific Performance - Law on readiness and willingness - Courts reaffirmed that time is not of the essence for immovable property unless expressly stated - Affirmed that substantial performance of the contract must be evidenced by the party seeking enforcement. (Paras 4.1, 12.2, and 13)

Facts of the case:
The plaintiff entered into an agreement to sell 12 Kanals of land with the defendant for Rs.5,18,000/- per acre, paying Rs.2,00,000/- as earnest money. The defendant failed to execute the sale deed despite the plaintiff's readiness, leading to the suit.

Findings of Court:
The plaintiff was entitled to compensation through the return of earnest money due to the defendant’s failure to perform the contract.

Issues: The key issues included whether the plaintiff was ready and willing to perform and if the suit was maintainable given the absence of registration of the plaintiff's firm.

Ratio Decidendi: The court ruled readiness and willingness was demonstrated by the plaintiff, and the defendant’s claim was unjustifiable. It was held that the specific performance could not be enforced due to the unenforceability of the contract without mortgage redemption.

Result: Appeal partially allowed, and the decree was modified for the refund of earnest money.

JUDGMENT

Arun Monga, J. (Oral)

CM-9396-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-14696-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 12 Kanals, bearing Killa Numbers 63/8/2 (5-0), 8/1 (1-0), 8/2/2/1 (2-0), 50/7/2/2 (4-0), situated in the area of village Maure Kalan, Tehsil Ajnala, District Amritsar bearing Khata No.54/203 to 207 along with consequential relief of permanent injunction.

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

    "2. Briefly stated, the fact of the case, as per plaint are that the defendant agreed to sell the suit measuring 12 kanals in favour of plaintiff for a valuable 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 impression on the same in the presence of his attesting witness 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 the said 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 up 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 24.01.2005 the plaintiff remained in the office of Sub-Registrar, Lopoke for registration of sale deed in his favour but the defendant did not turn up. Again the plaintiff approached the defendant for registration of sale deed in his favour but instead of acceding to the legal and genuine requests of the plaintiff, the defendant rather threatened the plaintiff to alienate, sell, mortgage the property in favour of some other person and further threatened to change the nature of the same which the defendant cannot do so under law. Hence, the present suit."

4. Upon notice, defendant filed written statement with preliminary objections t

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