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2023 Supreme(P&H) 2143

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
HARKESH MANUJA, J.
Mewa Devi – Appellant
Versus
Rajbir & Anr. – Respondents
RSA-2034-2022 (O&M)
Decided On : 10-10-2023

Advocates Appeared:
Mr. Gaurav Rana, Advocate; For the Appellant
Mr. Vishal Nehra, Advocate; For the Respondent

The validity of an agreement to sell is determined by credible testimonies supporting its execution; familial relationships do not alone discredit evidence in property transactions.

Headnote:(A) Specific Relief Act, 1963 - Sections 10 and 14 - Agreement to Sell - The appellant's challenge to the concurrent decrees for specific performance based on a documented agreement to sell dated 27.09.2012 was denied - Valid execution of the agreement was established through testimony, while the alternate agreement was deemed invalid due to lack of credible evidence. (Paras 2, 7, 8, 10)

(B) Burden of Proof - The plaintiff's burden to prove the execution of the agreement was satisfied, while the defendant was unable to substantiate claims regarding a competing agreement that lacked credibility and proper evidence. (Paras 8, 9)

Facts of the case:
The appellant challenged lower court judgments granting specific performance of an agreement dated 27.09.2012 for land transfer claiming collusion and questioning its validity. (Paras 2-4)

Findings of Court:
The courts below were upheld as they found clear evidence for the agreement dated 27.09.2012, establishing the plaintiff's rights. The evidence for the competing agreement was unsubstantiated. (Paras 7, 10)

Issues: The main issues included the valid execution of the agreements and the nature of relationship between parties impacting credibility. (Paras 3, 9)

Ratio Decidendi: The courts upheld the documented agreement as properly executed, emphasizing that proximity of parties does not diminish credibility of evidence leading to the conclusion that the plaintiff's claims were justifiable. (Paras 8, 10)

Result: Appeal dismissed.

Table of Content
1. challenging previous judgments on possession and execution. (Para 1 , 2 , 3)
2. arguments against the validity of sales agreements. (Para 4 , 5)
3. court's findings on the execution and witness testimony. (Para 6 , 7 , 8)
4. assessment of evidence and dismissal of appeal. (Para 9 , 10)
5. final disposition of pending applications. (Para 11)

ORAL JUDGMENT

Mr. Harkesh Manuja, J.

In the present appeal, challenge has been laid to the judgments and decrees dated 23.09.2019 and 19.07.2022 passed by the Courts below whereby, a suit for possession by way of specific performance besides seeking declaration as well as permanent injunction, filed at the instance of respondent No.1-plaintiff has been decreed.

2. Briefly stating, based on an agreement to sell dated 27.09.2012, respondent No.1-plaintiff filed a suit for possession by way of specific performance regarding land measuring 2 Kanals and 16 marlas, situated in the revenue estate of village Fazilpur Badli, Tehsil Farrukh Nagar, District Gurugram. It was further prayed that appellant-defendant No.2 be restrained from alienating the suit property besides seeking declaration qua sale deed dated 30.10.2012 executed by respondent No.2 in favour of appellant. As per the plaint, the total sale consideration was Rs.15,00,000/-; whereas Rs.7,00,000/- was paid as earnest money and the target date was fixed as 27.03.2013. It was also pleaded that respondent No.2-defendant No.1 sold the suit property in the name of appellant-defendant No.2 vide registered sale deed dated 31.10.2012 so as to defeat the rights of respondent No.1-plaintiff thereby, compelling him to file present suit impugning the validity of sale deed dated 31.10.2012 as well.

3. Upon notice, respondent No.2-defendant No.1 appeared and denied the execution of agreement to sell dated 27.09.2012 while stating it to be a false, frivolous and fabricated document. It was further pleaded that agreement to sell dated 31.07.2012 was executed by respondent No.2-defendant No.1 in favour of appellant-defendant No.2 and in pursuance thereof, a sale deed dated 31.10.2012 was executed between them. Similarly appellant-defendant No.2 filed separate written statement while claiming herself to be the owner-in-possession of suit property by virtue of sale deed dated 31.10.2012 based on agreement to sell dated 31.07.2012.

4. The trial Court vide judgment and decree dated 23.09.2016 decreed the suit filed by respondent No.1-plaintiff. Aggrieved thereof, appellant-defendant No.2 filed First Appeal, however, the same was dismissed by the Appellate Court vide judgment and decree dated 19.07.2022.

5. Impugning the aforementioned judgments and decrees passed by the Courts below, learned counsel for the appellant submits that in the present case, agreement to sell dated 27.09.2012 was an act of collusion between respondent No.1-plaintiff and respondent No.2- defendant No.1 as they were both closely related to each other. He also submits that once the valid execution of agreement to sell dated 31.07.2012 in favour of appellant-defendant No.2 was admitted by respondent No.2-defendant No.1, there was no occasion to have initiated criminal proceedings against him. To add, he also points out that against payment of Rs.7,00,000/- as earnest money towards total sale consideration of Rs.14,00,000/-, non-delivery of possession in favour of vendee itself created doubts about the valid execution of agreement dated 27.09.2012. Learned counsel further points out that the mothers of both the respondents are real sisters. He also submits that one of the marginal witness to the agreement dated 27.09.2012 was Chander Bhan (PW-3) who happened to be real brother of respondent No.2-defendant No.1. Learned counsel further submits that present suit was filed on 19.12.2012 and all through till 07.09.2013, respondent No.2-defendant No.1 continued to appear in the trial, however, the moment evidence was over, he discontinued to appear in the suit. He also points ou

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