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2023 Supreme(P&H) 1987

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
HARKESH MANUJA, J.
Gurdip Singh (Since Deceased) & Ors. – Appellants
Versus
Bhupinder Pal Singh & Ors. – Respondents
RSA NO. 1486 of 2023 (O&M)
Decided On : 28-07-2023

Advocates Appeared:
Mr. Ghulam Nabi Malik, Advocate; For the Appellant

Headnote:(A) Limitation Act, 1908 - Article 54 - Suit for possession by way of specific performance - Agreement to sell dated 16.12.2004 upheld; sale deed dated 20.12.2004 executed in favor of present appellants deemed to defeat prior rights under agreement - Suit filed on 07.04.2008 within limitation as per Article 54. (Paras 10, 8, 9)

(B) Limitation - Distinction between specific performance and declaration suits highlighted - Relevant articles for understanding limitation on specific performance clarified. (Paras 10)

Facts of the case:
Respondents No.1 and 2 filed suit for specific performance citing agreement to sell dated 16.12.2004 after vendor executed a sale deed in favor of present appellants prior to target date.

Findings of Court:
The trial court validated the agreement in favor of respondents and denied the plea of present appellants as bona fide purchasers.

Issues: Whether respondents' suit was barred by limitation citing earlier registered sale deed and whether it established prior rights.

Ratio Decidendi: Agreement to sell proved valid; appellants failed to prove bona fides of their transaction and the suit was within limitation.

Result: Appeal dismissed.

JUDGMENT

Mr. Harkesh Manuja, J. (Oral)

By way of present appeal, challenge has been made to the judgment and decree dated 02.07.2018 passed by the Court of learned Additional Civil Judge (Senior Division), Faridkot as well as judgment and decree dated 24.01.2023 passed by the Court of learned District Judge, Faridkot, thereby, decreeing the suit for possession by way of specific performance filed at the instance of respondents-plaintiffs.

2. Briefly stating, the facts are that respondent No.3 entered into an agreement to sell dated 16.12.2004, in favour of respondents No.1 and 2 qua sale of the property in question with 20.05.2005 being the target date. As per the facts pleaded in the plaint, earnest money of Rs.1.5 lakh was paid to the vendor, however, in the meanwhile even before the target date, the vendor executed sale deed dated 20.12.2004 in favour of the present appellants, which was registered on 22.12.2004. Faced with this, respondents No.1 and 2 filed suit for possession by way of specific performance of the agreement to sell dated 16.12.2004, besides even seeking declaration qua the sale deed dated 20.12.2004 executed by respondent No.3 in favour of the present appellants as null and void.

3. Upon notice, the defendants appeared and two separate sets of written statements were filed on their behalf. In the written statement filed on behalf of respondent No.3 herein, though, the execution of the agreement in question was denied, however, thumb impressions thereupon were not disputed. On the other hand, in their written statement, the present appellants raised the plea of they being bonafide purchasers on the basis of sale deed dated 20.12.2004 having been registered on 22.12.2004.

4. The trial Court vide its judgment and decree dated 02.07.2018, decreed the suit filed by respondents No.1 and 2 while recording a finding in their favour as regards the valid execution of agreement to sell dated 16.12.2004 and discarded the plea raised by present appellants of they being bonafide purchasers.

5. Aggrieved thereof, the present appellants filed first appeal, which also came to be dismissed vide judgment and decree dated 24.01.2023 passed by the Court of learned District Judge, Faridkot.

6. While assailing the above-mentioned two judgments and decrees passed by the Courts below, learned counsel for the appellants submits that the suit filed at the instance of respondents No.1 and 2 was clearly barred by limitation as the sale deed in their favour was executed on 20.12.2004, though registered on 22.12.2004, however, the suit was filed on 05.04.2008, which was clearly beyond three years, whereas, respondents No.1 and 2 were having due knowledge about the fact um of execution of sale deed in their favour right from the time of its execution/registration. He also submits that the challenge was made to sale deed dated 20.12.2004, whereas the sale deed in favour of the present appellants was registered only on 22.12.2004 and there was no registered sale deed dated 20.12.2004 in their favour. No other argument has been raised on behalf of the appellants.

7. I have heard learned counsel for the parties and gone through the paper book. I am unable to find any merit in the submissions made on behalf of the appellants.

8. In the present case, the agreement to sell dated 16.12.2004 executed by respondent No.3 in favour of respondents No.1 and 2 has been duly proved on record and the plea set up by respondent No.3 as regards fraud having been played upon her by respondents No.1 and 2 has not been proved. Besides it, the execution of sale dated 20.12.2004 registered on 22.12.2004 in favour of the present appellants has not been held to be a bonafide transaction for the reasons that the present appellants happen to be closely related to respondent No.3 being the nephews, living in the same vicinity and also that no exchange of money was established on record by the present appellants in favour of respondent No.3.

9. On the issue of challeng

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