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2023 Supreme(P&H) 2006

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
HARKESH MANUJA, J.
Tarlok Singh & Anr. – Petitioners
Versus
Nishan Singh – Respondent
RSA-1117 of 2023 (O&M)
Decided On : 12-10-2023

Advocates Appeared:
Mr.APS Sandhu, Advocate with Mr. Ashish Kaushik, Advocate and Mr. G.S. Saggi, Advocate; For the Appellant

The admission of an agreement's execution shifts the burden of proof to the denying party, and failure to substantiate denial supports the validity of the agreement for specific performance.

Headnote:(A) Specific Relief Act, 1963 - Sections relevant to specific performance; Limitation Act, 1963 - Issues of limitation and cause of action - For possession of property via specific performance based on an agreement, the appellant’s denial of the agreement and allegation of limitation were dismissed as the courts found sufficient evidence supporting the execution and payment of the agreement. (Paras 1-12)

(B) The onus to prove denial lay with the appellants after an admission was made by their witness regarding the agreement's execution. The absence of counter-evidence led to the upholding of the trial court's decision. (Paras 7-12)

Facts of the case:
The respondent filed a suit on an agreement to sell dated 24.07.2002 for possession of land, alleging payment and interference from the appellants. The defense contested the claim alleging previous dismissals and denial of the agreement.

Findings of Court:
The courts found the agreement valid due to the admission and failure to provide evidence to the contrary, allowing the respondent's claim.

Issues: The main issues addressed included the validity of the agreement, denial of execution, and limitation concerning the suit's maintainability.

Ratio Decidendi: The court upheld that the execution of the agreement was substantiated by witness admissions, thus shifting the onus back to the appellants to prove denial, which they failed to do. The question of limitation was addressed under the provided precedents.

Result: Appeal dismissed.

Table of Content
1. suit for specific performance based on prior contractual agreement. (Para 1 , 2 , 3)
2. burden of proof lies on appellants to disprove the agreement's existence. (Para 5)
3. court found no unfair trial issue despite non-framing of limitation matter. (Para 6 , 8)
4. absence of specific refusal date not fatal to the respondent's claim. (Para 7 , 9 , 11)
5. appeal dismissed; lower court rulings maintained without perceivable error. (Para 12)

JUDGMENT

Mr. Harkesh Manuja, J.(Oral)

By way of present appeal, challenge has been laid to the judgments and decrees dated 08.03.2019 and 06.03.2023, passed by the Courts below, whereby, suit for possession by way of specific performance filed at the instance of respondent-plaintiff based on an agreement to sell dated 24.07.2002, besides seeking relief of permanent injunction, stands decreed.

2. Briefly stating, based on an agreement to sell dated 24.07.2002, the respondent-plaintiff filed a suit for possession by way of specific performance qua 07 marlas of land/house situated at Abadi Baggewali, Verka, Amritsar, while stating that though the entire sale consideration of Rs.1,70,000/- was paid to the appellants-defendants against delivery of possession, yet, sale deed could not be executed and now, the appellants were trying to interfere in his peaceful possession, hence, compelling the respondent-plaintiff to file the suit.

3. On the other hand, the suit was contested by filing a written statement while denying the execution of the alleged agreement and stating that the respondent-plaintiff was inducted as tenant over the property in question in the year 1999 and thus, was having no right to seek specific performance. It was also pleaded that on the previous occasion, the respondent-plaintiff filed civil suit for possession by way of specific performance based on this very agreement, which was dismissed in default vide order dated 22.08.2017, hence, the second suit was not maintainable. In addition, the plea of suit being barred by limitation was also raised.

4. The Trial Court vide judgment and decree dated 08.03.2019, decreed the suit in favour of the respondent-plaintiff. Aggrieved thereof, the appellants-defendants filed first appeal, however, the same was dismissed by the learned Additional District Judge, Amritsar, vide judgement and decree dated 06.03.2023.

5. Impugning the aforementioned judgments and decrees, learned counsel for the appellants submits that the Courts below went wrong while decreeing the suit, solely on the basis of admission made by Tarlok Singh (DW-1) in his cross-examination, regarding execution of the agreement (Ex.P-1). He further submits that the said witness could not understand the legal terminology and thus, one line admission would not have been taken against him as proof of the agreement in question, particularly, when the witnesses to the said agreement, besides its scribe were not examined by respondent-plaintiff. Learned counsel also submits that no evidence about the proof of payment of earnest money was produced on record. In support, learned counsel places reliance upon the judgment of Hon'ble the Supreme Court in " Chikkam Koteswara Rao v. Chikkam Subbarao and others", 1971 AIR (Supreme Court) 1542.

He further points out that the suit filed at the instance of respondent-plaintiff was barred by limitation. As per him, even if the execution of agreement to sell dated 24.07.2002 was taken to be valid, the suit was beyond limitation, having been filed on 20.09.2017. While relying upon judgments passed by the Hon'ble Apex Court in "Gunwantbhai Mulchand Shah and others v. Anton Elis Farel" , 2006(2) Civil Court Cases 139 and "Ahmmadsahab Abdul Milla (dead) by proposed LRs. v. Bibijan and others" , 2009(2) RCR-788 , he submits that once no specific date of denial was mentioned in the plaint for the purpose of filing suit for specific performance, the suit could not have been decreed since the respondent-plaintiff was supposed to mention spec

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