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2023 Supreme(P&H) 2953

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
VIKRAM AGGARWAL, J.
Satya Wati & Ors. – Appellants
Versus
Sarla Rani & Anr. – Respondents
RSA-2852 of 2023(O&M)
Decided On : 09-10-2023

Advocates Appeared:
Mr. Parminder Singh, Advocate; For the Appellant

Agreements validated as enforceable despite defenses of deceit; plaintiff's readiness to perform consistent with legal requirements for specific performance.

Headnote:(A) Specific Performance - Code of Civil Procedure, 1908 - Section 100 - Agreement to sell dated 20.05.2009 - Plaintiffs' suit for symbolic possession decreed based on concurrent findings of both Courts. Agreement held valid despite defendants' claims of it being merely a security. (Paras 2, 11, 12)

(B) Readiness and Willingness - Courts confirmed plaintiff's continuous readiness to perform their part of the agreement. Defendants failed to substantiate their claims of non-performance. (Paras 12)

(C) Legal Principles - Suspected collusion and arbitrary adjustments between parties do not suffice to negate a valid contract. (Paras 10, 12)

Facts of the case:
The respondent filed for specific performance of an agreement to sell a disputed building. Agreement involved a total consideration of Rs. 9,05,000, with substantial payments acknowledged. Defendants contested execution and validity of agreement, alleging deceit.

Findings of Court:
Both trial and appellate courts upheld the legitimacy of the agreement and the plaintiff's assurance to perform contractual obligations. Evidentiary burden was not met by defendants.

Issues: The plaintiff's entitlement to relief, validity of alleged agreement as a security, and the defendants' claims about readiness were core issues addressed.

Ratio Decidendi: The court reiterated that the plaintiff had demonstrated clear evidence of readiness and willing to perform the agreement. The agreement was validated despite the defendants' challenge, upholding the necessity of invoking specific performance where legitimate contracts exist.

Result: Appeal dismissed.

Table of Content
1. details surrounding the property sale agreement (Para 1 , 2 , 3)
2. issues framed from the pleadings (Para 4 , 5 , 6)
3. outcomes of the trial and appeal (Para 7 , 8)
4. defendant's arguments in appeal (Para 9 , 10)
5. court's analysis and findings (Para 11 , 12)
6. dismissal of the appeal (Para 13)

JUDGMENT

Vikram Aggarwal, J. (Oral)

This is defendant's second appeal against concurrent findings recorded by both Courts i.e. the trial Court and the First Appellate Court. A suit for symbolic possession of the ground floor and first floor and for possession of second floor of a building situated at Buria Gate, Jagadhari (hereinafter referred to as the 'disputed building') was filed by way of specific performance of agreement to sell dated 20.05.2009. This suit was decreed by the Court of Civil Judge (Senior Division), Yamuna Nagar at Jagadhari vide judgment and decree dated 28.10.2016. An appeal was preferred by the appellant-defendant, which was also dismissed by the Additional District Judge, Yamuna Nagar at Jagadhari vide judgment and decree dated 15.05.2023 leading to the filing of the present second appeal.

2. The respondent-plaintiff filed a suit for symbolic possession of the ground floor and first floor and for possession of second floor of a three storey building (fully described in the plaint) situated at Buria Gate, Jagadhari by way of specific performance of agreement to sell dated 20.05.2009 executed by the appellants-defendants in favour of the respondent-plaintiff. The total sale consideration was stated to be Rs. 9,05,000/-. Rs. 4,80,000/- was stated to have been paid by way of ten cheques and Rs. 20,000/- was stated to have been paid in cash. In essence, Rs. 5,00,000/- was stated to have been paid as earnest money. A suit with regard to the disputed building was stated to be pending in the Civil Suit in which a stay order had been passed. As per the agreement, the sale deed was to be executed after one month from the vacation of the stay order. It had also been agreed that the second floor of the disputed building which was in possession of defendant No.6-Sat Parkash, who was related to the appellants-defendants, was to be vacated on payment of Rs. 15,000/- to him out of the balance sale consideration of Rs. 4,05,000/-. However, the appellants-defendants did not give any information about the fate of the civil suit but got a notice dated 23.01.2012 served upon the respondent-plaintiff in which certain false and frivolous facts about the appellants-defendants having received Rs. 1,00,000/- as loan were stated. It was stated that the agreement to sell had been executed as a security. Certain other facts were pleaded. It was also alleged that the appellants-defendants in collusion with defendant No.6 got some compromise effected with a view to cause loss to the respondent-plaintiff. It was also averred that the respondent-plaintiff had been ready and willing to perform her part of the agreement. However, since the appellants-defendants did not execute the sale deed, the suit was filed.

3. The suit was resisted by the appellants-defendants. The execution of the agreement to sell was denied. Receipt of Rs. 5,00,000/- as earnest money was also denied. It was averred that they had sought financial aid of Rs. 1,00,000/- from the husband and son of the respondent-plaintiff for the marriage of appellant-defendant No.4. With a view to secure the loan amount, papers were got signed from the appellants-defendants and agreement to sell was executed. The value of the disputed building was more than Rs. 20,00,000/- but since the agreement had been effected by way of a security, the total sale consideration was shown as Rs. 9,05,000/-. All other averments were also denied.

4. From the pleadings of the parties, following issues were framed:-

    "1. Whether the plaintiff is entitled to the symbolic possession by way of specific performance of agreement dated 20.05.2009 in respect of the suit property? OPP.

    1-A. Whether defen

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