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2023 Supreme(P&H) 2896

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
VIKRAM AGGARWAL, J.
Manju – Appellant
Versus
Vijender Singh – Respondent
RSA NO. 2181 of 2022 (O&M)
Decided On : 23-08-2023

Advocates Appeared:
Mr. Ajay Jain, Advocate; For the Appellant
Ms. Kushaldeep Kaur, Advocate; For the Respondent

Headnote:(A) Specific Relief Act, 1963 - Section 20 - Specific performance of a contract - Suit for possession of property based on agreement to sell executed on 13.05.2008 - Defendant denied execution and claimed hardship due to marital issues; court upheld specific performance, noting that hardship must be assessed as of the agreement date - The decree of specific performance was not inequitable despite the defendant's claim of residing in the property with children. (Paras 13, 17-21)

(B) Contract law - Parties must perform obligations under a contract unless specific circumstances warrant otherwise; courts uphold agreements made freely and knowingly by the parties involved. (Paras 13, 14)

(C) Doctrine of estoppel - Elements of financial transactions and past behavior of the parties considered when evaluating claims of hardship. (Paras 14-18)

Facts of the case:
The appellant sought specific performance of an agreement to sell a residential property while the defendant claimed it was fabricated and later sought refund of the earnest money due to her marital conflicts.

Findings of Court:
Both lower courts granted specific performance, emphasizing readiness and willingness of the appellant, and that the hardship defense was unfounded as per court evaluations.

Issues: The central issue was whether the grant of the specific performance would cause extreme hardship to the defendant.

Ratio Decidendi: The court ruled that the appellant’s claims of hardship were not credible as they did not arise until years after the agreement was executed, and both courts analyzed evidence confirming the legitimacy of the original agreement.

Result: Appeal dismissed.

Table of Content
1. the factual background of the lawsuit. (Para 2 , 3 , 4 , 5 , 6)
2. trial court's decree and its appeal. (Para 7 , 8)
3. arguments regarding specific performance and hardship. (Para 9 , 10 , 11 , 12)
4. court's analysis of the specific performance issue in relation to hardship. (Para 13 , 14 , 15 , 16 , 17)
5. court's rationale and precedent confirmation. (Para 18 , 19 , 20)
6. final decision and order of the court. (Para 21)

JUDGMENT

Vikram Aggarwal, J.

The defendant-Manju is in second appeal against concurrent findings of facts and law recorded by both the Courts below. For the sake of convenience, the parties shall be referred as per their original status.

2. The plaintiff filed a suit for possession of a house situated at Mohalla Tibri Gujran, Near Bawal Chowk, Rewari (fully described in the plaint) (hereinafter referred to as 'the suit property') by way of specific performance of agreement to sell dated 13.05.2008. It was the case of the plaintiff that the agreement to sell dated 13.05.2008 had been executed with regard to the suit property. The total sale consideration was Rs. 6,50,000/-. Rs. 5,80,000/- was paid as earnest money. The date fixed for the execution of the sale deed was 29.10.2008. The plaintiff had always been ready and willing to perform his part of the contract. Since on 29.10.2008, there was a Government holiday, the plaintiff went to the house of the defendant on 30.10.2008 and called upon her to remain present in the office of the Sub-Registrar concerned for execution and registration of the sale deed. The plaintiff remained present in the office of the Sub-Registrar on 30.10.2008 from 09:00 A.M. to 05:00 P.M. alongwith the balance sale consideration and other expenses but the defendant did not turn up. The plaintiff called upon the defendant repeatedly to perform her part of the contract but to no avail. She finally refused on 14.11.2008 leading to the filing of the suit.

3. Initially the defendant was proceeded against ex-parte on 19.02.2009 and an ex-parte judgment and decree dated 13.01.2010 was passed. However, subsequently an application under Order 9, Rule 13 CPC was filed which was dismissed on 29.10.2014 but in appeal, vide judgment dated 26.09.2017, the same was allowed and the matter was remitted to the trial Court for trial.

4. The defendant filed a written statement raising a number of preliminary objections with regard to maintainability, concealment of material facts etc. The execution of the agreement was denied. It was averred that the husband of the defendant was an alcoholic and was having money transactions with the plaintiff since the year 2003. He used to borrow money from the plaintiff and used to return the same. The plaintiff used to obtain the signatures and thumb impressions of the defendant on some blank papers/stamp papers as security for the amount borrowed by her husband as the suit property was in her name. Since he had an evil eye on the suit property, the plaintiff misused the blank signed papers and prepared a forged and fabricated agreement to sell. The receipt of earnest money of Rs. 5,80,000/- was denied. A stand was also taken that the market value of the suit property was not less than Rs. 1 crore and, therefore, there was no question of alienating the suit property for a sum of Rs. 6,50,000/-. A stand was also taken that the defendant was having strained relations with her husband and she had been living separately for the last six months prior to the filing of the written statement. She alongwith her children were being maintained by her elder son Bharat who was working as a carpenter. Her husband did not come home for several days and did not provide any expenses to her for her day-to-day life. It was averred that a sum of Rs. 1,80,000/- had been borrowed from the plaintiff which had duly been returned. It was averred that she had constructed a residential house on the suit property and had been living in the same. All other averments were denied.

5.

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