ALLAHABAD HIGH COURT
Prafulla C.Pant
RAM KUMAR
Versus
VIRENDER SINGH
Decided On : 21 August 2006
Second Appeal No. 33 of 2004, Along With Second Appeal No. 40 of 2004
Specific Performance - Contract - Specific Relief Act, 1963, Section 17, 20, 38, 41 - Summary of Acts and Sections: The court discussed the provisions of Section 20 of the Specific Relief Act, 1963, which provides discretionary power to grant specific performance of a contract. It also considered the implications of the plaintiff taking unfair advantage and the hardship on the defendant. The court emphasized that the jurisdiction to grant specific performance is discretionary and should be guided by judicial principles.
Fact of the Case:
The plaintiff filed a suit for specific performance of a contract for the sale of land. The defendant failed to execute the sale deed and sold the property to another party. The trial court decreed the suit for refund of the amount paid by the plaintiff, citing encumbrance on the property. The first appellate court reversed the decree and decreed the suit for specific performance of the contract.
Finding of the Court:
The first appellate court has the power to reverse a decree based on judicial discretion. The court found that the plaintiff was ready and willing to purchase the property subject to encumbrance, and therefore decreed the suit for specific performance of the contract.
Issues: The issues included the discretionary power of the court to grant specific performance, the adequacy of refund as a remedy, and the willingness of the plaintiff to purchase the property subject to encumbrance.
Ratio Decidendi: The court held that the jurisdiction to grant specific performance is discretionary and should be guided by judicial principles. It also emphasized that a suit can be decreed for specific performance of a contract for the sale of property even if it is subject to encumbrance, provided the purchaser is ready to purchase the same subject to such encumbrances.
Final Decision: The appeals were dismissed, and the judgment and decree passed by the first appellate court were upheld.
2. I heard learned counsel for the parties and perused the record.
3. Brief facts of the case are that plaintiff instituted the suit No. 747 of 1995 with the pleadings that defendant Ram Kumar executed an agreement dated 05-06-1995 to sell his land to the plaintiff Virender Singh for Rs. 42. 000/-, and got the same registered. Out of the sale consideration of Rs. 42,000/-, it is alleged in the plaint that Rs. 10,500/-was received by defendant Ram Kumar at the time of instituting the agreement, and Rs. 20. 500/- was paid prior to the execution of the agreement. The rest of the amount i. e. Rs. 11. 000/- was to be paid at the time of execution of sale deed. It was pleaded that the sale deed was to be executed by 15-08-1995. When the defendant Ram Kumar failed to execute sale deed in favour of the plaintiff Virender Singh, the latter sent notice dated 10-07- 1995 asking the de fendant Ram Kumar to be present in the office of the Sub Registrar on 10-07- 1995, at 10:30 A. M. to execute the sale deed, as agreed between them. On the said date defendant did not oblige the plaintiff. Instead, he sold the property to defendant Ganga Prasad @ Jai Prasad. Defendant No. 2 Sumer Chand was impleaded in the suit as per direction of the trial court.
4. Defendants contested the suit and filed their written statements. De fendant Ram Kumar took the plea that infact agreement was executed with the condition that the plaintiff Virender Singh shall pay loan of the defendant to the Land Development Bank, which he failed to do. Defendant Ram Kumar denied having received sum of Rs. 20,500/- from the plaintiff. He further pleaded that the suit is barred by provi sions contained in Section 17,20,38 and 41 of the Specific Relief Act, 1963. De fendant No. 2 Sumer Chand filed sepa rate written statement, in which he took the plea that the land measuring. 02 acres in Khasra No. 1368 bears his share also, as such, defendant Ram Kumar had no power to transfer his share to the plaintiff. Defendant No. 3, Ganga Prasad @ Jai Prasad filed his separate written
statement defending the sale deed executed in his favour by Somi Devi, power of attorney holder of defend ant Ram Kumar.
5. The trial court framed as many as ten issues. After recording the evi dence and hearing the parties, the trial court found that the defendant Ram Kumar did execute agreement of sale on 05-06-1995 in favour of the plaintiff Virender Singh to sell his land for con sideration to the tune of Rs. 42. 000/ -. It further found that Rs. 10. 500/- were received by the defendant Ram Kumar at the time of executing the agreement and Rs. 20,500/- before executing it. As to the readiness and willingness on the part of the plaintiff to perform his part of contract it was found that he was ready and willing to perform his part of contract. On the point of limitation, the issue was decided in negative i. e. in fa vour of the plaintiff as the defendants did not press it. Similarly, issue on the point whether the suit is barred by vari ous provisions of the Specific Relief Act, that too was not pressed by the defend ant Ram Kumar and said issue was also decided in favour of the plaintiff. The trial court also found that suit is not bad for non- joinder of the Land Devel opment Bank as no relief has been claimed against it. The trial court fur ther found that the agreement of sale in question is not void or ineffective on the ground that the property in question was already mortgaged by the defendant Ram Kumar to the Bank, from which he had taken the loan. As to the objection of defendant Sumer Chand, it was
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.