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2012 Supreme(All) 1932

[2012(8) ADJ 557 (DB)]
ALLAHABAD HIGH COURT
BEFORE : PRAKASH KRISHNA AND A.K. TRIPATHI (II), JJ.
Smt. PRABHA AWASTHI ....Appellant
Versus
NISHA RICHHARIA AND ANOTHER ....Respondents
(First Appeal Nos. 188 and 239 of 2010, decided on 31st July, 2012)

Advocates:
Counsel :
Ravi Kant and Surendra Tiwari for the Appellant; Dr. Nisha Richharia, Ramendra Pratap Singh and Vishnu Gupta for the Respondents.

Headnote:(A) Code of Civil Procedure, 1908—Section 96—Transfer of Property Act, 1882—Sections 53-A, 54 and 55—Registration Act, 1908—Section 17 (As Amended in State of U.P.), 34 and 49—Specific Relief Act, 1963—Section 16(c)—Contract Act, 1872—Sections 17 and 65—Permanent injunction—Specific performance of contract to sell—However, suit decreed for recovery—Plaintiff and defendant are sisters—Defendant is her elder sister to whom residential plot in dispute allotted by NOIDA in year 2002—Defendant executed an agreement to sell and general power of attorney in presence of witnesses in her favour—Admittedly, agreement to sell is unregistered document—If contract of sale not a registered deed/conveyance—Requirement of Sections 54 and 55 not satisfied—It will not confer any title/transfer of an immovable property—Finding of trial Court affirmed that unregistered document cannot be specifically enforced—In term of Section 16 (c) specific performance of contract cannot be enforced in absence of averment that plaintiff is ready and willing to perform her part of contract—In present case agreement to sell and power of attorney not proved according to law—Compensation of signature by handwriting expert merely on photocopies, in absence of admitted signature of plaintiff—Expert’s opinion not reliable—Here say evidence witness not reliable—However, deposit of amount by plaintiff proved in absence of rebuttal of the same—No plea of fraud—Mere statement is not fraud—When agreement to sell not proved—No question of registration of any advantage received in term of Section 65—In absence of any claim by any other party, plaintiff entitled to decree for recovery in respect of amount deposited to NOIDA—Hence, Appeal No. 188 of 2010 dismissed—However, Appeal No. 239 of 2010 allowed. [Paras 7, 11, 12, 14, 16, 20, 22, 24 and 29]

       (B) Transfer of Property Act, 1882—Section 54—Immovable property—Sale of—Only by a registered instrument—An agreement of sale does not create any interest in an immovable property. [Para 9]

       (C) Specific Relief Act, 1963—Section 16(c)—Specific performance—Contract—Enforcement of—Cannot be enforced in favour of a person—Who fails to aver and prove that he has performed—Or has always been ready or willing to perform—Essential terms of contract which are to be performed by him. [Para 12]

       (D) Contract Act, 1872—Section 17—"Fraud"—What amounts to—A mere false statement is not fraud. [Para 22]

       (E) Contract Act, 1872—Section 65—Void contract—Agreement of contract—Party received advantage is bound to restore it—Or to make compensation for it to the person from whom he received it. [Para 24]

       Result; First Appeal No. 188 Dismissed and First Appeal No. 239 Allowed.

       

JUDGMENT

Hon’ble Prakash Krishna, J.—The beautiful natural relation of love, affection and mutual trust between the two sisters has been drifted apart for a small piece of land measuring 162 Sq. Mtrs.

These two first appeals have been preferred under section 96 of the Civil Procedure Code against the judgment and decree dated 27th of March, 2010 passed by the First Additional Chief Judicial Magistrate, Gautam Buddha Nagar in O.S. No. 584 of 2005 whereby the Court below has dismissed the suit so far as it relates to grant of permanent injunction and specific performance of contract to sell dated 18.5.2005 but decreed the suit for recovery of Rs. 7,64,795/- alongwith pendente lite and future interest @ 6 per cent per annum. The dispute relates to a residential plot No. 155 area 162 Sq. Mtrs. situate in Block D, Sector 50, NOIDA. The said parcel of land was admittedly allotted and sold for residential purposes by NOIDA Authority to Nisha Richhariya/defendant No. 1 and is not an ancestral property.

2. Smt. Prabha Awasthi, the plaintiff who is appellant in First Appeal No. 188 of 2005, instituted the above suit No. 584 of 2005 against Nisha Richhariya, defendant No. 1 (herein after called as defendant) and NOIDA Authority, defendant No. 2 with the allegations that the plaintiff and defendant are sisters and the defendant is her elder sister to whom the plot in dispute was allotted by NOIDA Authority in the year 2002. The defendant, on 18th of May, 2005 executed an agreement to sell and a general power of attorney in the presence of witnesses in her favour. It was agreed upon between the plaintiff and defendant that the plaintiff will pay the instalments and the other such sums which were required to be paid by the defendant in pursuance of the allotment of the plot in dispute to her, to the NOIDA Authority. In the plaint various payments made by the plaintiff to the NOIDA Authority have been detailed with the dates of payments, draft numbers, amount and names of the banks where on the bank drafts were drawn. In short, the plaintiff alleges that she has deposited a sum of Rs. 7,13,094/- with the defendant No. 2 and not a single shell was invested by the defendant. On 18th of May, 2005 an agreement to sell and general power of attorney were executed, a sum of Rs. 50,000/- was given in cash by the plaintiff to the defendant. Subsequently, the defendant became dishonest and under some conspiracy she got a news item published in newspaper “Nav Bharat” dated 26th of August, 2005 that she has lost a blue colour file at Satna which contained the original documents with regard to the said plot. On coming to know of the above advertisement, the plaintiff tried to impress upon defendant that her action is not justified and she is under obligation to execute the sale-deed. But the request was not acceded to, hence the suit.

3. In the suit, the plaintiff has claimed a decree for permanent injunction restraining the defendant from alienating, transferring the property in dispute permanently, a decree for specific performance of contract to sell dated 18th of May, 2005 and in alternative for refund of Rs. 7, 63,094/- alongwith penal interest @ 24 per cent and penalty.

4. Two sets of written statements were filed - One by the defendant No. 1 i.e. defendant and another by the defendant No. 2. The defendant filed a written statement by denying all the material averments made in the plaint. She admitted the relationship between the parties but came out with the case that she applied for and was allotted the plot in dispute by the NOIDA Authority whereon the plaintiff has no right, title or interest. The defendant No. 2 on 15th of September, 2005 has already executed a sale-deed in her favour which is a registered document, thus, she is owner in possession of the property in dispute. She denied the execution of any agreement to sell or power of attorney by her in favour of the plaintiff. She claimed that a sum of Rs. 60,000/- towards the registration




























































































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