2016 Supreme(All) 3507
ALLAHABAD HIGH COURT
Pramod Kumar Srivastava, J.
Sobaran Singh - Appellant
Versus
Raghubir Singh & Another - Respondent
Second Appeal No. 817 of 1998
Decided On : 27-05-2016
For the Appellant :- B.P. Agarwal, Beni Prasad, J.H. Khan, Pankaj Bharti, S.K. Singh and W.H. Khan, Advocates.
For the Respondent:- B.D. Mandhyan, S.C. Mandhyan and Satish Mandhyan, Advocates.
The court emphasized the discretionary nature of decreeing specific performance under section 20 of the Specific Relief Act and considered the sufferance of the plaintiff and the change in circumstances over time.
Headnote:
Specific Performance - Contract Dispute - Specific Relief Act, Section 20
Fact of the Case:
The plaintiff filed a suit for specific performance of a contract for the sale of land. The defendant contended that the agreement was for a loan and not for the sale of land. The trial court decreed the suit, but the first appellate court directed the defendant to refund the advance consideration with interest. The plaintiff appealed against this judgment.
Finding of the Court:
The first appellate court's exercise of discretionary relief was based on the plaintiff's inability to prove readiness to pay the remaining consideration. The trial court properly discussed the provisions of section 20 of the Specific Relief Act and found that the relief of specific performance would be proper. The first appellate court allowed the appeal on different grounds without considering the trial court's findings.
Issues: The main issue was whether the plaintiff was entitled to specific performance of the contract for the sale of land.
Ratio Decidendi: The court found that the first appellate court did not properly consider the provisions of section 20 of the Specific Relief Act and the sufferance of the plaintiff. It also considered the enhancement of the value of real estate and the decline in the value of currency over time.
Final Decision: The appeal was allowed, and the returnable amount directed by the first appellate court was enhanced. If the defendant failed to pay the enhanced amount within three months, the original suit of the plaintiff would stand decreed for the relief of specific performance of the contract.
Pramod Kumar Srivastava, J. –
Heard learned counsel for the parties and perused the records.
2. In original suit no. 168/1977 (Sobaran Singh v. Raghubir Singh) the plaint case in brief was that the defendants had executed the registered agreement to sell dated 16.06.1975 for selling his land for a consideration of Rs. 20,000/-, and received Rs. 5,000/- as advance consideration. It was admitted between the parties that within two year defendant will receive remaining consideration of Rs. 15,000/- from plaintiff and execute sale-deed of his property in question. When he had not executed sale-deed, then the plaintiff had served legal notice dated 25.04.1977 to him and after receiving its incorrect reply, he had filed suit for specific performance of contract for sale.
3. In written-statement, the defendant pleaded that he had taken loan from plaintiff, but the transaction was written in form of registered agreement to sell. In fact, it was admitted between the parties that when defendants will return the loan amount of Rs. 5,000/- then that deed will be cancelled; and the said registered deed will be only for security of said loan. Defendants had already returned the amount of loan. Intention of the parties was not to execute sale deed. Plaintiff was never ready and willing to get sale-deed executed. Suit is liable to be dismissed.
4. After affording opportunity of hearing to parties, 3rd Additional Civil Judge, Agra had decreed the suit by its judgment dated 28.02.1979 directed the defendant to execute sale-deed after receiving remaining part of consideration of Rs. 15,000/- from plaintiff.
5. Against the judgment of trial court, Civil Appeal No. 129/1995 (Raghubir Singh v. Sobaran Singh) was preferred by the defendant of the original suit. This appeal was heard and partly allowed by the 7th Addl. District Judge, by which judgment dated 15.05.1998 of trial court was set aside and defendant-appellant was directed to return Rs. 5,000/- to plaintiff with interest at the rate of 12% per annum w.e.f. 28.02.1979. Aggrieved by this judgment of first appellate court, present second appeal has been preferred by the plaintiff of the original suit.
6. Learned counsel for the appellant contended that no sufficient ground for granting alternative relief was given by first appellate court, therefore, its judgment for refund of advance consideration should be set aside and judgment of trial court for specific performance of contract should be restored.
7. Learned counsel for the respondent contended that the reasons given for alternative discretionary relief of refund of advance consideration by first appellate court are based on proper reasonings and the court was competent to grant discretionary relief of refund of money, so there is no error in judgment of first appellate court, which should be confirmed.
8. A perusal of the impugned judgment of first appellate court reveals that it has mentioned the reason for exercise of discretionary relief instead of relief of specific performance of contract. It has given finding that plaintiff had not been able to prove that he had sufficient income to pay remaining sale consideration of Rs. 15,000/- so his readiness is not properly proved.
9. Section 20 of Specific Relief Act provides that "the jurisdiction to decree specific performance is discretionary, and the court is not bound to grant such relief merely because it is lawful to do so, but the discretion of the court is not arbitrary but sound and reasonable guided by judicial principles and capable of correction by a court of appeal”.
10. In present matter, the trial court had also appreciated the point of grant of discretionary relief in form of disposal of issue no. 4 and said point was again reconsidered by the first appellate court. The finding of the trial court in this regard is detailed which appear proper and correct. The trial court had properly discussed the provisions of section 20 of the Specific Relief Act, and then gave reasons as t