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2023 Supreme(MP) 1008

IN THE HIGH COURT OF MADHYA PRADESH AT JABALPUR
DWARKA DHISH BANSAL, J.
DEEPAK GROVER – Petitioner
Versus
ATUL AGRAWAL – Respondent
Misc. Petition No. 2305 of 2023
Decided On : 27-09-2023

Advocates:
Advocate Appeared:
For the Petitioner: Vipin Yadav.
For the Respondents: R.K. Verma, Preeti Khanna.

Courts must ensure plaintiffs show readiness and willingness to perform contractual obligations for specific performance to be granted. The conduct of parties plays a crucial role in issuing temporary injunctions.

Headnote:(A) Civil Procedure Code - Order 39, Rules 1 and 2 - Specific Relief Act, 1963 - The court evaluated a petition challenging temporary injunction orders for specific performance of agreements for property sale where the plaintiffs alleged breach by the defendant. The agreements mandated a six-month period for execution. The defendant claimed the plaintiffs failed to fulfill the conditions, leading to a lapsed agreement. Both lower courts issued injunction based on acceptance of agreements; however, the High Court found errors in considering plaintiffs' conduct and plaintiffs' entitlement when seeking injunction. (Paras 1-20)

(B) Specific Performance - The court emphasized that a plaintiff must establish readiness and willingness to perform the contract as a condition for receiving specific performance, considering the time limits stipulated. Courts need to exercise discretion judiciously in granting interim relief. (Paras 12, 13, 20)

(C) Jurisdiction - The High Court outlined its supervisory role under Article 227 of the Constitution, emphasizing that it can intervene in cases of patent perversity or failure to adhere to principles of justice. (Paras 18-19)

Facts of the case:
The plaintiffs initiated a suit for specific performance of three property sale agreements with the defendant, who admitted to the agreements but contended that the plaintiffs did not fulfill conditions in a timely manner. The plaintiffs paid Rs. 25,00,000/- as advance.

Findings of Court:
The orders previously issued granting the temporary injunction were found unsustainable due to lack of consideration of the plaintiffs' conduct and the proper application of law concerning specific performance.

Issues: Whether the plaintiffs established a prima facie case for interim injunction and if the conduct of the plaintiffs was relevant in this context.

Ratio Decidendi: The High Court ruled that the original courts failed to thoroughly consider the plaintiffs' willingness and conduct regarding the agreed terms, warranting the setting aside of the injunction orders.

Result: Miscellaneous petition is allowed and disposed of, remanding case for fresh consideration.

Table of Content
1. introduction of the case and pertinent agreements. (Para 1 , 2 , 3 , 4 , 5)
2. arguments concerning the plaintiffs' claims and defendants' defenses. (Para 6 , 7 , 9)
3. court observations on contractual obligations and performance. (Para 10 , 11 , 12 , 13 , 15 , 17 , 19)
4. ratio regarding the principles for granting injunction. (Para 14 , 18)
5. conclusion and final ruling by the court. (Para 20 , 21 , 22)

ORDER :

1. This misc. petition has been preferred by petitioner/defendant 1 challenging the order dated 11-3-2023 passed by 23rd District Judge, Jabalpur in MCA No. 310/2022 affirming the order dated 31-10-2022 passed by 11th Civil Judge Junior Division, Jabalpur in RCSA No. 21-A/2015 whereby learned Courts below have allowed respondents 1-2/plaintiffs’ application under Order 39, Rules 1 and 2, CIVIL PROCEDURE CODE dated 11-10-2022 filed in civil suit instituted on 16-2-2015 for specific performance of three agreements of sale dated 19-2-2012 notarized on 22-2-2012.

2. Facts in short are that the respondents 1-2 instituted a civil suit for specific performance of three agreements of sale dated 19-2-2012 whereby the plaintiffs entered into agreement of sale to purchase the suit property owned and possessed by the defendant 1, for total consideration of Rs. 1,00,00,000/- (i.e. Rs. 17,57,992/- + 22,47,824/- + 59,94,184/-) out of which a total amount of Rs. 25,00,000/- was paid in advance. It is specifically mentioned in the agreements that the sale deed shall be executed within a period of six months and possession of the property shall be handed over at the time of execution of sale deed, meaning thereby the time of six months was essence of contract.

3. Alleging non-fulfillment of other conditions of the agreement, the plaintiffs issued registered notices dated 8-1-2015 requiring the defendant 1 to fulfill all the conditions of the agreement dated 19-2-2012 and to inform the plaintiffs within 15 days, so that the sale deeds may be executed in the name of plaintiffs or other persons named by the plaintiffs, which was not replied and then on 16-2-2015 civil suit was filed.

4. The defendant 1 appeared and filed written statement on 16-6-2016 admitting the agreements of sale and complaining that the time was essence of contract and the plaintiffs have failed to get executed sale deeds within a fixed period of six months and the suit has been filed after lapse of 2 years 11 months and 22 days i.e. just few days before expiry of three years, hence is liable to be dismissed. However, in paragraph 1 of the written statement the defendant 1 contended that he is ready to execute the sale deeds as per prevailing Collector guideline, which is Rs. 8362/- per sq. ft. With these submissions the defendant 1 prayed for dismissal of the suit.

5. Thereafter suit remained pending for further proceeding, regarding which no details are available before this Court, however, learned counsel for the parties informed that at present the suit is at the stage of evidence of the plaintiffs.

6. Learned counsel for the petitioner/defendant 1 submits that on the basis of agreements dated 19-2-2012 the suit was filed on 16-2-2015 and even by filing written statement the defendant 1 had shown her willingness to sell the property on the current prevailing Collector guideline, but the plaintiffs did not show their willingness to purchase and just with a view to harass the defendant 1, instant suit was filed and the plaintiffs now want to purchase the property on the price mentioned in the agreements, which is not possible.

7. Learned counsel also submits that merely because the plaintiffs have instituted the suit on the basis of admitted agreements, cannot be a valid reason to pass order of temporary injunction in favour of the plaintiffs, that too on the application filed by the respondents 1-2/plaintiffs on 11-10-2022. He submits that in the existing facts and circumstances of the case no prima facie case can be said to have been established by the

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