SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2015 Supreme(MP) 939

IN THE HIGH COURT OF MADHYA PRADESH
A.M. KHANWILKAR, CJ, J.K. MAHESHWARI, JJ.
Akshay Doogad – Appellant
Versus
State of M.P. & Others – Respondents
First Appeal No. 323 of 2014
Decided On : 18-08-2015

Advocates Appeared:
For the Appellant :Sanjay Kumar Verma, Advocate
For the Respondent:Sanjay Kumar Malvia, Advocate

The main legal point established in the judgment is that unregistered documents can be admitted as evidence of a contract in a suit for specific performance, as per the interpretation of Section 49 of the Indian Registration Act, 1908.

Headnote:

Specific Performance - Property Dispute - Indian Registration Act, 1908, Section 49 - Summary

Fact of the Case:

The appellant filed a suit for specific performance of an agreement for a property, which was resisted by the respondents. The trial Court found in favor of the appellant on the execution of the agreement and readiness and willingness, but rejected the relief of specific performance due to the agreement being unregistered.

Finding of the Court:

The Court analyzed the evidence and found that the trial Court's rejection of specific performance based on the unregistered agreement was incorrect, citing the Supreme Court's decision in S. Kaladevi v. V.R. Somasundaram and others, 2010 (3) MPLJ 500. The Court held that the unregistered document could be admitted as evidence of a contract in a suit for specific performance.

Issues: The main issue was the correctness of the trial Court's finding that the unregistered agreement precluded specific performance. The Court also considered the cross objection filed by the respondents, which was limited to the quantum of costs and the direction to refund the earnest money amount.

Ratio Decidendi: The Court relied on the Supreme Court's interpretation of Section 49 of the Indian Registration Act, 1908, which allows unregistered documents to be admitted as evidence of a contract in a suit for specific performance.

Final Decision: The Court reversed the trial Court's opinion, decreed the suit in its entirety, and granted relief of specific performance to the appellant. The cross-objection was disposed of, and the impugned judgment and decree were quashed and set aside.

JUDGMENT :

A.M. Khanwilkar, CJ.

1. This first appeal takes exception to the judgment and decree passed by the 3rd Additional District Judge, Chhindwara in Civil Suit No.22-A/12. The said suit was filed by the appellant for relief of specific performance of agreement executed between the parties on 17.2.2010, in respect of property situated in Ward No.32, P.H. No.22, B.No.177, R.N.M. Chhindwara-1. The suit was resisted by the respondents/defendants.

2. The trial Court framed issues relevant to the relief claimed in the suit. As regards the issue whether the suit agreement was executed between the parties, the same has been answered in favour of the appellant/plaintiff. Even the issue of readiness and willingness has been answered in favour of the plaintiff. The trial Court after analyzing the evidence on record has also noticed that the defendants have only questioned the value of the property in the entire cross examination and not the factum of execution of the agreement or about their commitment to transfer the property in favour of the plaintiff. Although, the trial Court in the impugned judgment answered all the issues in favour of the plaintiff, rejected the relief of specific performance on the sole ground that the agreement executed between the parties was unregistered document and as such it was inadmissible in evidence. The trial Court in support of that opinion has placed reliance on the decision of the learned Single Judge of this Court in the case of Narbada Prasad Agrawal v. Omprakash Bhavsar, 2009 (1) MPWN 29 and on another decision in the case of Kailashchandra v. Dwarkadheesh and others, 2013 (4) MPHT 432. As a result, the suit came to be dismissed with direction to the respondents/defendants to refund the earnest money amount received by them at the time of execution of the agreement along with interest @ 6% per annum thereon with costs of the suit. This decree is the subject matter of challenge in the present appeal.

3. After the notice of appeal was served on the Respondents/Defendants No.1 to 3, the respondents filed cross objection under Order 41, Rule 22 on 7.7.2014, bearing Document No.4697/2014. Notably, the cross objection is only about the quantum of costs and the direction to refund the earnest money amount with interest. No other ground has been taken in the cross objection, in particular, to question the finding of the trial Court on the other relevant issues such as factum of execution of agreement and on readiness and willingness to perform the obligation under the said agreement of the plaintiff.

4. Counsel for the appellant submits that the view taken by the trial Court is in the teeth of Supreme Court's decision in the case of S. Kaladevi v. V.R. Somasundaram and others, 2010 (3) MPLJ 500. According to the appellant, this decision was pressed into service before the trial Court but the trial Court has failed to analyze the same, though directly on the point and in favour of the appellant. Further, as the cross objection has been filed by the defendant limited to the direction to refund the earnest money amount along with interest and costs of the suit, no other issue arises for consideration of this Court; and that if the appellant succeeds in questioning the erroneous view taken by the Trial Court, must succeed in getting complete relief as prayed in the suit-of decree of specific performance.

5. Counsel for the respondent in his argument did make an unsuccessful and feeble attempt to question the finding recorded by the trial Court on other issues, besides the grounds urged in the cross objection filed by the defendant.

6. Having considered the rival submissions, the moot question which arise for our reconsideration is, whether the opinion recorded by the trial Court that the suit agreement being unregistered document, relief of specific performance cannot be granted to the plaintiff, is correct?

7. We find force in the submission of the appellant that the only issue that needs to be decided in the




















Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top