Advocates:
Counsel for the Parties:
For the Appellant No.1:Ms. Sangeeta Pahwa, Advocate with Mr. Ravi N Pahwa (11493), Advocate
For the Respondent Nos.19 and 20:Mr. R.S. Sanjanwala, Sr. Advocate with Mr. Dhruv K Dave (6928), Advocate
For the Respondent Nos.1, 2, 3, 4, 5, 6, 7:Mr. Shreyang S Vayeda (10917), Advocate
For the Respondent Nos.10, 11, 12, 13, 14, 15, 16, 17, 18, 8, 9:Mr. Dave, Sr. Advocate with Prerak P Oza (8279), Advocate

Case Summary

• Gujarat High Court dismissed Appeal from Order No. 175 of 2021, upholding trial court's rejection of interim injunction in Special Civil Suit No. 262 of 2018 seeking specific performance of unregistered agreement to sell dated 22.8.2017 and cancellation of subsequent registered sale deed dated 5.7.2018. (!) (!) [42000052240002] (!) (!) [42000052240012]
• Suit property is ancestral land; agreement to sell executed only by defendants 1-7 for Rs. 11.30 Crore (part payment Rs. 2.50 lakh), conditional on title clearance and mutation of legal heirs of deceased co-owner.[42000052240013][42000052240008][42000052240009][42000052240010]
• Plaintiff published title clearance notice on 8.11.2017; objections raised on 14.11.2017 by defendants 1-3,9,17 claiming heirship rights, lack of consent, non-fulfillment of agreement, and directing refund of part consideration.[42000052240008][42000052240009]
• Plaintiff issued legal notice on 4.4.2018 demanding execution of sale deed within 15 days; no reply; mutation of defendants 8-18 entered on 12.4.2018; sale deed to defendants 19-20 executed on 5.7.2018 for Rs. 7.50 Crore by all defendants 1-18 without title clearance or public notice. (!) [42000052240008][42000052240009][42000052240010]
• Plaintiff's delay: no action from Nov 2017 objections to Apr 2018 notice (5 months), then to suit filing on 7.9.2018 (post-sale, 2 more months); oral talks claimed but implausible; disentitles equitable relief of interim injunction.[42000052240009][42000052240010] (!)
• Trial court rejected injunction finding no prima facie case, balance of convenience, or irreparable injury in plaintiff's favor; noted unregistered agreement inadmissible and defendants 19-20 as bona fide purchasers. (!) [42000052240011]
• Appellate interference with trial court's discretionary rejection of injunction limited; requires showing arbitrary, capricious, perverse exercise or ignoring settled principles; here, conclusion plausible despite some errors.[42000052240011]

Key Legal Principles Applied

• Unregistered agreement to sell admissible for collateral purposes (e.g., specific performance suit, part performance under Section 53A TP Act).[42000052240010][42000052240011]
• Mere lower sale consideration in subsequent transaction (vs. prior agreement) does not ipso facto prove illegality or mala fides; sellers fix price, market factors vary; irrelevant where original signatories disclaimed agreement.[42000052240010]
• For interim injunction in specific performance suit: plaintiff must show strong prima facie case (beyond mere agreement/notice/readiness), balance of convenience, irreparable injury; conduct (e.g., delay) crucial; discretionary, equitable relief.[42000052240004] (!) [42000052240011]
• Subsequent purchasers (defendants 19-20): paid full consideration; no mandatory public notice/title clearance required (revenue records suffice); bona fides prima facie where all heirs sold post-mutation. (!) [42000052240010] (!)
• Ancestral property: non-signatory heirs (defendants 8-18) not bound by agreement lacking consent; cannot compel specific performance against them under Section 19 Specific Relief Act. (!) [42000052240006] (!)
• No injunction despite potential multiplicity of proceedings or property alienation risk, where plaintiff slept on rights post-disclaimer; status quo not mandated without strong equity.[42000052240010][42000052240011]

Outcome and Directions

• Appeal dismissed; no interference with trial court discretion; Civil Application (Stay) disposed.[42000052240012] (!)
• Trial court directed to expedite suit disposal within 4 months; parties to cooperate; no costs. (!)