JUDGEMENT

I.A. 4745/2023 and 4746/2023 1. By way of the present application, the defendant is seeking grant of leave to defend in the suit for recovery filed by the plaintiffs under Order XXXVII of Code of Civil Procedure, 1908 (“CPC”).

2. I.A. 4746/2023 seeks condonation of 56 days delay in refiling the leave to defend application.

3. The prayers sought by the plaintiffs in the said suit are as follows:-

“A. Pass a money decree in favour of the Plaintiff No. l for a sum of Rs. 5,74,78,068/- (Rupees Five Crore Seventy Four Lakhs Seventy Eight Thousand and Sixty Eight only) along with pendente lite interest and future interest at the rate of Page 2 of 23 15% per annum; and/or B. Pass a money decree in favour of the Plaintiff No.2 for a sum of Rs. 1,01,24,863/- (Rupees One Crore One Lakh Twenty-Four Thousand Eight Hundred Sixty Three) along with pendente lite interest and future interest at the rate of 15% per annum; and/or”

4. Brief facts as per the plaint are that the plaintiff No.1 is private limited company and is engaged in purchase, sale, construction and re-

development of property in New Delhi. The plaintiff No. 2 is a Limited Liability Partnership (LLP) under the provisions of the Limited Liability Partnership Act, 2008 and the present suit is filed by Ankur Arora, director of plaintiff No. 1 and partner of plaintiff No. 2.

5. In the year 2015, the defendant approached the plaintiffs with proposal for collaboration/construction. In February, 2016, the defendant represented to Mr. Subhash Arora and Mr. Ankur Arora that he was sole, absolute and legal owner of the following properties:

“ (i) Agricultural land admeasuring 2 bighas out of 8 Bighas 11 Biswas comprised in Khasra Nos. 1572 (3-18) and 1731 47 Min (4-13) situated in the revenue estate of Village Chattarpur, Tehsil Mehrauli (now Saket), New Delhi with all rights of ownership, possession, easements enjoyed in respect thereof, more specifically described in the site plan marked as 'Schedule A'..….(property-1) (ii) C-326, Defence Colony, New Delhi-1 10024 along with built-up structure constructed thereupon ……(property-2).”

6. Defendant assured that both the properties were free of encumbrances Page 3 of 23 and offered to sell property-1 and enter into a collaboration agreement for redevelopment of property-2.

7. On 30.04.2016, an agreement to sell (“Agreement-1”) was entered into wherein Mr. Subhash Arora agreed to buy the property-1 from the defendant for a total sale consideration of Rs. 7.5 crores. At the time of execution of Agreement-1, advance payment of Rs.1,00,00,000/-

was made to the defendant in the following manner:-

S. No. Mode and Particulars Amount (in rupees) Date

1. Cheque bearing no.

194350 dated 05.05.2016 drawn on Axis Bank, Chittaranjan Park.

70,00,000/- 05.05.2016

2. Cash 30,00,000/- 30.04.2016 Total 1,00,00,000/-

8. Another sum of Rs. 50 lakhs was paid to the defendant as under:-

S. No. Mode and Particulars Amount (in rupees) Date

1. Cheque bearing no.

194370 dated 24.05.2016 drawn on Axis Bank, Chittaranjan Park.

25,00,000/- 24.05.2016

2. Cash 25,00,000/- 21.05.2016 Page 4 of 23 Total 50,00,000/-

9. Under Agreement-1, the defendant was to execute and get the necessary transfer documents in favour of Mr. Subhash Arora or his nominee on or before 30.08.2016. Further, Mr. Subhash Arora had right to nominate or assign the Agreement-1 to any persons, firm, body corporate, association of persons. Mr. Subhash Arora nominated plaintiff No.1 as his nominee. The plaintiff No.1 has filed its bank statement which shows that the above mentioned cheques were honoured on presentation.

10. In respect of property-2, on 03.05.2017, defendant and plaintiff No. 2 entered into an Collaboration Agreement (“Agreement-2”) wherein it was agreed that the structure at proper