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2024 Supreme(P&H) 1463

PUNJAB AND HARYANA HIGH COURT AT CHANDIGARH
DEEPAK GUPTA, J. 
Smt. Sunita and Others – Appellant
Versus
Rajender Singh And Another – Respondent
RSA-374-2015 (O&M)
Decided on : 10-09-2024

Advocates Appeared:
For the Appellant :Mr. P.R. Yadav, Advocate,
For the Respondent:Mr. Vishal Aggarwal, Advocate

The court held that time is of the essence in contracts for the sale of land, and undue delay in filing for specific performance can negate entitlement to relief.

Headnote:(A) Specific Relief Act, 1963 - Section 20 - Specific performance of contract - Suit filed for specific performance of an agreement for the sale of land - The court held that time is indeed of the essence owing to significant price increases in land, and the plaintiff's delay in filing the suit on the last date of limitation was a ground for refusing specific performance. The conduct of the plaintiff, their partial payment, and the general market conditions lead the court to conclude that granting specific performance would be inequitable. (Paras 16, 20, 21)

(B) Contract Law - Principles regarding readiness and willingness in service of specific performance were reiterated; courts must scrutinize adherence to timelines within a contract, as case laws suggest the necessity to consider evolving market conditions in deciding specific performance claims. (Paras 16-20)

Table of Content
1. initial appeal history regarding the specific performance claim. (Para 1)

JUDGMENT :

Deepak Gupta, J.

1. Present Regular Second Appeal was earlier disposed of by a Coordinate Bench of this Court by way of order dated 16.01.2019. However, the said order was challenged by the respondent of the appeal before Hon'ble Supreme Court by filing Civil Appeal No.4222 of 2023 (arising out of SLP-C-19102-2019) and by way of order dated 06.07.2023, Hon'ble Supreme Court has set aside the order dated 16.01.2019 of this Court and has remanded the matter with the direction to examine the appeal afresh on the question of entitlement of the plaintiff to enforce specific performance of the agreement or any other relief. That is how, the present appeal is again before this Court.

2.1 Perusal of the paper-book would reveal that vide an agreement dated 10.04.2006, Raj Singh, the predecessor-in-interest of the defendants (appellants & performa respondent herein) had agreed to sell the suit land to plaintiff-Rajender Singh (respondent No.l herein) and an amount of ?4 lakh was paid as earnest money. Initially, the target date for execution of the sale deed was fixed as 16.08.2006, but with mutual consent, it was extended firstly to 16.12.2006 and thereafter to 31.01.2007. Seeking the decree for specific performance, it was alleged by the plaintiff that Rajender Singh had failed to procure no objection certificate and avoided the matter to perform his part of contract on one pretext or the other and that with dishonest intention to grab the earnest money, had even filed civil suit against the plaintiff, which was duly contested by him. Later on, as Raj Singh had expired, so specific performance was sought against his legal heirs - defendants, as they did not respond to the repeated legal notices sent to them.

2.2 Defendants in the written statement raised various preliminary objections. They challenged the readiness and willing on the part of plaintiff to perform his part of the contract and prayed for dismissal of the suit.

2.3 Following issues were framed by the trial Court: -

"1. Whether late Raj Singh executed agreement to sell regarding his land as mentioned in para No.l of the plaint on dated 10.04.2006 in favour of plaintiff?

2. Whether a decree for possession by way of specific performance of agreement to sell is liable to be passed in favour of plaintiff against the defendants on the grounds mentioned in the plaint? OPP

3. Whether the plaintiff has no cause of action to file the present suit? OPD

4. Whether the plaintiff has no cause of action to file the present suit? OPD

5. Whether the plaintiff has no locus-standi to file the present suit? OPD

6. Whether the suit of the plaintiff is hopelessly time barred? OPD

7. Relief."

2.4 After taking evidence produced by the parties, the trial Court decided issue No.l in favour of the plaintiff. Issue No.2 was partly decided in favour of the plaintiff, whereas the findings on issues No.3 to 6 went against the defendants. Consequent to these findings, trial Court decreed the suit on 10.9.2013 by directing the defendants to pay the earnest money of ?4 lakh to the plaintiff along with the simple interest @ 8% per annum from the date of filing of the suit till actual realization within the period of two months.

2.5 Unsatisfied with the judgment and decree of the trial court, plaintiff filed appeal. The First Appellate Court modified the judgment and decree of the trial Court and held vide judgment dated 11.09.2014 that plaintiff was entitled to possession of the suit property by way of specific performance of the agreement dated 10.04.2006. Accordingly, the plaintiff was directed to deposit balance consideration amount either with the respondents/defendants or in the trial Court within the period of one month from the date of judgment & decree of the appellate Court, observing that thereafter defendants would execute the sale deed and get it registered within three months, failing which plaintiff would

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