The jurisdiction of the court for specific performance is determined by the location of the property, and relief requiring action outside the court's jurisdiction cannot be enforced.

O R D E R

1. These petitions arise from a common order passed by a Division Bench of the High Court of Delhi dated 11.03.2008 in FAO(OS) Nos.196-197/2005 and FAO(OS) No.205/2005 respectively, by which the appeals filed by the respondents herein came to be allowed and the plaint was ordered to be returned to the petitioner herein for presenting it before the appropriate court having territorial jurisdiction to try the suit for specific performance.

2. The petitioner herein, who is the original plaintiff, instituted Civil Sui No.1138/2004 in the Delhi High Court on its original side for permanent injunction and specific performance of the contract dated 16/20.01.2004 entered into with the respondents herein, the original defendants, in connection with a commercial property admeasuring 10,747 sq. ft. situated on the second floor of the Fortune Global Hotel & Commercial Complex in Gurgaon (“ suit property ”).

3. It is the case of the plaintiff that sometime in September 2003, the original defendant no. 2 offered to sell to it commercial space of approximately 10,000 sq. ft. on the second floor of the commercial complex of the Fortune Hotel and Commercial Complex project which was being developed by the defendants. After discussions and negotiations regarding the same, a written communication was received by the plaintiff on 16.01.2004 containing the aforesaid offer in relation to the suit property and the terms and conditions for the transaction.

4. The offer was accepted by the plaintiff vide letter dated 20.01.2004 and a cheque dated 20.01.2004 for Rs 20,000,00/- was issued by the plaintiff in favour of original defendant no. 3 in furtherance of the said acceptance. Further payment of Rs 20,000,00/- was made by the plaintiff on 06.02.2004.

5. Thereafter, disputes cropped up between the parties regarding certain terms contained in the “Flat Buyers Agreement”. It is the case of the plaintiff that despite several attempts on its part to negotiate the terms of the said agreement so as to arrive at a settlement, the defendants insisted upon unreasonable, arbitrary and unconscionable terms with a view to wriggle out of their liability arising out of the binding contract dated 16/20.01.2004.

6. Aggrieved by the defendant's alleged refusal to honour the binding contract despite the expression of willingness and readiness by the plaintiff on multiple occasions, the plaintiff instituted the aforesaid suit for specific performance and permanent injunction.

7. The defendants in their written statements, inter alia, raised a preliminary objection as regards the territorial jurisdiction of the Delhi High Court to entertain the suit instituted by the plaintiff. The defendants submitted that there was no concluded and binding contract between the parties and the letters dated 16.01.2004 and 20.01.2004 respectively were only a part of the ongoing discussion and negotiations between the parties in relation to the suit property. The letter dated 16.01.2004 was only a letter of intent and was to be followed by a property buyer agreement to be signed by the plaintiff which would contain detailed terms and conditions regarding the sale of the suit property. Further, in the alternative, the defendants submitted that the plaintiff failed to show his readiness and willingness to pay the balance amount at any point in time and thus cannot seek specific performance of the contract.

8. The learned Single Judge vide its order dated 25.04.2005 overruled the objection raised by the defendants as regards the territorial jurisdiction and took the view that it had the jurisdiction to entertain the suit. The Court took the view that as the plaintiff was seeking the relief of specific performance simpliciter and had not prayed for a decree to put him in possession of the suit property, such a relief could be granted and enforced by the personal obedience of the vendor and thus the Court in whose territorial jurisdiction the vendor resides or carries on business or works