J U D G M E N T

MOHAN M. SHANTANAGOUDAR, J.

1. These appeals arises out of judgement of the High Court of Gujarat at Ahmedabad dated 31.7.2014, allowing the appeals of the respective Respondent Nos. 1 in the four Civil Appeal Nos. 10683-86 of 2014 before us (hereinafter ‘Respondent Nos. 1’), Signature Not Verified Digitaly signaed bgy ainst judgement and order of the Additional District Judge, GULSHAN KUMAR ARORA Date: 2019.11.25 Reason:

Vadodara dated 2.4.2013 and order dated 30.12.2011 of the Additional Senior Civil Judge, Vadodara; and decreeing the suits SCS Nos. 657-660/1988 filed by Respondent Nos. 1 for specific performance against the Appellants herein.

I. Background Facts

2. This case concerns four suits for specific performance filed by the Respondent Nos. 1/Plaintiffs against the Appellants/Defendants Nos. 1-5. One Naranbhai Ramdas Patel (Defendant No. 1, now deceased) was the original owner of property bearing Survey No. 354/1, admeasuring 1 acre and 31 gunthas in Village Manjalpur of Vadodara district (hereinafter ‘suit property’). He, along with Defendants Nos. 2-5 (relatives of Defendant No. 1) executed agreement to sell dated 11.3.1986 (‘1986 agreement’) in respect of the suit property in favour of Respondent Nos. 3-11/Defendants Nos. 6-9 (hereinafter ‘original vendees’), for which the original vendees paid earnest money of Rs. 1,54,251. The suit property was included in Town Planning Scheme No. 19 of the Vadodara Municipal Corporation and possession of the suit property was to be given to the original vendees once the aforesaid Scheme was finalized. A registered sale deed in respect of the suit property was to be executed upon receipt of the remaining consideration from the original vendees, the deadline for which was within three months of finalization of the Town Planning Scheme.

The case of Respondent Nos. 1 is that the original vendees thereafter executed four agreements to sell dated 14.9.1987 (‘1987 agreements’) in respect of four different portions of the suit property, assigning the former’s rights under the 1986 agreement in the latter’s favour, and that earnest money of Rs. 5000/- was paid under each agreement. Notably, the Appellants were not parties to the 1987 agreements.

Under the 1987 agreements, it was purportedly open to Respondent Nos. 1 to make preparations for construction of a housing scheme over the suit property and issue advertisement for the same. Hence they claim that consequently, possession of the suit property was given to them, that a Bhoomi Pujan was conducted for laying foundation stone on the land and the members of the housing scheme were also registered. Further, that they also obtained the layout plan and construction permission for the housing scheme from Vadodara Municipal Corporation at their own cost, and the deceased original owner Mr. Naranbhai Patel had put his signature on the layout plan. Subsequently, dispute arose between the parties, and the original vendees filed suit SCS No. 194/1988 on 4.4.1988 before the Learned Civil Judge (Senior Division) at Vadodara (hereinafter ‘trial court’), seeking specific performance of the 1986 agreement against the Appellants. They claimed that they had served notice to the Appellants on 11.3.1988 seeking execution of sale deed in their favour, but the latter had given evasive reply to the same; that they were deliberately avoiding execution of sale deed so as to take advantage of increase in real estate prices. Per contra, the Appellants claimed that they had on 25.3.1988, by way of reply to the original vendees’ legal notice, cancelled the 1986 agreement as the original vendees had not paid the remaining consideration as required.

Respondent Nos. 1 were not party to SCS No. 194/1988; and no averment was made in the said suit regarding the 1987 agreements. Instead, on 21.11.88, Respondent Nos. 1 filed four separate suits SCS Nos. 657-660/1988 against the Appellants and the original vendees seeking specific performance of the 1987 agre