Reportable

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO.4891 OF 2010

[Arising out of SLP [C] No.6736 of 2009]

Vinod Seth

… Appellant

Vs.

Devinder Bajaj & Anr.

… Respondents

J U D G M E N T

R.V.RAVEENDRAN, J.

Leave granted. Heard. The validity of a novel and innovative direction

by the High Court, purportedly issued to discourage frivolous and

speculative litigation is under challenge in this appeal. To understand the

issue, it is necessary to set out the facts and also extract relevant portions of

the plaint and the impugned orders of the High Court.

2.

The appellant claims to be a builder-cum-real estate dealer. He filed a

suit for specific performance of an oral agreement for “commercial

collaboration for business benefits” allegedly entered by the respondents as

the owners in possession of premises No.A-1/365, Paschim Vihar, New

1

Delhi, with him. He alleged in the plaint, that the following terms and

conditions were orally agreed between the parties:

“a) The defendants will apply to the DDA for conversion of

the above property from leasehold to freehold and within 2-3

months the defendants will handover vacan