IMPORTANT POINT
Agreement to Sell – When a composite suit is filed for cancellation of sale deed as well as for recovery of possession, limitation period is required to be considered with respect to substantive relief of cancellation of sale deed.

JUDGMENT :

M.R. SHAH, J.

1. Feeling aggrieved and dissatisfied with the impugned judgment and order dated 29.09.2016 passed by the High Court of Punjab and Haryana at Chandigarh in Second Appeal No. 4594 of 2009 by which the High Court has allowed the said appeal preferred by the original plaintiff and has quashed and set aside the judgment and order passed by the First Appellate Court decreeing the suit for specific performance and restoring the judgment and decree passed by the learned Trial Court dismissing the suit for specific performance of the agreement to sell, the original respondent No.1 has preferred the present appeal.

2. The facts leading to the present appeal in nutshell are as under:-

2.1 That the respondent No.2 herein – original defendant No.2 was the owner of the property in question being in the nature of agricultural land. The original owner – original defendant No.2 entered into one Agreement to Sell dated 04.04.1993 with the appellant agreeing to sell the property in question for a sale consideration of Rs. 115,000/-. The time for executing the sale deed was extended twice in writing on account of request by original defendant No.1 – executant of the sale deed – original owner.

2.2 According to the case of the appellant herein – original defendant No.1, the original defendant No. 2 and the original plaintiff (husband and wife) hatched a conspiracy. The original plaintiff – wife of the executant of the agreement to sell filed a collusive suit for declaration (without seeking any consequential relief) against her husband -original defendant no. 2 being Civil Suit No. 1643 of 1994. The said suit was filed on the premise that as per some alleged family settlement, the property in question fell to the share of the original plaintiff -wife. However, no family settlement was placed on record.

2.3 In the said collusive suit, the husband -original defendant No. 2 (executant of the agreement to sell in favour of the appellant) filed written statement admitting everything and praying for a decree in favour of his wife – original plaintiff in the present case. Consequently, a decree of declaration was passed on 01.02.1995. The said decree was neither registered with Sub-Registrar’s Office, nor any entries were ever mutated in the revenue records. Therefore, the appellant herein – original defendant No.1 was kept in the dark as everything happened behind his back.

2.4 On the strength of the Agreement to Sell dated 04.04.1993, the original defendant No.2-original owner executed the registered Sale Deed in favour of the appellant herein – original defendant No.1 on 19.04.1996. Necessary changes were consequently made in the revenue records as well as entering the name of the appellant immediately on 31.05.1996. The appellant herein – original defendant No.1 remained in possession and cultivating the agricultural land in question since then.

2.5 Almost after five years from the date of execution of the registered sale deed in favour of the appellant, the original plaintiff (wife of the original owner) filed the present suit being Civil Suit. No. 419/2007 seeking cancellation of Sale Deed dated 19.04.1996 and relief of possession, claiming her title on the basis of the collusive decree dated 01.02.1995.

2.6 The suit was resisted by the appellant herein – original defendant No.1. The original defendant No.2 – respondent No.2 herein – the original executant of the registered Sale Deed dated 19.04.1996 deliberately chose not to appear or file any written statement. That solely based on the collusive decree dated 01.02.1995 between the original plaintiff (wife) and the original defendant No.2 (husband), the learned Trial Court decreed the suit vide judgment and decree dated 20.04.2009 observing that in view of the decree dated 01.02.1995 in Civil Suit No.1643 of 1994, the day on which the original defendant No.2 executed the registered Sale Deed dated 19.04.1996 in favour of the appellant herein – the original defendant No.1, he had n