Prakash Chandra vs Narayan

Leave was granted on 22.9.2011.

4. The suit in question was filed by the appellant against the respondent for specific performance of agreement for sale dated 18th April, 1996 in respect of agricultural land admeasuring 1 H. 61Are. at a price of Rs.51,000/-. It was the case of the appellant that he had paid the earnest money of Rs.39,000/- while the balance amount was to be paid on the date of execution of the sale deed which was fixed for 18th March, 2007, but despite the appellant being present for the purpose of completion of the formalities of agreement for sale, the respondent did not turn up. Consequently, the appellant purchased a stamp paper of Rs.100/- on 18th March, 1997 and issued a notice to the respondent on 2nd April, 1997 and called upon him to execute the sale deed dated 21st April, 1997 but a false reply was given by the respondent on 15th April, 1997. As the respondent refused to perform his part of the contract, the appellant filed Special Civil Suit No.175 of 1997 for specific performance of contract, and alternatively to refund the earnest money.

5. The respondent contested the case claiming that his signatures were obtained on a blank stamp paper for the outstanding money of Rs.12,000/- for the purchase of fertilizers and clothes etc. The trial court by its judgment dated 23rd September, 1998 and decree dated 3rd October, 1998 decreed the suit for specific performance.

6. On appreciation of the material on record, the trial court held that the appellant had proved that the respondent agreed to sell the suit land for consideration of Rs.51,000/- by executing an agreement for sale on 18th April, 1996 and that he had paid earnest money of Rs.39,000/- to the respondent. The respondent failed to prove that he had signed on a blank Stamp paper in the presence of Vithal Sitaram Thaori. On the other hand there is sufficient material on record to show that the appellant was ready and willing to perform his part of the contract and, therefore, the appellant is entitled to the decree for specific performance of contract while the alternative prayer needs no consideration. The respondent is not entitled to compensatory cost. All the six issues were decided in favour of the appellant and against the respondent with a direction to the respondent to execute the sale deed on or before 31st August, 1998 in respect of the suit land i.e. southern portion of the land admeasuring 1 H 61Are having Gat No.1/2 situated at village Khadki on payment of the balance consideration of Rs.12,000/-. The Court also directed the respondent to deliver the possession of the suit land to the appellant with the clear condition that in the event of the respondent failing to execute the sale deed on or before the fixed date, the appellant will deposit the balance amount in the Court to get the sale deed executed.

7. The respondent took up the matter vide first appeal before the District Court. The following questions were framed for determination:

9. When the matter was taken up in the second appeal, the learned Single Judge vide impugned judgment dated 6th March, 2007 dismissed the second appeal on the ground that the first appellate court has factually found that the respondent would be landless as against the appellant who is having various businesses as well.

The High Court in the second appeal failed to notice that the respondent had not taken any defence of hardship and no such issue was framed and in absence of any such evidence on record, the first appellate court held that he would be landless should the decree for specific performance be granted.

16. For the reasons stated above, we are of the view that the appellant is entitled to the specific performance of agreement for sale, as ordered and decreed by the trial court. The appeal is accordingly allowed. The order passed by the High Court in the second appeal and the judgment and decree passed by the first appellate court are set aside. The judgment and decree passed by the Trial Court is affirmed. The appellant is allowed two months to pay the balance consideration to the respondents. If the respondent fails to execute the sale deed, such amount will be deposited in the trial court which will ensure the execution of the sale deed as per its judgment and decree.