Supreme Court Dismisses SLP by Subsequent Purchasers Against High Court Order Directing Possession in Execution of Specific Performance Decree. Executing Court Can Grant Possession Even Without Express Decree for Possession When Property Is in Possession of Contracting Party.

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Case Note & Summary

The case involves a dispute arising from a suit for specific performance of a contract for sale of property. The plaintiffs (respondents herein) succeeded in the trial court, which passed a decree for specific performance in their favour. The original defendant, who had executed the agreement of sale, sold the property to the petitioners (subsequent purchasers) and did not challenge the decree. In execution proceedings, the executing court declined to hand over possession of the suit property to the decree-holders, reasoning that the decree did not expressly provide for delivery of possession. The decree-holders challenged this order before the Rajasthan High Court, which allowed their writ petition and directed the executing court to issue a warrant of possession. The High Court held that a decree for specific performance implies a right to possession, and the executing court is obligated to hand over possession. The subsequent purchasers appealed to the Supreme Court. The Supreme Court dismissed the special leave petition, affirming the High Court's order. The Court relied on its earlier decision in Babu Lal v. Hazari Lal Kishori Lal, which held that where exclusive possession is with the contracting party, a decree for specific performance simpliciter gives complete relief, and the seller is bound to deliver possession under Section 55(1) of the Transfer of Property Act. The Court also noted that Section 22 of the Specific Relief Act allows amendment of the plaint to include a claim for possession at any stage, including execution. The Court found no merit in the petitioners' challenge and dismissed the petition.

Headnote

A) Specific Relief Act - Section 22 - Possession in Execution - Decree for specific performance simpliciter - Where exclusive possession is with the contracting party, a decree for specific performance without expressly providing for delivery of possession gives complete relief to the decree-holder, as the seller is bound to put the buyer in possession under Section 55(1) of the Transfer of Property Act, 1882. (Paras 13-14)

B) Specific Relief Act - Section 22 - Amendment at Execution Stage - The expression 'any stage of the proceeding' in Section 22 includes execution proceedings, allowing the plaintiff to amend the plaint to include a claim for possession even at the execution stage. (Para 14)

C) Specific Relief Act - Section 22 - Third Party Possession - In cases where the property has passed into possession of a third person, the plaintiff must specifically claim relief for possession against such third party, as the third party is not bound by the contract. (Para 13-14)

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Issue of Consideration

Whether the relief of possession may be granted by the executing court in a case where the suit has been decreed for specific performance simpliciter and no express relief for the transfer of possession of the suit property has been granted.

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Final Decision

Special Leave Petition dismissed. High Court order upheld. Executing court directed to issue warrant of possession.

Law Points

  • Specific performance decree implies right to possession
  • Section 22 Specific Relief Act allows amendment at any stage including execution
  • Section 55 Transfer of Property Act obligates seller to deliver possession
  • Executing court can grant possession without express decree in certain cases
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Case Details

2024 LawText (SC) (12) 60

Special Leave Petition No. 29397 of 2024 (@SLP(C.) Diary No(s). 52303 OF 2024)

2024-12-06

J.B. Pardiwala, R. Mahadevan

Mr. Jasbir Singh (for petitioners), Mr. Ashish Kumar Upadhyay (for respondents)

Birma Devi & Ors.

Subhash & Anr.

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Nature of Litigation

Civil appeal against High Court order directing execution of decree for specific performance including possession.

Remedy Sought

Petitioners (subsequent purchasers) sought to set aside High Court order directing executing court to issue warrant of possession.

Filing Reason

Petitioners claimed to be subsequent purchasers of suit property and challenged High Court order allowing execution of possession.

Previous Decisions

Trial Court decreed specific performance in favour of plaintiffs. Executing Court declined possession. High Court set aside executing court's order and directed possession.

Issues

Whether the relief of possession may be granted by the executing court in a case where the suit has been decreed for specific performance simpliciter and no express relief for the transfer of possession of the suit property has been granted.

Submissions/Arguments

Petitioners argued that the decree did not expressly provide for possession, so executing court could not grant it. Respondents argued that decree for specific performance implies right to possession, and executing court is bound to deliver possession.

Ratio Decidendi

Where exclusive possession of the suit property is with the contracting party, a decree for specific performance simpliciter gives complete relief to the decree-holder, and the executing court is bound to deliver possession under Section 55(1) of the Transfer of Property Act, 1882. Section 22 of the Specific Relief Act, 1963 allows amendment of the plaint to include a claim for possession at any stage, including execution.

Judgment Excerpts

The short question that falls for our consideration is whether the relief of possession may be granted by the executing court in a case where the suit has been decreed for specific performance simpliciter and no express relief for the transfer of possession of the suit property has been granted. The position of law on the issue has been settled by this Court in the case of Babu Lal v. Hazari Lal Kishori Lal reported in (1982) 1 SCC 525...

Procedural History

Trial Court decreed specific performance. Executing Court declined possession. High Court allowed writ petition and directed possession. Subsequent purchasers filed SLP before Supreme Court.

Acts & Sections

  • Specific Relief Act, 1963: 22, 28(3)
  • Transfer of Property Act, 1882: 55(1)
  • Code of Civil Procedure, 1908: Order 2 Rule 2
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