Case Note & Summary
The appeal arose from a judgment of the Delhi High Court dismissing a first appeal against a decree for specific performance of an agreement to sell a plot of land. The plaintiff, Vishwa Nath Sharma, claimed that he entered into an agreement with defendant No.1, Durga Nath Sharma, to purchase a plot of land for Rs. 85,000, of which Rs. 8,500 was paid as part payment. The plaintiff alleged that the defendant later attempted to back out of the agreement and transferred the plot to his son, defendant No.2, which the plaintiff contested as fraudulent. The trial court ruled in favor of the plaintiff, leading to the appeal. The High Court upheld the trial court's decision, noting that the defendant was aware of the restrictions on transfer but still attempted to sell the property. The court emphasized that the lack of permission from the Delhi Development Authority did not bar the decree for specific performance, as the plaintiff had shown readiness and willingness to perform his part of the contract. The Supreme Court dismissed the appeal, affirming the lower courts' findings and directing the defendants to apply for necessary permissions for the sale deed execution. The court also suggested a monetary settlement to be paid by the respondent to the appellant as a gesture of goodwill.
Headnote
A) Contract Law - Specific Performance - Validity of Agreement - Code of Civil Procedure, 1908, Section 96 - The court held that the agreement to sell was valid despite the restrictions on transfer, as the plaintiff was ready and willing to perform his part of the contract. The court directed that the defendants must apply for necessary permissions for transfer, and if granted, the sale deed should be executed (Paras 1-5).
Issue of Consideration
Whether the agreement to sell was valid despite restrictions on transfer and whether the plaintiff was entitled to specific performance.
Final Decision
The Supreme Court dismissed the appeal, affirming the lower courts' decisions and directing the defendants to apply for necessary permissions for the sale deed execution. The court also suggested that the respondent pay a sum of five lakhs to the appellant as a gesture of goodwill.
Law Points
- Specific performance
- agreement to sell
- lease restrictions
- permission for transfer
- readiness and willingness to perform
- implied covenant
