Bombay High Court Allows Specific Performance Appeal in Land Sale Contract Case — Appellate Court Erred in Reversing Decree on Hardship Grounds. Discretionary Relief Under Specific Relief Act Cannot Be Denied Solely Because Defendant Would Become Landless.

High Court: Bombay High Court Bench: NAGPUR In Favour of Accused
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Case Note & Summary

The appellant, Sharadchandra Yadaorao Kashettiwar, filed a second appeal against the judgment and decree dated 08/07/2005 passed by the Additional District Judge, Yavatmal in Civil Appeal No.143/2003, which reversed the judgment and decree dated 19/11/2003 passed by the Civil Judge, Junior Division Kalamb in Regular Civil Suit No.01/2003. The appellant had originally filed a suit for specific performance of a contract to purchase 2.43 hectares of land out of Gat No.93 from the respondent, Laxman s/o Antuji Nagtode, for a consideration of Rs.66,000/-. The trial court decreed the suit in favor of the appellant, granting specific performance. The respondent appealed, and the appellate court reversed the decree, holding that granting specific performance would cause hardship to the respondent as he would become landless. The appellant then filed the present second appeal. The High Court framed three substantial questions of law: whether the appellate court was justified in reversing the decree solely on the ground of hardship; whether the appellate court could interfere with the discretionary relief granted by the trial court on the ground that the defendant would be rendered landless; and whether the appellate court can rightly interfere with the discretion exercised by the trial court under the Specific Relief Act. The High Court held that the appellate court was not justified in reversing the decree. The plaintiff had proved his case on all counts, and the defendant had voluntarily agreed to sell the land and received consideration. The appellate court's approach was erroneous as it did not consider that the defendant had voluntarily entered into the contract. The High Court allowed the appeal, set aside the appellate court's judgment, and restored the trial court's decree for specific performance.

Headnote

A) Specific Relief Act - Specific Performance - Hardship - Section 20 Specific Relief Act, 1963 - The appellate court reversed the trial court's decree for specific performance solely on the ground that it would cause hardship to the defendant as he would become landless. The High Court held that the appellate court was not justified in interfering with the discretionary relief granted by the trial court, as the plaintiff had proved his case on all counts. The appellate court's approach was erroneous as it did not consider that the defendant had voluntarily agreed to sell the land and received consideration. (Paras 3-10)

B) Specific Relief Act - Appellate Court's Interference - Discretion - Section 20 Specific Relief Act, 1963 - The appellate court can interfere with the discretion exercised by the trial court only if the trial court has exercised its discretion arbitrarily, capriciously, or perversely, or has ignored settled principles of law. In the present case, the trial court had properly exercised its discretion, and the appellate court's reversal on the ground of hardship alone was not justified. (Paras 3-10)

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Issue of Consideration

Whether the appellate court was justified in reversing the decree for specific performance solely on the ground that it would cause hardship and loss to the defendant, and whether the appellate court can interfere with the discretion exercised by the trial court under the Specific Relief Act.

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Final Decision

Appeal allowed. Judgment and decree of the appellate court dated 08/07/2005 set aside. Judgment and decree of the trial court dated 19/11/2003 restored. No order as to costs.

Law Points

  • Specific performance
  • hardship
  • discretion of trial court
  • interference by appellate court
  • Specific Relief Act
  • 1963
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Case Details

2023 LawText (BOM) (04) 105

Second Appeal No.379/2006

2023-04-24

Smt. M.S. Jawalkar, J.

Shri Shantanu Ghate for appellant; None for respondent

Sharadchandra Yadaorao Kashettiwar

Laxman s/o Antuji Nagtode

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Nature of Litigation

Second appeal against reversal of decree for specific performance of contract for sale of land.

Remedy Sought

Appellant sought restoration of trial court's decree granting specific performance of contract.

Filing Reason

Appellate court reversed trial court's decree for specific performance on ground of hardship to defendant.

Previous Decisions

Trial court decreed suit for specific performance; appellate court reversed decree.

Issues

Whether the appellate court was justified in reversing the decree for specific performance solely on the ground of hardship? Whether the appellate court can interfere with the discretion exercised by the trial court under the Specific Relief Act?

Submissions/Arguments

Appellant argued that the appellate court erred in reversing the decree solely on hardship ground, as the plaintiff had proved his case. Respondent did not appear despite service.

Ratio Decidendi

The appellate court was not justified in reversing the decree for specific performance solely on the ground of hardship, as the plaintiff had proved his case on all counts and the defendant had voluntarily agreed to sell the land. The appellate court cannot interfere with the discretion exercised by the trial court unless the trial court has exercised its discretion arbitrarily, capriciously, or perversely.

Judgment Excerpts

Whether the appellate Court was justified in reversing a decree granting specific performance solely on the ground that it would cause hardship and loss to the defendant? After the plaintiff having proved his case on all the counts, whether the appellate Court was justified in reversing the discretionary relief granted by the trial Court on the ground that the defendant would be rendered landless, in case, the specific performance was granted?

Procedural History

The appellant filed Regular Civil Suit No.01/2003 for specific performance, which was decreed by the Civil Judge, Junior Division Kalamb on 19/11/2003. The respondent appealed, and the Additional District Judge, Yavatmal reversed the decree on 08/07/2005 in Civil Appeal No.143/2003. The appellant then filed the present second appeal, which was admitted on 24/01/2007.

Acts & Sections

  • Specific Relief Act, 1963: Section 20
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