Case Note & Summary
The appellant, Naresh Govardhan Gandhi, filed a second appeal before the Bombay High Court challenging the dismissal of his suit for declaration of ownership and possession of a plot. The appellant had sold his land to the respondent society, Shri Sant Gajanan Maharaj Sahakari Griha Nirman Society Ltd., via a registered sale deed dated 2.12.1980. The sale deed contained a promise that the society would allot one plot in the southwest corner of the proposed layout after sanction to the appellant. The appellant claimed that despite reminders and a legal notice, the society failed to allot the plot. The trial court dismissed the suit, and the first appellate court affirmed the dismissal. The High Court, in second appeal, framed the substantial question of law as whether the promise in the sale deed constituted a concluded contract. The court held that the promise was vague and uncertain as the plot number, area, and other terms were not specified. Additionally, no separate consideration was paid for the promise. Therefore, the promise was not enforceable. The court dismissed the appeal, upholding the concurrent findings of the lower courts.
Headnote
A) Contract Law - Enforceability of Promise - Uncertainty of Terms - Specific Relief Act, 1963, Section 10 - Promise to allot a plot in future layout after sanction is not a concluded contract as the plot number, area, and other terms were not specified - Held that the promise was too vague and uncertain to be enforced (Paras 5-6). B) Property Law - Sale Deed - Promise to allot plot - Consideration - Indian Contract Act, 1872, Section 2(d) - No separate consideration passed for the promise to allot plot - Held that the promise was without consideration and thus not enforceable (Para 5).
Issue of Consideration
Whether the promise contained in the sale deed to allot a plot in the proposed layout after sanction constitutes a concluded contract enforceable by specific performance.
Final Decision
Second appeal dismissed. The judgment and order of the first appellate court dated 11.3.1998 in Regular Civil Appeal No. 24/1990 are confirmed.
Law Points
- Contractual promise must be certain and complete
- Specific performance requires concluded contract
- Consideration is essential for enforceability
- Promise to allot plot in future layout not enforceable
