Bombay High Court Grants Specific Performance of Agreement to Sell Property Based on Consent Terms. Consent decrees passed against defendant heirs who stepped into shoes of original defendants, confirming plaintiff's right to specific performance of suit agreement.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The plaintiff, Virsen Balwantsingh Solanki, instituted Suit No. 1808 of 1981 in the Bombay High Court for specific performance of an agreement dated 28th January, 1979. The original defendants (nos. 1 to 3) had agreed to sell the suit property for Rs. 3,81,000/-. During the pendency of the suit, defendant no. 1 expired and his heirs (defendant nos. 1A and 1B) were brought on record. Similarly, defendant no. 3 expired and his heir (defendant no. 3A) was brought on record. On 1st September, 2006, consent terms were arrived at between the plaintiff and defendant no. 3A, and a consent decree was passed on 19th June, 2007. Subsequently, on 10th January, 2008, consent terms were filed between the plaintiff and defendant nos. 1A and 1B, and a consent decree was passed on 15th January, 2008. The court noted that defendant no. 2 did not contest the suit and a decree was passed against him as well. The court held that the consent decrees were valid and the plaintiff was entitled to specific performance of the suit agreement against the consenting defendants. The suit was decreed in terms of the consent terms, with no order as to costs.

Headnote

A) Specific Performance - Consent Decree - Agreement to Sell - Specific Relief Act, 1963, Section 10 - The plaintiff sought specific performance of an agreement to sell property. During the suit, original defendants died and their heirs were brought on record. Consent terms were filed between the plaintiff and defendant nos. 1A, 1B, and 3A, and consent decrees were passed. The court held that the consent decrees were valid and the plaintiff was entitled to specific performance against the consenting defendants. (Paras 1-3)

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Issue of Consideration

Whether the plaintiff is entitled to a decree for specific performance of the agreement dated 28th January, 1979 based on consent terms filed by the parties.

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Final Decision

The suit is decreed in terms of the consent terms dated 10th January, 2008 and 1st September, 2006. The plaintiff is entitled to specific performance of the suit agreement against defendant nos.1A, 1B, and 3A. No order as to costs.

Law Points

  • Specific performance
  • consent decree
  • agreement to sell
  • property law
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Case Details

2010 LawText (BOM) (08) 94

SUIT NO. 1808 OF 1981

2010-08-12

R.Y. Ganoo, J.

Mr. D.D. Madon, Sr. Counsel with K.H. Modi and H.J. Engineer i/by Bharti A. Desai for the plaintiff, Mr. S.P. Thorat for defendant no.2

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Nature of Litigation

Suit for specific performance of an agreement to sell property.

Remedy Sought

Plaintiff sought specific performance of the agreement dated 28th January, 1979.

Filing Reason

Original defendants failed to perform their obligations under the agreement to sell the suit property.

Previous Decisions

Consent decrees were passed on 19th June, 2007 against defendant no.3A and on 15th January, 2008 against defendant nos.1A and 1B.

Issues

Whether the plaintiff is entitled to a decree for specific performance based on consent terms.

Submissions/Arguments

Plaintiff and defendant nos.1A, 1B, and 3A filed consent terms agreeing to a decree for specific performance.

Ratio Decidendi

Consent decrees are valid and binding on the parties who have consented, and the court can pass a decree for specific performance based on such consent terms.

Judgment Excerpts

The plaintiff had instituted this suit for specific performance of Agreement dated 28th January, 1979 against the original defendant nos. 1 to 3 on the ground that original defendant nos. 1 to 3 had by Agreement dated 28th January, 1979 agreed to sell the property described in para 2 of the plaint for total consideration of Rs.3,81,000/-. On 1st September, 2006 consent terms were arrived at between plaintiff and defendant no.3A and consent decree was passed on 19th June, 2007 between plaintiff and defendant no.3A. Accordingly, consent terms dated 10th January, 2008 were placed on record duly signed by the plaintiff on one hand and defendant nos.1A and 1B on the other and this Court passed consent decree on 15th January, 2008 against defendant nos.1A and 1B as regards prayer for specific performance of the suit agreement in regard to the suit property.

Procedural History

Suit filed in 1981. Original defendant no.1 died, heirs (1A, 1B) brought on record. Original defendant no.3 died, heir (3A) brought on record. Consent terms filed with defendant no.3A on 1st September, 2006, consent decree on 19th June, 2007. Consent terms with defendant nos.1A and 1B on 10th January, 2008, consent decree on 15th January, 2008. Judgment on 12th August, 2010.

Acts & Sections

  • Specific Relief Act, 1963: Section 10
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