Bombay High Court Dismisses Appeal Against Temporary Injunction in Specific Performance Suit Based on Oral Agreement for Sale. Agreement to Sell Need Not Be in Writing If Followed by Part Performance Under Section 53A of Transfer of Property Act, 1882.

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

The present appeal arises from an order dated 6/11/2004 passed by the Joint Civil Judge, Senior Division, Nagpur in Special Civil Suit No. 201/2004, granting a temporary injunction under Order 39 Rules 1 and 2 of the Code of Civil Procedure, 1908 (CPC) in favor of the respondent (plaintiff) and against the appellants (defendants). The suit property comprises land survey No. 149 (3.06 hectares) and survey No. 150 (1.94 hectares), totaling 12.35 acres, located in Nagpur. The respondent claimed that on 31/12/2003, appellant No. 1 orally agreed to sell the agricultural field for a total consideration of Rs. 10 lakhs. After negotiations, the respondent published a public notice in Hitavada (English) and Navbharat (Hindi) newspapers on 9/1/2004, inviting objections, as permitted by appellant No. 1 via letter dated 5/1/2004. The respondent alleged that he paid part of the consideration and was put in possession, but the appellants later denied the agreement and attempted to create third party interests. The appellants contended that there was never any concluded agreement. The trial court, after hearing both sides, granted the injunction restraining the appellants from creating any third party interest in the suit property during the pendency of the suit. Aggrieved, the appellants filed the present appeal. The High Court heard the matter finally at the admission stage on 26/4/2005 and reserved judgment on 12/9/2005. The court noted that the trial court had recorded findings on prima facie case, balance of convenience, and irreparable loss in favor of the respondent. The High Court observed that the agreement for sale need not be in writing if there is part performance, as per Section 53A of the Transfer of Property Act, 1882. The court found that the respondent had made out a prima facie case and that the balance of convenience was in his favor. The appellants did not challenge the findings on balance of convenience and irreparable loss. Consequently, the High Court dismissed the appeal, upholding the temporary injunction granted by the trial court.

Headnote

A) Civil Procedure - Temporary Injunction - Order 39 Rule 1 and 2 CPC - Prima Facie Case - The respondent claimed an oral agreement for sale of agricultural land for Rs. 10 lakhs, followed by a public notice and alleged part payment and possession. The trial court granted injunction restraining appellants from creating third party interests. Held that the respondent made out a prima facie case for injunction as the agreement need not be in writing if followed by part performance under Section 53A of Transfer of Property Act, 1882 (Paras 1-5).

B) Transfer of Property Act - Part Performance - Section 53A - Oral Agreement - The appellants contended there was no concluded agreement. However, the respondent's case of oral agreement, public notice, and alleged part payment and possession was sufficient to raise a triable issue. Held that Section 53A does not require a written agreement if there is part performance (Paras 3-5).

C) Civil Procedure - Balance of Convenience - Irreparable Loss - The trial court found that balance of convenience was in favor of the respondent and that refusal of injunction would cause irreparable loss. The High Court upheld this finding, noting that the appellants had not challenged the finding on balance of convenience and irreparable loss (Paras 4-5).

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Issue of Consideration

Whether the trial court was justified in granting temporary injunction restraining the appellants from creating third party interest in the suit property based on an oral agreement for sale and part performance.

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Final Decision

The High Court dismissed the appeal and upheld the order dated 6/11/2004 passed by the Joint Civil Judge, Senior Division, Nagpur granting temporary injunction in favor of the respondent.

Law Points

  • Temporary injunction
  • Order 39 Rule 1 and 2 CPC
  • Prima facie case
  • Balance of convenience
  • Irreparable loss
  • Oral agreement for sale
  • Part performance
  • Section 53A Transfer of Property Act
  • 1882
  • Public notice
  • Agreement to sell need not be in writing if followed by possession and part payment
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Case Details

2005 LawText (BOM) (10) 21

Appeal Against Order No. 4 of 2005

2005-10-05

B.P. Dharmadhikari, J.

S/Shri M.G. & V.V. Bhangde for the appellants; Shri S.S. Voditel for the respondent

Shri Brijgopal Shivgopal Lulani & Ors.

Shri Barakatbhai Habibbhai Somani

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Nature of Litigation

Appeal against order granting temporary injunction in a suit for specific performance of an oral agreement for sale of agricultural land.

Remedy Sought

The respondent (plaintiff) sought temporary injunction restraining the appellants (defendants) from creating any third party interest in the suit property during pendency of the suit.

Filing Reason

The respondent claimed an oral agreement for sale of land for Rs. 10 lakhs, part payment, and possession, but the appellants denied the agreement and attempted to create third party interests.

Previous Decisions

The trial court (Joint Civil Judge, Senior Division, Nagpur) granted temporary injunction vide order dated 6/11/2004 below exhibit 5 in Special Civil Suit No. 201/2004.

Issues

Whether the trial court was justified in granting temporary injunction under Order 39 Rules 1 and 2 CPC based on an oral agreement for sale and part performance. Whether the agreement for sale must be in writing to support a claim for temporary injunction.

Submissions/Arguments

Appellants argued that there was never any agreement or concluded agreement between them and the respondent. Respondent argued that there was an oral agreement on 31/12/2003, followed by a public notice, part payment, and possession, and that the agreement need not be in writing under Section 53A of the Transfer of Property Act.

Ratio Decidendi

An agreement for sale need not be in writing if there is part performance as contemplated under Section 53A of the Transfer of Property Act, 1882. The trial court's findings on prima facie case, balance of convenience, and irreparable loss were not challenged and were sufficient to grant temporary injunction under Order 39 Rules 1 and 2 CPC.

Judgment Excerpts

The respondent has contended that on 31/12/2003 appellant No. 1 orally agreed to sale his agricultural field admeasuring 12 acres for total consideration of Rs 10 Lakhs. The agreement for sale need not be in writing if there is part performance as contemplated under Section 53A of the Transfer of Property Act.

Procedural History

The respondent filed Special Civil Suit No. 201/2004 before the Joint Civil Judge, Senior Division, Nagpur, seeking specific performance of an oral agreement for sale. The respondent also filed an application under Order 39 Rules 1 and 2 CPC (exhibit 5) for temporary injunction. The trial court granted the injunction on 6/11/2004. The appellants filed Appeal Against Order No. 4 of 2005 before the Bombay High Court, Nagpur Bench. The High Court heard the matter finally at admission stage on 26/4/2005, made rule returnable forthwith, and reserved judgment on 12/9/2005, pronouncing it on 5/10/2005.

Acts & Sections

  • Code of Civil Procedure, 1908 (CPC): Order 39, Rule 1, Order 39, Rule 2
  • Transfer of Property Act, 1882: Section 53A
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