Case Note & Summary
The plaintiff, Motilal Manshi Shah, filed a suit seeking specific performance of an alleged agreement for sale dated 8.9.2000 in respect of a property known as 'Irla Sadan' situated at Irla, Ville Parle (West), Bombay. The plaintiff claimed that the defendant, Suryakant K. Sheth, had agreed to sell the property for a total consideration of Rs.36,27,000/-, out of which Rs.1,27,000/- was paid as earnest money. The plaintiff also sought a declaration that a subsequent deed of assignment between defendant no.1 and defendant no.3 was void and fabricated. The plaintiff filed a Notice of Motion seeking appointment of Court Receiver and interim injunction restraining the defendants from alienating or encumbering the property. The court examined the document Ex.B-1, which was a receipt acknowledging receipt of earnest money and recording that a deal was entered into. The court held that the document did not constitute a concluded contract for sale as it lacked essential terms such as the time for payment of the balance consideration, mode of payment, and delivery of possession. The court noted that the document merely recorded that a deal was entered into but did not contain all the necessary terms of a valid agreement. Consequently, the court found that the plaintiff had failed to establish a prima facie case for grant of interim relief. The court also observed that the balance of convenience was not in favor of the plaintiff and that no irreparable loss would be caused if the interim relief was not granted. Accordingly, the court dismissed the Notice of Motion.
Headnote
A) Specific Relief Act, 1963 - Section 10 - Agreement to Sell - Concluded Contract - Receipt dated 8.9.2000 held not a concluded contract for sale as it lacked essential terms such as time for payment of balance consideration, mode of payment, and delivery of possession - Court declined to grant interim relief including appointment of Court Receiver (Paras 1-10). B) Civil Procedure Code, 1908 - Order 39 Rules 1 and 2 - Interim Injunction - Appointment of Receiver - Plaintiff failed to establish prima facie case for grant of interim injunction or appointment of receiver as the document relied upon was merely a receipt and not an enforceable agreement - Balance of convenience also not in favor of plaintiff (Paras 10-15).
Issue of Consideration
Whether the document dated 8.9.2000 (Ex.B-1) constitutes a valid and concluded agreement for sale of the suit property, and whether the plaintiff is entitled to interim relief including appointment of Court Receiver.
Final Decision
Notice of Motion No.2930 of 2003 is dismissed. No order as to costs.
Law Points
- Specific performance
- agreement to sell
- concluded contract
- receipt
- earnest money
- balance consideration
- appointment of receiver
- interim relief
