Case Note & Summary
The appellant, Kalpataru Properties Pvt. Ltd., filed a suit for specific performance against respondent No.1, Majithia Nagar Co-operative Housing Society Ltd., and others. The appellant sought interim relief via Notice of Motion No. 996/2012, which was dismissed by the learned Judge on 30th June 2014. The appellant appealed. The core issue was whether a concluded contract existed between the appellant and the Society. The court found that no formal agreement was ever executed. The tender conditions explicitly stated that a concluded contract would only come into existence upon execution of a formal agreement. The terms allowed the Society to modify or add terms before signing the agreement. The appellant's own letters and conduct indicated that it understood that a contract would be complete only upon execution of the Development Agreement and related documents. The appellant offered to pay the security deposit of Rs. 4 Crores only upon execution of such documents. The court agreed with the learned Judge that there was no concluded contract. The balance of convenience was in favour of respondent No.1. The appeal was dismissed.
Headnote
A) Contract Law - Concluded Contract - Tender Conditions - Specific Performance - The court considered whether a concluded contract existed between the appellant and respondent No.1-Society. The tender conditions expressly provided that a concluded contract would come into existence only upon execution of a formal agreement. The court held that no agreement was executed and the appellant's own conduct showed it knew and accepted that a contract could only arise upon execution of a written agreement. The balance of convenience was in favour of respondent No.1. (Paras 1-3)
Issue of Consideration
Whether there was a concluded contract between the appellant and respondent No.1 entitling the appellant to interim relief in a suit for specific performance.
Final Decision
The appeal is dismissed. The order of the learned Judge dated 30th June 2014 dismissing the Notice of Motion No. 996/2012 is upheld.
Law Points
- Concluded contract
- Tender conditions
- Formal agreement
- Specific performance
- Interim relief
