Bombay High Court Adjudicates First Appeal Against Dismissal of Suit for Specific Performance. Cross Objection Filed by Defendants Challenges Direction to Repay with Interest.

High Court: Bombay High Court Bench: NAGPUR
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Case Note & Summary

The matter arose from a suit for specific performance filed by M/s. Gold Touch Real Estate Private Limited, a real estate developer, against six respondents including family members of the Suri family and a cooperative society. The suit pertained to agreements for sale of land reserved under a town planning development plan. The plaintiff alleged that the defendants executed an agreement to sell in favour of the society on 26.06.2000, and later six separate agreements directly with the plaintiff on 09.08.2002, superseded by a supplementary agreement on 04.10.2003 that reduced the consideration. The plaintiff claimed to have paid Rs.4,17,20,952/- and took steps for de-reservation of the land. After receiving a termination notice on 04.07.2005, the plaintiff filed Special Civil Suit No. 82 of 2006 in the trial court. During the suit, defendants 2 and 3 entered into a compromise and executed sale deeds. The trial court framed issues, holding some agreements not proved, and ultimately dismissed the suit on 17.09.2012 while directing defendants 1, 4 and 5 to repay sums with 10% interest. The plaintiff appealed, and the defendants' cross-objection challenged the interest component. The Bombay High Court admitted both appeal and cross-objection, with interim deposit directions later modified. The Supreme Court directed expeditious disposal. At the High Court, the judgment was reserved on 29.10.2015 and pronounced on 21.11.2015, but the provided text is incomplete and does not contain the final decision, reasoning, or specific legal holdings.

Issue of Consideration

Whether the plaintiff was entitled to specific performance of the agreements for sale; Whether the defendants validly terminated the agreements; Whether the suit was maintainable without notice under Section 164 of the Maharashtra Co-operative Societies Act; Whether the supplementary agreement was valid and superseded earlier agreements; Whether the plaintiff was ready and willing to perform its part of the contract.

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Law Points

  • readiness and willingness to perform contract
  • specific performance of contract
  • irrevocable power of attorney
  • de-reservation of land
  • fraud and misrepresentation
  • notice under Section 164 of Maharashtra Co-operative Societies Act
  • 1960
  • validity of unregistered agreement
  • compromise during suit
  • payment of balance consideration
  • maintainability of suit without notice
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Case Details

2015 LawText (BOM) (11) 29

FIRST APPEAL NO. 1010 OF 2012 AND CROSS OBJECTION NO. 63 OF 2013

2015-11-21

B.P. Dharmadhikari, P.N. Deshmukh

Shri Harish Dangre for appellant, Shri M. Anilkumar for respondent Nos. 1, 4, 5; Shri D.V. Chauhan for respondent No. 3; Shri R.B. Dhore for respondent No. 6; and for cross-objection: Shri M. Anilkumar for appellants, Shri Harish Dangre for respondent No. 1, Shri R.B. Dhore for respondent No. 2, Shri D.V. Chauhan for respondent No. 4

M/s. Gold Touch Real Estate Private Limited

Shri Suresh s/o Manoharlal Suri, Shri Jagmohan s/o Manoharlal Suri, Smt. Shantidevi wd/o Inderjeetji Suri, Smt. Shashi w/o Sourabh Sahani, Smt. Kamlesh w/o Ravi Choudhari, Link House Co-operative Housing Society Limited

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Nature of Litigation

Suit for specific performance of agreements for sale of land, declaration, possession, and permanent injunction.

Remedy Sought

Plaintiff sought specific performance of agreements for sale, execution of sale deed, and permanent injunction; defendants sought dismissal and counterclaimed for repayment with interest.

Filing Reason

After defendants terminated the agreements by notice dated 04.07.2005, plaintiff filed suit alleging readiness and willingness to perform.

Previous Decisions

The trial court (5th Joint Civil Judge, Senior Division, Nagpur) dismissed the suit and directed defendants 1,4,5 to repay with interest; the appeal and cross-objection are against that judgment.

Issues

Whether the plaintiff proved execution of agreements for sale and related obligations. Whether the plaintiff was entitled to specific performance. Whether the defendants' termination of agreements was valid. Whether the suit was maintainable without notice under Section 164 of the Maharashtra Co-operative Societies Act, 1960. Whether the plaintiff was ready and willing to perform its part of the contract.

Submissions/Arguments

Plaintiff alleged that defendant Nos.1 to 5 executed an agreement to sell in favour of defendant No.6 on 26.06.2000, and on 09.08.2002 executed six separate agreements in favour of plaintiff, superseded by a supplementary agreement on 04.10.2003; plaintiff paid Rs.4,17,20,952/-, obtained steps for de-reservation, and was always ready and willing to perform. Defendant Nos. 1, 4 & 5 contended that the agreements were antedated, the supplementary agreement was fraudulent and unregistered, they revoked power of attorney, the suit was not maintainable without notice under Section 164, and the plaintiff failed to get land de-reserved, hence agreements could not be specifically enforced.

Judgment Excerpts

The plaintiff approached Civil Court with a story stating that defendant Nos. 1 to 5, who are members of same family, executed an agreement to sell (Art. A) in favour of defendant No. 6 – Society, on 26.06.2000. The trial Court has framed following issues and answered the same as below : ... Sr.No.5 Whether the plaintiff proves that it was their liabilities to fulfill various arrangements entered into by defendant no. 6 with various persons in respect of suit property ? Proved.

Procedural History

The plaintiff filed Special Civil Suit No. 82 of 2006 on 24.01.2006, after receiving termination notice dated 04.07.2005. The suit was dismissed on 17.09.2012 by the 5th Joint Civil Judge, Senior Division, Nagpur. The plaintiff filed First Appeal No. 1010 of 2012, admitted on 03.04.2013, with interim direction to deposit Rs.15 crore later modified to Rs.4 crore. Cross Objection No. 63 of 2013 filed by respondent nos. 1, 4 & 5 was admitted on 13.12.2013. The Supreme Court directed expeditious disposal on 07.07.2014.

Acts & Sections

  • Maharashtra Co-operative Societies Act, 1960: 164
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