Bombay High Court Dismisses Appeal Against Injunction in Property Dispute Over Development Rights — Agreement for Sale Not Enforceable Without Registered Conveyance Deed.

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

The appeal arises from a suit filed by the original plaintiff, Smt. Nirmala Dhandukhlal Thakkar, seeking a permanent injunction restraining the appellants (defendants) from interfering with her possession of a flat in Amita Mandir Building, Andheri, Mumbai. The plaintiff claimed possession under an agreement for sale dated 20th December 1995 executed by the original owner, Wallace Floor Mill Company Ltd. The trial court granted a temporary injunction in favor of the plaintiff, which was confirmed by the appellate court. The appellants challenged this order. The High Court examined the legal issue of whether a suit for injunction simpliciter is maintainable when the plaintiff is not in possession and relies on an unregistered agreement for sale. The court held that an agreement for sale does not create any interest in immovable property under Section 54 of the Transfer of Property Act, 1882. A plaintiff who is not in possession cannot maintain a suit for injunction alone; the proper remedy is to seek specific performance or possession. The court found that the plaintiff failed to establish prima facie possession and that the balance of convenience was against granting injunction. Consequently, the High Court set aside the injunction orders and dismissed the suit as not maintainable.

Headnote

A) Civil Procedure - Injunction - Maintainability of Suit - Order 39 Rules 1 and 2, Code of Civil Procedure, 1908 - Suit for injunction simpliciter without seeking specific performance of agreement for sale is not maintainable when plaintiff is not in possession - Held that a plaintiff who is not in possession cannot seek only injunction; must seek possession or specific performance (Paras 10-12).

B) Property Law - Agreement for Sale - Transfer of Property Act, 1882 - Section 54 - Agreement for sale does not create any interest in immovable property - Held that an agreement for sale, without a registered conveyance, does not confer title or possession (Para 11).

C) Civil Procedure - Injunction - Prima Facie Case - Order 39 Rules 1 and 2, Code of Civil Procedure, 1908 - For grant of temporary injunction, plaintiff must show prima facie case, balance of convenience, and irreparable loss - Held that the trial court correctly found no prima facie case as plaintiff failed to prove possession (Paras 13-15).

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Issue of Consideration

Whether a suit for injunction simpliciter is maintainable when the plaintiff is not in possession and seeks to enforce an agreement for sale without seeking specific performance.

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Final Decision

Appeal allowed. Impugned orders set aside. Suit dismissed as not maintainable.

Law Points

  • Specific performance of agreement for sale
  • injunction against interference with possession
  • maintainability of suit for injunction without seeking specific performance
  • Order 39 Rules 1 and 2 CPC
  • Section 54 Transfer of Property Act
  • 1882
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Case Details

2016 LawText (BOM) (08) 112

Appeal from Order No.272 of 2016 with Civil Application No.816 of 2016

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Mr. Pravin Samdhani, Senior Advocate a/w Mr. Sanjay Jain a/w Mr. Hemant Mehta i/b Mehta & Co. for the Appellants; Mr. D.D. Madon, Senior Advocate a/w Mr. Sandeep Dadwal i/b Mr. Prakash Mahadik for the Respondent No.2; Mr. G. S. Godbole a/w Mr. A. R. Mishra for the Respondent No.1; Mrs. M. R. Bhoir for the Respondent No.3; Mr. Sandesh Patil for the Respondent Nos.4 and 5

M/s. Shree Parshwa Heights and others

Smt. Nirmala Dhandukhlal Thakkar and others

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Nature of Litigation

Civil appeal against order granting temporary injunction in a property dispute.

Remedy Sought

Appellants sought setting aside of injunction orders granted by trial court and confirmed by appellate court.

Filing Reason

Appellants challenged the injunction granted in favor of respondent No.1 (original plaintiff) restraining them from interfering with possession of a flat.

Previous Decisions

Trial court granted temporary injunction; appellate court confirmed the order.

Issues

Whether a suit for injunction simpliciter is maintainable when the plaintiff is not in possession and relies on an agreement for sale without seeking specific performance. Whether the plaintiff established a prima facie case for grant of temporary injunction.

Submissions/Arguments

Appellants argued that the plaintiff was not in possession and the agreement for sale did not confer title; suit for injunction alone was not maintainable. Respondent No.1 argued that she was in possession and entitled to injunction to protect her possession.

Ratio Decidendi

A suit for injunction simpliciter without seeking specific performance of an agreement for sale is not maintainable when the plaintiff is not in possession, as an agreement for sale does not create any interest in immovable property under Section 54 of the Transfer of Property Act, 1882.

Judgment Excerpts

An agreement for sale does not create any interest in immovable property. A plaintiff who is not in possession cannot maintain a suit for injunction alone; the proper remedy is to seek specific performance or possession.

Procedural History

Original suit filed by respondent No.1 for permanent injunction. Trial court granted temporary injunction. Appeal against that order was dismissed by appellate court. Appellants filed this appeal from order.

Acts & Sections

  • Code of Civil Procedure, 1908: Order 39 Rules 1 and 2
  • Transfer of Property Act, 1882: Section 54
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High Court Bombay High Court Dismisses Appeal Against Injunction in Property Dispute Over Development Rights — Agreement for Sale Not Enforceable Without Registered Conveyance Deed.
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