Case Note & Summary
The petitioner, Bhagwanbhai Thakarshibhai Muliya, filed a suit for specific performance of an unregistered agreement to sell dated 22.2.2018, along with a prayer for temporary injunction restraining the respondent, Ghanshyambhai Parshottambhai Badreshiya, from transferring or alienating the suit property. The trial court allowed the injunction application (Exhibit 5) on 29.9.2021. The respondent appealed, and the learned 5th Additional District Judge, Surendranagar, in Civil Misc. Appeal No.4 of 2021, allowed the appeal and set aside the injunction order on 31.3.2022. The petitioner then filed the present petition under Articles 226 and 227 of the Constitution of India challenging the appellate order. The key legal issue was whether an unregistered agreement to sell could be relied upon for granting temporary injunction. The petitioner argued that the agreement was admissible for collateral purposes, while the respondent contended that it was inadmissible under Section 49 of the Registration Act, 1908. The High Court analyzed Section 17(1A) of the Registration Act, which makes agreements to sell relating to immovable property compulsorily registrable, and Section 49, which renders unregistered documents inadmissible for proving the terms of the contract. The Court held that the unregistered agreement could not be used to establish a prima facie case for injunction. The Court also noted that the appellate court had correctly applied the law and that no interference was warranted. The petition was dismissed, and the appellate order was upheld.
Headnote
A) Specific Relief Act - Temporary Injunction - Unregistered Agreement to Sell - Section 49 of the Registration Act, 1908 - The issue was whether an unregistered agreement to sell could be used as evidence for granting temporary injunction in a suit for specific performance. The Court held that an unregistered agreement to sell, being compulsorily registrable under Section 17(1A) of the Registration Act, 1908, is inadmissible in evidence for proving the terms of the contract, and thus cannot form the basis for granting temporary injunction. The appellate court's order setting aside the injunction was upheld. (Paras 7-12) B) Civil Procedure Code, 1908 - Temporary Injunction - Order 39 Rules 1 and 2 - Prima Facie Case - The Court considered the principles for grant of temporary injunction, emphasizing that a prima facie case must be established based on admissible evidence. Since the agreement to sell was unregistered and inadmissible, the plaintiff failed to make out a prima facie case. (Paras 7-12)
Issue of Consideration
Whether an unregistered agreement to sell can be relied upon for granting temporary injunction in a suit for specific performance?
Final Decision
The petition is dismissed. The order dated 31.3.2022 passed by the learned 5th Additional District Judge, Surendranagar in Civil Misc. Appeal No.4 of 2021 is upheld. No order as to costs.
Law Points
- Unregistered agreement to sell is inadmissible in evidence for the purpose of proving terms of contract
- Section 49 of the Registration Act
- 1908
- Section 17(1A) of the Registration Act
- Temporary injunction cannot be granted based on inadmissible document
- Order 39 Rules 1 and 2 CPC
