Case Note & Summary
The dispute arose from a property transaction where the appellant sought specific performance of an agreement to sell dated 12.04.2005 with the original defendant No. 1. The appellant claimed to have paid Rs. 20 lakhs as an advance for the property, with an additional Rs. 6 lakhs paid later. The original defendant No. 1 admitted the agreement and the receipt of payments, but subsequent defendants claimed the agreement was fabricated. The Trial Court ruled in favor of the appellant, granting specific performance. The High Court later reversed this decision, citing a lack of specific relief regarding the cancellation of subsequent sale deeds executed by defendant No. 2 in favor of defendants Nos. 3 and 4. The appellant contended that the High Court erred in its judgment, arguing that the original defendant's admissions sufficed for the decree. The Supreme Court reviewed the findings of the Trial Court, noting that the admissions negated the need for further proof and that the High Court misapplied the law regarding discretionary relief under the Specific Relief Act. Ultimately, the Supreme Court restored the Trial Court's decree, emphasizing the validity of the original agreement and the nominal nature of the subsequent sale deeds executed to defeat the appellant's rights. The Court quashed the High Court's order and reinstated the original decree without costs.
Headnote
A) Specific Performance - Agreement to Sell - Validity of Agreement - Specific Relief Act, 1963, Section 20 - The Trial Court found that the original owner admitted the execution of the agreement and receipt of substantial advance payment, thus entitled the plaintiff to specific performance. The High Court's reversal was deemed erroneous as it ignored the admissions and findings of the Trial Court (Paras 5.2, 5.8).
Issue of Consideration
Whether the High Court erred in quashing the decree for specific performance granted by the Trial Court.
Final Decision
The Supreme Court quashed the High Court's order and restored the Trial Court's decree for specific performance, finding that the admissions of the original owner were sufficient to grant the relief sought by the appellant.
Law Points
- Specific performance
- agreement to sell
- power of attorney
- nominal sale deeds
- discretionary relief
