148.
(SC) 18-08-2022
Specific Relief Act, 1963 (47 of 1963), Sections 10, 16 (c), 20, 21, 22, 23 -- Suit for specific performance of contract – Alternative relief of refund -- Agreement to sell for two properties – Soon after, plaintiff came to know that defendant was likely to assign the properties to third parties, filed application for temporary injunction, thereafter, communicated his interest to pay balance sale consideration and requested for execution of sale deed -- Request denied by defendant -- Suit filed for specific performance decreed by Trial Court – Division Bench of High Court instead of decreeing the suit for specific performance allowed the alternative relief of refund of advance -- Direction was given to defendant to pay plaintiff along with interest @ 12% p.a. from date of agreement till realization and also to bear entire cost of suit before Trial Court and High Court – High Court deny specific performance on account of the following reasons:
i) That a huge sum of Rs.50 lakhs was paid as cash to the defendant which covers almost major portion of the sale consideration. Under normal circumstances when huge amounts are involved, some payments are paid either by cheque or demand draft.
ii) Plaintiff is a person who is capable of purchasing the entire property by paying the entire sale consideration at one stretch. If he could pay fifty lakhs on 20.01.2005, he could have paid the balance amount within a short time.
iii) It is not known under what circumstance a period of four months had been stated for complying with the terms of contract.
iv) Plaintiff claims that he was put in possession of the property which appears to be incorrect. There is no evidence to prove the said fact.
v) Plaintiff is a person who does not know to read Malayalam, but still the agreement is executed in Malayalam.
vi) The agreement is written by PW3 who is an interested party to the transaction. He claims to have received commission from both the parties which is not the practice followed in such situations.
vii) Defendant has a contention that his intention was only to get a loan for which he had signed certain papers. But he further states that he did not receive the loan. According to him, he had not received any amount from the plaintiff which of course we don’t agree.
viii) The actual amount paid by the plaintiff to defendant can only be discerned from the agreement, the genuineness of which is doubted by the defendant.
ix) Exts. A5 and A5(a) though had been relied upon by the Court below, the manner in which the said documents are executed and the purpose is doubtful.
x) The intention of the defendant was to sell only one item of property as is evident from Exts.B1 and B2 advertisements. The advertisements were published on 1st January, 2005. A person who is in dire need of finances will either sell his property or he may take loan. Taking into account the factual circumstances, it is possible that a loan was arranged by the plaintiff for which a document in the nature of Ext.A1 was prepared.
Held, reasons given by High Court for not awarding relief of specific performance were sufficient -- Substantial justice was done by granting the alternate relief.
(Paras 9-14)