47. (P&H HC)
(Reserved on: 17.09.2024 Decided on: 14.10.2024)
A. Specific Relief Act, 1963 (47 of 1963), Section 16 -- Suit for specific performance -- Agreement to sell/ Document -- Onus to prove -- When the question before the court is as to "whether the transaction in question was a bona fide and genuine one", it is for the party/plaintiff relying on the transaction, who has to first of all prove its genuineness and only thereafter would the defendant be required to discharge the burden in order to dislodge such proof and establish that the transaction was sham and fictitious.
(Para 21)
B. Specific Relief Act, 1963 (47 of 1963), Section 16 -- Suit for specific performance -- Agreement to sell – Proof of -- Readiness and Willingness – Non-reply to legal notice by defendant – Effect of -- Question of readiness and willingness on the part of plaintiffs will arise only in case the valid execution of agreement to sell is proved on record -- Once the agreement to sell is not proved to be validly executed any readiness and willingness on the part of the plaintiff loses its significance -- Simply because defendants did not respond to the legal notice will not mean that they admitted the agreement to sell or they were bound to execute the sale deed.
(Para 49)
C. Punjab Courts Act, 1918 (6 of 1918), Section 41 – Code of Civil Procedure, 1908 (V of 1908), Section 100 – Regular Second Appeal -- Concurrent finding of facts of two courts -- Scope to interfere by the High Court – High Court is not to interfere with the concurrent findings of the Courts below but it is not an absolute rule -- There are some exceptions for interference by the High Court, when it is found that:
-- When finding of fact by the Courts below is vitiated by non-consideration of material evidence or erroneous approach.
-- The Courts have drawn wrong inferences from the proved facts by applying the law erroneously.
-- The Courts have wrongly cast the burden of proof.
-- When decision is based upon no evidence, which would mean that not only there is total dearth of evidence but also, where is the evidence taken as a whole, is not reasonably capable of supporting the finding.
-- When the judgment of the final Court of fact is based on misinterpretation of documentary evidence or on consideration of inadmissible evidence or ignoring material evidence.
(Para 60)
D. Specific Relief Act, 1963 (47 of 1963), Section 16 – Code of Civil Procedure, 1908 (V of 1908), Order 9 Rule 1 -- Suit for specific performance -- Non-joinder of necessary party -- Effect of -- Co-owners in the suit property to the extent of 1/25th share each at the time of filing of the suit were necessary party to the suit -- Legal heirs of one of the executants of the agreement to sell, were not brought on record -- Suit is bad for non-joinder of necessary parties and on this ground alone, the suit was liable to be dismissed.
(Para 64-69)
E. Specific Relief Act, 1963 (47 of 1963), Section 12, 16 – Capital of Punjab (Development and Regulation) Act, 1952 (27 of 1952), Section 5, 22 -- Chandigarh (Sale of Sites and Buildings) Rules 1960, Rule 14 – Agreement to sell -- Part performance of contract – Fragmentation, division, bifurcation and apart-mentalization of residential unit in Phase-I of Chandigarh are prohibited -- Suit property falls in this category – By permitting part performance of the contract, fragmentation cannot be allowed by Court, as it will be in clear violation of law.
(Para 74, 75)
F. Specific Relief Act, 1963 (47 of 1963), Section 16 – Suit for specific performance -- Absence of clause in the agreement for seeking specific performance -- Contract provides for the alternative in case of default – It cannot be a reason to decline the relief of specific performance.
(Para 79)
G. Specific Relief Act, 1963 (47 of 1963), Section 16 – Suit for specific performance -- Escalation of price – Effect of -- Escalation in prices cannot be a ground to decline the relief of specific performance nor the hardship on the part of vendors be a ground but still the Court is required to look into all the facts and circumstances in order to see as to whether the equity lies in favour of the plaintiff to grant the relief of specific performance -- Discretion is to be exercised based upon the sound judicial principles.
(Para 81, 82)