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SMT. JANKI DEVI & OTHERS V/S SHRI HARISH CHANDER CHAWLA
[May 18, 2011]
Specific performance compels a man to perform his legal duty.
Guided by-
Prof. Asawari Abhyankar
Submitted by-
Jaskeerat Singh Johar
1st year D Division
PRN- 15010126330
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Table of Contents
Index Of Authorities......................................................................3
Issues............................................................................................ 5
Rules Applicable............................................................................ 6
Judgment......................................................................................9
Conclusion..................................................................................13
Bibliography................................................................................ 14
Websites..................................................................................14
Books....................................................................................... 14
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Index of Authorities
Cases
Rules
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Facts of the case
Brief facts of the case as set out by the respondent in the
complaint are that the appellants in an agreement to sell dated
3.9.97 had agreed to sell the first floor of the property bearing no.
11/16, Old Rajinder Nagar, New Delhi with proportionate land
underneath to the respondent for a total consideration of
Rs.3,10,000/-. Out of the said sale consideration amount, an
amount of Rs 3,00,000 was paid by the respondent on 3.9.97,
while the balance amount of Rs.10,000/- was paid vide receipt
dated 4.9.97 and a number of documents to this effect were
executed by the appellants in favour of the respondent. That it
was agreed to handover the actual, vacant and physical
possession to the respondent by 31.3.99 failing which the
appellants were liable to pay damages @Rs.10,000 p.m for a
period of eighteen months and then @ Rs.20,000 p.m thereafter.
On failure of the appellants to do so the respondent served a legal
notice dated 20.9.2000 but no reply was received. Consequently
the respondent filed a suit for specific performance and
permanent injunction which in the judgment and decree dated
1.12.04 was decided in favour of the respondent and against the
appellants.
Feeling aggrieved with the same, the appellants have preferred the present appeal
in the honorable High Court of Delhi.
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Issues
When can specific performance of a contract
be enforced?
Who can obtain Specific performance of a
contract?
What are the defenses available to the
contract?
Whether specific performance of contract can
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Rules Applicable
Specific performance is an order of a court which requires a
party to perform a specific act, usually what is stated in a
contract.1 It is an alternative to awarding damages, and is classed
as an equitable remedy commonly used in the form of injunctive
relief concerning confidential information or real property.
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not an adequate remedy, and in some specific cases such as land
sale. Such orders are discretionary, as with all equitable remedies,
so the availability of this remedy will depend on whether it is
appropriate in the circumstances of the case
Basic Rules.
Sections 9-25 deal with specific performance of contracts: Basic
rules.
Decree of specific performance is discretionary relief. 3
There should be a valid contract.4
If damages are an adequate remedy, no specific
performance would be ordered. For the act which requires
continued supervision of the Court, no specific performance
would be ordered.5
No specific performance would be ordered for contracts for
personal work or service
Equity will insist on the principle of mutuality
The person against whom the relief is claimed may take plea
6
by way of defense under law relating to contract.
4 [ Ambica Prasad vs Naziran Bibi, AIR 1939 All 64], [Balram v Natku, AIR 1928 PC 75]
6 (Sec.9)
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Section 10 of the Specific Relief Act, 1963
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(i) That the breach of a contract to transfer immovable property
cannot be adequately relieved by compensation in money; and
(ii) That the breach of a contract to transfer movable property can
be so relieved except in the following cases:-
(a) Where the property is not an ordinary article of commerce, or
is of special value or interest to the plaintiff, or consists of goods
which are not easily obtainable in the market;
(b) Where the property is held by the defendant as the agent or
trustee of the plaintiff.
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Judgment
On all the issues, the learned trial court gave findings in favour of
the respondent and against the appellants. The learned trial court
did not believe the version of the appellants that they had signed
some blank papers which were later converted by the respondent
to fabricate the agreement to sell and receipts etc. The learned
trial court also found that no evidence was led by the appellants
to show that any case was pending against their firm at the
Bombay High Court and that the same was being pursued by the
respondent. The learned trial court also found that the documents
which were registered in the office of the Sub- Registrar i.e.
General Power of Attorney and two Special Power of Attorneys and
the two Wills dated 12.9.97 cannot be said to be forged and
fabricated as the appellants themselves had admitted the fact
that they had appeared before the Office of the Sub-Registrar to
execute the same.
In the present case, this court did not find that the learned trial
court has exercised its discretion in an arbitrary or unreasonable
manner as the appellants could not succeed in offering any
explanation for the execution of the sale documents and more
importantly the documents registered by them by presenting
themselves before the Office of the Sub- Registrar.
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the present appeal and the same is hereby dismissed, leaving the
parties to bear their own costs.
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Analysis and
Application
This is a clear case of specific performance and possible fraud.
After looking at the facts of the case some clear points come to
mind. The plaintiff is a businessman upon his own showing and
thus his plea that he signed documents of such importance
blindly is too farfetched. The plaintiff has thus failed to make out a
prima facie case for continuance of the interim injunction granted
on 13th July, 1998.
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to deal with local authorities such as NDMC 9 etc., clearly leads to
the prima facie conclusion that the plaintiff had gone through a
transaction of sale. These documents are the routine documents
executed when a sale of immovable property takes place in Delhi
and the execution and further registration of the documents thus
prima facie indicates that what was intended was a sale of the
property and not the loan as alleged by the plaintiff.
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Conclusion
It is a settled legal position that once a contract to transfer of
immovable property is proved on record then the normal rule is to
grant specific performance and not granting the same can be only
under exceptional circumstances 13. Some of the circumstances
have been mentioned in Section 20 (2) of the Specific Relief Act,
1963 as to under what circumstances the court shall exercise
such discretion, the same being that if under the terms of the
contract the plaintiff gets unfair advantage over the defendant
the court may not exercise its discretion in favour of the petitioner
or where the defendant would be put to undue hardship which he
did not foresee at the time of execution of the agreement and
where it is inequitable to grant specific relief in the given facts.
NO such thing has happened in the current case.
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Thus, this concludes that specific performance is available as a
decree only if the conditions mentioned above are satisfied and
also the evidence submitted by the appellants in this case was
not sufficient to prove any kind of fraud in the documents. There
were a few irregularities in the contract between the parties but
that is no reason for the court to doubt the validity of the
documents and proofs submitted by the respondent.
Bibliography
Websites
http://indiankanoon.org/doc/1271381/
http://en.wikipedia.org/wiki/Specific_performance
http://articlesonlaw.wordpress.com/2013/10/22/law-on-specific-
performance-of-contract/
http://indiankanoon.org/search/?formInput=cites:1271381
Books
Law study material for IPCC ICAI
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Contract Bare Act - Professionals
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