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Delhi District Court

Sh. Ram Asrey Sharma vs Sh. Suresh Sharma on 7 July, 2018

        IN THE COURT OF SH. M. P. SINGH, ADDITIONAL
      DISTRICT JUDGE­03 (CENTRAL DISTRICT),   TIS HAZARI
                      COURTS, DELHI


CS No. 503/16
New CS No. 10444/16

In the matter of: ­


Sh. Ram Asrey Sharma,
S/o late Kapil Dev Sharma,
R/o M­130, Gali no. 9,
Shastri Nagar, Delhi - 52.                                                     ...... Plaintiff


                                                Versus


Sh. Suresh Sharma,
S/o late Chaturbhuj Sharma,
R/o M­134, Gali no. 9,
Shastri Nagar, Delhi ­ 52.                                                     ..... Defendant




    SUIT FOR RECOVERY OF MONEY AND/OR FOR SPECIFIC
         PERFORMANCE & PERMANENT INJUNCTION

                           Suit instituted on - 05.07.2011
                        Judgment pronounced on ­ 07.07.2018

                                           JUDGMENT

1. Plaintiff (vendee) and defendant (vendor) entered into an CS No. 503/16              Ram Asrey Sharma Vs. Suresh Sharma                      page 1 of 20 pages New CS No. 10444/16                Agreement to Sell on 17.08.2009 for a total sale consideration of Rs.   52,11,000/­   qua   property   no.   M­134,   Gali   no.   9,   Shastri Nagar,  Delhi  -  52  measuring  50  sq.  yards.  Plaintiff  claims  to have paid earnest money of Rs. 10,11,000/­ to the defendant on the   same   day   i.e.   17.08.2009.   As   per   the   requirements   of defendant/vendor,   plaintiff   made   part   payments   to   him   from time to time. Details of all the payments made to the defendant, as per the plaintiff, are as follows:­ Sl. No. Date Payment (All payments in cash)

1. 17.08.2009 Rs. 10,11,000/­ (towards earnest money)

2. 20.09.2009 Rs. 5,00,000/­

3. 23.09.2009 Rs. 5,00,000/­

4. 28.09.2009 Rs. 19,00,000/­ Total ­ Rs. 39,11,000/­

2. Date fixed for execution and registration of the sale deed was   11.10.2009.   Plaintiff   avers   that   he   approached   the defendant for execution and registration of the sale deed after arranging the balance sum of Rs. 13 lacs, but the latter failed to perform his part of the contract and disclosed that the original property   documents   had   been   mortgaged   with   Canara   Bank, Shastri   Nagar   Branch,   Delhi.   Nonetheless,   defendant   assured the plaintiff that he would make the payments to Canara Bank, obtain   the   original   documents   and   would   then   execute   the necessary   sale   deed   in   his   favour.   The   defendant,   however, CS No. 503/16              Ram Asrey Sharma Vs. Suresh Sharma                      page 2 of 20 pages New CS No. 10444/16                postponed   the   matter   on   one   pretext   or   the   other,   but   the plaintiff in good faith took no action against him.

3. Thereafter,   several   meetings   were   held   between   the parties   as   also   the   property   dealer,   but   to   no   avail.   On 20.05.2011 defendant approached the plaintiff and informed him that he had arranged for the money to be paid to the bank and requested him to give the original Agreement to Sell in order to show to the bank and assured that after getting the original title documents from the bank he would execute the sale deed in his favour.  On  26.05.2011  when   the plaintiff  asked   the defendant about   return   of   his   (defendant's)   title   documents   and registration of the sale deed in his favour, the latter  not  only refused to execute the sale deed, but also refused to return the money   paid   to   him   and   threatened   that   he   would   sell   the property to someone else for a higher price. Plaintiff then lodged a complaint dt. 26.05.2011 with PS Sarai Rohilla, but to no avail. Plaintiff avers that in terms of clause 2 of the Agreement to Sell, he   is   entitled   to   sue   for   specific   performance,   and   in   the alternative   to   get   double   the   amount   paid   by   him   to   the defendant. And then in paragraph no. 11 of his plaint he goes on to aver that 'defendant has no right or authority to sell/transfer or create any third party interest till the time the completes the deal   with   him   i.e.   without   making   the   payment   of   Rs. 78,22,000/­   towards   double   the   earnest   money   of   Rs.

CS No. 503/16              Ram Asrey Sharma Vs. Suresh Sharma                      page 3 of 20 pages New CS No. 10444/16                39,11,000/­'. On these averments, plaintiff seeks the following reliefs:

i) A decree for recovery of Rs. 78,22,000/­ i.e. double of Rs. 39,11,000/­ paid as earnest money.
ii) A   decree   for   specific   performance   thereby directing the defendant to execute the sale deed for property no. M­134, Gali no. 9, Shastri Nagar, Delhi -52 after receipt of balance sum of Rs. 13 lacs   and   to   hand   over   vacant   and   peaceful possession of the same.
iii) A   permanent   injunction   decree   thereby restraining   the   defendant,   his   associates   and representatives   from   selling,   transferring/ alienating or creating third party interest in built up   property   bearing   no.   M­134,   Gali   no.   9, Shastri Nagar, Delhi­52 measuring 50 sq. yards.

4. Defendant filed his written statement. He denies receiving Rs. 39,11,000/­ from the plaintiff. He avers that he had received Rs.   10,11,000/­   only   from   him;   Rs.   5,11,000/­   having   been received   on   12.08.2009   and   Rs.   5,00,000/­   on   17.08.2009.   He asserts that the agreement was to be performed by the parties on or before 11.10.2009, time being the essence of the contract and there was no clause in the agreement for extension of time. He avers that the plaintiff did not pay the entire amount before the scheduled date of 11.10.2009 so as to enable him to repay the bank loan and get the original title documents released from the bank   for   execution   and   registration   of   the   sale   deed   in   his (plaintiff's)   favour.   He   thus   submits   that   the   plaintiff   having CS No. 503/16              Ram Asrey Sharma Vs. Suresh Sharma                      page 4 of 20 pages New CS No. 10444/16                failed to pay the balance amount of Rs. 42 lacs and having not purchased the stamp papers of requisite value lacked readiness and willingness to perform his part of the contract. He goes on to state   that   the   plaintiff   never   wrote   to   him   that   he   had   the balance amount or that the draft sale deed was ready or that he had purchased the stamp papers. He adds that complete inaction on plaintiff's part from 17.08.2009 to 20.05.2011 only goes on to show that he had no intention or capacity to perform his part of the agreement. Since the plaintiff, it is stated, failed to perform his  part  of  the  contract,  the Agreement   to Sell  dt.  17.08.2009 automatically came to an end and the same is no longer a valid contract.

5. Defendant points out that plaintiff has not averred that he was ready and willing to perform his part of the contract and as such   the   suit   is   barred   by   section   16   (c),   Specific   Relief   Act. According to him, the suit is also barred by sections 10 and 14 and various other provision of Specific Relief Act. He alleges that it is the plaintiff who violated the terms of the Agreement to Sell and   as   such   he   is   not   entitled   to   the   relief   of   specific performance. He avers that it was in fact the plaintiff who had approached him to buy the property through a property broker, namely, Suresh Prashar.

6. Defendant asserts that he had very well disclosed to the plaintiff   even   prior   to   execution   of   Agreement   to   Sell   dt.

CS No. 503/16              Ram Asrey Sharma Vs. Suresh Sharma                      page 5 of 20 pages New CS No. 10444/16                17.08.2009 that the property in question stood mortgaged with Canara Bank, Shakti Nagar, Delhi by handing over the original title   deed.   Denying   the   incident   that   allegedly   took   place   on 20.05.2011, defendant states that he never asked the plaintiff to hand   over   the  original   Agreement   to   Sell  to   him.  He  submits that   no   prudent   person   would   believe   that   for   the   release   of original   title   deeds,   the   bank   would   insist   for   the   subsequent Agreement   to   Sell.   He   alleges   that   the   photocopy   of   the Agreement   to   Sell   (Ex.   PW1/1)   furnished   on   record   by   the plaintiff   showing   the   alleged   acknowledgment/endorsement   is forged   and   fabricated.   Asserting   that   he   did   not   receive   Rs. 39,11,000/­,   defendant   submits   that   he   never   signed   any purported   acknowledgment/receipt.   He   denies   meeting   the plaintiff on 26.05.2011. He states that he has already sold out the   property   in   question   to   one   Smt.   Shama   Rani   wife   of Praveen Kumar  vide sale  deed  dt.  12.08.2011. He  vehemently denies that plaintiff after arranging the balance sum of Rs. 13 lacs approached him for execution and registration of sale deed and that he (defendant) failed to perform his part of the contract. He states that he has already forfeited the earnest money paid by   plaintiff   to   him   on   account   of   his   (plaintiff's)   failure   to perform   his   part   of   the   contract.   Denying   other   averments, defendant seeks dismissal of the present suit.

7. Plaintiff   filed   his   replication   wherein   he   reiterated   and CS No. 503/16              Ram Asrey Sharma Vs. Suresh Sharma                      page 6 of 20 pages New CS No. 10444/16                reaffirmed his averments as set out in the plaint. 

8. Issues, framed on 21.11.2012, are as follows: ­

1. Whether the plaintiff is entitled to the grant of decree to seek specific  performance of  the agreement   to sell dated 17.08.2009 or in the alternative the plaintiff can be granted a decree for the recovery of an amount of Rs. 78,22,000/­? OPP

2. Whether the plaintiff is entitled to grant of decree of permanent   injunction   in   terms   of   prayer   (ii)   of   the plaint? OPP

3. Whether the plaintiff failed to perform his part of his obligation   in   terms   of   agreement   to   sell   dated 17.08.2009? OPD

4. Whether   the   plaintiff   was   not   ready   and   willing   to perform   his   part   of   his   obligation   in   terms   of   the agreement to sell dated 17.08.2009? OPD

5. Whether the suit filed by the plaintiff is barred u/s 16

(c), 20 and 14 of the Specific Relief Act? OPD

6. Relief.

9. In plaintiff's evidence, plaintiff (PW1) was his sole witness. Plaintiff   (PW1)   was   examined­in­chief   and   cross­examined   on 01.05.2015   and   on   which   day   (01.05.2015)   plaintiff's   evidence stood closed. In defendant's evidence, defendant Suresh Sharma (DW1)   was   examined­in­chief   and   partly   cross­examined   on 14.03.2007.   Defendant   thereafter   stopped   appearing   and   he suffered the proceedings ex parte vide Order dt. 31.07.2017.

10. Arguments heard. Record perused.

CS No. 503/16              Ram Asrey Sharma Vs. Suresh Sharma                      page 7 of 20 pages New CS No. 10444/16               

11. Issue­wise findings are as follows:

12. Issues   no.   3   and   4  ­   These   two   issues   are   taken   up together. It is not in dispute that the property in question was agreed   to   be   sold   for   a   total   consideration   of   Rs.   52,11,000/­. However, on the point of the money advanced towards purchase of this property the parties differ. As per the plaintiff, he had advanced a total of Rs. 39,11,000/­ in four installments and all the   payments   had   been   made   in   cash.   Defendant   however refutes  this.  As  per   the defendant,  the  plaintiff  had   paid   him only Rs. 10,11,000/­ in two installments; firstly Rs. 5,11,000/­ on 12.08.2009   and   then   Rs.   5,00,000/­   on   17.08.2009.   Plaintiff   in support of his claim about payment of Rs. 39,11,000/­ relied on handwritten notings on the back page of document Ex. PW1/1, which   is   a   colour   photocopy   of   the   Agreement   to   Sell   dt. 17.08.2009.   Defendant   (DW1),   in   his   cross­examination, admitted   his   signature   at   the   bottom   of   this   agreement.   He (DW1)   however   denied   his   purported   signatures   on   the handwritten notings on the back page of Ex. PW1/1. Even in his written   statement,   he   had   denied   receiving   the   payments   as reflected   in   the   handwritten   notings   on   the   back   page   of document Ex. PW1/1. The original of document Ex. PW1/1 is not on record. As per the plaintiff, defendant had taken away the same from him on the pretext of showing it to the bank officials, and which averment the latter refuted. Inasmuch as the original CS No. 503/16              Ram Asrey Sharma Vs. Suresh Sharma                      page 8 of 20 pages New CS No. 10444/16                of the same is not on record, even the handwritten notings on the   back   page   thereof   are   not   in   the   original   and   in   such   an eventuality it was incumbent on the part of the plaintiff to prove the handwritten notings by way of secondary evidence. And in order to lead secondary evidence under sections 63/65, Evidence Act, it was essential for the plaintiff to first establish that the original of Ex. PW1/1 was in power and possession of the adverse party i.e. the defendant as claimed by him. However, plaintiff's plea   that   original   of   document   Ex.   PW1/1   was   in   power   and possession   of the  defendant   is  highly   doubtful  and   stands not proved.   Plaintiff   claims   that   on   20.05.2011   the   defendant approached   him   and   informed   that   he   had   arranged   for   the money   to   be   paid   to   the   bank   and   requested   him   to   give   the original   Agreement   to   Sell   in   order   to   show   to   the   bank   and assured that after getting the original title documents from the bank   he   would   execute   the   sale   deed   in   his   favour.   This assertion of the plaintiff cannot be believed. It is inconceivable to think that for the release of original title deeds, the bank would insist for the subsequent Agreement to Sell. It is pertinent to mention here that the defendant could certainly not be asked to prove a negative fact/assertion that he had not taken the original Agreement   to   Sell   from   the   plaintiff.   Onus   to   prove   this assertion of handing over of the Agreement to Sell was squarely on   the   plaintiff   and   he   has   failed   to   prove   it.   Further,   the CS No. 503/16              Ram Asrey Sharma Vs. Suresh Sharma                      page 9 of 20 pages New CS No. 10444/16                handwritten notings on document Ex. PW1/1 purportedly show a cash   payment   of   Rs.   5   lacs   made   on   20.09.2009.   Next   to   this handwritten   noting   of   20.09.2009,   there   is   a   signature   of   a witness.   This   witness,   who   had   appended   his   signatures   on 20.09.2009   ostensibly   in   respect   of   the   cash   payment,   did   not step into the witness box. The examination of this witness was although more essential as the plaintiff was only relying on the photocopy of the handwritten notings on the back page of Ex. PW1/1.   Furthermore,   the   payments   (Rs.   5,00,000/­   on 20.09.2009, Rs. 5,00,000/­ on 23.09.2009 and Rs. 19,00,000/­ on 28.09.2009)   were   made   in   cash   and   in   very   quick   succession. Plaintiff in his plaint does not explain the source of these three cash   payments.   He   does   not   furnish   his   income   tax   returns. Plaintiff (PW1) in his cross­examination states that he is into business and that he files income tax returns of Rs. 6.00 ­ 6.50 lacs per annum. Therefore, for a person of annual income of Rs. 6.00   -   6.50   lacs   to   make   payments   of   huge   amounts   (Rs. 5,00,000/­   on  20.09.2009,   Rs.  5,00,000/­   on  23.09.2009   and  Rs. 19,00,000/­ on 28.09.2009) and that too in very quick succession appears   to   be   somewhat   inconceivable   and   little   doubtful. Plaintiff (PW1) in his cross­examination explained that he had taken Rs. 5 lacs from his son Girija Narain Sharma; that the third installment of Rs. 5 lacs paid on 23.09.2009 was out of his own funds; and that for payment of the last installment of Rs. 19 CS No. 503/16              Ram Asrey Sharma Vs. Suresh Sharma                      page 10 of 20 pages New CS No. 10444/16                lacs, he had taken Rs. 5 lacs from Ravi Kant Sharma and the remaining   Rs.   14   lacs   was   available   with   him   in   cash   at   his residence. Girija Narain Sharma and Ravi Kant Sharma did not step   into   the   witness   box.   That   apart,   there   is   no material/document on record to show that Girija Narain Sharma and Ravi Kant Sharma had in fact advanced loans of Rs. 5 lacs each   to   the   plaintiff.   There   is   also   no   material/document   on record   to   show   that   Girija   Narain   Sharma   and   Ravi   Kant Sharma in fact possessed money to the tune of Rs. 5 lacs each. In short, the self­serving ipse dixit of the plaintiff, sans any cogent material whatsoever on record to support his claim that he made cash payments (Rs. 5,00,000/­ on 20.09.2009, Rs. 5,00,000/­ on 23.09.2009 and Rs. 19,00,000/­ on 28.09.2009) to the defendant, cannot   be   accepted.   The   available   evidence   on   record   goes   to prove   that   plaintiff   had   advanced   Rs.   10,11,000/­   only   to   the defendant, which the latter admits.

13. Thus,   from   the   available   evidence   on   record,   it   stands proved   that   plaintiff   had   paid   Rs.   10,11,000/­   only   to   the defendant towards purchase of the property. This left a balance of Rs. 42 lacs that was still to be paid. Plaintiff did not pay this amount by the scheduled date i.e. 11.10.2009. Plaintiff has not been able to establish that he had with him the balance funds of Rs. 42 lacs as on 11.10.2009. He has not filed his bank account statement   of   the   relevant   period   showing   that   the   balance CS No. 503/16              Ram Asrey Sharma Vs. Suresh Sharma                      page 11 of 20 pages New CS No. 10444/16                amount   of   Rs.   42   lacs   was   available   with   him.   Not   only   this, there is no other document on record to even remotely suggest that   he   possessed   the   balance   amount   of   Rs.   42   lacs   as   on 11.10.2009. Conversely, if the plaintiff's averment that only Rs. 13 lacs was still to be paid be accepted as the gospel truth, yet plaintiff has no material/document whatsoever to establish that he had with him Rs. 13 lacs as on 11.10.2009. This Court is of the   view   that   the   plaintiff   failed   to   perform   his   part   of   the obligations as enjoined upon him by the Agreement to Sell dt. 17.08.2009.

14. It cannot go unnoticed that there is not a single averment in   the   entire   plaint   that   plaintiff   was   ready   and   willing   to perform his part of the contract in terms of the Agreement to Sell. The fact that plaintiff was not in possession of the balance funds of Rs. 42 lacs only goes to show that he was not ready and willing to perform his part of the contract. Further, this lack of readiness   and   willingness   on   the   part   of   the   plaintiff   is   also evident   from   the   fact   that   the   plaintiff   at   no   point   of   time purchased any stamp papers for execution of the sale deed. That apart,   there   was   complete   inaction   on   plaintiff's   part   from 17.08.2009   till   20.05.2011.   This   only   goes   to   show   that   he (plaintiff) had no intention or capacity to perform his part of the contract. Between the period 17.08.2009 to 20.05.2011 plaintiff at no point of time ever wrote to the defendant. In the plaint, he CS No. 503/16              Ram Asrey Sharma Vs. Suresh Sharma                      page 12 of 20 pages New CS No. 10444/16                merely states that several meetings were held between him, the defendant and the property dealer. However, he does not give any details of such meetings. This inaction for 21 months reflects lack of readiness and willingness on his part. Plaintiff (PW1) in his   cross­examination   tried   to   explain   this   away   by   deposing that inasmuch as the defendant was his neighbour he did not feel   the   need   to   ever   write   any   letter   to   him.   However,   this explanation on the plaintiff does not seem  to be credible. The evidence   on   record   only   shows   absolute   inaction   on   plaintiff's part for 21 months between the period 17.08.2009 to 20.05.2011.

15. Plaintiff took the stand that it was in fact the defendant who   was   at   fault   inasmuch   as   the   latter   never   informed   him about the mortgage of the property with the bank and that he came to know of it subsequently. Even assuming this stand of the plaintiff to be the gospel truth, yet the question to be asked is whether he himself was ready with the balance funds as on 11.10.2009.   The   answer   to   this   has   to   be   categorically   in   the negative.   The   material   on   record   clearly   indicates   that   as   on 11.10.2009 the plaintiff was never ready and willing to perform his part of the agreement. Therefore, when the plaintiff himself was not ready and willing, he cannot then shift the blame to the other side for the ultimate failure of the deal. Had the plaintiff in the very first place shown his readiness and willingness, then the question of the defendant not having conveyed to him about CS No. 503/16              Ram Asrey Sharma Vs. Suresh Sharma                      page 13 of 20 pages New CS No. 10444/16                the mortgage at the time of execution of the Agreement to Sell would have come into the picture. Plaintiff being himself at fault cannot therefore point fingers at the defendant. Plaintiff cannot seek   to   prove   his   case   in   an   indirect   manner   by   urging   that defendant's case has a certain deficiency or that there had been non­compliance of a certain obligation on his part. Plaintiff must stand on his own legs. To put it in other words, a plaintiff must succeed on the strength of his own case and not on the strength of deficiencies, if any, in defendant's case. He cannot raise the edifice of his case by highlighting the deficiencies / loopholes in defendant's case. In this regard, the following decisions can be referred   to:  Sankar   Kumar   &   Anr.   vs.   Mohanlal   Sharma, AIR 1998 Orissa 117;  Shiv Nandan Sachdeva (Sh.) vs. Smt. Ruby,   2009   V   (Delhi)   55;  Umesh   Bondre   vs.   Wilfred Fernandes,   AIR   2007   Bombay   29;  M.   P.   Narayan   vs.   Sm.

Sudhadevi & Ors., AIR 1986 Cal 256;  State of West Bengal vs. Subimal Kumar Mondal & Anr.AIR 1982 Cal 251 and Sayed   Muhammed   Mashur   Kunhi   Koya   Thangal   Vs. Badagara Jumayath Palli Dharas Committee and Others, (2004)7 SCC 708 : JT 2004 (6) SC 556. It appears that plaintiff took this plea merely to cover up his own shortfalls. 

16. The discussion on these two issues is concluded by holding that   plaintiff   failed   to   perform   his   part   of   the   obligations   as CS No. 503/16              Ram Asrey Sharma Vs. Suresh Sharma                      page 14 of 20 pages New CS No. 10444/16                enjoined upon him in the Agreement to Sell dt. 17.08.2009. It is further   observed   that   plaintiff   was   not   ready   and   willing   to perform his part of the obligations in terms of the Agreement to Sell dt. 17.08.2009.

17. Issue no. 1 ­ The issue is whether the plaintiff is entitled to   the   grant   of   decree   to   seek   specific   performance   of   the agreement   to   sell   dated   17.08.2009,   or   in   the   alternative whether   he   can   be   granted   a   decree   for   recovery   of   Rs. 78,22,000/­,   onus   of   proof   being   on   the   plaintiff.   It   is   already observed   hereinabove   that   the   plaintiff   was   never   ready   and willing to perform his part of the contract and that he had not performed his part of the obligations. It bears repetition to state that   there   is   not   a   single   averment   in   the   plaint   that   the plaintiff   was   ready   and   willing   to   perform   his   part   of   the contract.   That   apart,   a   holistic   reading   of   the   plaint   (in particular paragraph 11 of the plaint) reflects that the plaintiff is really  not  interested in specific performance of the contract and he is rather interested in recovery of Rs. 78,22,000/­. It is thus   held   that   that   plaintiff   is   not   entitled   to   the   specific performance of the contract.

18. The other limb of this issue is whether in the alternative plaintiff can be granted a decree for recovery of Rs. 78,22,000/­. Plaintiff claimed this amount being the double of Rs. 39,11,000/­ that he claims to have advanced to the defendant. The basis of CS No. 503/16              Ram Asrey Sharma Vs. Suresh Sharma                      page 15 of 20 pages New CS No. 10444/16                this claim is that as per clause 2 of the Agreement to sell he is entitled to claim double the earnest money. To begin with, as already observed the evidence on record proves that the plaintiff had advanced a sum of Rs. 10,11,000/­ only to the defendant and not   Rs.   39,11,000/­   claimed   by   him.   Plaintiff's   claim   that   in terms   of   clause   2   of   the   Agreement  to   Sell   dt.   17.08.2009   he ought   to   be   refunded   double   the   money   paid   by   him.   Such   a claim   is   not   legally   tenable   for   following   reasons.   Firstly,   as already  observed  hereinabove,  the material/evidence on  record clearly indicates that the plaintiff was not ready and willing to perform his part of the contract and he did not in fact fulfill his obligations   under   the   Agreement   to   Sell   dt.   17.08.2009.   The plaintiff   himself   being   at   fault,   he   cannot   therefore   seek   to recover double the amount paid by him to the defendant. That apart,   the   clause   for   payment   of   double   amount   is   clearly  in terrorem.  Such a clause would clearly be hit by sections 73/74, Contract Act, being in the nature of penalty. Under the extant law, the plaintiff cannot thus be entitled to recover double the amount paid by him to the defendant towards purchase of the property in question. 

19.  The stand of the defendant that plaintiff, being guilty of breach of contract, is not entitled to refund of the money paid and   that   the   same   stood   forfeited   would   not   be   tenable.   The amount   of   Rs.   10,11,000/­   can   be   forfeited   only   if   defendant CS No. 503/16              Ram Asrey Sharma Vs. Suresh Sharma                      page 16 of 20 pages New CS No. 10444/16                proves   that   he   had   suffered   a   loss   or   legal   injury   of   Rs. 10,11,000/­ and not otherwise. The fact that Agreement to Sell Ex.   PW1/1   contained   a   clause   for   forfeiture   of   the   earnest amount would not enable the defendant, under the extant law, to retain the same. Sections 73 and 74, Contract Act, would hit such   a   clause   being   in   the   nature   of   'penalty'.   Two   relevant judgments in this regard are a Constitution Bench judgment of Apex Court in Fateh Chand vs. Balkishan DassAIR 1963 SC 1405 and  Kailash Nath Associates vs. Delhi Development Authority and Another, (2015) 4 SCC 136. Thus, it is the view of this Court that defendant ought to refund Rs. 10,11,000/­ to the  defendant.   Invoking  Order   VII   Rule  7,   CPC,  it   is  ordered that on this amount of Rs. 10,11,000/­ plaintiff shall be entitled to pendente lite and future interest of 8% per annum only.

20. This   is   issue   is   answered   in   the   following   terms.   The plaintiff   is   not   entitled   to   decree   for   specific   performance. Plaintiff is however entitled to refund of Rs. 10,11,000/­ from the defendant together with pendente lite and future interest of 8% per annum thereon.

21. Issue no. 2 ­ The issue is whether the plaintiff is entitled to grant of decree of permanent injunction in terms of prayer (ii) of the plaint, onus of proof being on the plaintiff. Inasmuch as the plaintiff is not entitled to the relief of specific performance of CS No. 503/16              Ram Asrey Sharma Vs. Suresh Sharma                      page 17 of 20 pages New CS No. 10444/16                contract,   he   cannot   be   entitled   to   the   relief   of   permanent injunction   as   prayed   by   him.   That   apart,   under   section   54, Transfer of Property Act a mere Agreement to Sell creates no charge or any interest in any property. This issue is accordingly decided against the plaintiff.

22. Issue no. 5 ­ The issue is whether sections 16 (c)20 and 14 of Specific Relief Act bar the instant the suit of the plaintiff, onus of proof being on the defendant. This issue is answered in the following terms.

(a) Section 14 (1), Specific Relief Act enumerates the contracts that cannot be specifically enforced. The contract   in   the   present   case   does   not   fall   within   the ambit of section 14 (1), Specific Relief Act. This suit is not hit by section 14 (1), Specific Relief Act. 

(b) Section   16   (c),   Specific   Relief   Act   mandates that   a   person   would   not   be   entitled   to   the   relief   of specific performance who fails to aver and prove that he   was   always   ready   and   willing   to   perform   the essential terms of the contract.  It  bears repetition to state   that   there   is   no   averment   whatsoever   in   the entire   plaint   that   plaintiff   was   ready   and   willing   to perform his part of the contract. A holistic reading of the plaint reflects that plaintiff was essentially seeking CS No. 503/16              Ram Asrey Sharma Vs. Suresh Sharma                      page 18 of 20 pages New CS No. 10444/16                to   recover   Rs.   78,22,000/­.   Further,   as   discussed hereinabove the evidence on record also does not show that plaintiff was ready and willing to perform his part of   the   contract.   Consequently,   findings   of   fact   in   the discussion on the aforesaid issues entail that the relief of specific performance is hit by section 16 (c), Specific Relief Act. However, section 16 (c), Specific Relief Act does not bar plaintiff's claim to recovery of money. 

(c) Section 20 (1), Specific Relief Act merely states that the relief of specific performance is a discretionary one.   Section   20   (2),   Specific   Relief   Act   enumerates three   circumstances   under   which   the   Court   may exercise   its   discretion   not   to   decree   specific performance. Section 20, Specific Relief Act does not as such hit the very institution or maintainability of the suit. Whether or not the discretion is to be exercised would   be   essentially   depend   upon   the material/evidence brought forth in a particular case. As already observed hereinabove in the present case, this Court   has   exercised   its   jurisdiction   not   to   decree specific performance.

23. Relief  ­ In view of the above, the suit stands decreed in plaintiff's favour and against the defendant in the sum of  Rs.

CS No. 503/16              Ram Asrey Sharma Vs. Suresh Sharma                      page 19 of 20 pages New CS No. 10444/16                10,11,000/­ together with pendente lite and future interest @ 8% per   annum   thereon.  Parties   are   left   to   bear   their   own   costs. Decree   sheet   be   prepared   accordingly.   File   be   consigned   to record room.



                                                                                    Digitally
                                                                                    signed by
                                                                                    MURARI
                                                                      MURARI        PRASAD
                                                                      PRASAD        SINGH
                                                                                    Date:
                                                                      SINGH         2018.07.07
                                                                                    16:12:07
ANNOUNCED IN THE OPEN                                                               +0530


COURT ON 07.07.2018
                                                    (M. P. SINGH)
                                                ADJ­03 (CENTRAL)
                                              TIS HAZARI COURTS:
                                                       DELHI




CS No. 503/16              Ram Asrey Sharma Vs. Suresh Sharma                      page 20 of 20 pages
New CS No. 10444/16