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Delhi District Court

Sh. Ravi Kumar vs Sh. Shiv Sharan Lal on 28 February, 2014

                                         1

                           IN THE COURT OF SH. SANJEEV AGGARWAL  
                            ADJ­03 (North­West) Rohini Courts DELHI

Suit No. 184/14

Sh. Ravi Kumar
S/o Sh. S.Kumar ,
R/o A­1/137, Sector 11, 
Rohini, Delhi­110085                                        .....Plaintiff
                      
                     Versus

1. Sh. Shiv Sharan Lal
S/o Late Sh. Havdu,
R/o B­266, Saraswati Vihar,
Delhi­110034
2. Sh. Raghuvir Singh @ R.S.Shastri
S/o Late Sh. Havdu,
R/o B­266, Saraswati Vihar,
Delhi­110034                                                ...Defendants

Date of Institution of the Suit                 :           31.03.2009
Date on which order was reserved                :           14.02.2014
Date of decision                                :           28.02.2014


J U D G M E NT
1. Vide   this   judgment   I   shall   dispose   off   the   suit   for   specific 
  performance, perpetual and mandatory injunction filed by the 
  plaintiff. 
2. Brief facts are  it is stated  that in the  first week of November, 


Suit No. 184/14
Sh. Ravi Kumar Vs. Shiv Charan & Ors.                                             1/22 
                                          2

  2007 the defendant no. 2 introduced himself as Shiv Sharan Lal 
  S/o   Sh.   Havdu   Singh   and   represented   him   as   the   owner   in 
  possession of the plot bearing no. 265, Block and Pocket C­2, 
  Sector   32,   are   measuring   32   Sq.   mtrs.   Situated   in   Rohini 
  Residential   Scheme,   Delhi(hereinafter   referred   to   as   suit 
  property) and offered the said plot to the plaintiff for a total sale 
  consideration of Rs. 13,17,000/­
3. It is stated  that on the  above assurance, the plaintiff  paid Rs. 
  1,50,000/­ as advance/Bayana money to the said defendant no. 
  2 who represented himself as defendant no. 1 i.e Sh. Shiv Sharan 
  Lal on 13.11.2007 and thereafter defendant no. 2 issued advance 
  receipt to the  plaintiff  duly signed  by the  defendant  no. 2 on 
  behalf of himself and his wife in the presence of plaintiff and 
  two   other   witnesses.   It   is   further   stated   that   at   the   time   of 
  signing   the   said   advance   receipt,   the   defendant   no.   2   also 
  supplied the photocopies of DDA allotment documents such as 
  allotment letter, payment receipts and possession letter etc., to 
  the plaintiff to make sure that the defendant no. 2 was a genuine 
  allottee of the suit property. It is stated that thereafter plaintiff 
  requested   defendant   no.   2   several   times   to   comply   with   the 
  terms   and   conditions   of   agreement   in   question,   but   the 
  defendant   no.   2   avoided   to   comply   the   same   and   also   side 
  tracked the issue on false pretext and the plaintiff feeling some 


Suit No. 184/14
Sh. Ravi Kumar Vs. Shiv Charan & Ors.                                             2/22 
                                           3

  foul   play   from   the   side   of   the   defendant   no.   2   enquired   the 
  matter and came to know that the defendant no. 2 infact was 
  not   Shiv   Narain   Lal,   whereas   defendant   no.   2   was   actually 
  known as R.S.Shastri @ Raghuvir Singh. On enquiry with regard 
  to the identity of the defendant no. 2, the defendant no. 2 did 
  not   give   any   satisfactory   reply.   Having   no   other   option,   the 
  plaintiff filed a criminal complaint dated 10.03.2008 with the PS 
  Saraswati   Vihar,   Delhi.   Thereafter   on   refusal   by   the   police   to 
  take any action an appropriate complaint U/s 156(3) Cr.PC had 
  been filed by the plaintiff. 
4. It is further stated that in the meanwhile, IO filed status report 
  stating   that   defendant   no.   1   was   not   residing   at   the   address 
  given in the suit and he was residing in the village and was the 
  real   brother of defendant no. 2. In the meanwhile, defendant 
  no.   2   filed   a   suit   for   permanent   injunction   and   declaration 
  bearing suit no. 465/2008, which is pending in the court of Ld. 
  Civil Judge, THC. In the said suit defendant no. 1 has admitted 
  the   execution   of   Bayana   receipt   dated   13.11.2007,   receipt   of 
  advance of Rs. 1,50,000/­ and also admitted the signatures on 
  the said receipt in order to save defendant no. 2.
5.  It is stated that plaintiff was always ready and willing to perform 
  his   part   of   agreement   in   question   and   defendant   had   turned 
  dishonest   on   account   of   rise   in   the   price   of   the   plots   in   the 


Suit No. 184/14
Sh. Ravi Kumar Vs. Shiv Charan & Ors.                                               3/22 
                                           4

  market and was negotiating the same with other persons.
6. Plaintiff has prayed that   a decree of specific performance   be 
  passed in his favour directing the defendants to complete the 
  necessary formalities upto lease deed and to perform their part 
  of   the   agreement   by   executing   the   sale   deed/documents   in 
  favour   of   the   plaintiff   in   respect   of   the   suit   property   and   on 
  refusal/failure on the part of the defendants to do so, the court 
  may direct the completion of sale deed on his behalf in favour of 
  plaintiff   alongwith   relief   of   permanent   injunction   restraining 
  the   defendants   from   selling,   alienating   or   parting   with   the 
  possession  of the  suit property  to any third  person  alongwith 
  further relief directing the defendants to get lease deed executed 
  in respect of the suit property. 
7. Common written statement has been filed on behalf of both the 
  defendants   in   which   it   is   stated   that   the   suit   has   not   been 
  properly valued for the purposes of court fees and jurisdiction 
  and the suit is not maintainable against defendant no. 2, against 
  whom no cause of action had been disclosed. 
8. On   merits,   it   is   stated   that   infact   true   facts   are   that   the 
  transaction regarding the sale and purchase of the suit property 
  was  done  between   the   plaintiff,  defendant  no. 1  and  his  wife 
  and defendant no. 2 has nothing to do with the same and the 
  plaintiff was trying to mislead the court. It is further stated that 


Suit No. 184/14
Sh. Ravi Kumar Vs. Shiv Charan & Ors.                                              4/22 
                                           5

  on 13.11.2007 defendant no. 1 and the plaintiff decided to deal 
  with the suit property, the plaintiff  at the same  time  paid Rs. 
  1,50,000/­   in   cash   as   a   token   amount/earnest   money   to   the 
  defendant no. 1 for a total sale consideration of Rs. 13,17,000/­ 
  only.   The   advance   receipt   for   receiving   the   said   amount   was 
  issued by defendant no. 1 only  on 13.11.2007 in the presence of 
  two   witnesses.  At  the  time  of  receipt    of  the  said  payment  of 
  earnest money by the defendant no. 1, the defendant no. 1  gave 
  the   opportunity   to   the   plaintiff   to   inspect   the   suit   property 
  which was also done by the plaintiff and it was agreed between 
  the parties that the vacant possession of the Suit property shall 
  be handed over to the plaintiff as it is, on or before 28.01.2008 
  after receiving the balance amount. 
9. It is further stated that at the time of drafting the said receipt it 
  was mutually agreed between the parties that the said receipt 
  advance   shall   only   be   considered   as   Bayana   agreement   and 
  accordingly 28.01.2008   shall be considered as the last date for 
  the performance of the respective duties of each of the party i.e 
  payment   of  balance  amount  by  the  plaintiff  to   the   defendant 
  and after receiving the payment, the execution of the transfer 
  documents by the defendant no. 1 in favour of the plaintiff. 
10.It is further stated that till 28.01.2008 which was the last date as 
  per   the   receipt,   the   plaintiff   did   not   take   any   interest   in   the 


Suit No. 184/14
Sh. Ravi Kumar Vs. Shiv Charan & Ors.                                               5/22 
                                          6

  performance   of   his   duties   as   per   the   said   agreement   and 
  accordingly   an   advance   of   Rs.   1,50,000/­   was   forfeited   by 
  defendant  no. 1. In   the   month   of February  2008,   the   plaintiff 
  approached   defendant   no.   1   to   execute   the   documents   of 
  transfer   of   suit   property   in   pursuance   of   the   aforesaid 
  agreement   and   told   the   defendant   no.1     to   revive   the   said 
  agreement or face dire consequences. It is absolutely denied the 
  said receipt dated 13.11.2007 was executed by defendant no. 2 
  impersonating   himself   as   defendant   no.1     It   is   stated   that 
  plaintiff has filed a complaint before the police and the court. 
  However it is not denied that defendant no. 2 is the real brother 
  of defendant no 1. Therefore it is stated that suit of the plaintiff 
  is without any cause of action and is liable to be dismissed. 
11.Replication   has   been   filed   by   the   plaintiff   to   the   aforesaid 
  written statement of defendants, in which the allegations made 
  in the written statement have been denied and those made in 
  the plaint have been reaffirmed as correct. 
12.Vide   order   dated   27.02.07,   from   pleadings   of   the   parties 
  following issues were framed:­
               Issues
                1.  Whether plaintiff is entitled for decree  
                  of   specific   performance   in   lieu   of   the  
                  bayana receipt dated 13.1107 ?(OPP)

Suit No. 184/14
Sh. Ravi Kumar Vs. Shiv Charan & Ors.                                         6/22 
                                          7

               2. Whether   the   suit   is   maintainable   in  
                  the present form ? OPP
               3. Whether parties have performed their  
                  respective   parts   as   per   agreement   to  
                  sell ? OPD
               4. Relief, if any  
13.Plaintiff in support   of his case has examined himself as PW1. 
  He has also examined one attesting witness to the receipt dated 
  13.11.2007 namely Sh. Sri Kishan as PW2. Surprisingly, plaintiff 
  has examined one more witness Smt Sharda, wife of defendant 
  no.2 as PW3 ,  PW4 is Sh. Sh. Satpal Dahiya from the Income Tax 
  Department. In rebuttal defendant no.2 has appeared as DW1 
  and defendant no. 1 has appeared as DW2. 
14.I have heard Ld. counsel for the plaintiff Sh. S.R.Goel and Ld. 
  counsel for the defendant Sh. G.S.Hans and perused the record. 
15.My issue wise findings are as under:
  Issue No. 1 to 3
16.  All   these   issues   are   taken   up   together,   as   they   are 
  interconnected with each other. 
17. Agreement to sell dated 13.11.2007 is the most vital document 
  which contains the bargain of the parties. Same is reproduced 
  as under:



Suit No. 184/14
Sh. Ravi Kumar Vs. Shiv Charan & Ors.                                     7/22 
                                          8




Suit No. 184/14
Sh. Ravi Kumar Vs. Shiv Charan & Ors.             8/22 
                                            9



18.The   said   agreement   to   sell   is   admitted   document   of   both   the 
  parties. However, it is the matter in controversy, whether the said 
  document was executed by defendant no.1 or defendant no. 2, as 
  it   is   the   contention   of   the   plaintiff   that   defendant   no.   2 
  impersonated himself as defendant no. 1, who is his real brother 
  and executed the said documents on his behalf without disclosing 
  the   said   fact   to   the   plaintiff.   Defendant   no.   1   in   his   written 
  statement has stated that he had executed the said document Ex­
  PW1/1 which is also his stand in his evidence recorded as PW2. 
  This   question   is   immaterial   in   the   present   case   as   to   who   has 
  actually executed the said document Ex­PW1/1, as defendant no. 
  1   admits   that   he   had   executed   the   same,   even   if   it   was   falsely 
  executed by defendant no. 2 impersonating himself on behalf of 
  defendant no.1 even in that case since defendant no. 1 had ratified 
  the same, the controversy whether defendant no. 2 is thus liable 
  for   criminal   liability   or   not   is   beyond   the   scope   of   the   present 
  proceedings. That  is   to   say   that  the  identity  of  the  person  who 
  actually executed agreement to sell Ex­PW1/1 is not material to 
  the fact in issue of the present case in view of the ratification of the 
  same by defendant no. 1. 
19.In the present case, it is also admitted by defendant no. 1 that he 
  had received the   consideration amount  of  Rs. 1.5 lacs.  It is the 


Suit No. 184/14
Sh. Ravi Kumar Vs. Shiv Charan & Ors.                                               9/22 
                                          10

  contention   of   the   plaintiff   that   despite   various   requests   and 
  reminders defendant no.1   did not do anything in furtherance of 
  the terms of agreement to sell. In the meanwhile, he came to know 
  that defendant no. 2  impersonated himself on behalf of defendant 
  no.1 and therefore he had lodged a complaint with the police on 
  10.03.08 which is Ex­PW1/2 and the failure on the part of police to 
  take any  action, he filed a criminal complaint which is Ex­PW1/3. 
  It is the contention of defendant no. 1 that it was the plaintiff who 
  did not pay the remaining consideration amount before the date 
  stipulated in the agreement i.e 28.01.08 and therefore his advance 
  was forfeited. Defendant no. 1  barring his bald statement has not 
  produced any document on record wherein he had notified to the 
  plaintiff that he had not taken any effective steps for compliance 
  of the terms of Ex­PW1/1 within the time stipulated, therefore his 
  earnest money is liable to be forfeited, nor any such notice shortly 
  after the said date i.e 28.01.2008 was given to the plaintiff that he 
  had not complied with the terms of agreement to sell Ex­PW1/1 
  within   the   stipulated   period,   therefore   his   earnest   money   had 
  been forfeited. 
20.On the other hand, plaintiff stated that he was always ready and 
  willing   to   perform   his   part   of   contract.   The   word   "readiness" 
  denotes   financial   capacity   to   perform   the   agreement,   whereas 
  "willingness" denotes the intention to perform  the contract at all 


Suit No. 184/14
Sh. Ravi Kumar Vs. Shiv Charan & Ors.                                        10/22 
                                          11

  material times. The plaintiff in this case has shown that he had the 
  intention   or   willingness   to   go   ahead   with   the   agreement   Ex­
  PW1/1, as he had even filed criminal complaint Ex­PW1/2 dated 
  10.03.2008 and it is the contention of the plaintiff that he had also 
  purchased non judicial stamp papers for executing the sale deed, 
  in this regard he has proved the relevant treasury challans which 
  are collectively Ex­PW1/5 for the purchase of stamp papers and he 
  had   even   purchased   the   stamp   papers   for   the   value   of   Rs. 
  1,00,200/­.   Though   the   stamp   papers   were   purchased   by   one 
  Amrender Kumar, S/o Late Sh. R.P.Singh who had purchased the 
  same on 28.01.2008. PW1 in his cross examination has stated that 
  the said stamp papers were purchased by his nominee. 
21.Though   he   has   not   produced   any   document   regarding   the 
  appointment   of   nominee   by   him.   However,   it   is   common 
  knowledge that a person who buys the property is not bound to 
  purchase the stamp papers himself and he can send to anyone  to 
  buy the stamp papers on his behalf and the person who actually 
  applies to the treasury for buying those stamp papers has to fill in 
  certain challans as per Treasury rules and in the present case the 
  said   challan   had   been   filled   up   by   somebody  else   on   behalf   of 
  plaintiff.   Since   the   said   stamp   papers   photocopy   of   which   has 
  been placed which are Ex­PW1/5  have been placed on the record 
  by   the   plaintiff   and   same   pertain   to   the   suit   property   only. 


Suit No. 184/14
Sh. Ravi Kumar Vs. Shiv Charan & Ors.                                           11/22 
                                          12

  Therefore   it   is   hard   to   imagine   in   these   circumstances   that 
  anybody   else   would   have   applied   for   the   stamp   papers   on   the 
  same   date   i.e   the   date   stipulated   on   28.01.2008   or   that   if   the 
  plaintiff     through   his   nominee   would   not   have   applied   for   the 
  same, then he would not have been in possession of such stamp 
  papers from treasury. Therefore it shows that plaintiff indeed had 
  applied for the issuance of stamp papers for the execution of the 
  sale deed which had to be executed with regard to the agreement 
  to sell in question. As per clause 2 & 3 of the above Ex­PW1/2, it is 
  apparent that full and final payment was to be given to defendant 
  no.1 after execution of lease deed. 
22.In the present case it appears that the execution of lease deed was 
  a   pre­requisite   for   paying   the   final   remaining   consideration 
  amount to the defendant no. 1 and since defendant no. 1 had not 
  taken   the   requisite   steps   for   execution   of   the   lease   deed   with 
  respect   to   the   suit   property,   the   plaintiff   did   not   handover   the 
  remaining   sale   consideration   amount   to   him.     Infact   DW2   i.e 
  defendant no. 1 has stated in his cross examination that he does 
  not remember the condition of the lease deed, whether the last 
  and balance payment was to be made only after execution of lease 
  deed   and   he   did   not   knew,   whether   the   lease   deed   was   in   his 
  favour and he stated that he does not even remember the terms 
  and conditions of the agreement in question. In his further cross 


Suit No. 184/14
Sh. Ravi Kumar Vs. Shiv Charan & Ors.                                            12/22 
                                          13

  examination he has stated that it is correct that he got executed 
  the lease  deed in his  favour from the office of DDA at his own 
  expenses   and     it   was   also   correct   that   all   the   formalities   and 
  documents were filed by him to get the lease deed and the said 
  lease deed was registered on 21.10.2008 in his favour. 
23.From the aforesaid cross examination of DW2 i.e defendant no. 1 
  it is apparent that he was not even aware, what were the terms of 
  agreement to sell Ex­PW1/1 with regard to the lease deed, whether 
  it was a sine qua non for the  completion of terms of agreement to 
  sell or not and infact he later on at his own expenses got the lease 
  deed  executed in his favour from the office of DDA, but same was 
  done much later on i.e on 21.10.2008. He even does not know that 
  the remaining consideration amount had to be paid to him after 
  the execution of lease deed. If the lease deed was not necessary for 
  perfecting the title of defendant no.1 then why he got it executed 
  later   on   from   the   office   of   DDA   at   his   own   cost   and   expenses. 
  Therefore   it   appears   that   parties   had   consented   that   the   final 
  payment was to be  made to defendant no. 1 only after execution 
  of  lease  deed in his  favour  which was to  be  done on or before 
  28.01.2008 as per Ex­PW1/1. 
24.Though the plaintiff has also not placed on record any document 
  to   show  his   financial   solvency   i.e   whether   he  had   the   financial 
  means to go ahead with the transaction in question i.e whether he 


Suit No. 184/14
Sh. Ravi Kumar Vs. Shiv Charan & Ors.                                             13/22 
                                          14

  had   remaining   consideration   amount   ready   and   available   with 
  him, at all material times. Since he has not produced any bank 
  account or any other document from which it could be gathered 
  that he had the necessary means to go ahead with the transaction 
  in question. However, at the same time defendant no.1   has also 
  failed to perform his part of the contract as lease deed in question 
  in his favour was executed only on 21.10.2008 at his own cost and 
  expenses.   No   plausible   explanation   has   been   furnished   by 
  defendant no.1  if the lease deed was executed on 21.10.2008 at his 
  own  cost and expenses  then  why it  was  not done on or  before 
  28.01.2008 as stipulated in Ex­PW1/1. The plaintiff was under an 
  obligation to pay the remaining consideration amount only after 
  execution   of   lease   deed   which   was   to   be   done   on   or   before 
  28.01.2008 as per Ex­PW1/1, therefore it cannot be said that the 
  plaintiff is in breach of the terms of  agreement to sell Ex­PW1/1 
  rather it appears that it is only the defendant no. 1   who was in 
  breach of the terms of the agreement to sell Ex­PW1/1. 
25.Now   the   question   which   arises   for   consideration   is   whether 
  whether   specific   performance   of   the   contract   dated   13.11.2007 
  should   be   granted   to   the   plaintiff   or   not   in   the   facts   and 
  circumstances of the present case. It is settled law that by virtue of 
  Section   20   of   the   Specific   Relief   Act,   the   relief   for   specific 
  performance lies in the discretion of the court and the court is not 


Suit No. 184/14
Sh. Ravi Kumar Vs. Shiv Charan & Ors.                                           14/22 
                                            15

  bound to grant such relief merely because it is lawful to do so.  The 
  exercise of the discretion to order specific relief would require the 
  court   to   satisfy   itself   that   the   circumstances   are   such   that   it   is 
  equitable to grant decree for specific performance of the contract. 
  Law   in   this   regard   has   been   laid   down   in   the   following 
  judgments :­


                "In K. Narender V. Riviera Apartments (P) 
                Ltd.,   (1995)   5   SCC   77,   the   court   observed 
                thus :­

                Section 20   of the Specific Reilef Act, 1963, 
                provides   that   the   jurisdiction   to   decree 
                specific   performance   is   discretionary   and 
                the court is not bound to grant such relief  
                merely   because   it   is   lawful   to   do   so;   the  
                discretion of the court is not arbitrary but  
                sound  and   reasonable,   guided   by   judicial  
                principles   and   capable   of   correction   by   a 
                court   of   appeal.     Performance   of   the  
                contract   involving   some   hardship   on   the  
                defendant   which   he   did   not  foresee   while 
                non­performance   involving   no   such 
                hardship   on   the   plaintiff,   is   one   of   the  
                circumstances   in   which   the   court   may 
                properly   exercise   discretion   not   to   decree 
                specific   performance.   The   doctrine   of 
                comparative   hardship   has   been   thus 
                statutorily  recognized   in   India.     However, 
                mere   inadequacy   of   consideration   or   the  
                mere fact  that the contract is onerous to the  

Suit No. 184/14
Sh. Ravi Kumar Vs. Shiv Charan & Ors.                                                15/22 
                                          16

               defendant   or   improvident   in   its   nature,  
               shall not constitute  an unfair advantage to 
               the   plaintiff   over   the   defendant   or 
               unforeseeable hardship on the defendant.  

               In A. C. Arulappan V. Ahalya Naik, (2001) 6  
               SCC  600, the court observed thus :­

               The jurisdiction to decree specific relied is  
               discretionary   and   the   court   can   consider 
               various   circumstances   to   decide   whether  
               such relied is to be granted.  Merely because  
               it is lawful to grant specific relief, the court 
               need not grant the order for specific relief; 
               but this discretion shall not be exercised in 
               an   arbitrary   or   unreasonable   manner. 
               Certain   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.     If   under   the   terms   of   the  
               contract   the   plaintiff   gets   an   unfair  
               advantage   over   the   defendant,   the   court 
               may not exercise its discretion in favour of  
               the plaintiff.  So also, specific relief may not  
               be granted if the defendant would be put to  
               undue hardship which he did not foresee at 
               the time of agreement.  If it is inequitable to  
               grant   specific   relief,   then     also   the   court  
               would desist from granting a decree to the 
               plaintiff.

               In Bal Krishna V. Bhagwan Das (2008) 12  
               SCC 145, the court opined thus :­


Suit No. 184/14
Sh. Ravi Kumar Vs. Shiv Charan & Ors.                                            16/22 
                                          17


               It is also settled by various decisions of this  
               court that by virtue of section 20 of the Act,  
               the relief for specific performance lies in the  
               discretion of the court and the court is not  
               bound to grant such relief merely because it  
               is   lawful   to   do   so.     The   exercise   of   the  
               discretion   to   order   specific   performance 
               would require the court to satisfy itself  that  
               the   circumstances   are   such   that   it   is  
               equitable   to   grant   decree   for   specific  
               performance   of   the   contract.     While  
               exercising   the   discretion,   the   court   would 
               take in to consideration the circumstances  
               of the case, the conduct of parties, and their  
               respective interests under the contract.   No  
               specific performance of a contract, though 
               it   is   not   vitiated   by   fraud   or 
               misrepresentation,   can   be   granted,   if   it  
               would   give   an   unfair   advantage   to   the 
               plaintiff and where the performance of the  
               contract   would  involve   some   hardship   on 
               the defendant, which he did not foresee.  In  
               other words, the court's discretion to grant 
               specific performance is not exercised if the  
               contract is not equal and fair, although the  
               contract is not void."

26.It  was   further   held   in  judgment  JT  2011  (8)  SC  129  (supra)  in 
  which   the   Hon'ble   Supreme   Court   has   relied   upon   its   earlier 
  judgment rendered in case titled as "K. S. Vidyanandan & ors. Vs.  
  Vairavan   JT   1992   (2)   SC   375"  and   the   Hon'ble   Apex   Court 


Suit No. 184/14
Sh. Ravi Kumar Vs. Shiv Charan & Ors.                                             17/22 
                                          18

  reiterated the ratio of the said judgment in para no. 28 as under :­


               "28.   Till   the   issue   is   considered   in   an  
               appropriate   case,   we   can   only   reiterate  
               what   has   been   suggested   in   K.   S. 
               Vidyanadam (Supra) :­

                  (i). Courts, while exercising discretion in  
                  suits   for   specific   performance   should 
                  bear   in   mind   that   when   the   parties  
                  prescribed   a   time   /   period   for   taking  
                  certain   steps   or   for   completion   of   the  
                  transaction,   that   must   have   some 
                  significance and therefore time / period  
                  prescribed cannot be ignored.  

                  (ii).   Courts   will   apply   greater   scrutiny  
                  and strictness when considering whether 
                  the purchaser was ready and willing to 
                  perform his part of the contract. 

                  (iii). Every suit for specific performance 
                  need not be decreed merely because it is  
                  filed within   the   period of  limitation  by  
                  ignoring the time  limits stipulated in the 
                  agreement.  Courts will also frown upon 
                  suits   which   are   not   filed   immediately 
                  after the breach / refusal.   The fact that  
                  limitation is three years does not mean a 
                  purchaser can wait for 1 or 2 years  to file 
                  a suit and obtain specific performance.  
                  The   three   year   period   is   intended   to 
                  assist purchasers in special cases, as for  


Suit No. 184/14
Sh. Ravi Kumar Vs. Shiv Charan & Ors.                                         18/22 
                                          19

                  example   where   the   major   part   of   the  
                  consideration   has   been   paid   to   the  
                  vendor   and   possession   has   been  
                  delivered   in   part   performance,   where 
                  equity shifts in favour of the purchaser."

27.Further in a judgment rendered by Hon'ble High Court of Delhi 
  in   case   titled   as   "Laxmi   Devi   Vs.   Mahavir   Singh,   RFA   No. 
  554/2011 on 01.05.2012" the relevant para(s) no. 11, 12 and 13 of 
  which are reproduced as under :­


               "11.... There are two reasons for declining 
               the   discretionary   relief   of   specific  
               performance.    The   first   reason   is   that   the  
               Supreme   court   has   now   on   repeated 
               occasions   held   that   unless   substantial  
               consideration   is   paid   out   of   the   total  
               amount of consideration, the courts would  
               lean   against   granting   the   specific  
               performance   in   as   much  as   by   the   loss   of 
               time, the balance sale consideration which  
               is   granted     at   a   much   later   date,   is   not  
               sufficient   to   enable   the   proposed   seller   to  
               buy   an   equivalent   property   which   could  
               have   been   bought   from   the   balance   sale 
               consideration if the same was paid on the  
               due   date.     In   the   present   case,   out   of   the  
               total   sale   consideration   of   Rs.   5,   60,000/­,  
               only a sum of Rs. 1 lakh has been paid i.e.  
               The sale consideration which  is  paid  only  
               around 17% or so.  In my opinion, by mere 


Suit No. 184/14
Sh. Ravi Kumar Vs. Shiv Charan & Ors.                                               19/22 
                                          20

               payment of 17% of the sale consideration, it 
               cannot   be   said   that   the   respondent   /  

plaintiff has made out a case for grant of discretionary relief of specific performance.

12. The Supreme court in the judgment reported as K. S. Vidyanadam Vs. Vairavan 1997 (3) SCC 1 has held that in urban areas these days property prices remaining stable for a long period of time is very much a thing of past. In urban areas, more so in the metropolitan cities and further more so in the capital of the country i.e. Delhi, prices of immovable properties rise in a sharp manner and that too regularly. The Supreme Court in the judgment K. S. Vidyanadam (Supra) has observed that delays caused in specific performance is a good ground for declining the specific performance with respect to urban immovable properties. The ratio of the supreme court in the case of K. S. Vidyanadam (supra) has been recently reiterated by the supreme court in the judgment reported as Saradamani Kandappan V. S. Rajalakshmi (2011) 12 SCC 18.

13. In my opinion, the following conclusions can therefore be arrived at :­ ....... ...... .....

(iii). The respondent / plaintiff is disentitled to discretionary relief of specific performance having paid only 17% of the Suit No. 184/14 Sh. Ravi Kumar Vs. Shiv Charan & Ors. 20/22 21 sale consideration.

(iv). Discretion is also exercised against grant of specific performance in as much as today in the year 2012, or in April 2011, when the impugned judgment and decree was passed, the appellant / defendant would not be able to busy an equivalent property for the price prevailing as on the date of the agreement to sell i.e. 20.09.2007 considering that only 17% of the price had been paid initially."

28.In the present case, the plaintiff had admittedly only paid an amount of Rs. 1,50,000/­ as earnest money at the time of entering into agreement to sell and purchase dated 13.11.2007 out of total consideration amount of Rs. 13,17,000/­, which comes to less than 15% of the total consideration amount. Therefore almost more than 85% of the total consideration amount was not paid. Therefore it can be said that at the time of execution of agreement to sell dated 13.11.2007, only a small amount out of the total consideration was paid and substantial amount i.e. more than 85% is still to be paid.

29.Judicial notice can be taken of the fact that there has been astronomical increase in the land prices in Delhi in the last few decades. If specific performance is ordered now in favour of the plaintiff and against the defendant no.1, then the defendant no. 1 cannot buy equivalent property anywhere in Delhi with the Suit No. 184/14 Sh. Ravi Kumar Vs. Shiv Charan & Ors. 21/22 22 balance consideration amount of Rs. 11,67,000/­, which he would have been able to do, in the year 2007. Even otherwise, it is settled law that comparative hardship of the parties has also to be seen, while directing the specific performance of the contract and the court may not grant specific relief of the contract, if the plaintiffs get an unfair advantage over the defendant or if the defendant would be put to undue hardship.

30.In view of the facts and circumstances of the present case, it would be highly unequitable to order specific performance of contract dated 31.08.2004 in favour of the plaintiff and against the defendant no. 1. However on the grounds of equity and in the interest of justice, as per section 73 of the Indian Contract Act, the plaintiff is only entitled to reasonable damages for any loss or damage caused to him due to breach of the contract, which naturally arose in the usual course of things from such breach. In the interest of justice, in my opinion, in the facts and circumstances of the present case, the plaintiff will only be entitled to return of the amount of Rs. 1,50,000/­ paid as advance / earnest money from defendant no.1 along with interest @ 15% per annum from the date of agreement i.e. 13.11.2007 till the date of its realization along with costs of the suit. Since there is no privity of contract between plaintiff and defendant no. 2. Therefore there is no cause of action for filing the present suit against defendant Suit No. 184/14 Sh. Ravi Kumar Vs. Shiv Charan & Ors. 22/22 23 no. 2. Issues no. 1, 2 & 3 are answered accordingly. (RELIEF)

31. In view of my findings on above issues discussed above, the plaintiff is held not entitled to the specific performance of the contract dated 13.11.2007 and he is only held entitled to return of the amount of Rs. 1,50,000/­ paid as earnest money from the defendant no. 1 only along with interest @ 15% per annum from the date of agreement i.e. 13.11.2007 till its realization along with costs. Plaintiff is also held not entitled to the relief of perpetual and mandatory injunction.

32.Decree sheet be drawn.

33.File be consigned to record room.

ANNOUNCED IN THE OPEN (Sanjeev Aggarwal) COURT ON 28.02.2014 ADJ(N/W) Rohini Courts Delhi/28.02.2014 Suit No. 184/14 Sh. Ravi Kumar Vs. Shiv Charan & Ors. 23/22