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Showing contexts for: unilateral in Surjit Singh Bhatia & Anr. vs Tej Raj Singh Goel (Goel) on 25 May, 2016Matching Fragments
(NOC, hereafter) of other members of the family or coparceners was to be obtained before execution of the sale deed.
3. In the suit the plaintiff alleged that despite stipulation of a specific date (for completion of the sale transaction) which was the essence of the contract, the defendant did not honor his commitments in that the NOCs of the coparceners were not made available. Furthermore the coparceners were not in India at the time the Agreement to Sell was entered into. It was alleged that the defendant unilaterally granted a one-time extension to the plaintiff alleging that the latter was in default of compliance with the terms of the agreement in its letter of 08.10.2008; the extension was up to 15.11.2008. The plaintiff protested the letter contending that he was always ready and willing to perform his contract and highlighted that the defendant on the other hand had not complied with the time requirements. The plaintiff alleged further in the suit that in accordance with the agreement and in order to facilitate compliance he had applied-on behalf of the defendants to the Municipal Corporation of Delhi ("MCD") for appropriate clearance in respect of the construction on the suit property. The suit mentioned a notice of 04.12.2008 to the defendant drawing attention to a condition of the agreement i.e. cl. 14 which highlighted that time was the essence of the contract and the parties were bound to adhere to it. The defendant on the RFA (OS) 160/2014 Page 2 other hand submitted that the plaintiff did not make any specific commitments as regards the date and time by which all members of the HUF would be available in New Delhi for completion of the sale transaction and executing the registered sale deed. It was submitted that in this background of circumstances the so-called extension of time was entirely sham and bogus and that the defendant deliberately took no steps to discharge his obligations. The plaintiff wrote a letter on 15.01.2009 protesting against the defendant's conduct and alleged about having suffered losses; the plaintiff also complained about the defendant's lack of interest in performing their obligations.
4. The defendant once again by letter of 24.01.2009 unilaterally extended the time by 15 days for performance of the contract. The plaintiff denies ever having asked for this extension and on the other hand relies upon the terms of its letter of 04.02.2009 through its counsel. This letter reiterated that the defendant had committed a breach of agreement to sell and miserably failed to perform its part of the contract. The defendant time and again continued to extend the time for performance of the contract, insisting that the obligations under the Agreement to Sell continued to bind parties. The plaintiff submits that at the time the reply and the letters of the defendant were sent to it, the suit property had become nonmarketable on account of an order of the Debt Recovery Tribunal (DRT) of 16.01.2009 attaching the suit property. The defendant had filed an appeal to the Debt Recovery Appellate Tribunal (DRAT). On account of these the defendant would not have complied with the agreement to sell, and conveyed the title yet it continued to insist that the obligations could be discharged. The plaintiff alleged that throughout this time, the defendant negotiated the sale RFA (OS) 160/2014 Page 3 of property with various third parties for amounts higher than the consideration agreed under the contract with the plaintiff. In May 2009 the plaintiff was shocked to learn that the defendant had dishonestly concealed from him about the attachment of the property by the DRT through the order of 10.07.2001. The plaintiff obtained information and documents from the DRT and realized that the defendant had deliberately concealed material facts. It was asserted that in the note received in August 2009 the Defendant approached the plaintiff and assured that it had every intention of completing the sale transaction and that it would take all possible steps to settle its disputes with the Bank which had approached the DRT. The plaintiff had complained to the police; the defendant requested that the complaint may be withdrawn. Alleging that the defendant was negotiating for the sale of the property to a third party the plaintiff approached the court seeking the decree for specific performance.
9. Mr. Samar Bansal, advocate arguing for the appellant emphasized that at no stage did the plaintiff seek extension of time for performance of his part of the bargain, and that even though the sale could not be completed by the date specified, i.e., 6.10.2008 (due to the defendant's inability to produce the No Objection Certificates), according to their admission extension was given till 15.11.2008 by letter dated 08.10.2008. This extension was unilateral; the plaintiff said so in his letter of 15.10.2008.
11. It was argued that unilateral extension of time was a deceitful tactic to delay the performance of the agreement. The defendant, significantly, did not show any specific commitment as regards the time by which all members of the HUF were to make themselves available for completion of the sale. Mr. Bansal highlighted that the suit property was no longer marketable because of a stay order attaching the property. He relied upon the terms of the order of the Debt Recovery Tribunal dated 16.01.2009 (Ex.PW-1/14). It was submitted that these facts were by design withheld and the defendant gave a false impression that there the suit property was not encumbered. Counsel also submitted that the attachment order continued until in due course the defendant settled his dues with the Bank, which had filed the claim proceedings before the DRT, in March 2010. That order clearly stated that `90 lakhs were paid by the defendant.